Social Security Stuff

[scrabbler1]

As a former Section 8 landlord, I have seen countless abuses of the disability system. I wont go into detail here, because I do not want to get controversial, but there are plenty of physically healthy 20+ year old people on disability just because they cannot hold a job.

Do not for a minute think it's all people who want to work, but cannot.

Much has to do with some limits on Welfare. When a person runs out of welfare benefits, they get a Dr. to put them on Disability. It's a different 'bucket'. There is a lot of documentation and studies on this.

In the last few years, we have had a long, ongoing scandal about disability fraud with employees of the Long Island Rail Road conspiring with doctors to being declared disabled and begin receiving disability through the program. Hardly a few weeks go by without someone in the news getting indicted or pleading guilty to some involvement with this widespread scheme. Do a search for "lirr disability fraud" and you find lots of newspaper articles and other links to stories about this issue.

 

[gayl]

A 20% reduction in SSDI would apparently make it solvent. Why not cut benefits?

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[travelover]

The daytime air wave commercials are full of advertisements for lawyers that will help you get SS disability payments. That tells you something.

 

[Tadpole]

Do you know if they can do that with ex-county employees as well? (A few yrs to medicare)

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Call them and ask. I would imagine that they do only federal to federal but I don't know.

 

[ProspectiveBum]

A 20% reduction in SSDI would apparently make it solvent. Why not cut benefits?

Presumably, the people who legitimately need and rely on SSDI would find it difficult to handle losing 20% of their benefit. Just as many people receiving pensions or traditional SS would be hard-pressed to deal with a 20% cut.

As far as SSDI goes, the stories of fraud and abuse are so rampant, that it seems like a lot could be done to stem losses in that area before unilaterally cutting benefits.

 

[Andre1969]

I don't know much about SSDI, but isn't it based on your income history? My ex-wife, who is bi-polar, was able to get herself on it soon after our divorce back in 1996. Because of her sporadic work history, and relatively young age (28 at the time), she was only able to get around $400 per month. I'm sure it's gone up since then because of inflation, but I can't imagine she's getting more than $550-600 a month today. Hardly enough to live large on.

Seems to me that it's easier to just go find a job, rather than try to scam the system for a mere pittance. And, if you're in your 20's or 30's, I'd presume it would be a comparative pittance.

Even now, at the age of 44, if I was able to get myself disabled, it would only come out to around $2109 per month. I could live off of that if I had to...but I'd rather not!

Now, I could see people in their 50's, maybe early 60's, trying to get themselves classified as disabled, since they're getting closer to retirement anyway. And if you get laid off, it might be more lucrative than trying to find another job. But I don't see how it could be all that beneficial for younger people to try and scam.

 

[Brooks Saddle]

Walt34, I think I am missing something when you queried if your BCBS health insurance premiums would go down because they are secondary. That's not the way it works. One goes on medicare and gets Part A for free and will pay a little over $100 a month for Part B. Then instead of using a your BCBS plan as a secondary plan it goes away. Then one purchases a medicare supplement plan from one of various insurance carriers of which BCBS can be one to choose from. These plans will run anywhere from $150 to $200 a month and they are not secondary per se but pick up the gaps that medicare does not cover as well as the deductibles. Another choice is a Medicare Advantage plan which is essentially medicare and medicare supplements combined into one package and these are provided by health insurance companies just like with the various supplement plans. Last there is prescription drug medicare Plan D which can be provided separately by health insurers for a monthly fee or would be included automatically in an Advantage plan.

As I type all of this in I have a feeling I misinterpreted what your post was about but if not this is how it works.

 

[REWahoo]

Brooks, I know several people who have a company funded retirement health plan that functions as their Medicare Supplement. I suspect Walt has retirement health care (a BCBS plan) funded in part by his former employer and is wondering how the portion of the plan he pays for will change once he goes on Medicare and the plan switches from being his primary to being a supplement.

 

[MRG]

I don't know much about SSDI, but isn't it based on your income history? My ex-wife, who is bi-polar, was able to get herself on it soon after our divorce back in 1996. Because of her sporadic work history, and relatively young age (28 at the time), she was only able to get around $400 per month. I'm sure it's gone up since then because of inflation, but I can't imagine she's getting more than $550-600 a month today. Hardly enough to live large on.

Seems to me that it's easier to just go find a job, rather than try to scam the system for a mere pittance. And, if you're in your 20's or 30's, I'd presume it would be a comparative pittance.

Even now, at the age of 44, if I was able to get myself disabled, it would only come out to around $2109 per month. I could live off of that if I had to...but I'd rather not!

Now, I could see people in their 50's, maybe early 60's, trying to get themselves classified as disabled, since they're getting closer to retirement anyway. And if you get laid off, it might be more lucrative than trying to find another job. But I don't see how it could be all that beneficial for younger people to try and scam.

Andre1969,
There are two forms of disability from SS. I believe SSI is there for folks that don't have enough work credits, those folks get a very small sum. SSI payments are subject to means testing. So the 21 year old golfer probaly wouldn't receive enough to pay green fees.

If you've accumulated enough work credits and become disabled you get your entitled amout(SSD). This is based on what your FICA amount payed in, just like regular SS.
Of course you wait for months to receive the benefits. I think there have been some conditions that have been fast pathed to avoid delays.

I know fraud exists in many programs. Having participated in a SSD hearing, IMHO one would have to give an Academy Awards type performance to sneak through. I don't know where the fraudulent DRs. come from, I've never met one that would lie, but I guess they're out there. Then there's the random check ups where the recipient and DRs. have to re justify the disability. Oh yes SS reserves the right to pull in their own DRs. for second/third opinions.

My comment about getting people talking was not about board members, it was about our representatives. My polyana view was if we start to figure out this shortfall, we'd be better prepared for the next one.

I sincerely hope the folks that have a negative feeling towards these programs never have to deal with a legitimate disability issue. Their opinions will be changed.

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[misanman]

This America Life on Balooning Disability Rolls

I thought this was a pretty good piece on the ballooning disability roles -

Trends With Benefits | This American Life

I remember a number of years ago when we would go to my wife's family reunions it seemed like everyone there was on disability. It was almost a way of life.

 

[Walt34]

Brooks, I know several people who have a company funded retirement health plan that functions as their Medicare Supplement. I suspect Walt has retirement health care (a BCBS plan) funded in part by his former employer and is wondering how the portion of the plan he pays for will change once he goes on Medicare and the plan switches from being his primary to being a supplement.

That's it. I've always understood that the BCBS plan becomes "secondary" to Medicare at 65 but I don't yet know the details of how that works. Others who have crossed that threshold haven't mentioned anything about it being a big deal so I don't anticipate any issues.

 

[aja8888]

That's it. I've always understood that the BCBS plan becomes "secondary" to Medicare at 65 but I don't yet know the details of how that works. Others who have crossed that threshold haven't mentioned anything about it being a big deal so I don't anticipate any issues.

Walt, not trying to alarm you here, but I have Medicare, a supplemental plan (private Plan F), and Part D (drug plan). A piece of advice is don't wait too long after turning 65 to understand your options. There are timelines involved and you should understand what they are. I would call BCBS and see what they consider coverage for charges Medicare won't cover and also what drugs who or which plan covers. You may find a better way to cover costs Medicare doesn't cover with a supplemental plan instead of BCBS.

If BCBS covers part after Medicare pays their part, find out the details. You can get supplemental plans that cover everything including, all deductibles, excess charges, out of area and no network, etc. Hospital deductible under medicare is almost $1200, and that's NOT annually.

Lots of doctors are not taking Medicare anymore and we have had some issues with my wife's illness finding doctors that will accept Medicare after her doctor left the program. Remember, Medicare is the first payer and the secondary one only pays what Medicare doesn't. This is complicated, take my advice and get smart about it in advance of turning 65 (if you already aren't doing that).

 

[imoldernu]

This is complicated, take my advice and get smart about it in advance of turning 65 (if you already aren't doing that).

+1

You can sign up here, for access to your SS account.
https://secure.ssa.gov/RIL/SiView.do

There is also an option to receive and print a verification letter from SS for whatever legal verification may be needed as proof of membership (SS and Medicare) and amount of benefits.

 

[Huston55]

I thought this was a pretty good piece on the ballooning disability roles -

Trends With Benefits | This American Life

I remember a number of years ago when we would go to my wife's family reunions it seemed like everyone there was on disability. It was almost a way of life.

I just read this series, along with many of the comments that were critical of it. Politics aside, the trend is alarming and structural change is clearly necessary.

 

[Walt34]

Walt, not trying to alarm you here, but I have Medicare, a supplemental plan (private Plan F), and Part D (drug plan). A piece of advice is don't wait too long after turning 65 to understand your options. There are timelines involved and you should understand what they are.

I have about eight months before turning 65 but it is becoming clear that now is not too soon to start looking into it. Thanks for the heads up.

 

[mpeirce]

This is the latest "tinkering" I've seen:

Lew Supports Funding Change for Disability Program - Washington Wire - WSJ

The Social Security Disability pool is on track to run out of money by the end of 2016. The Treasury Secretary is proposing to raid the funds to pay retiree benefits in order to cover the shortfall in the SS Disability program.

More info on the 2014 Medicare Trustees Report:

A Guide to the 2014 Medicare Trustees Report