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Unemployment Puts Pressure On Disability Funds
Posted in: Social Security Disability on January 4th, 2012

disabilityThe economy has challenged us quite a bit over the last few years and it isn’t just the unemployment rate and raising national debt that has many of us concerned. The lack of affordable healthcare options, the cracks in major industries like the housing market and the fate of Social Security benefits are all topping the list of national concerns. Now that the unemployment rate has hovered around highs for a while now, many Americans are forced to turn towards other sources of assistance, such as disability insurance for help.

Slippery Slope

Two new studies have recently reported that there is a positive correlation between people applying for Social Security Disability after their unemployment benefits have run out. One of the White House’s top economists authored one of these studies and comments that this correlation highlights a more concerning issue. More specifically, people now view SSDI as an extension of the unemployment program rather than a program designed to help a separate demographic of U.S. citizens in need.

The biggest problem: people with moderate and potentially manageable health conditions are backing up the disability application process, causing major delays for those who really need it. With the influx of applicants coming over after their unemployment runs out, an already pressured system is becoming further stressed financially. No longer is disability being treated as a system for the disabled and ineligible to work, but has become viewed as another branch of a big welfare program.

 

 

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