Income at Risk: Unemployment Skyrockets for Those with Disabilities, Reports Allsup

Third-quarter unemployment rate for people with disabilities tops 16 percent;
people with worsening disabilities face mounting hurdles to return to work,
Social Security disability may be last safety net
BELLEVILLE, Ill.--(Business Wire)--
Unemployment for people with disabilities has reached its highest rate since
January, according to a quarterly study by Allsup, a nationwide provider of
Social Security disability representation and Medicare services.

At the same time, the Allsup Disability Study: Income at Risk shows the number
of people applying for Social Security Disability Insurance (SSDI) benefits
continues to climb. Thousands of people are forced to leave their jobs each
month because of disabling conditions. Additionally, the rising SSDI application
rate may be a result of individuals with worsening disabilities who have been
out of work because of the recession and now realize they are medically unable
to return to work.

Specifically, the third-quarter Allsup study shows unemployment averaged 16.1
percent for people with disabilities, compared to 9.3 percent for people with no
disabilities, according to non-seasonally adjusted data from the U.S. Department
of Labor.

Over time, the study shows people with disabilities consistently experience
higher rates of unemployment. Monthly unemployment rates for people with
disabilities during the third quarter ranged from 15.1 percent (July) to 16.9
percent (August). These are the highest monthly unemployment rates reported
since the Bureau of Labor Statistics (BLS) began reporting data on unemployment
rates for people with disabilities last October. Monthly unemployment rates for
people with no disabilities, in comparison, ranged from 9.2 percent to 9.5
percent during the third quarter.

BLS also reported that during September, more than two-thirds of the unemployed
(36 percent) had been jobless for 27 weeks or more.

"Millions of individuals are now among the long-term unemployed," said Paul
Gada, personal financial planning director for Allsup. "People with disabilities
who lost jobs earlier in the recession may have spent months searching for a new
job. During these months, however, their conditions may have continued to
worsen, and now they physically cannot go back to work even if a job were
available."

The Allsup Disability Study: Income at Risk shows that the number of people with
disabilities unable to work and applying for SSDI continues to climb. Disability
applications rose to more than 733,000 in third quarter 2009. This is up just 1
percent from the second quarter. However, year-to-date there has been a
23-percent increase in initial disability applications compared to year-to-date
2008.

The Social Security Administration is making headway in reducing the hearing
backlog of SSDI claims. However, the number of claims pending at the application
level alone is expected to reach nearly 1 million people by 2010, with the
average time to process initial claims exceeding five months, according to an
Allsup analysis. The SSA reports that more than 722,000 cases are pending at the
hearing level, with an average wait time of 491 days.

"Applying for SSDI is not a quick or easy experience," said Gada. "It`s
important for people to learn if they meet the criteria and apply as early as
possible, with hopes of reducing their wait to begin receiving monthly SSDI
benefits."

Applying for SSDI Benefits

Eligibility for SSDI is determined by the SSA. Generally, applicants are
considered disabled by the SSA if:

* They cannot do the work they did previously;
* They cannot do other work because of their disability; and
* Their disability has lasted or is expected to last at least one year, or
result in death.

To qualify for SSDI, a person also must have worked and paid into the program
(via FICA payroll taxes) for five of the last 10 years and be under full
retirement age (65-67).

Applying for SSDI benefits involves an extensive amount of paperwork, Gada said.
This includes completing an initial application and, in most instances, a
detailed activities of daily living questionnaire. This requires detail on the
person`s work history and how the disability affects day-to-day activities. A
doctor must verify information and additional medical exams may be required if
there is not enough information to make a decision.

Only 35 percent of initial applications are approved on average, requiring those
who are denied to apply for reconsideration and advance further in the SSDI
process. Individuals can improve their chances of receiving benefits earlier in
the process by getting help. For example, more than 54 percent of those who hire
Allsup for SSDI representation receive their awards at the initial application.
Overall, 98 percent of people that complete the SSDI process with Allsup receive
awards.

Individuals uncertain of their eligibility for SSDI benefits can contact the
Allsup Disability Evaluation Center at (800) 279-4357 for a free evaluation.

About Allsup

Allsup is a nationwide provider of Social Security disability, Medicare and
workers` compensation services for individuals, employers and insurance
carriers. Celebrating its 25th anniversary in 2009, Allsup employs more than 600
professionals who deliver specialized services supporting people with
disabilities and seniors so they may lead lives that are as financially secure
and as healthy as possible. The company is based in Belleville, Ill., near St.
Louis.

For more information, visit www.Allsup.com.

The information provided is not intended as a substitute for legal or other
professional services. Legal or other expert assistance should be sought before
making any decision that may affect your situation.

Editor`s Note: Details on the Allsup Disability Study: Income at Risk are
available at Third quarter 2009:
http://www.allsup.com/Portals/4/allsup-study-income-at-risk-q3-09.pdf

for Allsup
Mary Jung, (773) 429-0940, mtjung@msn.com
or
Dan Allsup, (800) 854-1418 ext 5760, djallsup@allsupinc.com

Copyright Business Wire 2009