SSA Disability

More than $4 billion in cash benefits is paid to disabled people each month under the Disability Insurance program (DI). The number of program beneficiaries has risen by 67 percent during the last 15 years, benefit payments have nearly tripled, and the DI trust fund is projected to be insolvent in 2023. Yet technological and medical advances, combined with changes in society and the nature of work, have increased the potential for people with disabilities to return to the labor force. This testimony discusses how disability systems in the private sector and other countries facilitate beneficiaries' return to work in three key areas: (1) the eligibility assessment process, (2) work incentives, and (3) staffing practices.

GAO noted that: (1) the disability systems of the private insurers and the countries GAO reviewed integrate return-to-work considerations early after disability onset and throughout the eligibility assessment process; (2) this involves both determining--as well as enhancing--the ability of each claimant to return to work; (3) these systems provide incentives for claimants to take part in vocational rehabilitation programs and to obtain appropriate medical treatment and for employers to provide work opportunities for claimants; (4) managers of these other systems also explained to GAO that they have developed techniques--such as separating claims--to use staff with the appropriate expertise to provide return-to-work assistance to claimants in a cost-effective manner; (5) although these practices are common to the private sector insurers and the countries whose systems GAO examined, limited data exist on the cost-effectiveness of these approaches; (6) Social Security Administration may face greater difficulty in returning some of its beneficiaries to work than the private sector insurers, since Disability Insurance (DI) covers a broader population than the private insurers; (7) nevertheless, opportunities exist to help disabled workers remain at or return to the work place; (8) in recognition of these opportunities, SSA has recently begun placing greater priority on returning beneficiaries to work; (9) moreover, the new Ticket to Work and Work Incentives Improvement Act of 1999, by expanding access to vocational rehabilitation services, is expected to enhance work incentives for people with disabilities; (10) however, fundamental policy weaknesses in the DI program remain unchanged; and (11) as GAO has reported in the past, these weaknesses include an eligibility determination process that concentrates on applicants' incapacities, an all-or-nothing benefits structure, and return-to-work services offered only after a lengthy determination process.