Policy Options for the Social Security Disability Insurance Program

The Social Security Disability Insurance (DI) program pays cash benefits to nonelderly adults (those younger than age 66) who are judged to be unable to perform “substantial” work because of a disability but who have worked in the past; the program also pays benefits to some of thse adults’ dependents. In 2011, the DI program provided benefits to 7.3 million disabled workers, nearly sixfold the 1.4 million disabled workers who received benefits in 1970. Including...
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The Social Security Disability Insurance (DI) program pays cash benefits to nonelderly adults (those younger than age 66) who are judged to be unable to perform “substantial” work because of a disability but who have worked in the past; the program also pays benefits to some of thse adults’ dependents. In 2011, the DI program provided benefits to 7.3 million disabled workers, nearly sixfold the 1.4 million disabled workers who received benefits in 1970. Including their dependent spouses and children further increases the number of people receiving support in 2011 to 10.3 million. In 2011, spending on benefits in the DI program was $128 billion, while the program’s revenues totaled about $94 billion. This report estimates the budgetary effects of a variety of potential modifications to the DI program. Restoring the DI program to a sound budgetary position would require combinations of the policies examined here or other changes to the program. Figures and tables. This is a print on demand report.