The Wall Street Journal reports that the market is flooded with qualified workers and employers can afford to be picky. As a result, workers with minor disabilities are facing increased adversity in their job search, according the Wall Street Journal.

One employee, with minor hearing problems, was unable to find employment after almost a year of searching. Jobs remained elusive even after becoming less selective and considering positions well below her skill set and abilities. With no job on the horizon and unemployment benefits ending, she applied for Social Security Disability Benefits.

This progression from unemployment to social security disability benefits is becoming more common, as confirmed through a recent study by the White House.

a href=”http://uspolitics.einnews.com/247pr/258377″> See full story here:

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The Wall Street Journal this week is running a series on the long delays at Social Security. The backlog of applications for disability benefits is so big the Social Security Administration has a special code—DXDI—for appeals dismissed because the applicant died waiting. Since 2005, the agency has made 15,043 DXDI designations.

One person who died waiting was Dexter E. Penny of District Heights, Md., who applied for disability benefits in February 2009 after being diagnosed with colon cancer. His initial application was denied. Then his first appeal was denied on the grounds that he didn’t provide enough medical records.

Mr. Penny, a mason, approached the Maryland Legal Aid Bureau for help a year after his first application. He couldn’t understand why terminal cancer wouldn’t qualify him for benefits, says his sister, Diane Penny.

Kate Lang, his lawyer, called four hospitals seeking additional records. Mr. Penny’s condition worsened. By September 2010, he was told he had stage-four cancer. Mr. Penny, 50 years old, was nearly broke and dying in the hospital and the agency wanted more accurate documentation to determine whether he was able to work, according to his sister…

Applications for disability benefits are rising sharply because of high unemployment, an aging population and a combination of mismanagement and potential fraud within the system. About 3.3 million people sought benefits in 2011, and at the end of September a record 771,318 were waiting to have their cases heard on appeal by administrative law judges, according to the latest government data.

Both U.S. lawmakers and disability groups have complained about the long waits. The Social Security Administration has set up a program to let some applicants jump to the front of the line. It also has expanded the number of diseases and disorders that merit an immediate review, which include acute leukemia and pancreatic cancer, to 113, from 100.

These moves have reduced the number of applicants dying in line each year, by 20% from its 2009 peak. The backlog, however, has continued to rise.
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Everyone “knew” that disability applications were going up because of high unemployment rates, but here is a study that confirms the obvious: people need help.

…”Their research found that close to 10% of Americans between the ages of 50 and 65 who didn’t have access to at least $5,000 applied for Social Security disability benefits by the time their unemployment benefits were set to expire. The percent of this group seeking the benefits rose precipitously in the weeks leading up to the exhaustion of benefits, as it was below 1% with 50 weeks left in unemployment benefits.

“Jobless Americans in this age range who had access to at least $5,000 were much less likely to seek SSDI benefits at any point while collecting unemployment benefits.

“There has long been a relationship between unemployment rates and applications for disability benefits, with more Americans seeking entry into the program when it’s harder to find a job.” See full story here:

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From the Wall Street Journal: Investigators from the Social Security Administration’s inspector general’s office descended on Huntington, W.Va., on Thursday, the same day a Wall Street Journal front-page article detailed the high award rate of administrative law judge David B. Daugherty..at least two congressional probes are being launched or expanded as a result of the article, congressional aides said. Utah Sen. Orrin Hatch, the top Republican on the Senate Finance Committee, said he planned to look at how the agency grants disability claims. And the House Ways and Means Committee plans to broaden an existing investigation into how Social Security disability programs are administered. Daugherty granted nearly every case that came in front of him, and granted almost all the cases from a particular representative. See Story here

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Today’s Wall Street Journal has a thoughtful article on the travails of obtaining disability payments from Social Security, specifically about how people underestimate the difficulty of the process. We frequently find clients who express amazement at this: they have always assumed these benefits they have paid for will be readily available in time of need.

“Workers who contribute part of their earnings to Social Security often underestimate what it takes to tap the benefits if they become permanently disabled. The process can be tricky and more time-consuming than people expect, and the weak economy appears to be contributing to a surge in applications.

“Applications for Social Security disability benefits rose more than 17% in the first quarter. There are 7.4 million people receiving disability benefits that average $1,063 a month.

“Those numbers are expected to rise as baby boomers age, so it can pay to know the claims process. Here are seven common errors to avoid:

First, Misdefining disability

Many people erroneously think they can collect benefits as long as they are unable to do their regular job. A person must be unable to perform any substantial work and have a medical condition that has lasted or is expected to last at least a year or to result in death. It’s not only what you can do or have been doing but anything they think you’re suited for. Others include wating too long to apply,being disorganized, failing to get help, making financial errors. Read full article here:

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