The Social Security Administration (SSA) recently announced significant changes that will impact millions of recipients of Supplemental Security Income (SSI) across the United States. With over 100,000 individuals set to lose their SSI benefits, many current and prospective beneficiaries may be left wondering about the implications of these changes.
Decline in SSI Beneficiaries
This Article Includes
According to SSA statistics, the number of individuals receiving SSI benefits has dropped significantly over the past year. In May 2023, approximately 7.38 million people received these payments; by May 2024, that number had decreased to around 7.26 million. This marks a decline of about 119,395 beneficiaries, highlighting a concerning trend within the SSI program.
Breakdown of Beneficiary Categories
The decline in SSI recipients primarily affects two groups: individuals with disabilities or blindness and those aged 65 and older. Of the total beneficiaries, around 6.1 million are disabled or blind, while about 1.1 million are elderly. Recent figures show a decrease of 140,034 in the number of disabled or blind recipients, dropping from 6.28 million in May 2023 to 6.14 million in May 2024. Conversely, the number of beneficiaries aged 65 and over rose slightly, from 1.10 million to 1.12 million during the same period.
Reasons Behind the Decrease
The exact reasons for the decline in SSI beneficiaries are not immediately clear. Reports indicate that more than 10,000 people in various states have recently become ineligible for benefits. California, for example, experienced a drop of 16,573 SSI applications, despite having the highest volume of applications nationwide. Additionally, over 17,000 individuals classified as disabled or blind lost their eligibility, contributing to the overall decrease in recipients.
Regional Variations
The decline is not uniform across the country. States with larger populations, like Texas and New York, also reported reductions in SSI beneficiaries. Texas saw a decrease of 14,587, while New York experienced a drop from 568,777 to 559,222 recipients. In contrast, some states, such as North Dakota, reported minimal changes, with only a slight decrease in beneficiaries.
Changes to Disability Benefit Applications
The SSA has also introduced modifications to the evaluation process for SSI and Social Security Disability Insurance (SSDI) applications. Aimed at streamlining the disability determination process, these changes will alter how applications are reviewed, particularly the criteria for relevant work history.
New Evaluation Criteria
Under the new rules, which took effect on June 22, 2024, the SSA will now only consider an applicant’s work history from the past five years instead of the previous 15. This change is designed to make the application process more straightforward, allowing applicants to focus on their most recent relevant job activities. Additionally, jobs that lasted less than 30 calendar days will no longer be taken into account during evaluations.
Conclusion
The recent announcements from the Social Security Administration signal significant changes for SSI recipients and applicants. With a notable decline in beneficiaries and modifications to the application process, it is crucial for current and potential SSI recipients to stay informed. Understanding these shifts can help individuals navigate the complexities of Social Security benefits and make informed decisions about their financial future.