It can be a struggle to make ends meet for those who receive Social Security Disability Benefits as their only source of income. To help these individuals, the federal government offers each beneficiary a Social Security cost-of-living adjustment (COLA) to offset the inflated costs of necessary goods and services. President Obama is now pushing for reforms to this system to reduce the COLA claimants receive each year significantly.
A report from All Voices stated current laws use a Consumer Product Index (CPI) to determine the annual COLA amount for beneficiaries. This system examines the rise in costs of specific goods and services and then uses these numbers to determine how much each beneficiary should receive to offset these costs.
Under the chained CPI system President Obama is proposing, it is considered that when the cost of one good or service rises, Americans will seek a cheaper alternative. The lower costs of alternative products are then used to determine the annual COLA, thus lowering the increase in payments each claimant receives.
The Social Security Disability Lawyers with Newlin Disability recognize how complex the laws surrounding Social Security disability benefits can be. That’s why the firm encourages citizens to discuss their claims with a qualified attorney to help ensure they receive their maximum benefits.
