Social Security Disability Insurance (SSDI): Meaning, History
What Is Social Security Disability Insurance (SSDI)?
Social Security Disability Insurance (SSDI) is a federal income benefits program that provides financial assistance to Americans with disabilities. In general, according to the Social Security Administration (SSA), benefits are paid to those who are not able to work for a year or longer as a result of a disability. Payments are provided monthly to those who qualify.
SSDI is an earned benefit, meaning that in order to qualify, you must have previously paid into the program and have accumulated enough credits to be eligible. Credits are dependent on work history. As SSDI is a type of disability insurance, eligibility is also based on the SSA’s medical criteria and determined through an application process.
Understanding Social Security Disability Insurance (SSDI)
SSDI is a Social Security program for people who are unable to work due to a disability. Applicants must meet a strict definition of disability in order to qualify: their medical condition must be expected to last at least one year or result in death. SSDI is not for partial disability or short-term disability.
SSDI is funded from employment income tax. Contributions are calculated as a percentage of employment income and deducted from all employees’ paychecks under the Federal Insurance Contributions Act (FICA), in all jobs covered by Social Security, or paid by self-employed people on their net earnings under the Self-Employed Contributions Act (SECA).
As such, qualification for SSDI is also based on work history, and the amount received is based on lifetime average earnings in employment covered by Social Security.
Applicants must have worked for a certain duration in jobs covered by Social Security; the calculation is based on the number of calendar quarters worked and the age at which the disability began.
Recipients must also be US citizens or have lawful alien status if they were not born in the US.
SSDI payments may be affected (likely, reduced) if an individual or their family is also receiving other government benefits, such as public disability benefits, some pensions, or worker’s compensation. The SSA has online benefit calculators that can help to determine the amount that an individual is likely to receive. SSDI beneficiaries are also automatically enrolled in Medicare Parts A and B after two years of receiving benefits. Whether or not SSDI benefits are taxable depends on your income.
History of SSDI
Social Security began in the 1930s as part of Franklin Roosevelt’s New Deal reforms, but initially began only with a retirement benefits program, with disability and medical coverage following in the 1950s and 60s. In the 1950s, the Disability Insurance Trust Fund (DI) was established to collect funds under the Federal Insurance Contributions Act (FICA) and Self-Employed Contributions Act (SECA), from which SSDI payments are made.
SSDI Application Process
The application process comprises the following general steps:
The applicant gathers the required documentation and information for the application. The SSA has a checklist on their website that can assist with this process.
The applicant completes and submits their application.
The SSA reviews the application to ensure that the work and disability requirements are met. If there are any questions, the SSA will contact the applicant to request additional information or documents.
The application is processed and sent to the applicant’s state Disability Determination Services office.
The state agency determines whether the application is successful. The applicant receives a letter in the mail regarding the decision.
The decision can be appealed in writing within 60 days of receiving the decision.
The SSA recommends applying for disability benefits as soon as you become disabled.
This is especially important because if an SSDI application is approved, most beneficiaries (with the exception of those with ALS) must wait five months to receive their first payment. As a result, the first payment would be made in the sixth full month after the date that the disability began according to the application.
Qualifying for SSDI
In general, in order to qualify for SSDI, you must meet the following criteria:
You are unable to work and engage in Substantial Gainful Activity (SGA) due to your medical situation.
You are not able to conduct the type of work you did before, or you are not able to do any other type of work as a result of your disability.
Your condition has had or is expected to have a duration of at least 12 months, or to result in death.
Note that there are special considerations and slightly different eligibility criteria for people who are blind, widows or widowers of workers, children with disabilities, and veterans.
In line with the above, the state agency makes its decision using these five questions, moving through them in consecutive order:
Are you working? If yes, and you make, on average, over a certain monthly figure, in general, you will not be considered to have a disability. The amount changes annually and is also referred to as Substantial Gainful Activity (SGA). If not, or you make less than the SGA threshold, then the agency moves to evaluation step two.
Is your medical condition “severe”? Under the SSA’s definition, to have a disability, your ability to do basic work activities must be significantly limited for at least 12 months. These include walking, sitting, standing, lifting, and remembering. If not, you won’t be considered to have a disability. If your condition is considered severe under these criteria, the agency moves to evaluation step three.
Does your medical condition meet or medically equal a listing? The SSA uses a listing of medical conditions that has been created in consultation with medical experts. These conditions are considered severe enough to prevent someone from being able to carry out work activities. The state uses this list to determine if you have a disability by confirming if your condition meets or is equal in severity and duration to a listing and its criteria. If this is not the case, the state continues on to step four of the evaluation.
Can you do the work you did before? This stage of the evaluation determines whether you are able to continue on with any of your past work, given your medical situation. If your medical situation does not prevent this, the state will determine that you do not have a disability that qualifies for SSDI. If your medical situation does interfere with the ability to carry out past work activities, the evaluation moves to step five.
Can you do any other type of work? At the final stage of the evaluation, the state considers whether you are able to carry out other types of work, based on age, education, past work experience, and skills. If they find you are able to do other work, you will not qualify for SSDI. If they find that you are not able to do other work, you will be considered to have a qualifying disability.
Accused killer of US insurance CEO pleads not guilty to ‘terrorist’ murder
The man accused of gunning down a health insurance executive in a brazen hit in New York that sparked fierce debate about the industry pleaded not guilty Monday to state charges including “terrorist” murder.
Luigi Mangione wore a white shirt, burgundy sweatshirt and was shackled during his appearance in a Manhattan court where he was flanked by police officers.
Monday’s hearing came after Mangione, 26, appeared in a New York court last week to face federal charges also including murder following his dramatic extradition by plane and helicopter from Pennsylvania, where he was arrested at a McDonald’s restaurant.
The suspect is charged in both state and federal court in the December 4 shooting of UnitedHealthcare chief executive Brian Thompson.
Thompson’s murder brought to the surface deep public frustration with the expensive and opaque US medical insurance system, with many social media users painting Mangione as a hero.
People demonstrating against the industry gathered outside court Monday brandishing banners reading “free Luigi” and “innocent until proven guilty.”
If convicted in the state case, Mangione could face life imprisonment with no parole. In the federal case, he could technically face the death penalty.
Mangioni’s attorney Karen Friedman Agnifilo has previously sought clarity on how simultaneous federal and state charges would work, calling the situation “highly unusual.”
– ‘Political fodder’ –
Agnifilo raised concerns on Monday that Mangione could not receive a fair trial, and questioned why New York mayor Eric Adams had been present when Mangione was brought off a police helicopter at a Manhattan helipad last week.
Aginifilo told local media Monday that officials “are treating him like he is like some sort of political fodder.”
She said the sight of Mangione flanked by rifle-wielding tactical officers during the final stage of his extradition that was widely broadcast was “utterly political.”
Mangione was arrested in Altoona, Pennsylvania, on December 9 following a tip from staff at a McDonald’s restaurant, after a days-long manhunt.
He had traveled to New York by bus from Atlanta about 10 days before the crime, the Department of Justice said.
After checking into a Manhattan hostel with false identification, he allegedly performed reconnaissance near the victim’s hotel and the conference venue where the shooting took place.
Early on December 4, Mangione allegedly tracked Thompson, walked up behind him and fired several gunshots from a pistol with a silencer, prosecutors allege. Afterward, he fled on a bicycle.
Police say a “life-changing, life-altering” back injury may have motivated Mangione, although there was no indication he was ever a client of UnitedHealthcare.
When he was arrested, Mangione had a three-page handwritten text criticizing the US health care system, authorities have said.
Reports that the casings of the bullets fired at Thompson had “depose, deny, delay” inscribed on them prompted stories on social media about health insurers who allegedly used those terms to get out of covering medical care.
Such disputes are among the grievances that many have with a health system criticized for mysterious billing practices, profit-seeking middlemen, confusing jargon and costly drugs.