Is Temporary Disability Insurance Helpful To The SSDI System?

When it comes to disability benefits, many people are unaware of what options they have. They may think that all they can do is apply for benefits with the Social Security Administration (SSA).

While the SSA does offer Social Security Disability Insurance (SSDI), that is not your only possible source of income. Temporary disability insurance is another option. It is typically included in family medical leave programs. Many states offer short-term disability benefits to those who are unable to work due to illnesses or injuries that are not work-related, as well as pregnancy or childbirth.

In New York, in order to qualify for these benefits, you must be employed but not injured by a workplace injury. You must be working for a covered employer, which is a company that has one or more employees. Disability benefits will pay 50% of your average wages, up to a maximum of $170 per week. You can receive benefits for a maximum of 26 weeks in a 52-week period.

How does this program help the SSA? Does it create more of a backlog in terms of SSDI applications?

The Center for Retirement Research tracked the experiences of full-time workers between the ages of 50 and 60 who became disabled to the point where it affected their work. The sample was divided into two groups — those with a persistent and severe disability and those with less-severe impairments.

Among those with severe disabilities:

• Up to four years after the onset of the disability, 39% of potential SSDI applicants had submitted a claim in non-mandate states, compared to only 27% in states that mandated temporary disability insurance
• This drop in applications produced only a small decline in actual benefit receipt, suggesting that most of those who didn’t apply likely would not have qualified.
• After the disability, only 39% of potential Social Security disability applicants were employed in non-mandate states, compared to 61% in states with a mandate.

The results of this data show a drop in applications for SSDI when there is a state program in place. This is good in two ways. It alleviates the administrative burden for the SSA, plus it allows those who are mildly disabled to continue working instead of having to deal with the application process.

Access to temporary disability insurance does seem to reduce employment, however. Four years after disability onset, the employment rate was 65% in non-mandate states. It was just 50% in states with a mandate.

Learn More About Social Security Disability Benefits

Having state disability programs in place can help prevent backlogs at the federal level. This can help reduce administrative and financial burdens, allowing claims to be approved more quickly.

A White Plains Social Security Disability lawyer from The Law Office of Michael Lawrence Varon can help you get the benefits you deserve. We offer personalized service for all our clients. Schedule a free consultation today by calling (914) 228-1770 or filling out the online form.

Source:

benefitspro.com/2024/06/05/temporary-disability-insurance-reduces-ss-applications-new-beneficiaries-study-finds/?slreturn=20240607193512