According to Moneywise, As of August 2024, the average processing time for disability claims exceeds seven and a half months, more than double the duration required in 2016. If a claim is denied and an appeal is necessary, the process can extend to several years. Additionally, after a determination of disability is made, there is a mandatory five-month waiting period before benefits are disbursed. Social Security Administration (SSA) Commissioner Martin O’Malley reports that SSA’s actuary estimates approximately 30,000 individuals died in 2023 while awaiting their initial disability determination.
“The most significant challenge we face currently is the surge in disability applications,” O’Malley stated in an interview with AARP. “With Congress reducing our staffing to a 25-year low, we are experiencing a substantial backlog.”
From 2010 to 2024, the SSA’s budget for customer service decreased by 19% when adjusted for inflation, and staffing levels dropped by 11%. The agency also faced more than two years of office closures during the pandemic, leading to a notable reduction in its workforce. Concurrently, the number of beneficiaries has increased by 25% since 2010.
Potential Solutions and What You Can Do
To address these issues, the SSA aims to process initial disability claims within 215 days by the end of the 2025 fiscal year. Plans include hiring 400 additional disability examiners, equipping them with enhanced technology, and encouraging more online applications to allow field office staff to focus on cases requiring personalized assistance.
Despite these efforts, funding for 2024 remains insufficient, with only a 0.2% increase over 2023 levels, primarily covering the replacement of lost staff rather than expansion. The positive impact of increased IRS funding through the Inflation Reduction Act suggests that additional funding could significantly improve customer service.
In June 2024, the SSA announced a simplification of the disability evaluation process to expedite decision-making. Applicants now need to provide detailed information on their work history for the past five years instead of fifteen, and short-term employment (lasting less than 30 calendar days) will no longer be considered. These adjustments aim to streamline the application process and reduce review time for examiners.
For those applying for Social Security Disability Insurance (SSDI), ensuring a smooth application process involves being thorough in detailing work history and medical conditions. It is crucial to provide all necessary supporting documents and promptly respond to any additional requests from the SSA. If facing significant delays and severe conditions, consulting a lawyer specializing in disability claims may be beneficial.
Follow These Steps Once Your Portfolio Reaches $100K
If your portfolio has surpassed $100,000, it’s an opportune moment to consult with a trusted advisor. Zoe Financial’s network of elite fiduciary advisors offers tailored strategies to optimize your financial success. Access exclusive investment opportunities and bespoke wealth management services. Trust Zoe Financial for exceptional expertise and dedication to your financial well-being.
This Article Includes
