Older workers likely to face severe cuts to Social Security Disability Insurance

A Trump administration proposed rule, currently in the works, could reduce the proportion of people who qualify for Social Security Disability Insurance (SSDI) by as much as 20 percent, reports the Center for Budget and Policy Priorities. If the rule is finalized, it would be the largest cut to SSDI in its history.

Millions of Americans under 65 rely on SSDI before becoming eligible for full Social Security benefits at 67. People receiving SSDI suffer from serious and long-term disabilities that make it extremely hard for them to earn a living. SSDI keeps them from impoverishment. As it is, benefits do not meet the needs of most of the people receiving SSDI as they age. The Trump rule would put up more barriers to SSDI and Supplemental Security Income eligibility.

The Trump administration rule would likely mean that 1.5 million fewer people would be eligible for SSDI. Most of these people are over 50 years old. The rule is designed to take a narrow view of who cannot work as a result of medical conditions, even though the SSDI law requires that the administration look at people’s age, skills, health conditions and education when determining whether someone can work.

The SSDI eligibility rules already make it extremely difficult to qualify for SSDI. The new rule, if finalized, will hurt people living in the South and Appalachia the most. People in these regions have higher proportions of residents receiving SSDI.

If finalized, the new rule will endanger people’s retirement security and ability to meet basic needs. As it is, people receiving SSDI live with fewer assets and lower incomes than other Americans. Without SSDI, they will be forced to rely on savings to meet basic needs and to take Social Security earlier, when benefits are as much as 30 percent lower.

Without SSDI, they will struggle to get health care; instead of being eligible for Medicare 24 months after going on SSDI, they won’t get Medicare until they are 65. While they might be eligible for Medicaid, Medicaid cuts and work requirements will make it all the harder for them to qualify. Federally Qualified Health Centers are also facing serious cuts and struggling to survive.

Lastly, without SSDI, people will face greater obstacles qualifying for food stamps and other critical benefits.

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