Workforce Reductions at Social Security Could Affect Medicare and Medicaid Coverage

Copy link to quick take

With news that the Social Security Administration is implementing major workforce reductions, it’s worth noting that the agency plays a big role in helping people enroll in Medicare by processing applications for Part A and B, as well as for the Part D drug benefit’s extra help program. Social Security is also a pathway to health coverage for millions of people with disabilities, who can qualify for Medicare after receiving Social Security Disability Insurance (SSDI) benefits for two years, or Medicaid for people receiving Supplemental Security Income (SSI).

According to KFF analysis, in 2021, 12.9 million people were eligible for Medicare or Medicaid because they received disability benefits from either SSDI or SSI. Of that total, 4.6 million, or more than one-third (35%), qualified for health coverage under both Medicare and Medicaid (dual-eligible individuals). Another 4.8 million SSI beneficiaries had Medicaid coverage only and 3.5 million SSDI beneficiaries had Medicare coverage only. (Figure 1)

While the number of people receiving Social Security disability benefits has been declining in recent years, the enrollment decline accelerated during the COVID-19 pandemic, when Social Security offices were closed for 2 years, likely further reducing the number of applicants. Office closures also contributed to a backlog of cases that has caused people to wait longer for eligibility decisions.

How these new workforce reductions at the Social Security Administration will affect people is unknown but could make it harder for people to get connected to benefits they might qualify for due to office closures, paperwork delays, or other hurdles, which would in turn affect access to health insurance coverage through Medicare and Medicaid.