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Posts Tagged ‘SSDI’

Earning Work Credits for SSDI Disability Benefits

Tuesday, December 20th, 2011

Often claimants who have filed for SSDI benefits are told by the Social Security Claims Representative or receive a letter from Social Security in the mail informing them they do not have enough work credits to qualify for SSDI (Social Security Disability Insurance).

Almost all state they have worked their whole life, up until a few years ago, when they became ill and could only work part-time, or had to stop working, or worked sporadically and do not understand if they worked for a long period in the past why they are not eligible for SSDI.

Most Americans are unaware that in addition to meeting Social Security’s definition of disability you must have worked long enough –AND recently enough earning the required number of work credits within a certain period ending with the time you became disabled under Social Security to qualify for SSDI benefits.

Social Security measures work in “work credits.” You can earn up to 4 work credits per year based on the annual earnings. The amount of earnings required for a work credit increases each year as general wage levels rise.

The amount needed for a credit changes from year to year. In 2011, you earned one credit for each $1,120 of wages or self-employment income. When you’ve earned $4,480, you’ve earned your four credits for the year. In 2012, you will earn one credit for each $1130 in covered earnings wages to get one Social Security credit. When you’ve earned $4,520, you’ve earned your four credits for the year.

The number of work credits you need for SSDI benefits varies depending on your age and when you became disabled.

Workers over the age of 31 years old generally need 20 work credits earned in the last 10 years ending with the year they became disabled.

Workers who became disabled between the age of 24 – 31 years of age may qualify if they worked half the time between the age 21 and the time they became disabled, for example, if a claimant became disabled at age 27, the claimant would need credit for 3 years work (12 work credits) out of the past 6 years (between ages 21 and 27).

Workers who became disabled before the age of 24 years old may qualify for SSDI benefits if they have the minimum of 6 work credits earned in the 3 year period ending when your disability starts.

Most individuals filing for disability do not know their DLI (date last insured), AOD (alleged onset date – the date you believe you became disabled), and SGA (substantial gainful activity) / SGI (substantial gainful income) and how the correlation between these factors effect eligibility for SSDI.
The amending of an onset date or applying SGA rules to a claim requires a seasoned veteran whose daily ritual includes cutting thru Social Security’s red tape and is one of the best reasons to retain an attorney who works with Social Security Disability claims at all levels including the initial stage.

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Concerns about SSA funding continue–especially for SSDI benefits

Wednesday, August 31st, 2011

SSDI benefits exempt from many creditors, but funding hammered by high, chronic unemployment

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We’ve addressed this before, but with the debt-ceiling debate, US credit downgrade and endless political posturing, it’s probably a good time to once again discuss the financial health of Social Security overall and the SSDI and SSI programs in particular.

Experts warn of shortfalls in retirement and disability benefits

As we’ve written before, Social Security itself has been declared to be OK until about 2036; in other words, if nothing changes between now and then, the fund will be able to pay out only about 75 per cent of scheduled payments. Medicare is in slightly worse shape, but SSDI (Social Security Disability Insurance) will be busted sometime between 2015 to 2018.

SSDI could run dry as early as 2015

According to long Wall Street Journal piece on SSDI payments increasing in Puerto Rico (but also instructive for its good info on the SSDI national status), “The SSDI is set to soon become the first big federal benefit program to run out of cash—and one of the main reasons is U.S. states and territories have a large say in who qualifies for the federally funded program. Without changes, the Social Security retirement fund can survive intact through about 2040 and Medicare through 2029. The disability fund, however, will run dry in four to seven years without federal intervention, government auditors say.”

Applications have risen along with increased unemployment

According to an Aug. 22 account at Politico.com:

The Social Security disability fund is fast running out of money and may not be able to make payments starting in 2017, thanks in part to the bad economy driving claims up over the past decade, The Associated Press reported.

Applications for benefit claims have risen almost 50 percent in the past 10 years, as many people with disabilities are laid off and cannot find new jobs in the difficult job market. And, the AP added, the rush for benefits is causing a major backup for applicants currently waiting to get their cases decided.

The Congressional Budget Office estimates the disability trust fund will be exhausted by 2017 unless Congress acts. If the fund’s balance falls to zero, it cannot pay out full benefits unless the law is altered. And it’s not the only benefit fund that’s nearly insolvent: In 2040, the CBO projects, Social Security’s retirement fund will also be out of cash.

So, the exact years are in question, but the timeframes are roughly equivalent.

One concern: the ‘multiplier effect’

And it’s not only the SSDI direct benefits that add to the bill. From the NYT’s piece, which gives a dollar figure of benefits in Puerto Rico as averaging a “modest” $1,064 a month:

But the program opens up access for recipients to other government programs, multiplying the ultimate cost to taxpayers.

Anyone who spends two years on SSDI qualifies for the Medicare health program, which usually is available only for those 65 years old and older. SSDI recipients tend to remain tethered to the program for years, and the government’s lifetime financial commitment averages $300,000 per person, estimates David Autor, an SSDI expert who teaches at the Massachusetts Institute of Technology. “The system has profound problems,” Mr. Autor said.

SSDI’s financial woes pose a major test for the White House and Congress, which have been reluctant to tackle the budget-busting costs of entitlements.

Analysts who track the program say the only short-term way to save it without raising taxes would be to fold it into the fund that pays Social Security. That would likely force retirees to face benefit cuts two or three years sooner than they otherwise would have done, because SSDI costs would diminish retirement funds.

SS & SSDI fundings have been combined before

Various sources agree that Social Security (retirement) and SSDI (disability payments) were, in fact, temporarily combined in 1994, as a stopgap, emergency measure. What I’ve not understood, yet–although I do get it about the “multipliers–is how can payroll-funded benefits be such a problem?

In other words, if unemployment is the prime factor, i.e. joblessness strains the system via reduced payroll-tax contributions, then why doesn’t the system seem to care more about unemployment?

Weeding out beneficiaries who ‘sneak back to work’

SSI is not funded by payroll deductions but by the general revenue fund. In other words, a work history is not required to qualify. However, it is much more restrictive. According to the AP, a chronic problem–which we’ve reported about–is lack of review that would spot beneficiaries who have gotten work but kept taking benefits:

Today, about 13.6 million people receive disability benefits through Social Security or Supplemental Security Income. Social Security is for people with substantial work histories, and monthly disability payments average $927. Supplemental Security Income does not require a work history but it has strict limits on income and assets. Monthly SSI payments average $500.

As policymakers work to improve the disability system, they are faced with two major issues: Legitimate applicants often have to wait years to get benefits while many others get payments they don’t deserve.

Last year, Social Security detected $1.4 billion in overpayments to disability beneficiaries, mostly to people who got jobs and no longer qualified, according to a recent report by the Government Accountability Office, the investigative arm of Congress.

Delays can leave unpaid bills piled high

Another concern, according this piece at credit.com, is the delay and lag-time in receiving benefits. As mentioned, the influx of applicants from the unemployed adds to the delay. So what shape are beneficiaries in when they finally begin receiving payments?

For many recipients, Social Security Disability Income (SSDI) and/or Supplemental Security Income (SSI) are their financial lifeline. Their more immediate concern may not be what happens in Washington to save the program, but what happens today to the money they receive. I couldn’t find any statistics about how many SSDI and SSI recipients have past-due bills, but if our email is any indication, plenty of them are struggling and getting calls from creditors or debt collectors threatening to take the little income they do get each month. And because it takes so long to get approved for disability these days, applicants may find themselves already in the hole by the time they start receiving benefits.

Benefits not shielded from child support, taxes or student loans

However, there’s a bright spot in that few creditors can successfully come after these benefits. Again from credit.com: “For those who rely on these benefits, the good news is that they are generally protected from creditors and debt collectors. However there are exceptions in the case of past-due child support, past-due taxes, and federal student loans. “ ‘They can chase you (for student loans) to the grave,’ warns bankruptcy attorney Cathy Moran.”

Free evaluation available

Just remember, we can help connect you with a compatible, trained attorney who can help you with your case–if nothing else, it’s possible that an experienced attorney might be able to steer your case toward a more reasonable outcome.

Help is available whether you’re fighting denied or delayed benefits or whether creditors are threatening to attach benefits you’ve already received. Consider signing up for your free evaluation today.

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Three recent books address ‘mental health epidemic’

Thursday, June 30th, 2011

Numbers of reported afflicted great cause for concern

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A disturbing trend

A June 23 review of recent books at The New York Review of Books begins with this startling observation:

It seems that Americans are in the midst of a raging epidemic of mental illness, at least as judged by the increase in the numbers treated for it. The tally of those who are so disabled by mental disorders that they qualify for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) increased nearly two and a half times between 1987 and 2007—from one in 184 Americans to one in seventy-six. For children, the rise is even more startling—a thirty-five-fold increase in the same two decades. Mental illness is now the leading cause of disability in children, well ahead of physical disabilities like cerebral palsy or Down syndrome, for which the federal programs were created.

The review, entitled “The Epidemic of Mental Illness: Why?,” addresses three new works:

 

‘Astonishing 46 %’ meet criteria

You’ll have to read the whole thing to decide whether these books might be useful to you or someone you’d like to help, but we’ll leave you with one more passage from the review, before more commentary on the same:

A large survey of randomly selected adults, sponsored by the National Institute of Mental Health (NIMH) and conducted between 2001 and 2003, found that an astonishing 46 percent met criteria established by the American Psychiatric Association (APA) for having had at least one mental illness within four broad categories at some time in their lives. The categories were “anxiety disorders,” including, among other subcategories, phobias and post-traumatic stress disorder (PTSD); “mood disorders,” including major depression and bipolar disorders; “impulse-control disorders,” including various behavioral problems and attention-deficit/hyperactivity disorder (ADHD); and “substance use disorders,” including alcohol and drug abuse. Most met criteria for more than one diagnosis. Of a subgroup affected within the previous year, a third were under treatment—up from a fifth in a similar survey ten years earlier.

If any of this is close to the target, these are trends we can not ignore. The stats on children have to be particularly disturbing, even for the most hard-hearted among us.

Skepticism: ‘Researchers come up empty-handed’

However, what may be most disheartening for those whose loved ones suffer from these ailments is that all the modern hoo-haw about science and pharmacology might be just that: hoo-haw. Writing about the same three books, and the review itself, Jacob Sullum writes June 13 at Reason.com:

As those questions suggest, Angell seems to share the skepticism of the authors whose books she reviews: University of Hull psychologist Irving Kirsch, who in The Emperor’s New Drugs shows that antidepressants are only slightly more effective than placebos, so slightly that the difference may be attributable to stronger expectations of improvement primed by the drugs’ side effects; the journalist Robert Whitaker, who in Anatomy of an Epidemic argues that the “astonishing rise of mental illness in America” can be understood largely as an outgrowth of the desire to sell psychiatric drugs; and Daniel Carlat, a Boston psychiatrist who confesses his profession’s shortcomings in Unhinged: The Trouble With Psychiatry. Angell notes that “none of the three authors subscribes to the popular theory that mental illness is caused by a chemical imbalance in the brain.” She adds that “the main problem with the theory is that after decades of trying to prove it, researchers have still come up empty-handed.”

None of this can be comforting to anyone connected to a friend or loved one affected by mental illness. Imagine being stuck “in the system” trying to get SSI or SSDI benefits for someone so afflicted.

Delays in system back in the news

The system in general is infamous for its delays and backlog, although some announced efforts we’ve covered here have been targeted at reducing the wait times, which can linger from many months to years. Sadly, recent reports indicate those efforts are losing headway. According to a June 22 report in Baltimore City Paper:

The Social Security Administration (SSA) may be losing its battle against the backlog of disability cases, according to an analysis of its data by a New York-based nonprofit.

“In particular, the data show that while progress had initially been made, the hoped for reduction in backlogged matters ground to a halt in the last 12 months,” a report by the Transactional Records Access Clearinghouse (TRAC) says. “Since then the number of pending cases grew by 5 percent. More success has been achieved in reducing average wait times.”

We can help find an attorney

That’s good news about reducing wait times, but the backlogged cases is definitely not improvement. If you’re feeling “stuck in the system” after having trying to make a go of it by yourself, we understand. And we can help. Perhaps it’s time you reach out to a trained, experienced attorney who can guide you through the maze of federal bureaucracy. If so, please scroll down and, under the heading “Need Help With Your Disability Case?” please complete the online form to get a personal response to your case.

 

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If you’re contemplating either a SSI or SSDI claim, you simply must read this

Thursday, March 31st, 2011

03-31-2011

By Mike Hinshaw

A recent post at Digital Journal underscores the importance of retaining a trained, experienced attorney if you’re fighting for disability claims, regardless of whether it involves an SSI item or an SSDI claim:

At this moment, the Social Security Administration (SSA) is faced with the largest case backlog in history, due to the struggling economy and the corresponding rise in claims, which makes it more important than ever to handle your Social Security Disability Insurance (SSDI) claim with careful attention to detail, according to Disability Group, Inc., a leading national firm of SSDI attorney representation.

Because there are so many Social Security Disability Insurance or Supplemental Security Income (SSI) cases that need to be reviewed by the SSA, applicants now have the opportunity to influence how quickly claims are reviewed, and increase the likelihood of claims getting approved, in two critically important steps.

“So many people make the mistake of not doing two simple things,” says Patrick Ryan, Director of Operations for Disability Group, Inc. “There are two to-dos of applying for Social Security Disability Benefits, which any firm will tell any client.”

The Two To-Dos of Applying for Social Security Disability

    1. Securing Medical Records

When a disability claim is first handled, either at the initial level (when there has been no decision yet) or at the reconsideration level (after a social security disability denial), it is processed by a disability examiner at Disability Determination Services.

But the disability examiner at DDS is not always successful in obtaining all the necessary medical records. In fact, it is not unusual for disability examiners to make decisions on claims even if not all of the medical evidence is in the file. This will happen if a disability examiner simply has no success in getting the records from a particular doctor’s office, clinic, or hospital.

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    2. Respond to ALL Social Security Disability letters and notices promptly

A social security disability case can easily run into trouble if an official notice goes unanswered, especially if it requires some type of response with time constraints. In some cases, this means the difference between a denied claim and an awarded claim.

In all instances, a claimant for benefits based on disability should respond promptly to notices sent by either the Office of Hearings and Appeals (OHA) (the office of hearings and appeals), DDS (disability determination services), or the Social Security Field Office or District Office, where the claimant originally applied for benefits).

Surprisingly, a very large percentage of disability claimants do not respond to notices from these offices. Failure to respond causes delays and puts your social security disability claim in jeopardy. Always respond promptly to letters and notices sent by any office connected to the Social Security Administration. “It is easy to respond quickly to notifications from the OHA and the DDS when you have representation helping you through each step of your claim,” says Patrick Ryan, Director of Operations at Disability Group, Inc.

Agreed–that sounds like very good advice.

It’s also good to read the whole article, if you’ve got time. We realize you may not have the inclination. But, if nothing else, it shows the importance of retaining a trained, experienced attorney. This stuff can be overwhelming.

For a return to basics, here’s a post from February:

What is the difference between Social Security disability and SSI disability?

Social Security is responsible for two major programs that provide benefits based on disability:  Social Security Disability Insurance (SSDI), which is based on prior work under Social Security, and Supplemental Security Income (SSI).  Under SSI, payments are made on the basis of financial need.

Social Security Disability Insurance (SSDI) is financed with Social Security taxes paid by workers, employers, and self-employed persons.  To be eligible for a Social Security benefit, the worker must earn sufficient credits based on taxable work to be “insured” for Social Security purposes.  Disability benefits are payable to blind or disabled workers, widow(er)s, or adults disabled since childhood, who are otherwise eligible.  The amount of the monthly disability benefit is based on the Social Security earnings record of the insured worker.

Supplemental Security Income (SSI) is a program financed through general revenues.  SSI disability benefits are payable to adults or children who are disabled or blind, have limited income and resources, meet the living arrangement requirements, and are otherwise eligible.  The monthly payment varies up to the maximum federal benefit rate, which may be supplemented by the State or decreased by countable income and resources.  See Understanding Supplemental Security Income for an explanation of SSI benefit payment rates.

God bless–we understand that anybody reading this information may be in serious trouble. All we’re doing is trying to help.

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Take advantage of all resources when researching, planning for disability

Monday, January 31st, 2011

When you enter the world of disability benefits, it’s easy to become confused. The variety of agencies, bureaus and offices; the forms, paperwork, and regulations: together, everything can seem like a maze.

We have a wealth of resources available at this site, plus our blogs often link to useful, informative external sites.

Glossary more useful than one might think

A sometimes overlooked resource is our glossary, where you can find often used terms, perform a glossary search, or browse by alpha-sorted topics. When researching disabilities, symptom or benefits, it’s pretty common to encounter unknown or confusing terms. If that happens, the glossary is a good first place to start because it’s not limited to simple definitions–you can also learn about related items or processes.

SSA rules the benefits world

For anyone needing information on any program or benefits overseen by the Social Security Administration, the obvious starting place is the SSA’s homepage, which has many useful links, such as:

Apply for benefits

Apply for Medicare

Estimate your retirement benefits

Get help with your situation

Strict criteria

However, there are also more specific, targeted pages. Here’s the SSA’s main disability page, including this intro copy:

The Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities. [Although] these two programs are different in many ways, both are administered by the Social Security Administration and only individuals who have a disability and meet medical criteria may qualify for benefits under either program.

Social Security Disability Insurance pays benefits to you and certain members of your family if you are “insured,” meaning that you worked long enough and paid Social Security taxes.

Supplemental Security Income pays benefits based on financial need.

When you apply for either program, we will collect medical and other information from you and make a decision about whether or not you meet Social Security’s definition of disability.

Use the Benefits Eligibility Screening Tool to find out which programs may be able to pay you benefits.

Everyone needs to consider the possibility of disability

The main SSDI page contains this important insight (emphasis added): “Disability is a subject you may read about in the newspaper, but not think of as something that might actually happen to you. But your chances of becoming disabled are probably greater than you realize.

“Studies show that a 20-year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age.

“[Although] we spend a great deal of time working to succeed in our jobs and careers, few of us think about ensuring that we have a safety net to fall back on should we become disabled . . . .”Another helpful site is that of the CDA, the Council for Disability Awareness. Its “Chances of Disability” page mirrors the language on the SSDI page:

You, disabled? What are your chances?

Higher than you probably think. You can ignore the problem, but it’s hard to ignore the facts:

  • Almost one-third of Americans entering the work force today (3 in 10) will become disabled before they retire.
  • Freak accidents are NOT usually the culprit. Back injuries, cancer, heart disease and other illnesses cause the majority of long-term absences.

Are you prepared if it happens to you? Probably not. If you’re like most Americans, you don’t have disability insurance. Or enough emergency savings to last 2½ years. Yes, that’s the duration of the average long-term disability.

Statistically speaking, disability planning makes sense

The site also has some interesting statistics on this page:

Disability statistics

It happens more often than you’d imagine:

  • Almost one-third of Americans entering the work force today (3 in 10) will become disabled before they retire.
  • Over 51 million Americans – 18% of the population – classify themselves as fully or partially disabled.
  • 8 million disabled wage earners, over 5% of U.S. workers, were receiving Social Security Disability (SSDI) benefits at the conclusion of June, 2010.
  • In June of 2010, there were nearly 2.5 million disabled workers in their 20s, 30s, and 40s receiving SSDI benefits.

Chances of becoming disabled:

The following statistics come from CDA’s PDQ disability risk calculator:

  • A typical female, age 35, 5’4″, 125 pounds, non-smoker, who works mostly an office job, with some outdoor physical responsibilities, and who leads a healthy lifestyle has the following risks:
    • A 24% chance of becoming disabled for 3 months or longer during her working career;
      • with a 38% chance that the disability would last 5 years or longer,
      • and with the average disability for someone like her lasting 82 months.
    • If this same person used tobacco and weighed 160 pounds, the risk would increase to a 41% chance of becoming disabled for 3 months or longer.
  • A typical male, age 35, 5’10″, 170 pounds, non-smoker, who works an office job, with some outdoor physical responsibilities, and who leads a healthy lifestyle has the following risks:
    • A 21% chance of becoming disabled for 3 months or longer during his working career;
      • with a 38% chance that the disability would last 5 years or longer,
      • and with the average disability for someone like him lasting 82 months.
    • If this same person used tobacco and weighed 210 pounds, the risk would increase a 45% chance of becoming disabled for 3 months or longer.

It’s really never too early to plan for the future. That includes retirement planning as well as at least considering what we would do in the event of even a short-term disability.

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New report calls for incentives to retain disabled workers; June report explains SSDI, VDC differences and goals

Tuesday, November 30th, 2010
By Mike Hinshaw
If you live in Connecticut, this may be of interest, from TheDay.com:

WHO: Linda, a 67-year-old grandmother of three, who became responsible for her daughter’s children after her daughter became too ill from HIV to care for them any longer.

AGENCY: Alliance for Living.

THEIR SITUATION: Linda had her daughter move back home to New London after she was diagnosed with HIV. Her daughter’s medications and health condition leave her with little energy, so like so many grandparents today, Linda is now raising her daughter’s children. The kids range in age from 8 to 15. They are living on their mother’s Social Security disability income supplemented by grandma’s Social Security. Their Christmas wish is for mom to be well again.

WHAT TO GIVE: Gift cards to grocery and department stores.

TO DONATE: Donations can be dropped off at the Alliance for Living, 154 Broad St., New London, 06320. For more information, call Cheryl at (860) 447-0884, ext. 229.

Joint report: Keep disabled workers, help SSDI system

According to a Nov. 27 article in The Washington Post, a joint report from the Brookings Institution’s Hamilton Project and the Center for American Progress has concluded that “The government should create incentives for employers to retain disabled workers on their payrolls as a way of slowing unsustainable increases in the number of people receiving Social Security disability benefits.”

According to this blog, the report will be released in a few days and will call for upfront action: “The report by the Brookings Institute’s Hamilton Project and the Center for American Progress, to be released on Dec. 3, urges adding a ‘front end’ of benefits to keep the disabled in their jobs and slow down the rapidly growing expense of the federal disability program, also known as Social Security Disability Insurance (SSDI).

“Before workers could receive SSDI benefits, they would have to be approved for benefits from the private policy — benefits that would go toward rehabilitation services, partial income support and other related services.”

Troubling figures, revisited

We have reported on the increase in SSDI applicants, particularly the spike from 2008 to 2009, when demand jumped 21 per cent. The Post cites the new report as providing more troubling figures: “Between 1989 and 2009, the share of working-age adults receiving SSDI has doubled to 4.6 percent, and the cost of the program has more than tripled from $40 billion to $121 billion in the same time period, the report said.

“Strikingly, the enrollment increases have not coincided with an increase in disabilities; roughly 10 percent of adults have reported disabilities in both 1989 and 2009. Instead, the enrollment increases reflect ‘a rising rate of dependency and a declining rate of labor force participation among adults with disabilities,’ the report stated.”

As soon as we can get a copy of the report, we’ll discuss it and provide links.

Congressional Research Service report: SSDI versus Veterans Disability Compensation

A Nov. 23 post at a site for what its “About” page says is a global publishing and subscription provider for “research, compliance and management tools for attorneys, consultants, corporations and government agencies,” has a nice primer on June 2010 report from the Congressional Research Service that “sought to clarify why one group of individuals with disabilities may be eligible for benefits under the Veterans Disability Compensation program (VDC), but ineligible for benefits under the Social Security Disability Insurance program under the Title II of the Social Security Act (SSDI).”

Here’s a link to the report itself: “Disability Benefits Available Under the Social Security Disability Insurance (SSDI) and Veterans Disability Compensation (VDC) Programs.”

Two of ‘largest programs’ have important differences

According to the report summary, SSDI, administered by the Social Security Administration, and VDC, administered by the Department of Veterans Affairs, “are two of the largest federal disability programs, but strongly differ along several dimensions, including the populations served, how each program defines a ‘disability,’ as well as varying eligibility requirements.”

The report summarizes three crucial differences:

First, SSDI is an insurance program that replaces a portion of earnings for an eligible worker whose illness or injury—while not necessarily caused by a work-related incident—results in an inability to work. SSDI is one of several federal programs funded through the Federal Insurance Contributions Act (FICA) payroll tax and the Self-Employment Contributions Act (SECA) tax to which all workers and employers in covered occupations (including military personnel) and self-employed individuals make contributions. On the other hand, VDC is not insurance, but is a compensation program in that payments are made to veterans who develop medical conditions that are related to their service in the military. VDC is non-contributory and neither veterans nor active military personnel pay into the program, which is funded through a mandatory appropriation as part of the VA annual budget.

Second, while the purpose of both SSDI and VDC is to provide income security, SSDI provides a financial “safety-net” to eligible civilian and military workers due to their inability to work as a result of long-term or terminal injury or illness. Conversely, VDC provides veterans with tax-free, cash benefits specifically for service-connected illnesses or injuries. The ability to work is not factored into VDC disability determinations, although additional compensation is available for veterans who are unemployable as the result of a service-connected condition(s).

Third, SSDI only compensates workers that are fully disabled, whereas VDC compensates veterans for both partial and fully disabling injuries and illnesses. The VA is further guided by a principle that views disability compensation as an obligation, owed to veterans, for injuries impacting employment that were incurred or aggravated by their service to the country. SSDI benefits are granted solely on medical and economic grounds and other noneconomic factors are not considered. Eligibility requirements generally tend to be more stringent for SSDI than [for] VDC, and most veterans will not likely meet the criteria for both programs.

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Colorado ‘medi-pot’ issue splits SSDI from SSI; New Jersey voters nix mixing jobless, disability funds

Friday, November 12th, 2010

by Mike Hinshaw

Today we start a two-part look at a smorgasbord of  topics, from serious but surprising to surprisingly serious.

According to an October blog in Denver’s alt-paper/online site, medical marijuana has become a sore spot between state officials and  indigent patients, including those with AIDS. Some patients receive Social Security Disability Insurance (SSDI) benefits; some receive Supplemental Security Income (SSI); and some receive neither.

MMJ = medical marijuana: Indigents’ costs hotly contested

In Colorado, part of the medicinal pot eligibility process involves getting the original prescription–about which, more later–and another part is paying an annual $90 registry license fee in order to make purchases. The Cannabis Institute maintains the license fee is too high for all patients–not to mention the poor–and sent a letter to the state Board of Health demanding a reduction from $90 to $10 on the license-fee for all patients who have received proper prescriptions.

At this point, let’s back up for a second to explain that according to various reports, Colorado’s med-pot system has already brought in significant revenue for the state.

Governor wanted ‘to steal’ from registry fund to cover General Fund

Significant enough that the governor proposed transferring a significant portion of licensee-fee revenues to cover shortfalls in other areas of the state budget, even though a state amendment seems to make that illegal. Here’s how it was written at another DenverWestword blog: “In August, Colorado Governor Bill Ritter expressed his intention to steal $9 million out of the patient registry fund and transfer it to the state’s General Fund to help alleviate budget shortfalls in other areas of government.” (For attribution’s sake, the blog cites this link to an Aug. 24 post by CTI: Governor Wants to Steal Patient Registry Fees to Balance Budget: Has Ritter Become Addicted to Cannabis Revenues? )

Widespread examples of revenue increases

This is, perhaps, not yet background enough on the money involved. Besides the patient registry, various Colorado communities have seen revenue boosts not only from dispensary and grower fees but also from sales taxes, warehouse rental/lease space and associated construction (including permits, inspections and often specific, custom build-out requirements). Even newspaper advertising has benefited.

OK, so here’s the lede from that Oct. 21 blog in Westword: “Yesterday, the board of health considered lowering medical marijuana license fees for indigent patients — and wound up eliminating them for those who qualify.

“Problem is, the criteria used to determine indigency leaves out many people in need — including AIDS-patient Damien LaGoy, who says he can’t afford to renew his license, which expires in two days. ‘This may be my last interview,’ he says.”

AIDS patient reportedly mispeaks

LaGoy waited to testify while the committee discussed procedures for ongoing rulings of conditions that qualify for medical marijuana licenses, ultimately deciding to shelve that discussion until January. By mid-afternoon when he got his turn, the weary AIDS patient says he was worn out, “out of breath” and “couldn’t talk very long.” Confused and trying to speak quickly, he “told the board he collects $917 each month — $14 more than the amount that would have qualified him as indigent by an estimate he shared with the Denver Post. He subsequently realized that he’d transposed the numbers and actually gets $719 a month. But he still doesn’t qualify, he says, due to the way the board decided to determine indigency.”

As explained in both the blog and in that Denver Post article, the crucial factors that emerged made distinctions among SSDI, food stamps and SSI program recipients. And it wasn’t only the advocates who were upset–even some board members were chagrined. From the Post: ” .  . . the standard the board approved for determining who is poor enough to qualify for the program upset medical-marijuana advocates, who said some indigent patients will still be stuck with a bill. And even some board members expressed frustration that the health department — which has received millions of dollars in application fees since the medical-marijuana program began — couldn’t put together a program that includes more patients.

” ‘I just think with however many millions of dollars, we could have done a better job,’ said board member Joelle Riddle.”

This is such a complex issue that much more space would be needed to cover all the points and counterpoints. However, for anyone seriously interested, enough links have been provided herein to allow further research into the rapidly changing developments for those affected in states where “MMJ” has become a hot topic. Be assured, though, we will continue to monitor and report on this emerging issue.

New Jersey voters reject funds transfers

Now we turn to a related topic: Similar to the attempt to transfer Colorado MMJ funds to cover shortfalls in other parts of the state budget, New Jersey voters on Election Day slammed attempts to “Rob Peter, Pay Paul” at the expense of unemployment and disability funds.

First, let’s look at a Nov. 2 post at nj.com, from the state house correspondent: “New Jersey voters today overwhelmingly approved a constitutional amendment that will ensure the money workers pay into the unemployment and temporary disability funds can’t be used to plug future holes in the state budget.

“The vote on the sole statewide ballot question will prevent the governor and the 120-member legislature from using the funds for anything other than their intended purpose: to help people who can’t find a job or who physically cannot work.”

Wall Street Journal: ‘mealy-mouthed’ wording

To get an idea of how big a deal this vote was –and how confusing the wording was on the ballot– consider this pre-election piece from a blog at The Wall Street Journal: “New Jersey voters are being asked whether to prevent state politicians from dipping into unemployment, disability and other funds to balance the budget. But the mealy-mouthed wording of the ballot question appeared to puzzle voters.

“The question reads:

Shall the amendment to Article VIII, Section II of the State Constitution, agreed to by the Legislature, which: prohibits collection by the State of assessments based solely on employee wages and salaries for any purpose other than providing employee benefits; dedicates all employer and employee contributions collected for any employee benefit fund, and all returns on investments of those contributions, to the purpose of that fund; and prohibits any transferring, borrowing, appropriating or using of those contributions or returns for any other purpose, be approved?

“Voting yes would tie politicians’ hands and prevent them from dipping into the funds for other purposes.”

Problems with wording–and the ‘help text’

Well, as the nj.com post attests, voters did indeed figure it out, with help from various sources, but the WSJ post also includes this quote from a retired engineer and an attorney: ” ‘The interpretive statement was harder to understand than the question,’ said Mike Mastro, 73 years old, a retired engineer in West Windsor.

“ ‘I’m an attorney and I didn’t understand it,’ says Mike Meduski, a father of two. ‘I didn’t understand the ballot question or the interpretive statement. They made no sense to me.’ ”

Too often, such is life with unemployment and disability issues. Way too often.

Surprisingly serious and seriously surprising: Hollywood? Really?

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Disability planning and programs: Part 2

Tuesday, June 29th, 2010

[Continued from here, discussing links and references from this CDA Web page.]

Step 3 is where we get into “the meat” of disability finance:

  • Employer sick pay
  • State benefits
  • Disability insurance benefits
  • Workers comp
  • SSDI/SSI

Employer sick pay, or sick leave, may be generous in one industry, lean in another. At a small company, nothing may be available other than wishes for good luck. Some large and even mid-size companies offer long-term disability policies. Where ever you work, you should learn the specifics of the policy because it may be your first line of defense, even if it runs out long before a health problem is resolved.

According to the Insurance Information Institute, “In some states, such as Hawaii, New Jersey, New York and Rhode Island, state law requires employers to provide disability benefits for up to 26 weeks.” (Don’t confuse this with workers compensation.)

Over at CostHelper.com, we see that “Disability insurance provides income to help pay your living expenses if you are unable to work for a significant length of time because of injury or illness. Generally benefit payments are 60 percent of your total salary.”

The CDA page explains that “[d]isability insurance can be an invaluable lifeline for disabled workers and their families:

  • If your employer offers disability insurance make sure you fully understand what benefits are available to you and how your company’s disability insurance program works.
  • If disability insurance is NOT provided by your employer, it can be purchased individually at affordable rates. Contact your insurance agent for more information.
  • Self-employed individuals can also benefit greatly by having disability insurance. Consult your financial advisor or insurance agent for assistance.”

The CostHelper.com page says to “[e]xpect to pay between 1 percent and 3 percent of your annual salary for a good disability plan, according to DisabilityQuotes.com. That works out to $600-$1,800 for someone earning $60,000 a year.”

Earlier, we cautioned not to confuse state disability benefits (if available) with workers comp benefits. In the usual sense, workers comp addresses workers who are injured on the job. However, if work-related, an illness and subsequent disability may be covered by workers comp, too. As the CDA page says, “After a short waiting period, workers’ compensation generally pays a portion of your former wages or salary. Benefits vary significantly by state and are restricted to a specific maximum and minimum amount.” Here’s a link to programs in each state.

As mentioned in our preceding post, SSDI is a form of  federal “insurance” that workers qualify for by having paid enough funds into Social Security (from paychecks) by working long enough at jobs with employers who make the payments (including self-employed). Here’s the link to the main disability information page of the SSA, including topics such as basic program information, who is eligible, how to apply and so forth.

In your planning, count on at least a six-month wait before receiving SSDI payments.

SSI is not funded by paycheck contributions but by general tax revenue; it provides cash to meet basic needs for food, clothing, and shelter. The program is designed to help aged, blind, and disabled people, who have little or no income and few resources.

Here is a link to the SSA’s page outlining eligibility requirements for SSI.

Here’s the bracing news: If you don’t have access to any of the preceding resources, you’re pretty much left to your own devices and social-family network. For the “average” long-term disability, you’ll need to cobble together some method to make it for 2 1/2 years.

The first fallback position is personal savings. Then you’re looking at such drastic measures as using credit cards, dipping into a mortgage or retirement funds. Here’s how the CDA page lays it out:

  • “Personal savings
    A small percentage of Americans are lucky enough to have savings, investments or other financial resources that can supplement or replace their income during a prolonged disability. The rest of us, unfortunately, are not so lucky. Any disability, especially one lasting more than 90 days, would quickly drain our savings. After all, Americans’ savings rate is at an all-time low. A full 1/3 of Americans have no retirement savings and no pension, according to the Social Security Administration. Talk about stress!
  • “Last Resort” income sources
    If all else fails, you can begin paying expenses with credit cards, get a second mortgage, take out a home equity line of credit, withdraw money from your retirement plan, and ask family and friends for assistance.”

As you can see, maintaining one’s health is the best option. Of course, no one can do that indefinitely, so financial planning is the next priority. If you’re still healthy, look for ways to promote an even healthier lifestyle. Then, begin your financial planning process.

If you or a loved one needs disability help now, you can use the links provided to contact SSA officials or advocates and disability attorneys.

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Applying for disability benefits from the Social Security Administration can be a daunting and frustrating challenge. For more on the basics of disability, SSI, and SSDI, please click here.You will also have the opportunity to click on information about attorneys who can help you and a link for a free case review.

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Disability benefits explained from square one: Part 1

Thursday, June 24th, 2010

OK, we’re going to cover a lot of ground in the next few installments, so let’s start with a quick review of the basics.

The acronyms SSDI and SSI refer to the most well known programs that help people who develop long term disabilities. Both are administered by the Social Security Administration (SSA), and each is notorious for being cumbersome, slow, and difficult for the average person to deal with–which is why many who need disability help turn to professional advocates and attorneys who specialize in the field.

SSDI = Social Security Disability Insurance, which pays benefits to workers (and some family members) who qualify; the basic qualification to receive these insurance payments is that you have:

  1. worked long enough to have paid
  2. enough Social Security taxes through payday deductions

to fund your “insurance account.” In other words, if your work history comprises jobs that did not pay–or pay enough–into Social Security, in most cases you won’t qualify for SSDI.

In that case, however, you may qualify for SSI, which stands for Supplemental Security Income–this program is not based on payments made from jobs but does award benefits based on financial need.

Together these two programs account for the bulk of what most of us consider the disability program for Americans. However, as mentioned, jumping through the hoops can be maddening, and the built-in delays can result in a payments arriving so slowly that the claimant has already died.

For a quick example of how slow the SSA acts, have a gander at its disability front page. As of post time, you can look to the top, upper right of the page and see a link to a press release with the following headline:

Social Security Administration Attacks Disability Backlog

Which sounds like a good thing, right? Well, it is–always good to catch up on a backlog.

But notice the dateline  ===> Tuesday, October 9 , 2007

Shoot, we have more recent, more accurate info right here, toward the end of a May 2010 post in which we discuss delay issues among the various states.

That being said, SSI/SSDI remain the most publicly known disability programs. But they’re not the only alternative.

The Council for Disability Awareness (CDA) is a nonprofit organization that says its purpose is to inform and educate “the American public about the widespread and growing frequency of disability, and the financial impact it can have.”

However, judging from its “members page,” one might infer the group has an interest in selling disability insurance. That being said, however, the Web site does indeed offer a wealth of information.

For one thing, here’s a page about “reducing your chances” of becoming disabled. Pretty standard stuff: wellness tips such as “quit smoking, get regular checkups,” and so forth. Of course, most people don’t think about disability until a family member or they themselves become disabled.

But the statistics suggest that all adults should be aware of at least the basics of disability. For instance, it seems to be a common misperception that “events” cause most disabilities: a car wreck, an accident at work or home, etc..

But according to CDA, which claims to base its figures on the latest available census data and on info from the Centers for Disease Control, the most common causes of disability are injuries or accidents but rather:

  • “Illnesses like cancer, heart attack or diabetes cause the majority of long-term disabilities. Back pain, injuries, and arthritis are also significant causes.
  • “Most are not work-related, and therefore not covered by workers’ compensation.
  • “Lifestyle choices and personal behavior that lead to obesity are becoming major contributing factors.”

Oddly enough, this CDA page is quite contradictory, both in overall tone and in these specific statements (emphasis added):

  • “It strikes like a bolt from the blue: unwanted, unexpected, unwelcome. Unfortunately, many of us are totally unprepared for the financial hit that disability can bring.
  • “Most Americans live paycheck to paycheck. There’s little or no money left for unexpected emergencies like an injury or illness – the primary causes of disability.

Perhaps the intention was to say something like, “unless you injured in an accident or taken with sudden illness, disability can creep up on you, until there’s a sudden realization that your condition leaves you in financial peril.”

At any rate, the CDA’s suggestions are sound as far as how to think about finances in the event of a disability, including:

  • Your sources of income, monthly expenses and lifestyle
  • The impact a long-term disability could have on them
  • Preparing a plan of action to address the crisis

Step 1 is, basically, preparing a budget. (The page has a link to a “calculator” routine.)

Step 2 is to, as may be expected, isolate and trim unnecessary expenses.

Step 3 is where we get into “the meat” of disability finance:

  • Employer sick pay
  • State benefits
  • Disability insurance benefits
  • Workers comp
  • SSDI/SSI

That is where we will continue the discussion in Part 2.

****************************************************************************************************
Applying for disability benefits from the Social Security Administration can be a daunting and frustrating challenge. For more on the basics of disability, SSI, and SSDI, please click here.You will also have the opportunity to click on information about attorneys who can help you and a link for a free case review.

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Posted in disability, Social Security, Social Security Disability, Supplemental Security Income | Comments Off