The Evolution Of Ssdi: A Historical Law Perspective

Social Security Disability Insurance (SSDI) was signed into law by President Dwight D. Eisenhower on 1 August 1956. The law established the Social Security Disability Insurance program, which provides monthly benefits to disabled workers aged 50–65, disabled children, and the child of a retired or deceased insured employee.

The History of SSDI

The Social Security Disability Insurance (SSDI) program was established in the US in 1956, after two decades of policy debates. It is a payroll tax-funded federal insurance program that provides monthly benefits to people with a medically determinable disability that restricts their ability to be employed. SSDI is managed by the Social Security Administration (SSA) and is distinct from Supplemental Security Income (SSI).

The origins of SSDI can be traced back to the 1930s when Social Security planners began considering a disability program. However, the Social Security Act of 1935, which established the retirement insurance program, did not include provisions for disability insurance. It wasn't until the 1950s that Social Security Disability Insurance received serious attention from Congress, with the Committee on Ways and Means holding hearings on the topic in 1949.

In 1950, the Social Security Act Amendments extended coverage under the "Old-age, Survivors, and Disability Insurance" program, but it wasn't until 1954 that the Social Security Amendments included the enactment of the disability freeze, which protected the benefits of workers and their dependents. Finally, in 1956, President Dwight D. Eisenhower signed into law the Social Security Act Amendments, establishing the SSDI program. This offered benefits for disabled workers aged 50-65, children who were disabled before the age of 18, and the children of retired or deceased insured employees.

Since its establishment, the SSDI program has undergone several legislative changes and expansions. In 1965, the requirement that the impairment must be of "long-continued and indefinite duration" was removed, and the definition of disability was expanded to include impairments expected to last for at least 12 months. This change led to a notable expansion of the SSDI program. Further amendments in 1967, 1972, 1980, 1984, and beyond, have continued to shape and refine the program.

Today, SSDI provides benefits to individuals with severe health conditions who haven't worked or haven't accrued enough work credits. It is funded through employee and employer payroll tax contributions, with employees paying a tax of 1.45% of their wages up to a certain threshold. These funds are managed by the SSA and used to provide monthly benefits to eligible individuals. SSDI has strict requirements regarding eligibility, and the application process involves multiple levels of evaluation and appeals.

As of 2020, there were approximately 8.2 million disabled workers receiving benefits from the SSDI program, with an average monthly benefit amount of about $1,260. The SSDI program has evolved over the years to meet the needs of individuals with disabilities, ensuring they receive the support they need while navigating the challenges of employment and healthcare.

SSDI vs SSI

SSDI (Social Security Disability Insurance) and SSI (Supplemental Security Income) are two distinct disability programs in the US, managed by the Social Security Administration. Both programs provide benefits to people with disabilities, but they have different eligibility criteria, funding sources, and benefit amounts.

SSDI is a payroll tax-funded federal insurance program that provides monthly benefits to people with a medically determinable physical or mental disability that restricts their ability to be employed. To be eligible for SSDI, individuals must have a work history and must have worked enough years to qualify and paid Social Security taxes during those years. The amount of the monthly benefit depends on the person's earnings in Social Security-covered employment prior to becoming disabled. SSDI does not provide partial or temporary benefits but pays only full benefits in cases where the disability is expected to last at least a year or result in death.

On the other hand, SSI is a means-tested program that provides cash payments to disabled, blind, or elderly individuals with limited income and resources. Unlike SSDI, SSI does not require a work history. Eligibility for SSI is based on need, taking into account an individual's income, living arrangement, and personal resources. The federal government funds SSI from general tax revenues, and some states pay a supplemental benefit in addition to the federal payments. The monthly benefit amount for SSI is set each year by Congress, and it covers basics such as food, clothing, and housing.

While SSDI and SSI have distinct eligibility criteria, it is possible for an individual to receive benefits from both programs simultaneously, known as "concurrent" benefits. The medical criteria for determining disability are the same for both programs, but the non-medical eligibility criteria differ.

Applying for SSDI

Social Security Disability Insurance (SSDI) is a payroll tax-funded federal insurance program of the United States government. 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.

To apply for SSDI, you must first file an application with the Social Security Administration (SSA). You can do this by calling the SSA's national toll-free number, contacting a local Social Security office, or submitting an online application.

The SSA will then determine whether you are "insured" for Social Security disability benefits. This generally depends on whether you have worked "long enough – and recently enough - and paid Social Security taxes" on your earnings.

If you are found to be insured, the SSA will assess whether you are performing substantial gainful activity, which means earning above certain levels. If you are not performing substantial gainful activity, the SSA will send your application to the Disability Determination Service (DDS) agency in your state. The state DDS will make a determination of whether you are disabled or not, following federal rules regarding the definition of disability under the Social Security Act.

The decision about disability is based on a sequential evaluation of medical and other evidence. The sequence for adults is as follows:

• Is the applicant performing substantial gainful activity? If yes, deny. If no, continue to the next sequence.
• Is the applicant's impairment severe? If no, deny. If yes, continue to the next sequence.
• Does the impairment meet or equal the severity of impairments in the Listing of Impairments? If yes, allow the claim. If no, continue to the next sequence.
• Is the applicant able to perform past work? If yes, deny. If no, continue to the next sequence.
• Is the applicant able to perform any work in the economy? If yes, deny. If no, allow the claim.

Medical evidence that demonstrates the applicant's inability to work is required. The DDS may require the applicant to visit a third-party physician to obtain further medical documentation.

If your claim is denied by the state DDS, the SSA provides for three levels of administrative appeal:

• Reconsideration: A different DDS examiner will review the case.
• Hearing: If the claim is denied at the reconsideration stage, you can request a hearing before an Administrative Law Judge (ALJ). ALJs are federal employees of the Social Security Administration.
• Review: If the claim is denied by the ALJ, you can request a review of the case by the Appeals Council of the Social Security Administration.

After you have exhausted the administrative appeals process, you may appeal the case to the federal courts.

It is important to note that there is a five-month waiting period for SSDI benefits to start. This means that benefit payments will not begin before the sixth full month of disability.

You can increase the speed of your benefits determination by submitting all the required information, including your social security number, medical records, contact information, a list of medications you are taking, and your work history for the last 15 years.

You may also hire a lawyer or non-attorney representative to help you with your application or appeal. According to the SSA, about 90% of SSDI applicants have a disability representative for their appeal.

SSDI Appeals Process

The SSDI Appeals Process is a four-step procedure that allows individuals to appeal a denied disability claim through the Social Security Administration's (SSA) appeal system. The process is as follows:

• Request for Reconsideration: If your initial application for disability benefits is denied, you can request that the SSA review your claim again. This appeal is called a "reconsideration" and is conducted by a medical consultant and claims examiner who were not involved in the initial decision. The reconsideration process usually takes several months, and benefits are granted in about 10-15% of cases. You have 60 days from receiving your denial notice to file a written request for reconsideration.
• Administrative Law Judge (ALJ) Hearing: If your claim is denied after reconsideration, you can request a hearing before an administrative law judge (ALJ). ALJs are attorneys who work for the SSA's Office of Hearings Operations. They uphold or overturn decisions regarding the denial or termination of disability benefits. You must request a hearing within 60 days of receiving the reconsideration denial letter.
• Appeals Council Review: If you disagree with the ALJ's decision, you can request a review by the Appeals Council. The Appeals Council may randomly select cases for review and has the authority to grant, deny, or dismiss your request. You must file a request with the Appeals Council to exhaust all administrative appeal avenues before proceeding to the final appeal level.
• Federal Court Review: The final step in the appeal process is filing a lawsuit in U.S. District Court. This option is expensive and time-consuming, and very few disability claimants pursue it.

SSDI Eligibility

SSDI stands for Social Security Disability Insurance. It is a payroll tax-funded federal insurance program of the United States government. 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.

To be eligible for SSDI, you must meet the following criteria:

• Have worked in jobs covered by Social Security: Generally, you must have worked for at least five of the last ten years to qualify for SSDI. People under the age of 24 may not need to have worked as long.
• Have a qualifying disability: Your medical condition must meet Social Security's strict definition of disability. You must be unable to do work at the substantial gainful activity (SGA) level because of your medical condition. In 2024, the SGA amount is $1,550 per month, or $2,590 if you are considered blind. Your condition must also be expected to last for at least one year or result in death.
• Have worked long enough and recently enough: In addition to meeting the definition of disability, you must have worked long enough and recently enough under Social Security to qualify for disability benefits. The number of work credits you need depends on your age when your disability begins. Generally, you need 40 credits, 20 of which were earned in the last ten years. This is called the 20/40 Rule. However, younger workers may be eligible with fewer credits.

If you are found eligible for SSDI, there is generally a five-month waiting period before benefits start. Benefits are usually paid monthly and continue until you can work again on a regular basis. If you are still receiving SSDI benefits when you reach full retirement age, your disability benefits automatically convert to retirement benefits, but the amount remains the same.

SSDI is distinct from Supplemental Security Income (SSI). SSI is a means-tested program for disabled children, disabled adults, and the elderly with income and resources below administratively mandated thresholds. SSI does not require a work history, unlike SSDI.

Frequently asked questions