Social Security in the Crosshairs for Deficit Reduction

The Cavanaugh Law Firm is very concerned about the national dialogue regarding cutting the federal deficit by way of cuts to the self-funded Social Security Retirement Disability program.  Following is a press release from a national organization on the subject:

 NOSSCR Press Statement on Harmful Allegations about Social Security Disability Programs Perpetuated in Misleading Media Reports

Englewood Cliffs, N.J. – April 11, 2013 – The past few weeks have seen dramatic, sensationalized media reports about the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs, based on anecdotes, half-truths and misrepresentation of facts. The National Organization of Social Security Claimants’ Representatives (NOSSCR) is compelled to set the record straight about the program – which serves as a vital resource for millions of Americans.

 Increase in Disability Rolls
The truth about the increase in disability rolls is that this was an expected trend, predicted as far back as 1994, with two very clear factors: the aging baby boomers entering their high-disability years, and women who entered the workforce in the 1970s and 1980s that are now eligible to draw on their own earnings record when they become disabled.

 “The mistruths and recent media barrage is unwarranted and shocking,” said Nancy Shor, founder and executive director, NOSSCR. “We’re very concerned that they do not tell the entire story and that they will be harmful to the millions of Americans that depend on these modest benefits to maintain a basic quality of life. Yearly benefits are only around $13,000 per year – just enough to keep beneficiaries out of deep poverty and homelessness.”

 Who Gets Benefits?
As eight former SSA Commissioners pointed out this week in an open letter, the standard for disability approval is strict; the majority of applicants are not approved. Disability benefits are only a modest asset that helps beneficiaries live with dignity while unable to work.

 “There are more than 38 million disabled Americans, but only the most seriously disabled, or around 14 million, have proved eligible to receive benefits, which they depend on greatly” said Debra Shifrin, attorney and president of NOSSCR. “When comprehending the Social Security disability system, people need to understand that less than one third of initial applications are approved, and only 40 percent overall, as it requires evaluations and documentation to establish that these claimants are truly in great need.”

 Highly Regulated Fee Structure
As a member organization made up of attorneys and other advocates who represent people with disabilities, we are very concerned with the gross mischaracterizations of representatives in recent stories. It is important to keep in mind that claimants who hire private attorneys do so voluntarily. Claimant’s representatives’ highly regulated fees are taken on a contingency basis and are capped at 25% of the claimants’ past-due benefits, or $6,000 – whichever is lower. Additionally, the Federal Court appeals process is so time consuming and complex that few lawyers want to handle these cases at all. Attorneys that do this work are deeply committed to public service and are motivated to discourage frivolous claims that could overload an already burdened system.

 Social Security Disability Benefits and The Economy
Simply put, Social Security disability benefits do not contribute to the deficit. SSDI is self-financed by payroll taxes (FICA) and SSI dollars come out of taxes raised, therefore not increasing the national debt. Achieving long-term solvency for Social Security programs should not be part of deficit reduction efforts.

 The Social Security Disability Insurance program is an essential component of our American government system, intended to be a social safety net for American workers unable to perform job functions and support their families. These attacks are blatantly one-sided, untrue and threaten the modest benefits that are needed by so many. We encourage the media to focus on solutions to reform the system to ensure it is strong and efficient for many years to come, rather than disparaging our nation’s most vulnerable population. Learn more at www.nosscr.org.

 If you have a question about the Social Security Disability processes please call Attorney Patrick B. Cavanaugh at 1-800-342-3352 for a free consultation.

Social Security Commissioners Give Opinion on NPR Story

Eight former Commissioners of the Social Security Administration have shared their opinions on the NPR story last week. The Commissioners expressed their concerns about the very misleading and inaccurate series that was broadcast last week on NPR. The former Commissioners have presented the facts that should have been reported. The Cavanaugh Law Firm has reached out to NPR and others in the Disability Advocate world to rectify this misinformation and errors from the This American Life story.

 The National Organization of Social Security Claimants Representatives has issued a statement as well:

 “The Consortium for Citizens with Disabilities, of which NOSSCR is a member, has published a response, “Unfit for NPR – Let’s Get the Facts Straight on Disability” which is posted on CCD’s webpage.  Over 100 groups have signed on to this joint statement.

 The former SSA Commissioners’ open letter to NPR was featured on MSNBC Friday April 5, 2013, on All In with Chris Hayes. Immediate past Commissioner Michael Astrue was featured in the segment and did a wonderful job of articulating the concerns with NPR’s series and pushing back against many of the misconceptions about the programs’ growth. Rebecca Vallas, Esq. of Community Legal Services joined him in the segment, with Avik Roy of the Manhattan Institute.

You can watch the video online: it is in two segments, one titled “Deconstructing the Jobs Numbers” and the other “Disability is Not the New Welfare.”

 If you have a question about the Social Security Disability processes please call Attorney Patrick B. Cavanaugh at 1-800-342-3352 for a free consultation.

SSDI Fraud Not Prevalent in Midwest

A story on This American Life on NPR was not helpful to the upcoming hearing in the House of Representatives, the subcommittee holding hearings on the equality of administrative decisions by the ALJ corps. It presupposed that people applying for Social Security are trying to scam the system, and while there is a small element of fraud, the current process for applying for benefits has done an excellent job of eliminating many of those fraudulently pursuing disability benefits. This story was incomplete in informing the public what the Social Security Disability program has done for the claimants served by the program and the country.

 

In my experience (Nebraska, Iowa, Missouri, Colorado, Kansas) I have very infrequently run across disability claimants who spoke of the program in terms that the subjects interviewed for the story did, and when I have encountered people in those situations I counsel them on what the other options are available. It simply has not been my experience in the 13 years that I have been practicing Social Security Disability law that the program is being used for anything other than its intended purpose, of paying benefits to individuals who have paid their disability premiums in the form of FICA tax withholding is an effective social insurance program. The Social Security Disability Insurance program provides economic security and access to health care for individuals whose impairments are so severe that they cannot work.

I understand that there may be other regions of the country, such as the places the reporter visited where there may be aberrations in the program where people pursued benefits when not eligible under the regulations however this story neglected the independent research groups offering research on the Social Security Disability Insurance program, such as the Government Accountability Office, Center for American Progress and the National Academy of Social Insurance.

 

Social Security Disability Insurance is essentially an Insurance policy, like any private disability insurance policy that just happens to be run by the federal government. This Insurance program benefits millions of American workers–who have paid into the system–and whose benefits prevent suffering and serious social and family burdens when the primary or even secondary house hold earner cannot work, like homelessness brought on by foreclosures, evictions and bankruptcies.

Only individuals with the most significant disabilities are eligible for SSDI benefits. Only around 40% of those who apply for benefits are eventually approved, ensuring that only those who meet the strict requirements are found eligible.

Claimants have diverse and significant health issues and the types of beneficiaries receiving benefits are diverse. Some are terminally ill, with about one in five male beneficiaries and one in seven female SSDI beneficiaries dying within the first five years of receiving benefits. Nearly 70% of SSDI beneficiaries in 2010 were age 50 or older and has been trending higher with the aging of the baby boomers since a low of 49.5 in the late 1990s.

The disability program is a ripe target in the congress because the amount of money involved and the inclination to paint beneficiaries as “takers” because they recipients of disability benefits have no lobby or concerted specials interest group advocating on their behalf.  It is there for unfortunate when the media, NPR, This American Life blurs the message. Millions of American workers depend on the Social Security Disability Insurance that they have paid for, for life-sustaining funds. It deserves to be protected, as one of the most successful programs ever instituted by the Federal government.