
December 1994 • No. 1, Article 2
| In August, Congress enacted the "Social Security Independence
and Program Improvements Act of 1994", a new law which will drastically
limit the payment of disability benefits to individuals who are disabled
by an addiction to drugs or alcohol. The changes are sweeping and
they will effect anyone who has been awarded (or is seeking) disability
benefits due to an addiction, even if the addiction is only part of the
reason he or she is unable to work.
Congress enacted the drug and alcohol amendments in response to a series of news reports and perceived public outcry about the payment of disability benefits to people with drug or alcohol addictions. Congress was concerned that disability benefits are being used to purchase drugs and alcohol, not for food, rent and other basic necessities. To ensure that disability payments are used as intended, the new law sets forth strict new requirements. First, everyone who is considered disabled in part due to a drug
or alcohol addiction is now required to be in "appropriate substance abuse
treatment." This requirement applies both to people receiving Social
Security Disability Insurance (SSDI) and those receiving Supplemental
Second, everyone found to be disabled by a substance addiction are limited to a thirty-six month lifetime cap on benefits. This is perhaps the most significant change in the law. Although as the thirty-six month deadline approaches, recipients may provide evidence that they are disabled by an impairment other than the substance addiction, in the absence of such proof, the payment of benefits will end after 36 months. Benefits will continue if the recipient successfully shows that he or she is disabled independent of the addiction. Third, SSA will no longer issue a lump sum check for retroactive benefits to individuals disabled by a drug or alcohol addiction. Currently, after finding a substance abuser disabled, SSA pays benefits due for months since the application was filed in one lump sum. It is common for the retroactive payments to be several thousand dollars. As a result of the amendments, Social Security will now prorate back payments and pay them with the recipients monthly check so that the total check does not exceed twice the amount of the individual's normal monthly benefits. Fourth, the recent amendments require all individuals disabled by a drug or alcohol addiction to have a representative payee whose duty it is to manage the claimant's benefits. Under the prior law, only SSI recipients were required to have payees. SSA is also required to give preference to organizational payees rather than individuals. As a result, it may become more difficult to have family members or friends become payees. The changes in the law described above will effect all SSDI and SSI recipients whose disability is based upon substance addiction. The law will be effective immediately for cases granted after February 3, 1994. People currently receiving benefits will be notified by Social Security as to when their benefits will be effected. The new law has many shortcomings. Although change in the system was needed, many of the abuses which existed were due to SSA's failure to enforce the laws which were already in place. By passing this law, Congress has quieted the critics but offered no real solutions to the problems arising from disabling substance addictions. For example, treatment is required, but no funding for already overburdened and understaffed treatment programs is provided. An even larger problem is that many people disabled by substance addictions will remain disabled by their addictions after their disability benefits end. These people, still unable to work, will fall back on General Assistance benefits and many will become homeless. Substance abuse is a devastating problem plaguing many of our communities. The solution to the problem is necessarily a complex one. Congress' short-sighted solution fails to recognize the complexity and far-reaching consequences that drug and alcohol addiction pose in our society. We can only hope that this new law does not create more problems than it was intended to remedy. |
All individuals disabled by drug or alcohol
addictions:
1. Must take part in substance abuse treatment. Lack of compliance will result in suspension or termination. 2. Will have a 3-year lifetime cap on disability benefits. 3. Will receive retroactive benefits in smaller, monthly amounts paid out over time rather than in a single lump sum check. 4. Must have a representative payee who will manage his or her benefits. Preference will be given to organizational rather than individual payees. |