It is managed by the Social Security Administration and designed to provide monthly benefits to people who have a medically determinable disability (physical or mental) that restricts their ability to be employed.
Unlike SSDI (as well as Social Security retirement benefits) where payment is based on contribution credits earned through previous work and therefore treated as an insurance benefit without reference to other income or assets, SSI is a means-tested program in the United States for disabled children, disabled adults, and the elderly who have income and resources below administratively mandated thresholds.
A legitimately disabled person (a finding based on legal and medical justification) of any income level can receive SSI.
After two decades of policy discussion, disability benefits were introduced through the Social Security Amendments of 1956, which was signed into law by President Dwight D. Eisenhower on August 1, 1956.
[9][5] Concerns about the Disability Insurance (DI) Trust Fund's solvency arose from rapid program growth in the 1990s and early 2000s.
[18] The work capacity of Social Security disability beneficiaries has been the subject of several studies[19][20][21][22] and policy debates.
An eligible spouse or child can receive 50 percent of the PIA as a benefit amount but total payments to a family are subject to a maximum.
They replace a larger share of past earnings for low earners and they are increased with price inflation once a person is on the benefit rolls.
Individuals can apply for SSDI by: SSA will determine whether the applicant is "insured" for Social Security disability benefits.
Rather, in those cases, the deceased spouse or the parent of the disabled adult child must have worked in Social Security employment and achieved the required insured status.
The state DDS must follow federal rules regarding the definition of disability under the Social Security Act when making this determination.
The DDS may require the applicant to visit a third-party physician for medical documentation, often to supplement the evidence treating sources do not supply.
An RFC is assessed in accordance with Title 20 of the Code of Federal Regulations, part 404, section 1545[30] and is generally based upon the opinions of treating and examining physicians, if available.
If the claim is denied at this stage, the applicant can request a review of the case by the Appeals Council of the Social Security Administration.
There are two primary types of organizations: companies with trained specialists experienced in handling SSDI applications and appeals in some or any local community across the country and law firms which specialize in disability-related cases.
Prior to 1991, Social Security Administration regulations required attorneys and representatives to submit a "Fee Petition" itemizing time spent on the matter.
Typical reasons individuals do not meet the requirements are that the representative feels the disability is not severe enough or the applicant does not have a sufficient work history (and did not pay enough into FICA - the Federal Insurance Contributions Act).
The figure increased following the COVID-19 pandemic and, for months in fiscal year 2021, the average wait time for an initial decision is 165 days.
[37] The high number of cases and long wait times for a hearing before an Administrative Law Judge has drawn significant attention from Congress in recent years.
A baseline study of denied SSDI and SSI applicants who sought benefits on the basis of mental impairments found denied applicants had low-income and had "multiple mental health and general medical conditions, low quality of life, and low functional ability.
"[46] The baseline population is composed of individuals who are part of the Social Security Administration's Supported Employment Demonstration.
A payee can be very helpful in the instance of homeless individuals who need assistance paying down debts (like utility bills) and saving for housing.
The figure is much higher for disabled adult children, with about 73 percent of these Social Security beneficiaries having representative payees.
[50] A regulation implemented by SSA in 2020 removed the inability to speak English as an educational factor to be considered in SSI and Social Security disability determination.
The regulation is projected to "result in a reduction of about 6,500 OASDI [Social Security] beneficiary awards per year and 4,000 SSI recipient awards per year on average over the period FY 2019–28, with a corresponding reduction of $4.6 billion in OASDI benefit payments and $0.8 billion in Federal SSI payments over the same period.
In addition, individuals who are rated 100 percent disabled by the VA will receive fast-track review of their cases by SSA if they apply for SSDI.
[53] The Ticket to Work program is administered by SSA and provides free employment support services to SSDI recipients seeking to return to the workforce.
[54] Five states (California, New York, New Jersey, Rhode Island, and Hawaii) operate programs that provide temporary disability benefits.
[55] According to a 2021 study, which used variation induced by an age-based eligibility rule as a way to draw causal inferences, SSDI substantially reduced the financial distress of disabled individuals.
However, the study also finds evidence that benefit receipt reduces mortality for less healthy beneficiaries and those with expensive health conditions such as cancer.