Skip Navigation
| Skip Navigation |
|
|
|
|
|
In recent years, the Congress has focused much attention on disability compensation programs, questioning their high costs, their effectiveness, and the adequacy of program benefits. This paper, prepared at the request of the House Budget Committee, describes the major disability compensation programs and analyzes the gaps and overlaps in disability compensation, and the effects of current program provisions on the costs and adequacy of benefits and on work disincentives. The paper also presents options for changing federal disability programs, but in keeping with the Congressional Budget Office's mandate to provide objective and impartial analysis, makes no recommendations.
Dorothy M. Amey of the Human Resources and Community Development Division
of the CBO prepared the paper, under the supervision of Nancy M. Gordon
and Paul B. Ginsburg. The author wishes to thank a number of persons outside
the CBO for their comments and suggestions, particularly Jonathan Sunshine,
L. Scott Muller, William G. Johnson, Mordechai Lando, Wendell Primus, David
Koitz, Joseph Humphreys, and James Rotherham. Numerous persons at the CBO
contributed to the paper including Kathleen Shepherd, Stephen Chaikind,
David Lewis, Paul Cullinan, Sherri Kaplan, Janice Peskin, and Thomas Buchberger.
Valuable computer programming assistance was provided by Fay Jan Lim, formerly
of CBO, John Engberg and Ben Steffen of the CBO, Don Suprenant of the Social
Security Administration, and Nelma Keen of the National Center for Health
Statistics. Francis Pierce edited the manuscript. Toni Foxx, Jill Bury,
and Mary Braxton typed the many drafts and Toni Foxx and Jill Bury prepared
the paper for publication.
Alice M. Rivlin
Director
June 1982
SUMMARY
CHAPTER I. INTRODUCTION
CHAPTER II. CURRENT DISABILITY PROGRAMS AND DISABLED BENEFICIARIES
CHAPTER III. CURRENT ISSUES
CHAPTER IV. OPTIONS
APPENDIX A. BRIEF DESCRIPTIONS OF BASIC PROVISIONS OF MAJOR FEDERAL DISABILITY PROGRAMS
APPENDIX B. PRIVATE DISABILITY PROGRAMS
APPENDIX C. MODELS OF WORK BEHAVIOR AMONG DISABLED PERSONS
APPENDIX D. SOURCES OF INCOME AND DISTRIBUTIONS OF DISABLED BENEFICIARIES
| TABLES | |
| 1. | CASH BENEFITS FROM MAJOR DISABILITY COMPENSATION PROGRAMS, FISCAL YEAR 1981 |
| 2. | DISTRIBUTION OF DISABLED ADULTS AGED 18-64 BY FAMILY INCOME, AGE, RACE, SEX, AND BENEFICIARY STATUS: IN 1978 |
| 3. | PAST EXPENDITURES FOR DISABILITY TRANSFER PAYMENTS BY MAJOR FEDERAL PROGRAMS, SELECTED CALENDAR YEARS, 1965-1980 |
| 4. | CIVILIAN WORKERS NOT COVERED OR UNINSURED FOR TOTAL NON-WORK-RELATED DISABILITY: ESTIMATED FOR 1981 |
| 5. | PERCENT DISTRIBUTION OF 1977 REPORTED EARNINGS REPLACEMENT RATES FOR SURVEY RESPONDENTS DISABLED BETWEEN 1972 AND 1976, BY RESPONDENT CATEGORY |
Public disability programs have been the subject of much scrutiny. In past years, concern was focused on their rapid growth and on the expanded role of the federal government. While the growth of the programs has been slowed as a result of recent legislative and administrative efforts, a number of problems remain.
Current issues focus on two contrasting problems: the high costs of disability compensation on the one hand and the adequacy of the benefits on the other. The costs of disability compensation continue to be high because of persistent problems in administering programs and because of provisions that automatically raise benefit levels. Other problems are associated with the lack of benefits for some disabled persons and high benefits for others, especially when the high benefits are the result of payments from more than one program. Work disincentives are also a major concern, particularly where benefits replace a high proportion of predisability earnings.
This document is available in its entirety in PDF.