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Trump's Budget Cuts and Social Security Disability: Is "Fraud Suspicion" Underlying the Cuts?

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Budget Director Mick Mulvaney echoed the mantra of many conservative Republicans who suspect that folks who are Social Security Disability recipients are fraudulent. "If you are on disability insurance and you're not supposed to be, you are not truly disabled, we need you to go back to work." This conservative trope reflects, without any evidence to substantiate it, the same kind of misinformation about employee fraud that pervades perceptions of workers' compensation fraud.

As I have often written about in the past, the public's perception of injured individuals (whether collecting workers' compensation or Social Security Disability benefits) is vastly overinflated. The statistics indicate only about one-sixth of one percent of injured workers in Wisconsin are fraudulent. That's about 2 in 10,000.

The Trump administration budget proposed up to $64 billion in cuts to Social Security Disability Insurance expenditures, directly contradicting Trump's campaign promises not to cut Social Security. The cuts stem mostly from new program rules and processes, and requirements for mandatory participation by program applicants to move disabled beneficiaries from SSDI to work.

While returning to work is always a laudable goal (for both workers' compensation and Social Security Disability), the last eight times that budget proposals have initiated programs to promote return to work "none of the findings reported to date show they would likely lead to a substantial reduction in case load sizes." http://www.researchondisability.org/docs/default-document-library/ssa-back-to-work-06-2012.pdf?sfvrsn=2

Through their contributions to Social Security, workers earn a measure of protection against disability retirement and death. (Disability insurance protects a worker against loss of earnings due to a significant work limiting impairment, and workers earn this protection by having worked and contributed to Social Security.) Many of my work-injured employees ultimately end up on Social Security Disability and this protection is particularly important to older Americans. Most people receiving Social Security Disability benefits are in their 50s or early 60s and most had only unskilled or semi-skilled jobs. Without a college degree, benefits are not significant (averaging about $1,200 per month). However, over half of Social Security beneficiaries rely on these benefits for 75% or more of their total income.

The proposed budget cuts to Social Security are another slap in the face to injured workers.

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