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A History Of The Social Security Disability Programs

Creator:  Social Security Administration Staff (authors)
Date: January 1986
Source: Social Security Online History Page

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The 1972 Amendments also provided Medicare and Medicaid protection for Social Security disability recipients, providing needed medical coverage to a high risk group, and extended the definition of a disabled adult child to those disabled before age 22.

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GROWTH OF THE DISABILITY PROGRAMS

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During the early and mid-1970s the size and cost of the disability insurance and SSI programs increased dramatically. The number of persons being placed On the disability rolls was substantially larger than had been anticipated. The increasing costs of the disability insurance program during the period from 1970 to 1975 were attributed, in large measure, to a nearly 50 percent increase in the percentage of covered workers being awarded disability benefits. The increase in the disability incidence rate and the attendant drain on the Trust Fund were of great concern to the Congress and the Social Security Administration. Studies of the problem suggested that a combination of factors had contributed to the increase. These included: high unemployment rates; changes in attitude toward disability; high benefit levels that encourage persons with impairments to stop working and apply for benefits; and various administrative factors, such as the massive nature of the disability determination process, tremendous pressures for timely processing of claims, disparity in adjudication. among the States and at different levels of administrative review, and other factors. During the period 1975 to 1979, several proposals for disability reform legislation were introduced in the Congress. These proposals were designed to address some of the problems which had been perceived as contributing to the unanticipated growth of the disability insurance and SSI disability and blindness program. The proposed legislation primarily focused on removing work disincentives built into the disability program and on improving program administration. Legislative activities in this area intensified in 1979, culminating in the enactment of the Social Security Disability Amendments of 1980.

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FURTHER CONGRESSIONAL ACTION

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In his June 9, 1980, signing statement, President Carter described the 1980 disability legislation as "a balanced package, with Amendments to strengthen the integrity of the disability programs, increase equity among beneficiaries, offer greater assistance to those who are trying to work, and improve program administration." Some of the principal features of the Amendments included a revision of the disability insurance benefit structure and measures for strengthening incentives for rehabilitation and return to work. A cap was placed on the family benefits that could be paid to disabled insured workers and their dependents. This provision was designed to ensure against excessive replacement rates that might attract persons to the disability insurance rolls and discourage beneficiaries from returning to work. (An amendment in 1981 also placed a cap on the total payments received from multiple government programs.) To strengthen work incentives in both the disability insurance and SSI programs, the Amendments provided a disabled individual who completes a 9-month trial work period with an additional 15-month period within which to test his ability to work while retaining disability status. During this period, payments are suspended for months in which the disabled individual perform substantial gainful activity, but are automatically reinstated if the work attempt fails. As another incentive, the Amendments provide that in determining whether a disabled individual's earnings demonstrate substantial gainful activity, the amount of such earnings will be reduced by the amount of impairment-related work expenses incurred by the individual. These are just a few of the work incentive provisions which characterize the Social Security disability programs.

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CHANGING THE FEDERAL/STATE RELATIONSHIP

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In passing the 1980 legislation, Congress also sought to strengthen Federal management of the State disability determination process to ensure effective and uniform administration of the disability programs throughout the United States. To this end, it abolished the system of individual State agreements and required the Secretary to promulgate regulations specifying performance standards and administrative requirements and procedures to be followed by the States in performing the disability determination function. In addition, a provision in the 1980 Amendments requires the Secretary to assume the determination function from a State if the Secretary finds that the State agency is substantially failing to make disability determinations in a manner consistent with published regulations and written guidelines. To ensure uniformity and consistency of State agency determinations, the Amendments further required the Secretary to gradually reinstitute a system of preeffectuation review of a majority of State agency disability allowances and determinations of continued disability.

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