Today, we want to bring you an important update that affects everyone in our community—whether you’re just considering applying for Social Security Disability Insurance (SSDI), are in the middle of the process, or are already receiving benefits.
What’s Happening?
Starting on November 31 2024, the Social Security Administration (SSA) will increase the fee cap for representatives assisting SSDI claimants from $7,200 to $9,200.
This increase marks the first significant adjustment since 2022 and is intended to help representatives cover the rising costs of managing SSDI cases, which have become increasingly complex over the years. This news impacts a core aspect of the SSDI process—how much of your back pay could go toward paying your representative if you choose to hire one.
But let’s break it down and explain how this affects everyone involved in the SSDI process.
How Does This Impact Everyone?
This fee increase is relevant whether you’re considering applying, in the middle of your application, or have already been approved for SSDI. The rise in fees reflects the growing complexity of SSDI cases, and the SSA’s need to ensure representatives are compensated for the extensive work they do to advocate on your behalf.
For those applying or considering applying, this increase emphasizes the value of professional representation. If you’re waiting for a decision, knowing that representatives will now work under a higher fee cap ensures that they’re properly motivated to handle your case with care.
For those already receiving benefits, staying informed about changes to representative fees is crucial if you ever need to appeal a decision, request a benefit review, or fight for more benefits. These situations may arise more often than you expect, especially with SSDI’s periodic reviews of your case.
If You Are Planning to Apply for SSDI
If you’re thinking of filing a claim, this fee increase is relevant if you’re planning to hire a representative—either an attorney or a non-attorney advocate. Most representatives work on a contingency basis, meaning they only get paid if they win your case, with their fee being taken directly from your back pay (past-due benefits).
Under the new cap, a representative can charge up to $9,200 or 25% of your back pay, whichever is lower. While this might mean paying more than before, hiring a knowledgeable representative often increases your chances of success. They guide you through the process, help gather crucial medical evidence, and handle the overwhelming paperwork.
If you were hesitant about whether to hire representation, now could be the time to seriously consider it.
If You Are Waiting for a Decision
For those already in the process and awaiting a decision, this fee increase may impact you, depending on when your case is resolved. If your case is resolved after the new fee cap takes effect in November 2024, the new limits could potentially apply. However, the specifics of how and when the increase will apply to in-progress cases are not yet fully clear.
The SSDI process is notoriously slow but a skilled representative like Brian Therrien can help expedite this process by ensuring that all necessary documentation is in order, which can lead to faster and more favorable outcomes.
If You Have Been Denied SSDI
For those who have already been denied SSDI, this news is especially important. The reconsideration or appeal process can be even more complex than the initial application, as it often requires additional medical evidence, thorough documentation, and legal arguments to overturn the denial. Having a representative during this stage is crucial because they can navigate the intricate rules, help build a stronger case, and ensure all necessary forms and records are submitted on time. With the new fee cap, representatives may charge more for their services, but their expertise often increases the chances of success during appeals.
If You Already Receive SSDI Benefits
Even if you’ve already been awarded SSDI benefits, this update is still important to you, especially if you’re considering having your benefits reviewed or appealed. Representatives can assist with post-approval issues such as seeking additional benefits, appealing for increased payments, or handling Continuing Disability Reviews (CDR).
Under the new cap, representatives can charge up to $9,200 if their assistance is required in any of these matters. This fee would be taken from any additional benefits or back pay you might be entitled to as a result of their efforts. However, many find that the expertise and guidance they provide are well worth the cost, particularly when trying to maximize your benefits.
Why Is This Happening?
The SSA has faced significant funding challenges, leading to delays and backlogs in SSDI case processing. By raising the fee cap, the SSA aims to ensure that representatives are fairly compensated for the extra time and effort required to handle these cases effectively. For claimants, this may mean paying slightly higher fees, but it often results in better, more thorough representation—an advantage in a system that’s tough to navigate alone.
What Should You Do Now?
No matter where you are in the SSDI process, it’s essential to be aware of this change. Here at The Disability Digest, we’re committed to helping you make informed decisions. If you’re considering applying for SSDI or need assistance with your case, now is a great time to consult with a qualified representative, especially in light of these changes.
Our team can help give you a bigger winning chance at your disability benefits and resources tailored to your specific needs. If you have questions or need guidance, don’t hesitate to reach out—we’re here for you every step of the way.