There has been much commotion in the news about Obama's new 2012 Federal Budget plan, but very little is being said about exactly how this budget will affect the Social Security Disability program. Many Social Security Disability recipients are wondering exactly how this new budget affects them and are confused as to whether or not their disability benefits are at risk. If you receive Social Security Disability benefits and you are wondering whether or not you should worry about your monthly disability payments, the following information will shed light on the new 2012 budget and how it impacts you.
What Does the 2012 Federal Budget Change?
Surprisingly, the 2012 Federal Budget that Obama introduced makes no major changes to the Social Security Disability program on a financial benefit level. Fortunately, the president stated that while he recognizes that changes must be made to address the Social Security deficit, reducing Social Security Disability payments for current and future generations is not the answer. Instead, he proposes that the deficit be addressed by implementing cuts to other federal programs, and he is firmly against taking any measures that weaken the Social Security system or privatize it in any way.
So what does this mean to you as a current Social Security Disability recipient? Fortunately, your monthly Social Security Disability payments will not be affected by the new 2012 Federal Budget and you will not see a reduction in your Social Security Disability benefits.
While this news comes as a relief to those currently receiving disability benefits through Social Security Disability Insurance or Supplemental Security Income, many politicians feel that the 2012 Federal Budget isn't addressing the deficit in the long run. They feel that the Social Security Administration must take measures to strengthen the program for the future. According to some analysts, if changes aren't made, the system will not be able to support itself into the next several decades.
A Problem on the Horizon
While the 2012 budget does not affect the monthly payments received by Social Security Disability beneficiaries, it will affect the medical insurance that disability recipients receive. The budget proposes a restructure of the Medicare program in 2022, and this restructuring involves a discontinuation of the direct benefit payments for individuals who are covered by Medicare. Instead retaining access to current Medicare coverage, recipients' medical benefits will be provided by private insurance companies that will be subsidized by the government.
The Bottom Line
The bottom line is this – as of right now, the 2012 Federal Budget will not affect your Social Security Disability benefits in any way whatsoever.. If the budget stands as is, Social Security Disability payments will not be affected, which is a relief to many recipients, but the system that provides the medical benefits that these disabled individuals rely on may be at risk in just a few short years.
While we all recognize that changes need to be made to accommodate a stronger Social Security system, changes made to cut spending and allocate money to sufficiently fund the Social Security system must be made in a calculated and productive way in order to ensure that benefits are still available to those who need them most.