A recent conversation with a middle-aged gentleman brought a dangerous situation to light.  Apparently, he took an early retirement at age 50 from his former employer, and with his small retirement pension and his 401K accounts he was able to sustain a modest, comfortable standard of living.  Unfortunately, falling stock values have cut his 401K and IRA funds down to about half of what they once were and his income has now fallen well below what he needs to stay afloat.

He said that he would gladly go back to work, but he has since become disabled and can’t earn a living.  The problem now is that he is still too young to retire but he hasn’t made enough recent contributions to the Social Security system to be eligible for disability benefits.  He would consider filing for SSI but his monthly pension is just above the threshold limit.

This gentleman should have applied for Social Security disability benefits at the time he became disabled.  At that time, he still had enough work credits to be eligible for disability benefits.  Instead, he sadly assumed that he didn’t need the benefits because he was happy and well off enough with his personal investments and his small retirement pension from his previous employer. It’s a truly sad case.

In the midst of the current economic slowdown, disability claims are on the rise.  Not surprisingly, the SSA just released numbers showing that Social Security disability claims were up more than 15% for the first quarter of 2009, and are expected to continue to climb higher still.  We need to point out and address those issues that constitute common errors in disability strategy.

1 - Are You Really Disabled?

Often, a person will assume that he or she is disabled simply because their primary care physician has at some point used the word, “disabled” or “disability” when discussing long-term quality of life.  Just because a person is now unable to do their regular job is no guarantee that the person will be disabled as far as the Social Security Administration is concerned.  Ultimately, a person must be unable to perform any gainful employment, not just the one for which they are the most suited.

2 - Do Your Homework

Request, gather, file and organize your medical records.  Make lists of the doctors that you’ve seen, the reasons for which you saw each doctor, and the dates that you were examined or treated.  Keep records of medications, citing the reason that you were taking the medicine and amount that you were prescribed.  If you have room, keep the old medicine bottles as additional proof that you took the medication.  .

3- Don’t Wait Too Long To File for Disability

After a person files for disability, there can be up to a 100-day delay in receiving the approval (or denial) of benefits.  There is also a mandatory five-month waiting period after the onset of disability before payments are made.   Additionally, as shown in the sad case outlined above, it is always best to file for disability as soon after disability has set in, so that full credit for recent contributions can be made.

4- Get Help

Filling for SSDI isn’t like filing your taxes.  There are indeed trick questions and obscure rules that will literally sink a case right from the start.  Statistics show that claimants who obtain qualified, experience representation have a much higher chance of success in being approved for benefits.

5- Don’t Give Up

Just because you are denied benefits the first or second time around, doesn’t mean that you’re not truly disabled and that you won’t be awarded benefits.  Nearly two-thirds of claims that go through appeals and hearings are ultimately awarded benefits.  Unfortunately, however, there is a current backlog that keeps appealed claims in the in the Social Security system for two years or more.

It would be nice if there were an iron-clad set of rules that, if followed, would allow all disability claims to be handled efficiently and accurately.   All one can really do is file their claim early, get help, keep good records and don’t give up.  If a person at least does that, then the rest is simply up to the judge.

With as much mail as we receive these days, it’s important to be able to tell the good from the bad and the ugly.  Be careful, however, because some of what may appear at first to be unnerving may not always be a cause for fear or alarm.

Although clearly addressed from the government and postmarked with the government use stamp, the Social Security statement is certainly nothing to dread.  In fact, in the event that you do become disabled or deceased, the information contained in the report will be extremely valuable to those you love the most.

The statement typically arrives within a few months of your birthday each year.  You can also order a statement from Social Security Administration at any time.  Contained in the report is information and a history of your employment earnings that were subject to Social Security withholding for each calendar year.  The statement will tell you in specific, easy-to-read language how much money you or your survivors would be entitled to receive in the event of your death or if you become disabled and must apply for Social Security disability.

The statement will also help you to plan for your retirement, as different amounts are payable depending on your age at the time of your retirement.  Additionally, mistakes are made from time to time regarding your past earnings, your address or even your name, in cases of name changes due to marriage, divorce or other circumstances.  The IRS and the Social Security Administration share information about your name and address, so this is another opportunity to make sure that the IRS has it right as well.

PR Newswire reports that a survey of more than 200 Social Security Attorneys nationwide revealed that one of the most important factors in determining whether or not a disabled person will be approved for Social Security benefits is not something that would normally make the top of a list of possible reasons.  As surprising as it sounds, your disability claim may be held hostage by nothing more than where you live.

Turns out, it appears to be true.  The survey revealed major differences in approval rates for Social Security disability benefits and Supplemental Security Income benefits based when similar claimants with similar conditions and educational background were compared across different geographic areas of the country. Further, the study revealed that geography also plays a significant role in the amount of the back pay awarded by the administrative law judge.

When the geographic variable was removed the approval rates and award amounts fell back within reasonable averages when compared against one another.

Possible Causes

The study organizers indicated that the disparate results are most likely caused by the differing attitudes and views of the various judges  that hear these types of cases.  However, there are other theories as to why the results are so different from one location to another.

Samuel Packard, a Social Security attorney for Packard LaPray, doesn’t completely agree.  “Typically, the amount of back pay awarded depends on the amount of time a person has to wait before they have a  hearing with the judge.  As a result, if a certain geographic location has a long processing time before hearings are held, then claimants that live in that area will typically be awarded more back pay,” he stated.

When asked to next consider possible causes of disparity in overall approvals, Packard continued by stating, “A high percentage of denials are not based on whether the claimant is actually disabled, but rather on the amount of medical treatment the claimant could have received that would have proved their medical condition.  As a result, people who live in geographic locations that offer health care to those who are indigent or otherwise financially destitute have a higher chance of showing the judge that they are in fact disabled.”

What Can Be Done?

While these factors may appear to be outside the control of claimants and their attorneys, that isn’t always the case.  Many Social Security lawyers agree that continued, regular visits to the doctor during the life of the claim can help overcome the influencing factors of geography in determining approval rates and award amounts in disability claims.

Statistics also indicate that claimants who are represented by experienced Social Security attorneys have a much higher approval rate at hearings than those who simply choose to represent themselves.  A claimant’s representative will help ensure that medical care and continuous updates to the medical record by doctors and other qualified health professionals so that the record does not become bare leading up to the hearing.