Some people with debilitating medical issues have private disability insurance coverage. They purchase policies on their own behalf or have benefits from their employer that can help them replace their income when they stop working.
Other people do not have private coverage and instead rely on government benefits. The Social Security Administration (SSA) oversees several key benefits, including Social Security Disability Insurance (SSDI) benefits. SSDI is an earned benefits program. Workers become eligible based on their work history.
Most people only have a very cursory awareness of SSDI benefits. The one thing they may know, other than the purpose of the benefits, is that most people who apply get rejected. Is it true that applicants almost never receive approval when they initially apply?
Initial approval rates are low
The SSA has earned its reputation for denying almost everyone who applies. When looking at the organization’s statistics about the outcome of claims, it becomes readily apparent that the vast majority of applicants don’t get benefits.
When reviewing the outcomes reported for all claims initiated between 2010 and 2019, it becomes clear that more people get rejected than approved. Only 21% of applicants, on average, received approval immediately. That is roughly one in five people.
However, those who make the effort to appeal have a better final approval rate. The SSA reports that an average of 2% of applicants obtain benefits during the reconsideration stage of the appeals process. Those who attend a hearing in front of an administrative law judge have an even better chance of securing benefits. Another 8% of applicants every year secure benefits through an appeals hearing.
Overall, approximately 10% of applicants obtain their benefits via an appeal. The final average approval rate is 31% or just under one in three applicants. People seeking SSDI benefits because they cannot work generally need to prepare for the possibility of an appeal. They may also need to gather documentation carefully before applying so that they can show that their medical conditions are severe enough to qualify.
People who need SSDI benefits may also need help with the application process. Going over medical records and work history with a skilled legal team can be a good starting point for those hoping to apply for SSDI benefits.