SS Disability Insurance Failing : No Incentive to Work

Why would anyone that opts for disability from SS (DI) even though they have no reason to have the DI other then they don't want to work, want to return to a working environment that requires dedication and responsibility? Even worse, they keep getting more money the longer they are receiving funds? And not to mention all of the other agencies that provide excuses not to work, why go back?

Truly, did anyone ever wonder why the SS disability program expanded at such a high rate as unemployment started to run out?

Return-to-Work Outcomes Among Social Security Disability Insurance Program Beneficiaries
Source: Yonatan Ben-Shalom and Arif A. Mamun, "Return-to-Work Outcomes Among Social Security Disability Insurance Beneficiaries," Mathematica Policy Research, May 1, 2015.

July 29, 2015

Yonatan Ben-Shalom and Arif A. Mamun of Mathematica Policy Research followed a sample of working-age Social Security Disability Insurance (DI) program beneficiaries for 5 years after their first benefit award to learn how certain factors are associated with achievement of four return-to-work milestones:

Enrollment for employment services provided by a state vocational rehabilitation agency or employment network. Start of a trial work period. Completion of TWP, and suspension or termination of benefits because of work. The researchers found:

Younger beneficiaries are more likely than are older beneficiaries to achieve the milestones. Milestone achievement rates vary a lot between different disability types. The probability of achieving the milestones is higher for individuals with more years of education, for Blacks, and for individuals residing in states with low unemployment rates at the times of receiving the benefit.

The probability of achieving the milestones is lower for beneficiaries with a high disability insurance benefit amount. The probability of achieving the milestones is higher when the beneficiary receives supplemental Security Income or Medicare benefits at the time of the disability insurance award.

The study found large variation in the probability of achieving the milestones across states and across time. The authors attribute these variations to unobserved factors at the state-level, policy changes and trends in unobserved beneficiary characteristics.

Overall, the study reveals that higher award amounts correlate with a lower chance of returning to work.