Disability News

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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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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Proposed Law to Ensure Social Security Benefits for Same-Sex Couples

Linda Sanchez (D-California) announced this week that she plans to introduce a bill that would ensure equality for same sex couples under Social Security’s benefit programs.  Rep. Judy Chu (D-California) offered to co-author the bill.

Linda Sanchez (D-California), plans to co-sponsor legislation that would help ensure equality in Social Security benefits for same-sex couples.

Linda Sanchez (D-California), plans to co-sponsor legislation that would help ensure equality in Social Security benefits for same-sex couples.

Sanchez made her announcement to a crowd of 700 supporters who had gathered at Hollywood’s Gay and Lesbian Center to kick off a grass-roots movement demanding equal rights for same-sex couples by the Social Security Administration (SSA). The rally, known as “Rock for Equality”, was organized by the center – in conjunction with the National Gay and Lesbian Task Force and the AIDS Community Action Foundation.

"Right now, same-sex marriage couples pay equally into a system that they don't receive equal benefits from in return"

Sanchez is a member of the House Subcommittee on Social Security and believes that same-sex couples are being unjustly and routinely denied Social Security benefits that are given freely to their heterosexual counterparts. Her bill would demand that the SSA recognize same-sex partnerships as they apply to the disbursement of survival benefits that heterosexual couples now receive. As it stands, gay and lesbian couples are not eligible for Social Security’s four main spousal benefits. These include retirement benefits, dependent disability benefits, survivor’s benefits and death benefits.

Research by UCLA’s Williams Institute suggests that there are currently one million same-sex couples in the United States. With the number of gay and lesbian taxpayers paying into the system, but not being eligible for benefits, the research estimates that over the course of the past decade, the gay and lesbian community lost $2 billion in benefits they should have qualified for by paying into a system that doesn’t recognize them. This equates to roughly $5,700 per survivor, per year.

“I don’t think it’s right that Americans should be treated differently by the country they love because of who they love,” Sanchez said. “Right now, same-sex marriage couples pay equally into a system that they don’t receive equal benefits from in return. Shame on this country for allowing that to happen.”

Although Sanchez’s proposed bill has a long way to go before becoming law, there is already a great amount of political support being shown in favor of the bill. California Senator Barbara Boxer attended the rally as well. Last month, the city of Los Angeles announced that it supports Social Security benefits for same-sex couples. Event organizers say that President Obama has voiced his opposition to Social Security discrimination for same-sex couples also. Representative Sanchez plans to seek more co-sponsors of the bill and will attempt to hold a hearing in the Ways and Means Social Security Subcommittee, once the bill has been formally introduced.

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SSI Recipients in Tennessee Losing Heath Care Benefits

Tennessee SSI Recipiects May Lose Health Care Coverage

Tennessee SSI Recipiects May Lose Health Care Coverage

Since January of 2009, Tennessee has withdrawn coverage for 100,000 residents who were insured through TennCare, Tennessee’s version of the Medicaid program. These cuts come on the heels of a resolution to a decade’s long court battle involving recipients of Supplemental Security Income (SSI).

TennCare’s eligibility guidelines have always stated that anyone who ever qualified for SSI would also qualify for medical coverage under their program. Due to rising costs and the state’s unstable financial situation, Tennessee wanted this provision overturned to withdraw health coverage from those who no longer qualified for SSI. In 1987, a class-action lawsuit involving SSI recipients was brought against the state. The lawsuit resulted in an injunction barring Tennessee from denying coverage under TennCare to all SSI recipients, both past and present.

"Here I am three-quarters of the way through getting well after two types of cancer and needing surgery and colon tests and CAT scans to see if the lymphoma's come back and here they cut me off. There's nothing I can do until I turn 65 now, except wait and hope I don't get sicker." - Thomas Moore, 64, Woodbury, Tennessee

The state argues that all SSI recipients should qualify for TennCare on their own, taking their current income and assets into consideration. This is the same process that applicants who have never received SSI have to go through to determine their eligibility. State officials say that assuring that everyone follows the same set of rules not only benefits those seeking assistance, but also reduces wasteful spending of state resources by ceasing to pay out benefits to people who clearly are not entitled to them.

TennCare’s spokesperson Kelly Gunderson maintains that SSI recipients are not being unfairly targeted. Gunderson said TennCare is only re-evaluating their eligibility based on income, which is the same process every other TennCare recipient must go through. If their household incomes qualify them for health coverage, they will receive it. However, Social Security is the very income that has put some TennCare recipients over the qualifying threshold in some cases.  Further, the vast majority of those losing TennCare benefits under the new ruling were receiving treatments for live-threatening conditions and are now being forced to discontinue those treatments due to lack of health coverage.

Jessica Pipkin is a Tennessee resident who lost the use of her limb in an accident five years ago. She requires 24 hour nursing care in her home, which was covered under TennCare until the recent ruling went into effect. Her husband makes $19,000 a year at his job. Her disability benefits are $14,400 per year. This combined income puts them well over the threshold to qualify for TennCare coverage, even though Pipkin’s care costs $37 per hour.

Thomas Moore, a 64 year old Tennessee resident and cancer survivor also had his health coverage dropped under the new ruling. In 2008, Moore began receiving SSI benefits because of a hip fracture, but was required by the state to move to the Social Security program when he reached the age of 62. The change in programs put his income at too high a level to qualify for TennCare coverage, which he subsequently lost. Moore was still undergoing follow up treatments for his cancer and had a hip surgery scheduled at the time he lost coverage.

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