Episode•December 1, 2022•30 min

Social Security Disability with Spencer Bishins | Ep. 175

In this week's episode, Spencer Bishins joins Tiffany to share his expertise on social security disability, who qualifies and how people can take advantage of this. About Our Guest Spencer Bishins has a master’s degree from the London School of Economics, and a law degree from Florida State University. After law school, he worked in the private sector for two years prior to joining the Social Security Administration (SSA) in 2010. He worked at the Appeals Council for almost four years, reviewing thousands of disability decisions for compliance with SSA’s complex rules and procedures. He then worked at the hearing level for seven years, where he drafted almost 2,000 decisions for SSA Administrative Law Judges. After working for SSA for more than 10 years, he wanted to help demystify the complicated disability system. His first book, Social Security Disability Revealed: Why it’s so hard to access benefits and what you can do about it, explores the obstacles that disability claimants face as they try to access benefits. Connect with Spencer Bishins Facebook: https://facebook.com/bishinspublishing Twitter: @bishinspub Instagram: https://www.instagram.com/bishinspublishing/ Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are two distinct programs with different eligibility rules
SSDI is an earned benefit funded by payroll taxes that also provides Medicare coverage after approval
SSI is needs-based, funded by general taxes, and covers people who haven't earned enough work credits including children and stay-at-home parents
SSDI has a fixed monthly benefit amount while SSI has strict asset and income limitations
2
The definition of disability requires inability to perform any full-time work in the national economy for 12 consecutive months
You must be unable to do any job, not just your previous occupation, including simple sit-down or low-stress work
Short-term injuries lasting less than 12 months do not qualify
Over 70% of initial applications are denied due to insufficient medical documentation
3
Working while on disability has strict income limits and reporting requirements
SSDI allows work attempts with a 9-month trial work period before benefits end
SSI benefits are reduced dollar-for-dollar by any earned income
Failure to report work activity can result in massive overpayment demands years later
4
Benefits can end through multiple pathways beyond just medical improvement
Medical improvement through continuing disability reviews
Successful return to work above income thresholds
Reaching full retirement age (converts to retirement benefits)
Death or incarceration (for SSI recipients)
5
The system creates barriers through poor medical record access and documentation requirements
Losing employment often means losing health insurance needed to obtain medical documentation
Social Security knows most applicants will lack adequate records at initial filing
The system is designed to deny claims at the first stage due to documentation gaps

Intro

Tiffany explores the complex world of Social Security disability benefits with expert Spencer Bishins, who spent over 10 years at the SSA reviewing and drafting disability decisions.
Spencer Bishins holds a master's from the London School of Economics and a law degree from Florida State University. After working at the SSA Appeals Council and hearing level for over a decade, he authored 'Social Security Disability Revealed' to demystify the system for claimants.

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– What Is Social Security Disability?

Spencer explains there are two programs: SSDI (earned through payroll taxes, includes Medicare) and SSI (needs-based for those without sufficient work credits).

All Americans who are working and paying that tax actually have disability insurance, even if they don't know they do.
– Spencer Bishins

– How to Apply and Why It's So Difficult

Applications are submitted online, but the strict 12-month definition and documentation requirements create major barriers. Over 70% are denied initially.

It's not that long in the recent past where a doctor has said to me... we'll fax them to you or come in and we'll print them out at 75 cents a page.
– Spencer Bishins

The system is designed knowing most applicants won't have adequate medical records at filing time.

– Income Limits and Working While on Benefits

SSDI has a $1,350/month earnings limit for applicants. After approval, there's a 9-month trial work period before benefits end.

Social Security disability is not intended to be permanent.
– Spencer Bishins

SSI benefits are reduced by any earned income and have strict asset limits around a couple thousand dollars.

– How Benefits Can End

Medical improvement via continuing disability reviews
Return to work above income thresholds
Reaching full retirement age (converts to retirement benefits)
Death or incarceration (SSI)

– Overpayments and Reporting Requirements

There's no such thing as free money when it comes to the government.
– Spencer Bishins

Overpayments must be reported immediately. Failure to report work can result in demands for repayment years later, with the government having unlimited collection power.

Recommendation: Keep Social Security funds in a separate account and never spend money that arrives unexpectedly.

Books Mentioned

Social Security Disability Revealed: Why it's so hard to access benefits and what you can do about it by Spencer Bishins

Resources

Topics

Social Security DisabilitySSDISSIDisability BenefitsGovernment BenefitsMedicareWorkers CompensationFinancial PlanningDisability InsuranceRetirement Planning