Eligibility changes for SSI benefits for those with a disability -- Urban Institute

In a new analysis, Urban Institute researcher Jack Smalligan explores how regulatory changes under development by the Social Security Administration (SSA) could reshape how disability eligibility is determined for Social Security Disability Insurance (SSDI) and Supplemental Security Income.

The anticipated regulation—which includes occupational data sources and age weighting—could significantly reduce eligibility for disability benefits, particularly among older workers.

The analysis estimates that if enacted: Eligibility for new applicants to the SSDI program could be reduced by as much as 20 percent overall, and up to 30 percent among older workers. A 10 percent reduction in SSDI eligibility for new applicants could result in 500,000 people losing access after 10 years, including 80,000 widows and children. An additional 250,000 beneficiaries could lose eligibility for part of the period. A 10 percent reduction would reduce benefits by $82 billion, with ripple effects on Medicare and Medicaid eligibility. Many denied older workers may eventually claim early retirement benefits, reducing their lifetime retirement income by up to 30 percent. Read the full analysis for a better understanding on how these technical changes can have profound policy and human consequences.

Relatedly, you may be interested in a recent Urban Wire blog post that seeks to better understand the current reduction in the SSA disability claims backlog, pointing to fewer new claims and higher denial rates.