According to Social Security Commissioner Martin O’Malley, nearly 30,000 Americans died last year while awaiting decisions on their Social Security benefits.
During a Senate Budget Committee hearing, O’Malley emphasized that, while this figure represents only a “small percentage” of total applicants, it is critical to expedite decision-making at all stages of the process.
The Social Security Administration (SSA) faces unprecedented demand as a record number of Baby Boomers reach retirement age and apply for benefits. Furthermore, many Americans are awaiting decisions on disability benefits, which adds to significant processing delays.
These backlogs have tragically resulted in thousands of people dying before receiving a decision on their benefits. Michael Ryan, a finance expert and the founder of michaelryanmoney.com, commented on the gravity of the situation, describing the number of deaths as “a tragic failure of a system designed to protect our most vulnerable citizens.”
According to O’Malley, the average wait time for an initial decision on disability benefits is eight months. For those who need to appeal, the process can take even longer, often up to eight months. In some cases, especially in certain states, applicants have had to wait more than a year for a decision.
O’Malley noted that these delays come at a time when the SSA is serving more people than ever before while having the lowest staffing levels in 50 years. He also warned that the situation is likely to worsen as the number of beneficiaries grows while the number of customer service representatives decreases unless immediate action is taken.
The true impact of the Social Security funding crisis
Currently, over 70 million Americans rely on Social Security benefits, but reduced staffing has resulted in significant claims processing delays. Ryan emphasized the gravity of the situation, stating that for people with life-threatening conditions, the wait for a decision can feel like an eternity.
He told the story of a close friend who had been diagnosed with terminal pancreatic cancer and given only four months to live. Despite being eligible for automatic acceptance under the SSA’s compassionate allowance program, the individual was denied.
Ryan emphasized the devastating consequences of these delays, which go beyond financial hardship and affect the health and well-being of those who are waiting. “For many, the stress and deterioration of health while waiting can be a death sentence in itself,” Ryan said, describing the delays as a “cruel irony” of the system.
From 2017 to 2023, phone wait times for Social Security beneficiaries nearly tripled, while delays in processing initial disability decisions doubled. In some states, disabled people are now routinely waiting more than a year for a decision.
O’Malley did not mince words during his testimony, telling lawmakers that “we cannot sugar-coat the severe damage that decades of staff reductions have done to Social Security’s customers.”
Budget constraints exacerbate the staffing crisis. Despite a $600 million increase in fixed costs, the Social Security Administration’s budget has remained largely unchanged since 2018.
Alex Beene, a financial literacy instructor, explained that the Social Security Administration is overwhelmed by the volume of claims it receives and lacks the necessary staff to process them efficiently. As a result, he said, many applicants die before their claims are resolved.
President Joe Biden has requested $15.4 billion in 2025 to address the Social Security Administration’s staffing shortage and reduce wait times. O’Malley expressed confidence that if the budget is approved, phone wait times could be reduced to 12 minutes and the claims backlog reduced by 15%.
Furthermore, fewer errors in overpayments or underpayments are expected, which have occasionally resulted in Americans owing thousands of dollars to the SSA for no fault of their own.
However, Ryan believes that fixing the Social Security disability insurance system requires more than just more money. “This entails not simply throwing money at the problem.
We must streamline processes, eliminate redundant steps, and place greater trust in the assessments of treating physicians. Most importantly, we must remember that behind each application is a human being in desperate need of assistance.”
Beene agreed with Ryan, saying that the deaths of 30,000 Americans before receiving their Social Security decisions should serve as a “call to action.” He proposed that adding more virtual paperwork options, incorporating artificial intelligence, and increasing staff could help prevent future tragedies.
Finally, Beene argued that a combination of these solutions will be required to ensure that fewer people suffer from the systemic delays that currently plague Social Security.