Free Consultation 877.583.2524
We do not handle social security disability claims
logo celebrating

Nationwide Leaders in Disability Insurance Law

shook hands

Federal Disability Insurance Collapse By 2016?

Friday, June 1st, 2012

While the demise of the entire Social Security system has been in the headlines for decades, little attention, if any, has been paid to the disability portion of Social Security. According to a recent item in Bloomberg Business Week, disability insurance funds are projected to be gone by 2016. That means a few things, none of which are any good:

Disability insurance companies have risk-shared with the federal government for years. In most cases, the disability insurance company does not take on the total risk of the policies it sells. The amount of money a claimant receives from Social Security is deducted from the benefit paid by the insurance company. The insurance companies are partners with Social Security. So disability insurance companies have a vested interest in ensuring that the broke-by-2016 projections do not become a reality.

And since the insurance industry has long been the single most powerful lobbying group in Washington, we are fairly confident that somehow, some way, monies will be found. Where will the money come from? Our best bet would be the taxpayer’s already tight coffers.

If by some lobbyist’s worst nightmare, funding is not put into place, a far worse scenario is possible. Despite cynics who look at every claim as fraudulent, most workers and families depend on the Social Security disability benefit because they are genuinely too sick or injured to work. If the system is not funded, we’ll end up paying for it one way or another.

Our suggestion? Call your Congressional representative. Apparently most of them are putting Social Security disability on the back burner as they deal with issues that are more likely to win voter approval. In an election year, the tough issues get tamped down.

Categories

Archives

Ready To Talk?

Fill out the form to request a FREE legal consultation

Sorry, we do not handle SSDI/Social Security claims.

Frankel & Newfield does not currently handle any Social Security Disability Insurance claims.

CLOSE

*Required fields are marked

I have read the disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

CLOSE

This is about a Social Security Disability claim.

Ipad image

Download Our Free eBook

FILING A DISABILITY INSURANCE CLAIM

Secrets the Disability Insurance Companies Don't Want You to know! Download Now

HELPING THE DISABLED NATIONWIDE

No matter where you are nationwide, we are here to help.

We have the resources and support to take on the largest insurance companies.

Contact us today for our nationwide service.

CHAT
NOW