Thousands of Americans to Lose SSI Payments – Affected Retirees Listed

The Supplemental Security Income (SSI) program is designed to provide financial support to low-income seniors, disabled individuals, and blind persons who meet strict income and asset requirements. However, recent reports reveal a concerning trend: more than 100,000 people were removed from the program and no longer receive payments. Let’s investigate what’s behind this decline and how it impacts millions of Americans relying on SSI.

Drop

Between May 2023 and May 2024, there was a noticeable decrease of 119,395 SSI beneficiaries, dropping from 7,380,737 to 7,261,342. This reduction primarily affected blind and disabled recipients, with their numbers decreasing by 140,034 during this period. Although the Social Security Administration (SSA) hasn’t provided a full explanation for this change, it highlights some contributing factors, including application declines and eligibility reviews.

Causes

Why did so many people lose their SSI benefits? One major factor is the review of beneficiary eligibility. Over 17,000 individuals were deemed ineligible for further payments, most of whom were classified as blind or disabled. In states like California, where SSI applications are among the highest, the caseload dropped significantly by 16,573. Texas also saw a reduction of 14,587, while North Dakota and Rhode Island experienced much smaller changes. These drops may result from stricter eligibility checks and a shift in how beneficiaries are evaluated.

Here’s a quick look at the SSI recipient numbers in some states:

The SSA notes that while the number of blind and disabled recipients dropped, the number of beneficiaries aged 65 and older increased by 20,639. It’s unclear why blind and disabled groups saw a more significant decline compared to other demographics.

Application

Another reason behind the shrinking number of SSI recipients is the drop in applications. Many states saw a reduction in SSI applications, including New York, where applications fell from 568,777 to 559,222. Some states experienced minor fluctuations, but the overall trend shows fewer people applying for benefits.

This reduction may reflect changes in the population’s needs or the complexity of the application process. Additionally, changes in eligibility rules or an improved economy could also contribute to fewer people seeking SSI support.

Future

In June 2024, a new federal rule will further change how applications for SSI and Social Security Disability Insurance (SSDI) are evaluated. This rule will streamline the process by focusing on a more recent five-year work history, rather than the 15-year history previously required. The goal is to speed up the disability determination process, reduce wait times, and improve customer service.

According to Social Security Commissioner Martin O’Malley, these changes will make it easier for applicants to provide accurate work history details. By limiting the scope to recent employment, applicants will face fewer challenges recalling specific job requirements from years ago.

This updated rule is expected to improve both SSI and SSDI application efficiency. It could lead to faster case processing, giving beneficiaries quicker access to the financial support they need. Additionally, the changes aim to reduce errors in work history reporting, which has been a common issue for applicants in the past.

Impacts

The changes to the SSI program have already had a noticeable impact on many beneficiaries, especially those who were removed from the program due to stricter eligibility criteria. While the new rules may make it easier for future applicants, the immediate effects leave over 100,000 people without vital financial support.

For individuals who rely on SSI to cover basic living expenses, losing these benefits can be devastating. It’s crucial for potential applicants and current beneficiaries to stay informed about the latest rules and ensure they meet the eligibility requirements to continue receiving payments.

Recent adjustments to the SSI program have led to a significant drop in recipients, primarily due to stricter eligibility checks and fewer applications. While upcoming changes to the evaluation process aim to make the application easier, the current reductions in beneficiaries highlight the importance of understanding program requirements. Keeping up with these changes can help individuals maintain their benefits and avoid losing this essential financial support.

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