How COVID-19 Inflation Surge Affects Disability Communities – Center for Retirement Research

People with disabilities buy a variety of items that most workers don’t need.

They may have to buy a wheelchair, build a ramp or take a taxi because they can’t drive. Use of electronic or computer-assisted devices and software by people with hearing, vision, or speech impairments. Some people need home health aides, and many people spend more on health care.

To fully understand their specific needs, researchers from Stony Brook University and the RAND Corporation conducted a detailed survey of nearly 2,000 people with disabilities, using the opinions of disability experts themselves or experience in the field. The authors analyzed survey data from people who receive benefits from the Social Security Disability Program or its companion program, Supplemental Security Income.

Their investigation revealed a lot about their unique buying behavior and how COVID-19-induced inflation is eroding their living standards.

In the summer of 2022, inflation soared to 9.1%, the largest increase since 1980, which squeezed all consumers. Surveyed a year later, six in 10 beneficiaries said they were paying more for disability-related goods and services and that their budgets were tighter than they were two years ago.

Most people on disability benefits are not working, so their incomes tend to be lower, and they feel these purchases make it more difficult to make ends meet. 43% of beneficiaries said the substantial cost-of-living increase in benefits in 2023 (8.7%) would not be enough to maintain their standard of living.

Studies show that people receiving disability benefits spend $384 per year on disability-related items. But many people spend more. The average is $4,412 per year, more reflective of the top spenders.

The survey also revealed how fragile their overall financial situation is. One in four beneficiaries said disability-related costs put them into debt or meant they had to spend less on groceries. These findings are consistent with other studies documenting their financial vulnerability: eviction and bankruptcy rates are higher than in the general population.

In a separate analysis, the researchers compared the details of general and disability-related purchases provided by individuals to a basket of goods used by the federal government to calculate the Consumer Price Index for all consumers.

The biggest difference is in health care costs: Individuals receiving disability benefits spend twice as much as the general population on health care, or 15 percent of their total budget, covering everything from doctor’s visits and prescription drugs to hearing aids, personal care services and assistive technology. kind of expenses. And, over time, the price of medical services tends to grow faster than overall prices.

Somewhat surprisingly, they spend about the same proportion of their budget on transportation as the average urban consumer. Researchers say this shows that the unusual costs involved in caring for people with disabilities are substantial – taxi fares and ride-hailing services or buying special vehicles or modifying older vehicles.

They listed many policy options to ease financial stress, including better access to energy, transportation and food assistance, expanding Medicare or Medicaid coverage to more disability-specific programs and even adjusting disability benefits for cost-of-living increases To better reflect the disproportionate use of health services.

Researchers say people with disabilities may need additional support because prioritizing limited resources on their health-related needs may compromise their ability to buy the items they need for daily living, even food or housing.

To read this study By Zachary Morris and Stephanie Rennane, see “Examining the Impact of Inflation on the Economic Security of Disability Program Beneficiaries.”

The research reported in this article was conducted under a grant from the U.S. Social Security Administration (SSA) as part of the Retirement and Disability Research Consortium. The views and conclusions expressed are those of the authors and do not necessarily represent the views or policies 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, and assumes no legal responsibility or liability as to the accuracy, completeness, or usefulness of the contents of this report. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply endorsement, recommendation, or support of the U.S. Government or any agency thereof