Posts Tagged "Supplemental Security Income"

New Social Security Data on Child Benefits

Stacks of research studies document the impact of Social Security’s various benefits on the adults receiving them. But little is known about the children who get Social Security checks every month.

That’s starting to change, thanks to Timothy Moore at Purdue University. To advance research on child beneficiaries, he has created a database with more than four decades of Social Security’s county-level benefit data, including digitized paper records. He combined these records with children’s existing demographic and health data and information on their parents’ employment, income, and housing situations.

Last year, Social Security paid about $3 billion to children whose parents have qualified for benefits and are retired, disabled or deceased, as well as to some adults who still receive benefits because they became disabled before turning 22.

Moore’s preliminary analyses of the county data reveal changes in the programs over time. About 43 percent of the 4 million children with Social Security benefits currently get them because a working or retired parent has died – that’s down from 58 percent in 1980. The decline makes sense in the context of dramatic increases in longevity in the retiree population.

Going in the opposite direction is the trend for children receiving benefits because a parent is disabled. Their share grew from 29 percent of all child Social Security recipients in 1980 to a peak of 43 percent during the Great Recession before dropping in recent years. This pattern mirrors the changes in the adult disability population.

The smallest group receiving benefits are the children of retirees. Their share of all child recipients has changed only slightly over the years, ranging from 11 percent to 17 percent. …Learn More

Housing Agencies Tend to Go Where Needed

Public housing agencies frequently prioritize people with disabilities on their waiting lists for subsidized apartments and federal rent vouchers. But agency budgets are tight, often requiring state and local governments to stretch a single housing office to serve multiple counties.

Many of the people on the waiting lists are also receiving Supplemental Security Income (SSI), a federal program that makes monthly cash payments to low-income people with disabilities and is one way to verify they qualify for the housing preference.

A new study substantiates this connection: SSI applications are 11 percent higher in counties with housing offices than in counties that lack an office and are being served by a nearby county. The housing agencies also tend to be concentrated in areas with larger non-Hispanic Black populations, which have higher rates of disability than White Americans.

Together, these findings are a pretty good indication that housing officials’ decisions about where to locate their field offices are being driven at least in part by efforts to reach as many people with disabilities as possible, the researchers said in their analysis, which paired federal data on housing subsidies with the Social Security Administration’s records for SSI recipients.

But a more rigorous analysis is needed to determine whether adding a housing office in a county would increase or decrease SSI applications. The answer actually could go in either direction because SSI payments to low-income people are so intertwined with public housing assistance. …Learn More

Encouraging People with Disabilities to Work

Having a physical or mental disability can make it impossible to work. But for people with disabilities who are able, it’s crucial they get the support they need so they can work and feel productive, self-sufficient, and part of a larger community.

So who are they? A new study identifies a small but promising group who are initially awarded monthly cash assistance from the Supplemental Security Income (SSI) program and eventually qualify for Social Security Disability Insurance (SSDI).

The researchers call them SSI-first beneficiaries because the SSI payments come first and then the workers migrate over to SSDI and sometimes quit their jobs.

If identified early, these individuals could be encouraged to remain in the labor force after their SSDI benefits start or even leave the federal benefit rolls.

The researchers found that people who were receiving SSI and eventually entered SSDI had more success working – and more promise for staying in the labor force – when compared with one other group: SSI awardees who did not enter SSDI.

For example, three out of four SSI-first recipients, who later were awarded SSDI, had worked in the five years after their SSI payments started. This compares with just one in five people receiving SSI who did not enter SSDI later.

In another indication of their employment potential, a third of SSI-first recipients had their SSDI benefits suspended because their earnings were relatively high. It was rare for people receiving only SSI to jeopardize their benefits this way.

To be eligible for both the SSI and SSDI programs, the federal government caps the earnings of workers with disabilities at $1,350 per month. …Learn More

Research to Look at Work, Retiring by Race

The racial disparities embedded in our work, retirement, and government systems will be front and center at the annual meeting of a national research consortium.

One of the presentations at the online meeting on Aug. 4 and 5 will explore the impact of wealth and income inequality on Black and Latinx workers at a time these populations are rapidly aging. The researchers are concerned with how their decisions about when to retire will impact their economic security.

Growing inequality “point[s] to greater risks of financial insecurity” for future Black and Latinx retirees, the researchers said.

Another paper will address a related topic: the differences, by race and ethnicity, in workers’ levels of knowledge about how Social Security benefits work. Understanding the ins and outs of the federal retirement benefit – and specifically the advantages of delaying retirement to get a larger monthly check – are critical to improving living standards in old age.

Other research will explore an area that hasn’t been well studied: government programs used by non-parental caregivers such as Black grandparents or members of Latinx three-generation households to support the children in their care. The researchers will examine minority and low-income workers’ and retirees’ use of SNAP food stamps, child care subsidies, Temporary Assistance for Needy Families, and various benefit programs overseen by Social Security.

COVID is another topic on the agenda. One study compares the financial impact of the pandemic on early retirement for different income groups with the patterns in the aftermath of the Great Recession more than a decade ago. Another study examines how mortality rates might change in the wake of the pandemic.

Research on many other topics will also be featured, including health insurance, mothers, and longevity. The agenda and information about registration are posted online. Registration is free. …Learn More

Federal Aid May Help Kids Later in Life

Handicapped student in the library President Biden has said he wants to increase the benefits in a federal program for low-income children and adults with disabilities. But a long-running debate about the program is whether the direct cash assistance helps children when they grow up.

The Supplemental Security Income program, or SSI, clearly has immediate benefits. SSI provides nearly $800 in monthly cash payments and Medicaid health insurance to help parents care for their children and teenagers and manage their physical, cognitive, or behavioral disabilities. However, policy experts disagree on the program’s long-term effects.

Critics say it creates a negative dynamic if it causes poor parents, consciously or unconsciously, to lower their expectations for a child in order to preserve the payments. If the child has a relatively mild disability, the stigma might discourage educational achievements that would ultimately boost his earnings potential as an adult.

However, one analysis in a new study found no evidence that the future earning power of children receiving SSI was affected. This analysis compared kids whose benefits started before and after a 2001 administrative change that led to more benefit terminations.

A second analysis supported the argument made by SSI’s proponents that the program has broader long-term benefits for children. The additional financial resources enable parents to provide more of the educational experiences, nutritious meals, or stable home life that can improve their children’s future prospects.

To assess the merits of this long-term benefits story, the researcher used a different, more indirect approach. This approach was based on a medical exam for 18-year-old SSI recipients that was introduced in 1996 to determine whether their benefits would continue. The researcher compared the future earnings of the younger siblings in poor families in which the 18-year-olds did and did not lose their benefits.

When the 18-year-olds retained their SSI benefits, their younger siblings earned more as adults than the younger siblings in families that had lost benefits. This pattern held true both for the younger siblings who received SSI themselves and for the siblings who did not receive SSI. …Learn More

Nearly Half on Disability Want to Work

people on disability want to workAn unfortunate misperception about people on federal disability is that they’re not interested in working. In fact, nearly half of them want to work or expect to go back to work, and that share has been rising.

But getting or keeping a job has proved difficult, and the employment rate is very low for people who get Social Security disability benefits – or cash assistance from a companion program, Supplemental Security Income (SSI). Yet the vast majority of beneficiaries have past work experience that should help them in the job market.

Researchers at Mathematica mined a survey of people on disability for clues about how to help them find a job or promotion or learn a new skill.

Many of these work-oriented individuals are under extreme financial pressures and are also younger and healthier, despite their disabilities, than the people on disability who didn’t express a desire to work.

Yet only a third of the 2.6 million beneficiaries in the new study who say they want to work are either working now, were recently employed, or are looking for a job.

So, if they are willing to work and feel able to work, why are so few of them in the labor force?

The researchers landed on two big reasons. First, the work-oriented individuals, despite their desire to work, said they can’t find a job. This is a common experience because employers are either reluctant to hire people with disabilities or the available jobs don’t accommodate them. Others are hesitant to try the job market again because they feel discouraged by past employment experiences.

Second, the majority of work-oriented beneficiaries are unaware of federal programs designed to support a return to work or connect them with employers. …Learn More

Affordable Care Act Indirectly Affects SSI

Disabled man in physical therapy

The Affordable Care Act (ACA) requires that insurance companies offer coverage to young adults with disabilities – like all young people – through their parents’ employer coverage until age 26.

So, up to this point, many adults with disabilities now have a viable way to get health services, independent of any government assistance. But at 26, that changes.

A Mathematica study finds that’s when some start applying to the federal Supplemental Security Income Program (SSI) – probably partly to gain access to Medicaid health coverage. Health insurance is critically important to people with disabilities, who often need expensive, specialized medical services. SSI’s purpose is to provide monthly cash assistance for living expenses if they lack financial resources and don’t have the work history required for federal disability insurance. SSI recipients also qualify automatically for Medicaid in a majority of states.

The researchers examined the trends in applications to SSI by people in their 20s before and after the Affordable Care Act’s 2010 passage. They found that the annual application rates among people right around their 26th birthdays have recently been 3.4 percent higher than what would be expected based on the steady pattern of overall age trends. This jump in applications at age 26 was not evident before the ACA – when people tended to lose parental insurance earlier in their 20s.

The number of SSI applications that were approved was also somewhat higher, according to the study, which was funded by the U.S. Social Security Administration.

The risk to young adults who go on SSI, the researchers said, is that they might develop a long-term dependence on the program’s cash assistance and Medicaid. And this, in turn, could discourage people with less severe disabilities from trying to work at a critical point in their lives, because SSI strictly limits how much money its recipients can earn. …Learn More