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Nov 18, 2019

Another Possible Reason Why The Number Of Disability Claims Started Declining In 2011

     From The Role of Information in Disability Insurance Application: An Analysis of the Social Security Statement Phase-In by Philip Armour published in the American Economic Journal in August 2018:
This paper exploits a natural experiment in information provision on US Disability Insurance (DI) applications: the Social Security statement. Although the effect of the statement on DI application was negligible in the general health and retirement study population, among those previously reporting a work limitation, biennial DI application rates approximately doubled. This effect was driven by previously uninformed individuals. Additional analyses show these were new applicants and were no less likely to be accepted onto DI, accounting for a substantial fraction of the rise in DI rolls from 1994 to 2004 and indicating the importance of informational frictions in disability policymaking.
     I know this study is dealing with an earlier time period but there have been changes in Social Security's mailing of benefit statements. Since the beginning of 2017, the statements are only sent to those who are already at least 60 and not drawing benefits. Between 2011 and September 2014, the agency sent out no benefit statements at all. Between October 2014 and the end of 2016 the benefit statements were sent out but only every five years. However, prior to 2011 the benefit statements were sent out annually to everybody over 25. The decline in the number of disability claims began in 2011 just when the mailing of benefit statements ended. The benefit statements have since resumed but only in a very limited way. 
     Correlation isn't causation but this is certainly suggestive.

6 comments:

  1. That is quite a long reach.

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  2. I don't know--if you mail everyone a flier that explains whether they're eligible for SSDI and how much they'd get, I can imagine some people with disabilities who didn't know about DI or didn't think they'd worked enough to get it would then decide to apply.

    Not everyone knows that Social Security is more than a retirement benefit, even if they have disabilities and would qualify for SSDI.

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  3. @ 8:53AM, I don't think it is a reach at all. Uninformed people file less claims.

    I also think that the move to online filing has likely played a role in the decline in filings. If an individual calls or visits a field office to file, they are frequently told that they need to go ahead and file online. I am sure a far percentage of these folks never get around to it because they do not have a computer, or never complete the application if they do find their way to the correct site to file. Don't get me started on the # of SSI claims that are not filed that should be because of the online process.

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  4. Oh you have to be kidding right? I guess they dont watch tv with ads from reps on it like the whole rest of the country, C'mon Man get serious when you post, this is laughable.

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  5. D-E-M-O-G-R-A-P-H-I-C-S

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  6. 2011 is also when the economy started turning around after the 2008 recession.
    lets not forget that part of the motivation for applying for SSI/DIb is economic difficulties.

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