As the number of Americans who depend on Social Security Disability Benefits as part of their income continues to grow, funds to supply the program continue to deplete. An article from Forbes magazine explains many experts estimate the program running out of money by as early as 2016.
This shortage has prompted government officials to vigorously scramble to find a solution to the ever-inflating budget concerns. One of the major areas being considered for cuts is the way annual increases in payments are determined for benefit recipients.
Current law allows for the government to reevaluate the costs associated with certain everyday necessities such as food, clothing, utilities, and transportation. The amount each recipient of benefits receives is then adjusted to reflect inflation of costs for these items over previous years.
A new strategy for figuring this increase uses what is known as a chained Consumer Price Index. This type of adjustment takes into consideration the theory that if costs rise for a certain product; consumers will switch to cheaper alternatives.
Officials estimate the change could save the nation around $1 billion over the next decade; however, opponents claim the savings is only possible by taking from those who are most in need.
The Massachusetts Personal Injury Attorneys with Jason Stone Injury Lawyers recognize the complexities associated with receiving Social Security Disability and are available to answer any questions an individual considering applying for benefits may have.