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Social Security Disability Insurance and Incentives
Posted in: Social Security Disability on September 12th, 2011

social security benefitsSocial Security Disability Insurance is in trouble.  There are hundreds of thousands of individuals that reply on this government program to ensure that they get the money they need to run their lives and the health insurance they need in order to stay as healthy as possible despite their disabilities. The program is in danger, though – experts are saying that it will run out of money within the decade.

The program must be saved so it can continue to support the lives of disabled Americans.

Fixing The Issue

However, this is easier said than done.  Many people are beginning to think of Social Security Disability Insurance like welfare was before reform – it’s not just about the reforms and making tighter rules but also about changing incentives that come along with the program.  Under the current rules, Social Security Disability Insurance recipients lose their benefits if they make any more than 1,000 dollars a month.  In the short term, this encourages many Social Security Disability Insurance recipients to be low-income earners, just so that they do not lose their benefits.  While this is a short-term outlook, it is also beneficial, considering that the economy is also bad.  It is not that these individuals are not disabled and that they do not need the help, but more that many of these individuals could theoretically work, but yet choose not to, in any capacity, in order to protect the disability benefits of money and medical insurance.

In order to save Social Security Disability Insurance, the incentives also have to be changed.  We need to help disabled individuals work to their fullest capacity while also protecting their benefits – we need reform both in law and in consequence!


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