Workers over age 55 with chronic health conditions must choose between applying for Social Security Disability Insurance (SSDI) benefits or continuing to work until their Social Security retirement benefits become available. Previous research has investigated the influence of macroeconomic conditions on disability application and, separately, on retirement claiming. This project uses data from the Survey of Income and Program Participation Gold Standard File to determine whether there is a relationship between national and state unemployment rates and disability applications, taking into account the current or future receipt of Social Security retirement benefits. First, reduced-form estimates indicate that retirement beneficiaries are more likely to apply for SSDI as unemployment increases – and, conversely, eligible individuals who have not yet claimed benefits are less likely to apply when unemployment rises. But after accounting for unobserved characteristics associated with both the decision to apply for disability insurance and Social Security benefits, individuals are no more likely to apply for disability benefits when unemployment is high. Second, we find that the probability of SSDI application among individuals age 55-61 is unrelated to macroeconomic conditions and unrelated to proximity to one’s 62nd birthday. These results suggest that, unlike prime-age adults, the decision among older individuals to apply for disability is based primarily on health, and not financial incentives.
Jan 20, 2013
Is There Really A Connection Between Unemployment Rates And Disability Claims?
The abstract for a research paper by Matthew Rutledge (emphasis added):
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13 comments:
You might not want to share this with the extremists over at CNS news. I don't know how many times now that they've posted the same.thing in different favors for their monthly beatings of the disabled, but here it is again:
http://cnsnews.com/news/article/first-term-americans-collecting-disability-increased-1385418-now-1-each-13-full-time
Here is a question somewhat related to the subject. Why is it that people file for unemployment benefits and then come to Social Security and file for disability benefits. Maybe a more relevant question would be why SSA allows people getting unemployment to file. I thought if you applied for and receive unemployment benefits, you were basically able and looking for work and therefore not disabled. As a matter of fact, I recently saw a decision from an ALJ denying benefits in a case because the guy was getting unemployment effectively saying he could work.
In response to 7:19 PM, January 20, 2013 comments.
To what degree can such a person work is the actual question at issue.
Anyone can file for disability, even if they are still employed. As long they are not and cannot perform SGA, they could be found to be disabled. It is up to unemployment to decide if they will continue to pay if someone has filed for or receiving DIB.
Often used for establishing credibility. If someone files for disability, they are saying they can't work. If filing for unemployment, they are saying that they are ready, willing, and ABLE to work. It can be looked at as fraud if they are receiving unemployment and applying for disability. They can be seen as less than fully credible. That said, a directive came out saying they would not be denied disability on this alone, but it could be given some consideration. You know, that old non-adverserial issue and all.
Ready, willing and able to work HOW MUCH? States vary on the standard for receiving unemployment and it is available to those who have only ever worked part-time.
What is wrong with applying for disability and being ready, willing, and able to work with a simple accommodation like bathroom breaks as needed (which would be not be SGA under SSA's rules)?
I have seen people convert their claims to state disability from unemployment. People have to pay their bills, so if laid off, I could see them applying for unemployment. There is an increase in disability traffic with those that worked while disabled, but now there are no jobs.
SSA doesnt have degrees of disability like the VA. You're either disabled or you're not. Receiving unemployment means you're able to work - the degree to which you are able to work should be spelled out in the approval for unemployment if there is such a thing. I'm in Ohio, I've never had someone on unemployment tell me "I'm ready to work but only just a little big". The bottom line is people lie a d say whatever they think will get them what they need. There in lies the problem with benefit based on need. And yes, even the one you pay into is technically based on need because with out it there would be nothing. If you NEED something, you will say whatever to whoever to get it or keep it.
Degree as used in a previous comment i posted means perhaps quality or ten hours a week(partial employement or forty hours a week(full time) And yes SSA does distinquish in terms of degrees it's called substantial gainful activity. A determination made by the agency.
SGA is not a degree to which you're disabled, it's a flat line. SSI doesn't have SGA, so where's the degree in that situation. You're either disabled or not when it comes to SSA (medically speaking).
yeah, that memo from Cristaudo talked about not blanketly using application for and receipt of UIB as an automatic credibility or determination of disability factor.
but the way I see it, at least in my state, you are asserting that you are ready and available for full-time work. That's SGA. the only scenarios I can think of where that affirmation would not equate to "not disabled" would be older people who could do sed or light work (not lying to UIB folks) but would be disabled at SSA if so limited. and those older folks are not an overwhelming portion of those SSA applicants who have received UIB...
The system makes it tough on people with disabilities who are not sure if they can get and keep a job. They may apply for UI, honestly try to work, and fail. If they wait to file for SSI while they are figuring that out, they lose months of benefits. If they wait too long to file UI, in most states, they lose benefits. Then they may get unfairly accused of being fraudsters (Cristaudo memo aside) if they filed for both just to protect their rights while figuring out if they are able to keep an SGA level job. Ideally SSA should go easy on these guys, but then coordinate better with state UI offices so appropriate offsets can be made once disability status is clear.
This comment gets at the basic question here, namely, only the agency adjudicates disablity, not the claimant/applicant. It doesn't matter what the claimant/applicant thinks ("hey, I am ready, willing and able, in my opinion, to work"); he/she may well be disabled if they are not actually performing SGA. They aren't the experts on the definition of disability, the agency is.
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