Disability Insurance Fails Short-Term Solvency Test Even After Transfer from Social Security

The Social Security Disability Insurance (SSDI) Trust Fund is on course to run dry in 2023, at which point it will be able to pay only about 89 percent of current benefits. Despite health improvements and technological advancements, the SSDI rolls have continued to rise, with more than 5 percent of working-age individuals now receiving benefits. Substantial inefficiencies, adverse incentives, outdated standards, and widespread fraud and abuse plague the program. These problems should not be ignored just because SSDI was given a temporary reprieve through access to the Old-Age and Survivors Insurance Trust Fund. Congress should return the SSDI program to its original purpose of poverty prevention for individuals with physical and mental disabilities that prohibit them from working.

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