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Economy
Disability Insurance: America's $124 Billion Secret Welfare Program
2013-03-26
The number of former workers enrolled in the Social Security disability program has more than doubled in the last two decades, and the reasons why have little to do with the health of our workforce.

According to the letter of the law, disability recipients must prove they are too physically or mentally impaired to hold a job. And early in the program's life, the most commonly reported ailments were easy-to-diagnose problems such as heart-disease, strokes, or neurological disorders. But after the Reagan administration began trying to thin out the program's rolls in the early 80s, an angry Congress reacted by loosening its criteria. Suddenly, subjective measures like self-reported pain or mental health problems earned more weight under Social Security's formula. Today, the most common diagnoses are musculo-skeletal issues, such as severe back pain, and mental illnesses, such as mood disorders -- health problems where the line between a disability and a mild impairment is far blurrier.

As of last year, Social Security's disability trust fund was on pace to run dry by 2016, which would lead to an automatic 21 percent benefit cut affecting all of the program's participants, including the millions who truly can't work because of their impairments.
The article puts the recipients in two categories, truly needy and lazy. They leave out a large group who draw the benefit and work on the side.
As a doc I can tell you that the rules have become very slack the last few years. I have plenty of patients putting disability forms in front of me that (to my medical eye) aren't disabled in the least. But they're hoping to work the system.
Posted by:GolfBravoUSMC

#19  The family shown is driving a Volkswagen, how American.
Posted by: Redneck Jim   2013-03-26 22:21  

#18  slightly OT: disability retirement is almost a sacrament among Fire and LEO. Tax reasons
Posted by: Frank G   2013-03-26 19:48  

#17  A good start on the disability thingy would be to move the adjustors, who determine benefits and amounts, from the VA over to SSA.
Posted by: Procopius2k   2013-03-26 18:23  

#16  $124 billion seems low. I just ran the numbers from a ZH article:

14 million receiving $13K / yr = $182 billion

PLUS - Healthcare costs for the same 14 million disabled @ $300 billion = total of $482 billion dollars.

There's about 1/2 the Federal deficit right there.
Posted by: Raj   2013-03-26 18:16  

#15  You know, it kinda hurts my finger sometimes when I hit the keyboard a certain way...OUCH! Can I get disability?
Posted by: Ebbang Uluque6305   2013-03-26 17:21  

#14  Well now Besoeker.... on most of this but let's be honest here.

Disestablish the Departments of Education, Agriculture, DOE, BATF, IRS, and Homeland Defense.

No sir, providing for the national defense and providing good farm-market roads are near the very top of what an efficient government is all about. The most important one being of course, the Peanut Allotment.

Sirs: I remain yours

/Walter George
/Carl Vinson
Committee of 1st damn things first.

Posted by: Shipman   2013-03-26 17:08  

#13  If you want an investment tip on your Social Security dollars, buy some HCI or OHI. They are healthcare REITs (old folks homes), which pay a buttload of dividends and have phenomenal annual growth rates which will likely continue throughout the boomer era (next 25-30 years).
Posted by: Besoeker   2013-03-26 16:30  

#12  NS:

Without even discussing spousal benefits or the meager cost of living increases, had I not taken FICA at age 62, I would have forfeited about $19,000. per year waiting until age 66 to start drawing full FICA benefits.

From age 62 to 66 that equates to a rough total of some $ 80,000. dollars. At age 66 I would have been eligible for an additional (again roughly) $ 410. per month. The 'make up' or break even point would have been age 62 plus 200 months or about age 80.

You really have to do the math.
Posted by: Besoeker   2013-03-26 16:15  

#11  Besoeker, you heartless bastard!

/sarcasm
Posted by: Rambler in Virginia   2013-03-26 16:11  

#10  Nimble:

Golf Bravo & Kilo Bravo are using the 66/70 strategy. Kilo is drawing Spouse Benefit (1/2 mine) until she reaches 70, then she will change to her own benefit.
Posted by: GolfBravoUSMC   2013-03-26 16:10  

#9  You wish to get this country out of debt and take care of the elderly, here are some starters:

-- Stay out of meaningless middle-eastern conflicts.
-- Limit unemployment insurance to 90 days.
-- End food stamps and hand out canned food and day-old bread through the local church or food pantry.
-- Establish a 10% Federal Income Tax for all earners, no exceptions, no exclusions and have it sent directly to the US Treasury.
-- Disestablish the Departments of Education, Agriculture, DOE, BATF, IRS, and Homeland Defense.
-- End foreign aid.
-- Disestablish Fannie and Freddie.
-- End the Federal Student Loan Program.
-- End Federal Public Housing assistance programs.

Posted by: Besoeker   2013-03-26 15:59  

#8  For those of you with high earnings in retirement, this post may be of interest. Even if you aren't GBUSMC's bracket, it may be of interest.
Posted by: Nimble Spemble   2013-03-26 15:54  

#7  Steve

SS COLA

2010 0.0%
2011 0.0%
2012 1.7%

Tax on SS

file a joint return, and you and your spouse have a combined income* that is

between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits

more than $44,000, up to 85 percent of your benefits may be taxable.


*Note:
Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your "combined income"
Posted by: GolfBravoUSMC   2013-03-26 15:49  

#6  Furthermore, if you would like to know how the Social Security Administration has turned into a "Secret Welfare Programme", I recommend you visit your local Social Security office and see who sits on the other side of the counter.

If you would like to know why 18% of the nation's citizens comprise 38% of all Federal jobs, [such as those found in your Social Security Office]visit your local Federal Civilian Personnel Office (CPO).

If you would like a glimpse into the future of the "The Patient Protection and Affordable Care Act (PPACA), more commonly referred to as "Obamacare", return to para's 1 and 2 above.
Posted by: Besoeker   2013-03-26 15:44  

#5  Social Security was a Ponzi scheme from the git go. Look what happened to Barry Goldwater when he said that 50 years ago. Now the reality is setting in.
Posted by: Nimble Spemble   2013-03-26 15:31  

#4  Social Security is not an entitlement, it is insurance as in FICA (Federal Insurance Contributions Act) which is purchased by wage earners. The fact that it was plundered by a crooked, thieving government and turned into a massive Ponzi scheme and vote getting tool should not be lost on anyone.



Posted by: Besoeker   2013-03-26 15:24  

#3  49Pan: absolutely, agreed, and as someone will is gray and will one day be old (hey, it could happen), my suggestions are --

-- move (in steps) the SS full pension age from 66 to 70
-- adjust the other pension ages appropriately
-- fix the inflation COLA that over-increases benefits
-- let elder worker earn what they want and tax SS

That would be a start for SS. For disability, the only solution is to clamp down. Disability should be for the disabled.
Posted by: Steve White   2013-03-26 14:57  

#2  Lots of finger pointing. The real issue is the graying of our society. The boomers are getting old, entitlements will double in the next 10 years, it will blow our nation's budget out the roof. Instead of pointing finger and blaming the left or right, we need to figure out a realistic way of dealing with this large force of people who are falling off of the tax rolls and onto entitlement programs.
Posted by: 49 Pan   2013-03-26 14:18  

#1  The Tragedy of the Commons.

In economics, the tragedy of the commons is the depletion of a shared resource by individuals, acting independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the group's long-term best interests.
Posted by: Procopius2k   2013-03-26 13:36  

00:00