U.S. Senator Ken Salazar

Member: Finance, Agriculture, Energy, Ethics and Aging Committees

 

2300 15th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510

 

 

For Immediate Release

June 21, 2007

CONTACT:    Cody Wertz – Comm. Director
303-350-0032


 Sen. Salazar Chairs Finance Committee Hearing on Helping Disabled Workers Return to the Workplace

WASHINGTON, D.C. – Growing up on his family’s ranch in the rural San Luis Valley, United States Senator Ken Salazar knows and respects the value of hard work. Earlier today, Senator Salazar chaired a Finance Committee hearing on the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs. The hearing focused on how to better assist disabled workers and transition them and their families to the American workforce.

“Social Security disability programs serve several critical purposes, one of which is to help Americans with disabilities transition back to the workplace. Unfortunately, these programs have been less than successful in this regard,” said Senator Salazar. “In my experience, the vast majority of individuals with disabilities who are physically able to work want to return to the workforce. We must ensure that our federal disability programs are equipped to help them do just that.”

SSDI has two programs in place to help qualified workers (those whose injuries or disabilities will keep them out of work for at least one year) return to the workforce:

  • The Ticket to Work program, which provides employment training, counseling, workshops and continuing medical care, but has a participation rate of less than two percent; and

  • The Plans for Achieving Self-Support (PASS) program, which creates special accounts for SSDI beneficiares to cover approved employment supports such as training, but is not counted as SSI income. This program also has a low participation rate of less than one-half of one percent of adult SSI beneficiaries.

Currently, the return-to-work rate for those on SSDI is less than one percent, and for those on SSI is only seven percent. Experts say this is tied to a number of legitimate concerns by disabled workers, including:

  • Inadequate Job Training: Beneficiaries fear that job training services through SSDI may not provide enough training for the positions available to them;

  • Earnings Traps: SSDI requires that when beneficiaries surpass a monthly-income threshold (which is very low), they may be dropped from coverage altogether or may be required to pay back monthly benefit “overpayments” to the Social Security Administration;

  • Loss of Health Care: Many SSDI beneficiaries have fears of losing their health care coverage (through either Medicaid or Medicare, which first requires a two-year waiting period) because employers may not replace these benefits;

  • Difficulty of Reinstatement: Some SSDI beneficiaries also fear the hurdles to having their benefits reinstated, should they attempt unsuccessfully to resume employment; and

  • Bureaucratic Limbo on Benefits: The disability determination process can be long and frustrating for applicants. The average time from the initial application to an SSA decision is 88 days, and for appeals of denials and average of 483 days. This long process keeps people from seeking employment because of fear of having to go through this process again should employment end.

Nationwide, more than 6.8 million American disabled workers benefit from SSDI, receiving an average of $978 per month (based upon previous employment covered by the Social Security system). Workers must be under the age of 67, and be unable to work at a “Substantial Gainful Activity” (SGA) level because of a disabling condition that is expected to last at least one year or result in death. For Coloradans who apply for coverage and are denied, the average wait to have their appeals heard is 14 months.

More than six million blind and/or disabled Americas receive SSI benefits, with an average monthly payment of $485. Benefits are only available to persons with income and assets below levels set by the law, and the program provides benefits to many individuals with severe and developmental disabilities.

Based on input received at the hearing, Finance Committee members will now work to explore legislative options for strengthening return-to-work programs under SSDI and SSI.

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