Social Security benefits are paid to around 75 million vulnerable individuals across the country each month. From retirees and survivors to disabled individuals, the monthly benefit checks may even be the sole source of financial support for a number of these individuals.
While the importance of the Social Security program cannot be overstated enough, the Trump Administration appears to be making a quiet policy change that has the potential to cause a historic number of beneficiaries to be cut off from their benefits.
This change that is being planned by the government is in relation to disability benefits and the factors used in determining whether or not an applicant will be granted their claim. Amongst the various factors that are placed under consideration when a person applies for disability, age often weighs in on the final decision as it can be a limiting factor at some jobs.
The Trump Administration is now planning to remove age as a determining factor for disability benefit applications. If this change is made official, several hundred thousands of beneficiaries could have their benefits reduced, if not lose it entirely. Here is what you need to know.
How do disability benefits work?
There are two kinds of disability benefits that can be claimed from the Social Security Administration (SSA): the Social Security Disability Insurance (SSDI) and the Supplemental Security Income (SSI). The SSDI benefit functions similarly to the retiree benefit, meaning that the beneficiary needs to have sufficient work history that qualifies them for benefits.
The SSI benefit functions are more of a welfare benefit, meaning that work history is not required for applicants. SSI benefits are given to individuals who have little to no other resources or income. These individuals are typically not able to work due to having a disability.
Age may be removed as a determining factor for disability benefits
At a number of jobs, age is often considered as a limiting factor. As a result, the disability application process places age under consideration when determining the outcome of a disability claim if the applicant is aged 50 and older. Now, the Trump Administration has put forth a proposal aimed at modifying how age is viewed as a determining factor for disability benefit applications.
Despite this change having the potential to strip benefits from vulnerable individuals, no formal announcement or legislation has been introduced. It appears that this change will instead be framed as a regulatory change. A similar proposal had been drafted during the Trump Administration’s first term in office, and the current proposal has received bipartisan support.
In essence, this proposal would bring change to the manner in which the SSA views and determines disability applications. Additionally, the Bureau of Labor Statistics Occupational Requirements Survey (ORS) would be used to replace the Dictionary of Occupational Titles.
The SSA is tasked with the interpretation of occupational data, including the determination of skill or exertion levels at various jobs, which is important to the disability application process. If the proposal is passed, the data source will be changed and as a result, the SSA’s process will likely need modification.
As such, the already difficult process of applying for disability benefits will now become much harder to navigate. In the first draft of this proposal during the first Trump Administration, the age of consideration would be moved from 50 to 55. Under the current proposal, the aged is slated to be moved from 50 to 60.
Findings from the Urban Institute have revealed that, “the modified rules could reduce eligibility for new benefits applicants under the SSDI program by around 20% overall and by 30% among older workers.”
The result of this change will be hundreds of thousands of beneficiaries losing their eligibility, making this the biggest Social Security cut in history. It is also reported that if even 10% of SSDI recipients lose eligibility, it would “lead to an estimated 500,000 people losing benefits access over 10 years, and another 250,000 could lose benefits for at least part of that time. Medicare and Medicaid eligibility would also be affected as a result of this change.”