Disabled Population Often Faced with Tough Choices

Catherine Burrows understands firsthand the frustration that dealting with the Social Security Administration can bring

Catherine Burrows understands firsthand the frustration that dealting with the Social Security Administration can bring.

For a single person living on a fixed income, meeting their own basic needs can prove challenging. However, families with dependent children living on fixed incomes are often faced with the decision of which basic needs they should even attempt to meet. Should they choose life saving medication or paying the rent? Should they choose buying groceries or keeping the electricity on? Of course, they need the medication, but they also need food and shelter – and basic utilities. Even though Social Security Disability Insurgence (SSDI) benefits are something of a safety net for people who have become disabled and can no longer earn an income, they aren’t always sufficient to keep disabled households afloat during times of financial crisis.

Catherine Burrows of Orange County, Florida was faced with making some of these hard choices recently. Her son is 14 years old and suffers from a seizure disorder. His anti-seizure medication prescription costs $400, which was being paid for by Medicare until Burrows lost those benefits recently. Burrows had been working full time and her income put her over the income limit for her son to receive SSDI or Medicaid. Just as she received a notice from the Social Security Administration (SSA) alerting her that her son’s benefits had been denied, Burrows was diagnosed with lung cancer and had to quit her job. The SSA told Burrows that she had to go through the appeals process to get the benefits reinstated, but Burrows contacted her local media station because she said she cannot wait that long for assistance. If she paid the rent, she would have no money left for the medication. If she bought the medication, they would be facing eviction due to falling behind on the rent.

“It’s very frustrating. This is my child’s life,” Catherine Burrows told WFTV.

WFTV journalists contacted the SSA on Burrows’ behalf, but were also told she would have to go through the appeals process to get her son’s benefits reinstated. The journalists contacted the makers of her son’s anti-seizure medication and the manufacturers donated a 30 day supply of the medication to  Burrows’ son. The Florida Department of Children and Families is trying to get Burrows’ son’s medical coverage reinstated while the SSDI appeal goes through the SSA system.

“I’m just hoping, praying with the Lord, it will get better,” Burrows said of her situation.

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Social Security Disability Claims Top the 3 Million Mark

3-million-social-security-claimsIn 2009, the number of applications for disability insurance surpassed the three million mark for the first time in the history of the program. This reflects an increase of twenty-seven percent across the country. Officials claim one of the reasons for the surge in applications is a shaky economy.

Many companies have begun downsizing in an effort to stay afloat during the economic downturn.  Also as a result of that downturn, no new jobs are being created. Not only have the newly unemployed workers lost whichever benefits they had through their jobs, they are flooding an already saturated job market. A recent study reported just yesterday found that there are currently five people for every one job opening in the country. The current unemployment rate of a staggering ten percent lends credence to this estimate.

Lowell Kepke, the deputy communication director of the San Francisco Social Security Department puts it plainly.  “The economy has this effect,” said Kepke. “People who have lost their jobs and have a disabling condition may consider their condition the reason they cannot work.”

"The economy has this effect. People who have lost their jobs and have a disabling condition may consider their condition the reason they cannot work."

The Social Security Administration (SSA) says 2009 also saw an increase in the number of retirement benefit applications. The total number of applicants for retirement benefits in 2009 was 2.6 million, which is an increase of eleven percent over 2008’s number of retirement applicants. The unstable economy and poor job market are also reasons for this increase as well. People are taking earlier retirements due to the flailing economy and partly at the suggestions of their employers. Others who had been working with disabilities in recent times have also started applying for benefits instead of remaining in the unstable job market any longer. Another variable in the retirement equation is that baby boomers are now reaching retirement age and applying for benefits.

Right now there are roughly eight million disabled Americans who receive monthly benefits from the SSA. The total dollar amount that the SSA pays each month in benefits  is about $8 million. The average disability allowance per person is $1,064. The SSA also pays retirement benefits from the same trust from which disability payments are issued. In comparison, there are approximately thirty three million retired Americans receiving a total of around $40 million each month. The average monthly retirement benefit through the SSA is $1,167. Some applicants are both retired and disabled, which allows them to collect both kinds of benefits. In situations such as this, one of the benefit allowances is usually reduced.

People should not assume that the disability rolls are going to grow with this influx of new applicants. Qualifying for disability benefits is a tedious process. The SSA states that only thirty seven percent of applicants are approved for disability benefits on their first application. Those who do not qualify at first must file an appeal, which can take years to process. Although a lot of applicants choose not to bother filing the appeal, over fifty percent of those who do file the appeal are approved.

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HIV Infection Not Automatic Reason for SSDI Approval

Although not always, most people who have HIV or AIDS do qualify for Social Security Disability Insurance (SSDI) benefits, but not because of their HIV itself. Here’s why.

When a person is infected with HIV, their immune system is weak and compromised, making them vulnerable to opportunistic infections. An opportunistic infection is caused by pathogens that normally would not make a healthy person with a strong immune system ill. Since a person with HIV has a weakened immune system, these types of pathogens have the ‘opportunity’ to infect. Some examples of opportunistic infections that a person with HIV may experience are: bacterial infections, fungal infections, viral infections, diarrhea and other conditions that affect the mucous membranes as well as they body’s blood supply.

Because HIV affects everyone differently, there are no hard and set rules when it comes to which conditions will qualify or disqualify a person for SSDI benefits. Eligibility depends much more on the severity and the frequency of the opportunistic infections than the type. The Social Security Administration (SSA) does keep a list of all known associated conditions that could potentially affect a person with HIV and maintains a separate list for women and children.

Or course, applicants that have HIV must also follow the same guidelines as other applicants do and they also must meet the same criteria. HIV claims have a history of being given preference during the application process and are usually processed much more quickly than other types of claims. Although with the current backlog situation adding months to what should be relatively short waiting times, one should not assume their case will be given preference over another.

Sometimes the SSA does offer what are called “presumptive benefits” to people who have the HIV virus while their application is being processed. These benefits are paid one a six month basis under the “presumption” that the present HIV infection is going to be sufficient to qualify them for regular SSDI benefits once their case is reviewed. In order to apply for “presumptive benefits”, the applicant must get form SSA 4814 from their local SSA office and have it filled out by a doctor, detailing the presences of an HIV infection. If, once their entire claim has been reviewed, it is determined they are not eligible for SSDI benefits, applicants who received the “presumptive benefits” do not have to repay them.

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Michigan Social Security Disability Backlog

When it comes to processing times of backlogged claims for Social Security Disability Insurance (SSDI) benefits, Michigan ranks one of the worst. Currently there are over 40,000 backlogged cases waiting to be processed and several thousands more awaiting appeals. Wait times of a year – or more – are not uncommon in Michigan.

Kelly Young was diagnosed with multiple sclerosis at 34 and applied for SSDI benefits after being forced to quit her job in early 2009. Her claim was processed quickly, according to the Social Security Administration (SSA) norm – within just three months. Her initial claim was denied and Young had to employ an attorney to represent her in her appeal. Young and her husband had just depleted their savings account when she was finally approved for benefits just over a year from filing her initial claim.

Larry Cronin’s daughter Lindsay was born with a mental disability. When Lindsay turned eighteen, Larry applied for SSDI benefits on  her behalf so that his daughter would have some means to support herself once her parents were no longer able to. Lindsay’s claim was not only denied, but the SSA found that Lindsay wasn’t disabled at all and that there were still jobs she was able to perform so as to support herself by earning an income. It took three years and one appeal to finally get Lindsay approved for the SSDI benefits that she was entitled to.

The SSA acknowledges that the backlog of cases in Michigan is a serious problem, especially for applicants who have no other source of income or any life savings from which to sustain themselves in the interim. Michigan is taking some reactive steps to battle the backlog. So far, the state has opened additional hearing offices in Livonia and Mt. Pleasant and offering Michigan applicants the option of having their claims and appeals heard by administrative law judges in other state via video conferencing. In addition to these steps, Michigan is also considering reinstating a former policy that directed denied applicants right into the appeals process. Some SSDI attorneys and state representatives are opposing this suggestion , saying throwing so many in to the appeals process automatically may actually add to the backlog rather than allieivate it. No final decision has been made so far.

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Proposed Laws to Stop Debt Collectors from Seizing Social Security Benefits

APRIL 14, 2010 - Treasury Department announced a series of new laws that would prohibit debt collectors from freezing bank and garnishing bank accounts belonging to recipients of Social Security and disability for the purpose of satisfying a debt. The proposed laws were published in the Federal Register and citizens will be given sixty days in which to voice their support or opposition to the new legislation.

Sen. Herb Kohl (D-Wis) chairman of the Senate Special Committee on Aging praised proposed laws that would prohibit the seizure of Social Security benefits by banks and other entities.

Sen. Herb Kohl (D-Wis) chairman of the Senate Special Committee on Aging praised proposed laws that would prohibit the seizure of Social Security benefits by banks and other entities.

Under a long-standing federal law, Social Security benefits – including those paid to the disabled,  are exempt from being seized by bill collectors. However, once those benefits are deposited into a bank account, there was no law protecting them from debt collectors. Before the new rules were in place, there was no way for banks or creditors to distinguish between different types of assets so any monies that were in the account were subject to being frozen and garnished by creditors. Under the new provisions, banks would have to carefully examine any bank account that had a freeze or garnishment action pending against it to determine whether the account had received any federal benefits within the past 60 days.

“This rule clarification will ensure that banks can no longer stand between seniors and their rightful benefits,” Sen. Herb Kohl, D-Wis., chairman of the Senate Special Committee on Aging, said in a statement. “We’re glad to see this administration prioritize the protection of beneficiaries.”

Presently, more than fifty million Americans receive some type of benefit from the Social Security Administration (SSA). These benefits include retirement benefits, disability benefits, Social Supplemental Income (SSI), and a host of others. In fact, Social Security is the primary income of  sixty four percent of all Americans aged 65 and older. Of those fifty plus million recipients,  eighty percent choose to  have their benefits direct deposited into their bank accounts each month.

"This rule clarification will ensure that banks can no longer stand between seniors and their rightful benefits. We're glad to see this administration prioritize the protection of beneficiaries."

Because most recipients of Social Security benefits are already struggling to budget their households on a fixed income, having what little financial resources they do have tied up in a dispute over a debt can be catastrophic. When an account is frozen, checks may be returned unpaid to the bank. This can lead to charges such as overdraft fees and non-sufficient funds fees being incurred as well as a whole new set of creditors and debt issues to deal with. The only way to fight a garnishment order that has been placed on a bank account is through a lengthy and expensive court process, which most recipients on fixed incomes cannot afford. Those who could have afforded it find themselves unable to because their resources are tied up in the accounts in question.

The SSA estimates that $178 million was seized by creditors from bank accounts funded by Social Security benefits between the years 2006 and 2007, a practice that both politicians and consumer advocates believe should stop.

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