Navigating Social Security Disability with Spencer Bishins | Ep. 175

In episode 175 of “Money Talk with Tiff,” host Tiffany Grant welcomes Spencer Bishins, the author of “Social Security Disability Revealed: Why It's So Hard to Access Benefits.” With over 11 years of experience working within the Social Security system, Spencer provides invaluable insights into the complexities of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) and the challenges faced by those seeking benefits.

What is Social Security Disability Insurance (SSDI)?

Social Security Disability Insurance (SSDI) is a federal program designed to provide financial support to individuals who are unable to work due to severe medical conditions. Funded through Social Security taxes from workers' paychecks, SSDI ensures that those incapacitated by illness or injury receive the support they need. Spencer Bishins explains that to qualify for SSDI, applicants must have earned sufficient work credits and be unable to perform full-time work for at least 12 months due to their medical condition.

Understanding Supplemental Security Income (SSI)

In addition to SSDI, Spencer Bishins highlights another crucial program: Supplemental Security Income (SSI). Unlike SSDI, SSI does not require prior work credits and is targeted at individuals who may not have accumulated enough working years, such as stay-at-home parents, recent immigrants, and children. SSI provides financial assistance to individuals with limited income and resources who are aged, blind, or disabled.

The Challenges of Applying for Social Security Disability

Applying for SSDI or SSI is notoriously difficult, a point emphasized by Spencer Bishins throughout the episode. One of the main hurdles is gathering sufficient medical documentation. Poor healthcare systems and inadequate record-keeping often leave applicants without the necessary evidence to support their claims. According to Spencer, over 70% of initial applications are denied due to insufficient documentation and organization.

The Five-Step Evaluation Process

Social Security follows a stringent five-step process to evaluate disability claims:

1. Substantial Gainful Activity (SGA): The first step assesses whether an applicant can engage in substantial gainful activity, defined as earning more than $1,350 per month (as of 2023).
2. Severity of Condition: The second step considers whether the medical condition significantly limits the applicant’s ability to perform basic work functions.
3. Listed Impairments: The third step checks if the condition matches one of the impairments listed by Social Security, which usually qualifies the applicant immediately.
4. Past Work: The fourth step evaluates whether the applicant can perform any past relevant work.
5. Other Work: The final step examines whether the applicant can adjust to any other type of work.

Common Reasons for Benefit Termination

Spencer Bishins discusses several circumstances that can lead to the cessation of Social Security benefits, including:

• Returning to Work: Both SSI and SSDI may terminate if beneficiaries return to work and earn above specified limits.
  • SSI: Benefits may end if income or assets exceed certain thresholds.
  • SSDI: Benefits convert to retirement benefits upon reaching retirement age.
• Incarceration: SSI benefits may be suspended or terminated if the beneficiary is incarcerated.
• Death: Social Security benefits definitively end upon the death of the beneficiary. Spencer emphasizes the importance of immediately notifying Social Security to avoid overpayment issues.

Managing Social Security Overpayments

Failure to report changes, such as returning to work, can result in overpayments, which beneficiaries must repay. Spencer advises setting up a separate bank account for Social Security benefits and leaving any unintended funds untouched until reclaimed by Social Security.

The Importance of Continuous Medical Evidence

For ongoing eligibility, Spencer highlights the need for continuous medical evidence and treatment. Social Security conducts periodic Continuing Disability Reviews (CDRs) to reassess beneficiaries' abilities to work. Understanding that Social Security disability is not meant to be permanent helps beneficiaries prepare for possible evaluations and ensure they meet all requirements.

Frequently Asked Questions (FAQs)