Disability applications plunge as the US economy strengthens

    Insider

    The number of Americans seeking Social Security disability benefits is plunging, a startling reversal of a decades-old trend that threatened the program’s solvency.

    The New York Times reports the drop is so significant that the agency has revised its estimates of how long the program will continue to be financially secure. This month, the government announced that the program would not run out of money until 2032, four years later than its previous estimate last year.

    In addition to stronger economic growth, the drop reflects newly tightened standards for eligibility and the increasing number of baby boomers who are leaving the program because they have become eligible for Social Security retirement benefits and Medicare.

    Fewer than 1.5 million Americans applied to the Social Security Administration for disability coverage last year, the lowest since 2002. Applications are running at an even lower rate this year, government officials say.

    All told, 8.63 million workers received disability benefits in May, down from a peak of 8.96 million in September 2014. A drop of several hundred thousand may not sound like much. But it is a sharp turnaround from what seemed to be an inexorable rise, in which the disability rolls more than doubled over the past 25 years.

    That increase led some conservative lawmakers to criticize the program as wasteful and riddled with fraud.

    With the expansion of Medicaid in 33 states and the District of Columbia as well as improved access to insurance coverage under the Affordable Care Act, many experts argue that fewer people see the disability program as a way to obtain health care.

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