With severe 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 the cost of living increases. These Cost-Of-Living-Adjustments, or COLAs, are determined by the Consumer Price Index, which examines the costs of specific daily necessities, such as food, utilities, clothing, etc.
President Barack Obama is proposing changes to this system, though, that would implement a “chained CPI” to evaluate cost of living increases. This new system considers 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 Newlin Disability and their team of Social Security Disability Attorneys recognize the budgetary restraints the Social Security system faces, making it more difficult than ever to receive approval for disability benefits. That’s why the firm urges anyone considering a claim to discuss their options with an attorney.
