Abstract
Prior to the 2007 recession, and continuing through 2015, significant increases in the number of individuals applying for Social Security Disability Insurance (DI) occurred, and the pace has only begun to slow over the past 5 years. Between 2001 and 2015, the number of applicants increased by more than 60 percent. This significant increase in applicants has translated into a significant increase in those awarded benefits, and the impact on the Social Security Disability Insurance Trust Fund (the Fund) is devastating. Although the Fund has experienced years of increases and decreases since its inception in 1956, no change before 2009 is as significant as the impact seen that year when the Fund’s disbursements exceeded its receipts by $12,223 million. In hindsight, the 2009 change is almost dwarfed by the deficit in 2013 when the disbursements were $32,221 million more than receipts. Drastic measures taken in 2015 by Congress to shift funds during 2016-2018 from the OASI (Old Age and Survivors Insurance) to the Fund represent a short-term “fix” to the Fund balance, and of course, this is at the expense of the OASI Trust Fund which is also in jeopardy of bankruptcy. In spite of this temporary re-allocation, the Fund could very well be bankrupt by as early as 2023. With this in mind, this paper focuses on the DI Program, including the establishment of the program; the process of qualifying for benefits; receipts by, and payments from, the Fund; suspicion of fraud; as well as steps taken to detect and prevent mismanagement of the Fund.
Recommended Citation
Jones, Rita C.; Lang, Teresa K.; and Atkinson, Keith E.
(2017)
"Costs of Social Security Disability Insurance, Concerns of the Viability of the SSDI Fund and Potential SSDI Abuse,"
Journal of Business, Industry, and Economics: Vol. 22, Article 4.
Available at:
https://roar.una.edu/jobie/vol22/iss1/4