Recession causes surge in Social Security disability benefit claims
Posted on:8/4/2009
Written By: Chris Robideaux
| Social Security officials say they expect an even larger spike in new disability claims than they had predicted, as aging, sick baby boomers opt out of the work force in search for "safety net" income. |
It's like double jeopardy, or salt in the wounds of those bleeding already from joblessness, chronic illness, and general economic disenfranchisement: Social Security officials say they expect an even larger spike in new disability claims than they had predicted, as aging, sick baby boomers opt out of the work force in search for "safety net" income. Officials estimate they'll receive 3.3 million new disability claims over the next year, up from their previous estimate of 3 million projected just five months ago.
The unprecedented wave of new applications raises questions about the agency's ability to curb historic backlogs and cut processing delays, a problem that has plagued the agency for years. Officials had been making progress in reducing a massive backlog of disability appeals cases.
Also adding to the problem are recent moves in at least 10 states to furlough hundreds of employees who process initial benefit claims.
Agency officials say the extraordinary increase is driven by the recession and an aging baby boomer work force reaching their most injury-prone years. Long waits for the agency to process claims and resolve appeals can leave some claimants struggling to make ends meet.
Since October, the number of people waiting to have a claim processed has jumped a stunning 30 percent, from about 556,000 eight months ago to more than 736,000 in July.
"We're going to be moving backwards this year, the question is how much," Social Security Commissioner Michael Astrue said in an interview. "The trend line isn't good."
Indeed, Mr. Astrue. For who will rob Peter to pay Paul to cover the billions and trillions in shortfalls this year?