The Social Security Disability Insurance (SSDI) system worked well for decades, but it is creaking under the weight of a growing population of people with disabilities, increasing demands on the Social Security Administration and a wave of government retirements. Social Security employees work as hard as they can to help people who deserve care, but their best efforts are only slowly winnowing down a hearing backlog of nearly 723,000 disabled Americans—including 66,000 Californians—waiting months or years to receive their rightful benefits.

The recession is making things even worse. From 2004 through 2007, application levels were stable, with the SSA processing between 2.1 million and 2.2 million SSDI applications each year. Last year, more than 2.7 million people filed SSDI applications. See article here:

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Astrue says the agency has been making inroads, reducing processing times by 4 percent each of the past two years. The recession, however, has reversed the progress on the backlog of cases. At the beginning of 2009, SSA had 550,000 cases pending at the state level. The state-run SSA-funded Disability Determination Services do much of the initial processing and eligibility determination for applicants. The number of claims pending at the state level, which does not account for applications at other stages of adjudication, is now up to 725,000. …

“We’ve been stymied at the state level,” Astrue says. “There’s this callous ‘Kumbaya’ attitude that if there’s going to be pain, everyone has to suffer. For me, it’s beyond comprehension that you would make a civil service suffer unnecessarily and make claimants in desperate need of assistance wait much longer than they otherwise would.” …

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Medicaid patients in nursing homes may keep their $250, which will not be counted as income for Medicaid purposes. Hang up on anyone calling to help you get the payment. Don’t spend it all in one place.

Second, you may have heard that the government has decided inflation is so low that for the first time there will be no Cost of Living Adjustment or COLA (increase) in Social Security benefits for the next two years. Former Deputy Social Security Commissioner Andrew Biggs says this news is not all bad because benefits will remain the same while the cost of living is less, which means many beneficiaries will still be ahead. However, many retirement experts have suggested the cost-of-living index for older people should be higher than the rest of the population, in large part because of out-of-pocket medical and drug costs.

Barbara Kennelly of the National Committee to Preserve Social Security and Medicare says that “zero COLAS would also mean no Medicare Part B premium increases” for most beneficiaries, for, by law, Social Security benefits may not decrease for current beneficiaries. However, new and affluent beneficiaries will be subject to the higher Part B premiums. And Part D premiums, which are expected to rise by 11 percent, she said, will continue to shred the already-tattered budgets of many older Americans.” Link to story here:

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The Bureau of Economic Analysis said benefits such as Social Security, food stamps, unemployment insurance and healthcare accounted for 16.2 percent of personal income during the first quarter of this year, the highest since the government began compiling records in 1929, USA Today reported Thursday.

Federal data indicate government spending on benefits will top $2 trillion in 2009, averaging $17,000 provided to each U.S. household. Benefits rose at a 19 percent annual rate in the first quarter of 2009 compared to the last three months of 2008. Full detail of story here:

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