A recent New York Times article, “Disability Insurance Causes Pain,” categorizes Social Security disability as an unnecessary drain on our national economy. According to the article, “[d]isability insurance takes too many workers out of the job market prematurely. It reduces their lifetime income and…slows economic growth.” The article’s author, Eduardo Porter, attributes some of the notable growth in the disability program in recent years to changes in demography – an aging population and more women in the workforce. But he identifies two other factors as the major causes of the seemingly exponential increase: First, a job market that is tough to navigate for low skill workers; and, second, a basic flaw in the disability program that discourages workers from ever working again.
The article states that the disability system can be fixed by “providing incentives to enable disabled workers to continue working if they can.” Mr. Porter proposes two incentives previously suggested by MIT professors: Requiring employers to buy private insurance and increasing their premiums as more of their former workers draw benefits; and allowing workers to apply for benefits while still working. Both of these proposals warrant discussion, however, Mr. Porter completely fails to acknowledge two ways in which the disability program already incentivizes work.
First, Social Security allows for unsuccessful work attempts. During such an attempt a claimant increases their earned income to over $1,010.00 gross per month by either working more hours at an existing job or taking a new job. If the job lasts longer than 3 months, the claimant is deemed to have found substantial gainful employment and is no longer entitled to or eligible for benefits. However, if a claimant works for less than 3 months and finds their medical conditions prevent them from continuing that claimant may cut their hours or stop working without any change in disability benefits or eligibility (if a claimant has been working with accommodations from an employer, this period could be extended to 6 months).
Second, Social Security allows for trial work periods, during which a beneficiary receiving Social Security disability benefits may test his or her ability to work and still be considered disabled. Social security does not consider services performed during the trial work period as showing disability has ended until services have been performed in at least 9 months (not necessarily consecutive) in a rolling 60-month period. In 2012, any month in which earnings exceed $720 is considered a month of services for an individual’s trial work period.
Discussing new ways to incentivize work by disabled individuals can be beneficial – even necessary, since the disability fund will be exhausted by 2016 and continued benefits will have to be drawn from payroll taxes. But the slow economic recovery, increased cost of healthcare, aging workforce, and quickly dwindling entitlement funds should not be blamed on those bearing the brunt of these realities. Most people on disability would much prefer to work – they did not choose to leave the job market prematurely or reduce their lifetime income. The disability program creates an obligation to provide financial and medical assistance for those who can no longer support themselves. If we as a country are no longer able or willing to satisfy this obligation, let’s at least refrain from casting a negative light on those we promised to help by insinuating they are not motivated to work.
