COVID-19: Proving The Value of SSDI to American Workers

By Steve Perrigo

Editor’s Note: The far-reaching effects of a global virus mean employees with disabilities need Social Security Disability Insurance benefits more than ever. Thankfully, awareness is growing.

Significant health impacts halted work for many American workers – some estimates reach 11 million – and it’s leading to a search for answers. The long-term side effects of COVID-19 are signaling to workers: it’s time to learn about and understand SSDI as an essential benefit. Workers must move past limiting stereotypes of disability insurance.

What You Should Know About SSDI

Here are a few important facts regarding SSDI that our family, friends, and neighbors should know.

- - - SSDI is an earned insurance benefit; one that over 156 million workers have access to as a result of their FICA payroll tax contributions. Employees and employers pay the premium for this program, which provides monthly income and supports return to work after recovery from a severe, long-term medical condition. The funds to cover this benefit come from the workers themselves and do not represent an extra burden on taxpayers. And it’s certainly not a handout.

- - - The Social Security Administration oversees and administers this program, including awarding or denying benefits. The agency has mandated stringent requirements for all individuals who apply for SSDI benefits. The medical condition and related symptoms an individual experiences must be of a certain severity, and medical documentation is required. There are currently 7.9 million former employees receiving benefits, which is a mere 5 percent of those who are insured for federal disability insurance – highlighting the difficulty of securing them.

- - - SSDI is intended to provide income for as long as necessary when disability keeps an individual from working. There’s also the intention to allow that worker to medically recover enough to begin taking steps to return to work. It is common for the recovery process to take a couple of years or longer. SSDI serves as an important financial backstop that allows individuals to take the time they need without fearing the financial repercussions.

Ticket to Work Program

All individuals currently receiving SSDI benefits are eligible for and encouraged to use the Ticket to Work Program. This is a free service that connects individuals with Employment Networks. Case managers and employment experts at ENs assist individuals in the process of preparing to return to work. Services can include interview preparation, résumé writing and encouragement in overcoming the barriers to finding employment once they are ready.

Many individuals receiving SSDI benefits express their desire to return to the workforce as soon as possible, which is in direct contrast to the belief that beneficiaries never leave the SSDI program. The truth is many more workers miss out on the value of this program.

The Benefits that Accompany an SSDI Award

Workers who become aware of SSDI may learn about it due to their private disability insurance coverage, because those plans are designed to coordinate with SSDI. While the primary advantage of applying for SSDI is income, there are many other significant benefits. These include dependent benefits, Medicare health insurance, and a disability freeze that protects Social Security retirement benefits until full retirement age.

COVID-19 and SSDI

The SSDI program has been around since the 1950s, but still too many U.S. workers don’t understand this program exists, or that they’ve paid into it. With the highly visible medical issues facing long-haul COVID-19 patients — including work-stoppage lasting a year or longer — now is the time to assess the role of disability insurance for all workers. SSDI is a fundamental benefit that most American workers need to understand.

As the cases of Americans with long-term COVID-19 symptoms continue to increase, we need to encourage all those individuals seeking options to access every resource available to them, including SSDI.

Lack of knowledge about SSDI or stigma around receiving disability benefits should not keep our loved ones from getting help. It is our responsibility to raise awareness of this federal program so that every American in need feels comfortable asking for – and receiving – the help they deserve and paid for during their working careers.

About Steve Perrigo

Steve Perrigo has written 9 posts in this blog.

Steve Perrigo, J.D., is Vice President & Head of Sales and Account Management. He joined Allsup in 2010 following 17 years with the Social Security Administration (SSA) in various roles of increasing responsibility, including Claims Representative, Technical Expert, Operations Supervisor, and Assistant District Manager. Steve leads Allsup’s national account sales activities and provides consultative guidance to client companies by analyzing complex data sets that compare performance against historical measures, Allsup’s business results, and industry benchmarks. His consultation includes leveraging his prior experience with the SSA to identify and analyze macro-level trends with the Social Security Disability Insurance program, and providing timely insights and client updates through channels such as Allsup’s commercial blog. Steve’s educational background includes a law degree from the Nashville School of Law, where he graduated in the top 10 of his class, and a bachelor’s degree from The State University of New York. He currently is an adjunct professor of Social Security Disability Law at the Nashville School of Law.