Navigation Links
Study finds much different work histories for disability rejects, beneficiaries
Date:5/24/2011

Male disability applicants rejected for federal benefits tend to have lower earnings and labor force participation rates over the decade prior to applying for federal disability benefits, a new study finds.

Rejected applicants also work less despite being in better health than accepted applicants, according to the research led by economist Seth Giertz of the University of Nebraska-Lincoln.

On average, the study found, those rejected for benefits made 8.5 percent less than beneficiaries six years before applying and nearly 22 percent less just prior to application. Also, applicants who were rejected left the workforce faster as their application dates approached than those who were approved for benefits.

The findings suggest that many of the rejections may have been because applicants were not entirely motivated by health reasons when seeking disability.

"This adds to a growing literature suggesting that financial factors may be a driving factor in a large number of disability applications," said Giertz, assistant professor of economics at UNL. "Federal disability programs have undergone tremendous growth in recent decades and appear to be discouraging able-bodied adults from staying in the labor force."

The work sheds light on the efficacy of the government's disability screening process by factoring in applicants' pre-application work characteristics, and implies that rejected and accepted disability applicants have much different labor-market experiences before applying. Most notably, the rejected applicants were worse-off economically consistent with other research examining disability claims for those in declining industries.

On a positive note, the study suggests that the screening process does, at least to a certain degree, separate out those applicants partially motivated by economic considerations from those facing more severe health issues.

"However, the rapid growth of the program over a period where health has improved and jobs have become less physically demanding suggests that the system is broken and in need of reform," Giertz said. "Without changes, the federal disability programs are on a fiscally unsustainable path. For some, disability may be becoming a transition to retirement.

"This 'early retirement option' will be more appealing to people with fewer or declining economic opportunities such as those in in industries experiencing a negative economic shock."

Applications to U.S. federal disability programs have grown considerably in recent decades. In 2005, more than 2.12 million people applied for benefits from the Social Security Disability Insurance program, while the Supplemental Security Income program received nearly 1.1 million applications. For the former, that's more than five times the number of applications in 1960 and almost twice its 1990 levels.

For their analysis, the economists examined the behavior of respondents in the Health and Retirement Study who were linked to Social Security earnings records. That analysis also produced these findings:

  • Nearly 77 percent of applicants with less than a high-school diploma were eventually accepted, the highest rate of any education group.

  • Those ages 31 to 40 were the most likely to be accepted, at 86.5 percent, followed by ages 41 to 50, at 77.4 percent.

  • Accepted applicants were more likely to have heart, circulatory or blood conditions, but many of the other health conditions had similar acceptance rates.

"The direct fiscal stress resulting from the growth in federal disability benefits is exacerbated by the fact that disability beneficiaries become eligible for either Medicare or Medicaid, the two programs at the heart of the nation's long-term fiscal problems," Giertz said.


'/>"/>

Contact: Seth Giertz
sgiertz2@unl.edu
402-472-7932
University of Nebraska-Lincoln
Source:Eurekalert

Related medicine news :

1. Study Ties Blood Markers to Death Risk in Heart Failure
2. Temple-led study finds widening gap between distracted driving and legislation
3. Brisk walking may help men with prostate cancer, UCSF study finds
4. New study aims to improve long-term treatment for patients with bipolar disorder
5. Medicare improved Canadian doctors salaries: Queens University study
6. IUPUI study first to look at early treatment of depression to reduce heart disease risk
7. A Cultured Man Is a Healthier, Happier Man: Study
8. New study finds that violence doesnt add to childrens enjoyment of TV shows, movies
9. UTMB researcher receives $3 million NIH grant to study aging in Mexico
10. Study finds patient navigation increases colorectal cancer screening in ethnically diverse patients
11. Study links acetaminophen to lower prostate cancer risk
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:1/19/2017)... Seabrook, NH (PRWEB) , ... January 19, 2017 , ... ... develop its business plan and implement new sales and marketing strategies. Grover comes with ... spent the last 5 and a half years as Executive Vice President of Direct ...
(Date:1/18/2017)... ... January 18, 2017 , ... Delaware farmer Rick Dickerson attended the ... , Dickerson, of Laurel, farms about a thousand acres of soybeans, corn and wheat, ... contract and pumpkins and other vegetables for the fresh market. He also operates a ...
(Date:1/18/2017)... ... January 18, 2017 , ... ... and most-read publication among specialty pharmacists and pharmacy professionals, has teamed up ... Alliance Partnership (SAP) program, announced Brian Haug, president of Pharmacy Healthcare Communications, ...
(Date:1/18/2017)... ... 18, 2017 , ... Park Agencies Insurance & Financial Services, ... and business owners in the greater Kansas City area, is joining the Lakemary ... The Lakemary Center is a comprehensive educational resource center that provides area children ...
(Date:1/18/2017)... ... January 18, 2017 , ... The Hear ... aid project with the donation of cochlear implants. In February 2017, the first ... thus a fair chance of leading an independent life. This engagement builds on ...
Breaking Medicine News(10 mins):
(Date:1/18/2017)... , Jan. 18, 2017  Dermata Therapeutics, LLC, ... to treat a variety of dermatological diseases, announces ... DMT210, in a Phase 2 acne rosacea study. ... downregulate the proinflammatory cytokines in the skin responsible ... rosacea. This clinical trial, DMT210-003, ...
(Date:1/18/2017)... Safe Rx LLC and Good Day Pharmacy, ... Loveland, Colorado , today announced the availability ... Day locations.     "Patients with prescriptions prone ... storage," said Milton Cohen , President & CEO ... a cup of coffee, you can protect your children ...
(Date:1/18/2017)... In China , we say Health is ... China,s Healthy Strategy originates. 2016 is ... and Social Development of the People,s Republic of ... council of the People,s Republic of China ... plan, identifying medical devices as one of the main breakthrough ...
Breaking Medicine Technology: