With serious budget deficits looming over the federal government, officials are attempting to find areas where spending cuts can be made. Unfortunately for recipients of Social Security Disability Benefits though, payments through the Social Security system may be one of the first areas to see reductions.
According to a story published by MSN News, current law allows for the amount an individual receives through Social Security Disability benefits to be reevaluated and adjusted each year to meet increases in the cost of living. These Cost-Of-Living-Adjustments, or COLAs, are determined by the Consumer Price Index that examines costs of certain daily necessities, such as food, utilities, clothing, etc.
President Barack Obama is proposing changes to this system though, that would implement the use of a “chained CPI” to evaluate cost of living increases. This new system takes into consideration the theory that if the costs associated with certain products rise, consumers will switch to purchasing cheaper alternatives.
Officials believe switching to the new system would reduce COLAs by an average of .3 percent annually. While this number may seem small, it could save the nation more than $1 billion over the next decade.
The law firm of Newlin Disability and their team of Social Security Disability Attorneys recognize the budgetary restraints the Social Security system is facing makes it more difficult than ever before to receive an approval for disability benefits. That’s why the firm urges anyone considering filing a claim to discuss their options with an attorney.