How the COVID Inflation Spike Has Affected the Disability Community – Center for Retirement Research

People with disabilities make all kinds of purchases that most workers don’t need.

They may need to buy a wheelchair, build an access ramp, or take cabs because they can’t drive. People with hearing, vision or speech impairments use electronic or computer assistive devices and software. Some need home health aides, and many spend more money on medical care.

To fully understand their specific needs, researchers from Stony Brook University and RAND developed a detailed survey of nearly 2,000 people with disabilities, using input from disabled professionals themselves or experienced in the field. The authors conducted an analysis of survey data on people receiving benefits from the Social Security disability program or its companion program, Supplemental Security Income.

Their survey revealed a lot about their unique purchases and how the rise in inflation caused by COVID-19 eroded their living standards.

Inflation of 9.1 percent in the summer of 2022 — the biggest jump since 1980 — has weighed on all consumers. In a survey last year, six out of ten beneficiaries said they were paying more for disability-related goods and services and that their budgets felt more constrained than two years ago.

Many people who receive disability benefits do not work, so their income is often low, and they feel that these purchases make it more difficult to make ends meet. Forty-three percent of beneficiaries say the large cost-of-living increase in their benefits in 2023 – 8.7 percent – is not enough to support their standard of living.

The average person receiving disability benefits spends $384 a year on disability-related expenses, according to the study. But many spend too much. The average, which best reflects the highest spenders, is $4,412 per year.

The study also gave an indication of how vulnerable their finances are. A quarter of beneficiaries reported that disability-related expenses had put them in debt or meant they had to cut back on their spending. These findings are consistent with other studies documenting their financial vulnerability: foreclosure and bankruptcy rates are higher than the general population.

In a separate analysis, based on information people provided about their regular purchases and disability-related purchases, the researchers compared the basket of goods that the federal government uses to calculate the Consumer Price Index for all consumers.

The biggest difference is the cost of health care: people receiving disability benefits spend twice as much as most people — or 15 percent of their total budget — on health care, everything from doctor visits and prescription drugs to hearing aids, personal care services, and assistive technology. . And, over time, prices for health care services tend to grow faster than overall prices.

Surprisingly, they spend about the same percentage of their budgets on transportation as the average urban consumer. Researchers say this suggests that the extraordinary costs required to accommodate a disability are large – taxi fares and ride-hailing services or buying a special car or repairing an old one.

They list a number of policy options to ease their financial pressures, including better access to energy, transportation and food assistance, expanding Medicare or Medicaid coverage for disability-specific items, and even adjusting cost-of-living increases in disability benefits for better visibility. misuse of health.

People with disabilities may need more support, the researchers said, because prioritizing limited resources for their health-related needs may affect their ability to purchase things, including food or housing, that they need in daily life.

Reading this learn by Zachary Morris and Stephanie Rennane, see “Evaluating the Impact of Energy Cost Increases on Social Security Disability Beneficiaries.”

The research reported here was conducted in accordance with a grant from the US Social Security Administration (SSA) funded as part of the Retirement and Disability Research Consortium. The views and conclusions expressed are solely those of the authors and do not necessarily represent the views or policy of SSA or any agency of the Federal Government. Neither the United States government nor any of its agencies, nor any of its employees, makes any warranty, express or implied, or assumes any legal responsibility or liability for the accuracy, completeness, or usefulness of the contents of this report. Reference herein to any particular commercial product, process or service by trade name, trademark, manufacturer, or otherwise does not imply or endorse, recommend or favor the United States Government or any agency thereof.