Workers contribute a portion of their income to Social Security with every paycheck. Self-employed professionals, including independent contractors and small business owners, make quarterly contributions toward taxes that include funds for Social Security. The Social Security Administration (SSA) uses the funds gathered from workers to fund several crucial benefits programs.
Many people only apply for benefits from the SSA after they retire, but some need help before then. Those who develop disabling medical conditions may be eligible for Social Security Disability Insurance (SSDI) benefits. If a working adult becomes incapable of maintaining any form of gainful employment due to medical challenges, they can potentially apply for SSDI benefits.
Many applicants do not receive approval initially, but those applicants have the right to appeal. Is the time and effort invested in an SSDI appeal worthwhile for an applicant adjusting to life with a disabling medical condition?
Appeals are successful for many applicants
It can take a year or longer to finish an SSDI benefits appeal, and applicants may struggle financially while waiting. However, the alternative may be to either give up on obtaining benefits or to reapply both of which can deny people the support they deserve. For many people with seriously disabling medical conditions, appealing is a smart choice.
Determining the value of an SSDI appeal requires looking at application and approval statistics. According to the SSA, an average of 21% of SSDI applicants received approval when they initially applied between 2010 and 2019. A substantial portion of those denied benefits decided to appeal.
Approximately 2% of applicants each year get benefits through a reconsideration. Another 8% obtain approval after a hearing in front of an administrative law judge. Roughly 10% of SSDI applicants receive their benefits after an appeal, raising the final average approval rate to approximately 31%. Those who successfully appeal can receive backdated benefits in a lump sum. Those funds can help them catch up on past-due bills. People who reapply may lose out on those backdated benefits.
Understanding what happens during the SSDI application and appeals processes can help people understand if an appeal is worthwhile. Applicants who have the right support may have a better chance of getting benefits when they initially apply or of prevailing when they appeal.