Tag Archives: Disability Insurance

Hank Aaron’s Chinese menu: Fixing Social Security at the NASI

The National Academy of Social Insurance hosted a decidedly unusual trio of luncheon speakers at its annual conference last week. Henry J. Aaron of the Brookings Institution, keynote, was there to unveil a new plan he’s devised to solidify Social Security’s funding for the next 75 years, if not beyond. Nancy J. Altman, president of Social Security Works, and Jason Fichtner, a senior research fellow at the Mercatus Center at George Mason University, were on hand to respond to and discuss Aaron’s proposal.

Aaron has perhaps the deepest knowledge of the Social Security system – and social insurance in general – of anyone alive today. Altman is also a leading expert and a longtime, passionate defender of the program against right-wing attempts to dismantle it. Fichtner served in the Social Security Administration under George W. Bush and is a critic of the program who has argued that it crowds out private savings and offers negative incentives to work and who advocates stabilizing its finances by cutting benefits while cutting payroll taxes.

Aaron and Altman have never been friendly to such ideas. Normally, that would place them on one side of the Social Security discussion and Fichtner on the other. That wasn’t so last week.

Continue reading Hank Aaron’s Chinese menu: Fixing Social Security at the NASI

Of Carrots, Sticks, and Disability

In the world of Washington, incentives—carrots and sticks—seem to be the answer for everything, including how to get people on disability back to work. But a new study suggests the problem is the same one the Americans With Disabilities Act identified 25 years ago: discrimination.

I took a certain amount of impolite criticism for my last post, in which I decried the “veritable national jihad” against disability fraudsters. The amount of abuse in Social Security’s Disability Insurance (DI) system isn’t anything like the monster it’s made out to be, and it’s unfortunate, to say the least, that the just-passed Bipartisan Budget Act throws more resources at ferreting out fraud and creating stiffer penalties for false benefit claims. For calling the vast overreaction to disability fraud a jihad, I was accused of insulting conservatives and indulging in hyperbole.

I’m not sorry to have used strong language to describe a years-long campaign against DI that’s out of all proportion to the size of the problem (would that as much effort was going into exposing and cracking down on the Pentagon’s cozy relationships with its contractors) by people who seem to have no idea of the challenges facing working people with disabilities. (The Washington Post was at it again today.)

But if the goal is to get people back to work who have something to contribute and would be better off for it, the real issue is where “incentives” ought to be applied: to disability recipients? or to their potential employers? Continue reading Of Carrots, Sticks, and Disability

The Soft Underbelly

Having failed in numerous frontal assaults on Social Security, the Republican congressional leadership several years ago adopted a new strategy for dismantling the program: attack and demonize Disability Insurance, which they consider to be its soft underbelly. With this week’s passage of the Bipartisan Budget Act of 2015, they drew blood.

We’ve been hearing it for years now: Disability Insurance is overgenerous, fraud-ridden, a well-intentioned program that’s mutated into a form of middle-class welfare. Criteria for awarding benefits need to be tightened, or the $150 billion DI trust fund will go bankrupt. The traditional solution for imbalances in Social Security’s trust funds—shifting money between the DI and the Old Age and Survivors’ (OASI) fund—shouldn’t be used unless “substantive reforms” are implemented.

How wonderful, then, that according to the Wall Street Journal, “Social Security will get its first upgrade since the 1980s to fix Disability Insurance,” thanks to a kumbaya moment between the White House and congressional Republican and Democratic leaders. The two-year Bipartisan Budget Act of 2015, Continue reading The Soft Underbelly

Where’s the Rip-Off? Rand Paul in Perspective

Critics of Social Security’s Disability Insurance program would like you to think it’s riddled with incompetence and fraud. As for the spectacularly dysfunctional accounting and payment systems at the Defense Department … well, we just have to live with them, right?

Kentucky Sen. Rand Paul kicked up a fuss last week when he claimed the Disability Insurance rolls are rife with fraudsters claiming phantom ailments.

What I tell people is, if you look like me and you hop out of your truck, you shouldn’t be getting a disability check. Over half of the people on disability are either anxious or their back hurts—join the club. Who doesn’t get a little anxious for work everyday and their back hurts? Everybody over 40 has back pain.

This came soon after the Republican leadership of the House of Representatives announced new budget rules designed to force Congress to “repair” Social Security as a whole instead of shifting money into the DI fund to shore it up. Paul’s statement reinforced a line of attack Continue reading Where’s the Rip-Off? Rand Paul in Perspective