Worsening Social Security Disability Claims

The economic downfall has caused the increased in disability applications. In 2008, the Social Security Administration (SSA) received two and a half million disability applications. This happened before the current recession became indisputable. In this year up to 2010, SSA sensed that disability applications would reach up to 3 million.

The sudden increase in disability applications was due likely to unemployment. This was because workers who have functional limitations continued to work either because they failed to find accommodation from their employers or have been able to grind out a niche that protects them from the job-limiting effects caused by their functional limitations.

However, when they company closes and they are seeking new employment, they realize that acquiring gainful and substantial employment has not been possible.

The increase in disability applications has augmented the increasing social security disability backlogs or pending claims. Various economists speculated that outlook for disability claims processing may get worse regardless of whether the U.S. economy succumb to “L” type recession or a “W” double-dip recession.

Certainly, the effects of recession would be here to stay for at least two years. For workers, these may be an added toll on their already burdensome life.

Should one wants to know more on how to minimize the effects of recession, getting the services of an employment attorney is encouraged. Moreover, for those who want to apply for disability claims or have pending disability applications with the SSA, hiring a disability lawyer is an advantage.

Approval and Denial Rates in Disability Applications

The approval or denial of disability benefits depend on two considerations: location and time.

On location, different states have different approval or denial rates. While it is true that the social security disability claim system is federal, noted differences may be pointed when comparing individual states specifically those belonging to the red or blue states.

The difference lies on the fact that the system is not as objective as the Social Security Administration. Moreover, the decision making is based on a "human reading" of an applicant's medical records which is inherently and unavoidably, a subjective process.

As to time, disability approval or denial rate depends on the level of the claims. Usually, cases heard by Administrative Law Judges have a higher approval rate compared to cases at initial claim or reconsideration levels. In fact, only one third of applications are approved at the initial stage and all the rest are denied.

Denied applicants may file an appeal. However, most of them give up, file a new claim, miss deadlines or fail to show at the hearing. Most claimants forget the fact that some appealed claims have significantly higher rate of being approved.

The system may be complicated but with the help of a disability lawyer, applicants may be informed of what steps to take in processing their social security disability claims.

Can Applicants or Beneficiaries of Disability Benefit Work?

Applicants for disability benefits may be permitted to work during the application process. Beneficiaries of Social Security disability or SSI disability may as well be permitted to work even while they are receiving the benefits.

However, applicants and beneficiaries should, before working, must bear in mind the following points:

1. All work activity must be reported to the Social Security Administration.

2. Eligibility for social security disability or SSI will give the claimant nine trial work months. During these months, applicants and beneficiaries can basically work with no earning limitations. The nine month period need not be consecutive so long as it occurs within the five year period.

Multiple work experiences can operate to exhaust trial work months for a long time because of the rolling five year period.

3. Disability benefits will cease if the trial work months are exhausted and at least the SGA substantial gainful activity amount is earned.

4. If the beneficiary is only a recipient of social security disability and not of SSI disability, an extended period of eligibility or EPE will be given.

5. The cessation of the 36 month extended period of eligibility will operate to terminate the disability benefits if, in any month, the beneficiary earned at least the SGA amount.

6. If the beneficiary stops working due to the same medical problem he was granted disability benefits, he may apply for an expedited reinstatement of the disability benefit.

Reinstatement may occur during the five year period previous to the disability termination month. Upon reinstatement, the beneficiary is allowed to receive six months of provisional payments. In the meantime, Social Security will make a determination on the medical condition of the beneficiary. If beneficiary is found to be disabled, disability benefits will be reinstated.

Admittedly, people who have been placed under disability have still hope of joining the workforce. But considerations must be made to avoid benefit interruption and overpayment. A social security disability attorney may be hired to avoid conflicts.

Effects of State to State Transfer on Approved Disability Claims

Since Social Security is a federal agency, claimant’s move from one state to another will not affect the benefits rendered in his favor. However, the claimant must furnish the agency with valid address and phone number each time he moves.

A move never sparks off any kind of disability review. Review takes place as early as the initial approval of the disability claim. Upon approval, a diary date will be set for review.

There are cases, however, that trigger review. The most common cause is work activity. If claimant’s work activity is beyond the substantial gainful activity (SGA) earning amount, he should report it to the Social Security so he will not be overpaid.

Be as it may, work activity rarely causes more than a work review unless the claimant has been working continuously at an SGA level.

For those receiving Supplemental Security Disability Income (SSDI), benefits may decrease. The reduction would not be made by the Social Security but due to a decrease in state subsidy. This happens when the claimant moves from a state that has a subsidy to a state that has no subsidy. Consequently, he will lose the money coming from the state he comes from.

For other concerns, you may consult a Social Security disability attorney to enlighten you on the matter.

Letters Sent After Approval of ALJ

Application for disability benefits undergoes various stages. It may either be denied or approved. In case of approval, claimant receives two letters.

A Notice of Decision and a Notice of Award are sent to the claimant in case of approval. The Notice of Approval is a letter from the judge while the Notice of Award comes from the social security office.

The Notice of Decision depicts either fully favorable or partially favorable decision. The difference has to do with the Date of Onset or the date when the disability is decided to have begun.

The Date of Onset is used to compute the past due benefits or back pay. A claimant may receive several hundred dollars in security back pay or several thousand depending on the date of onset. Moreover, this date is a good reason to have representation. Basing on the medical evidence, the claimant’s representative can argue for the most favorable onset date possible.

On the other hand, the Notice of Decision talks about the amount of benefit such as the monthly benefits, back pay benefits and commencement benefits.

Regarding back disability payment, it may take time to process depending on various factors such as the kind of disability the claimant is entitled to. Moreover, delay may be incurred in transferring the decision from the hearing office to the Social Security payment center.

Also, the Social Security may send a ticket to work to the claimant. While the letter means that the claimant is encouraged to go back to work, it does not mean though that the Social Security considers him as able to work.

If you find the topic interesting and you want to know more, you may engage the services of a disability benefits lawyer. A Social Security attorney may also be consulted if you want to file a claim.