Disability Denial Statistics 2026

Disability Insurance Claim Denial Statistics for 2026

Families put their trust in insurance companies, paying premiums for coverage they expect to be there if an injury or illness leaves them disabled. Yet as denied disability statistics show time and again, many families have faced delays or rejections — even with valid claims.

Whether you were denied disability from an insurance company, the Social Security Administration (SSA), or the U.S. Department of Veterans Affairs (VA), it may be possible to file appeals and fight for the benefits you need. Working with an attorney can help make this process significantly easier.

Find out more about disability insurance claim denial statistics:

• Around 62% of disability claims are initially denied, according to the SSA. Fewer than 4 in 10 applicants receive federal disability benefits on their first attempt.
• Private insurers deny nearly 1 in 3 long-term disability claims, according to the American Council of Life Insurers (ACLI).
• About 67% of initially denied workers' compensation claims are eventually paid within 1 year, as reported by Lockton Analytics.
• Approximately 36% of VA disability claims were denied in fiscal year 2024 alone.
• Roughly 7% of workers' compensation claims are initially denied nationally, though rates vary widely by state.
• Fewer than 1% of denied insurance claims are appealed, per a former Cigna executive.

At Sokolove Law, we’ve secured over $146 Million total to date for families facing disability denials. Our long-term disability denial lawyers can guide you through the appeals process, helping you to more easily secure the benefits you deserve.

United States Disability Statistics

Disability coverage denials are a real issue for families across the United States, leading to uncertainty about how to pay for treatments and the consequences of a denied claim.

At least 51 million Americans working today don’t have disability insurance outside of basic Social Security plans, according to the Council for Disability Income Awareness (CDIA) — and even those with private coverage can find themselves fighting insurers to receive the benefits they're owed.

Notable disability statistics for U.S. families include: 

• Roughly 1 in 4 Americans will become disabled before retirement age, according to the SSA.
• The most common health care issues associated with LTDs among Americans included musculoskeletal disorders (26%), cancer (15%), broken bones (11%), mental health problems (9%), and heart attacks or strokes (9%).
• Only 10% of Americans appealed denials through Medicare Advantage, as noted by Reuters. However, 1 in 3 of these appeals wasn’t successful.
• Disability denial appeals took an average of 3 reviews with insurance companies, according to a national survey. Each review period took around 45-60 days to complete.
• Claimants with a representative, like a denied disability attorney, are nearly 3 times more likely to receive benefits on appeal, according to the U.S. Government Accountability Office.

The consequences of not having disability insurance or being denied a valid claim can be significant. Over 44% of Americans who filed for bankruptcy attributed the filing to a loss of earning capacity due to medical issues, according to Physicians for a National Health Program.

The Consumer Data Industry Association (CDIA) also noted that while workers’ compensation and Social Security do help, they often don’t provide enough to sufficiently protect Americans in the way that valid disability coverage could.

Long-Term Disability Statistics

Long-term disability (LTD) insurance is supposed to replace a portion of your income if a serious illness or injury keeps you out of work for months or years.

However, insurance companies routinely deny valid claims to protect their profits, leaving sick and injured policyholders without the income they paid premiums for.

Find out more about long-term disability claim statistics:

• Nearly 33% of long-term disability claims are initially denied by private insurers, according to the ACLI. Of those who appeal, approximately 62% have their appeals denied as well.
• Injuries account for approximately 9% of long-term disability claims, according to CDIA. This means the majority of LTD claims stem from illnesses.
• Fewer than 20% of long-term disability claims are related to a workplace injury, according to the Journal of Safety and Research, meaning the disabling condition doesn't have to happen on the job to qualify for benefits.
• Many employer-sponsored LTD policies cap mental health and substance use disorder claims at 24 months, even if the policyholder remains totally disabled beyond that point.
• LTD claims governed by the federal Employee Retirement Income Security Act (ERISA) give 180 days to appeal a denial, and new evidence can be introduced once a lawsuit is filed.

At Sokolove Law, our long-term disability lawyers can file an appeal or lawsuit on your behalf if you were wrongfully denied benefits.

Bad Faith Insurance Statistics and Denials by Company

Many LTD insurers have long-standing patterns of wrongfully or unfairly denying benefits to families during their time of need.

A denial from an LTD insurance provider doesn't mean your claim isn't valid. It could mean the company is counting on you giving up before you appeal. Working with an experienced LTD denial attorney can level the playing field.

Companies with the highest rates of denying LTD claims include: 

• Aetna
• AIG
• Allstate
• Anthem
• Assurant
• Assurity
• Berkshire
• Cigna
• Disability Management Services
• Guardian Life
• The Hartford
• Liberty Mutual
• Lincoln Financial
• Lloyd’s of London
• MetLife
• Mutual of Omaha
• New York Life
• Northwestern Mutual
• Principal
• Provident
• Prudential
• Reliance
• Sedgwick
• State Farm
• Sun Life
• The Standard
• UnitedHealthcare
• Unum
• Voya Financial

This list isn’t complete. Even if your LTD insurance provider isn’t shown above, contact Sokolove Law. We can help determine if you qualify to challenge a denied LTD claim at no cost.

"Through all the ups and downs, Sokolove Law stood by my side. They guided me through the legal process, explaining everything in a way that made sense to me. With their expertise, I felt like I had a fighting chance."
– Mechanic with a Denied Disability Claim

Aetna Claim Denial Statistics & Reasons

Aetna insures more than 39 million people worldwide, according to Becker’s Payer Issues. Yet Aetna has come under scrutiny for unfairly denying insurance claims when families have counted on them.

In 2023, Aetna had an in-network denial rate of 22%, putting it among the companies with the highest percentages of disability denials.

Notable Aetna denial rates and statistics include: 

• In some states, Aetna denial rates reached as high as 39.4%, according to a 2023 analysis.
• The same reporting revealed that, for Health Maintenance Organization (HMO), no Aetna customers filed appeals with the company that year for their denials.
• CVS Health (Aetna’s parent company) increased their rate of prior authorization requests for post-acute medical care by 57.5% between 2019 and 2022 — which a U.S. Senate report correlated to higher savings for the insurer.
• A $117.7 Million Aetna settlement was reached in March 2026 over the company providing inaccurate medical diagnostic codes to the Medicare Advantage program in order to increase their profits.

Aetna has a duty to properly review and process LTD claims. When they resort to unfairly denying claims to maximize their profits, they could be acting in bad faith.

Anthem Blue Cross Blue Shield Denial Rate

While Anthem’s coverage varies by plan, long-term disability benefits usually cover 60% to 66% of monthly income. However, Anthem has faced criticism for operating in bad faith to deny LTD benefits while keeping corporate profits up.

Anthem owns the rights to Blue Cross Blue Shield plans in 14 states, according to The Washington Post. Both insurance companies have been criticized for denying claims and preventing patients from getting care.

Anthem Blue Cross Blue Shield denial rates and statistics include: 

• Blue Cross Blue Shield of Alabama denied 35% of in-network ACA claims during 2023, according to KFF. This was the highest denial rate among major insurers.
• Elevance Health (parent company of Anthem) denied 23% of claims, according to the same 2023 dataset.
• Health Care Service Corporation (which owns Blue Cross Blue Shield plans in certain states) denied 29% of claims.
• In 2024, Blue Cross Blue Shield agreed to a $2.8 Billion antitrust settlement, Reuters reported. Lawsuits alleged that Blue Cross Blue Shield affiliates underpaid reimbursement and tried to limit competition to boost profits.

It’s important to understand your legal rights if you were denied LTD benefits. You may be able to file an appeal to get what you deserve.

Cigna Denial Rates & Statistics

Cigna has a long history of allegedly denying insurance benefits to customers who diligently paid for coverage.

In fact, a former Cigna executive claimed that denials were built into the company’s business model, allowing it to rake in more profits since fewer than 1% of customers would actually try to fight to get the benefits they were entitled to.

Here are statistics on Cigna claim denial rates: 

• Cigna’s cash reserves increased by 24.4% between 2019 and 2024, while hospital financial reserves decreased by 17% year over year.
• Cigna allegedly denied 300,000 claims in just 2 months with help from an AI-driven algorithm called nH Predict, according to The Guardian and ongoing lawsuits against the insurer.
• Just 0.2% of all Cigna insureds tried to fight claims that were wrongfully denied through nH Predict, leaving them to pay out-of-pocket for medical costs, per lawsuit filings.
• Lawsuits claim that Cigna’s nH Predict has a 90% error rate, with the majority of denied claims being reversed through the appeals process.

Cigna has disputed claims that they unfairly deny coverage, saying they work to reduce health care expenses and wasteful spending on behalf of companies that use it for employees, per a statement to ProPublica.

United Healthcare Denial Statistics

More than 50 million Americans rely on United Healthcare, the largest provider of Medicare Advantage plans throughout the country.

Those who rely on United expect that the company will fairly review and pay long-term disability claims — not shirk responsibility to line their own pockets.

Key United Healthcare denial statistics include: 

• UnitedHealthcare had the second-highest rate of in-network ACA denials for 2023, per KFF. It denied 33% of claims that year.
• Among those using Medicare Advantage to receive United coverage, 12.8% of prior authorization claims were denied — the highest of any insurer.
• 79.1% of the United's prior authorization denials were successfully overturned on appeal, as noted by KFF.
• United Healthcare denial rates for post-acute care among Medicare Advantage members have increased significantly.
• Sitting at 10.9% in 2020, the denial rates jumped to 22.7% in 2022, per Becker’s Hospital Review.

In the event that your LTD claim was unfairly denied by United, our attorneys can help guide you through the appeals process. At Sokolove Law, we make filing an appeal as hassle-free as possible, so you can stay focused on your health.

Unum Disability Denial Statistics

Over the last 20 years, Unum and their affiliate Colonial Life have repeatedly come under scrutiny for the way the company has handled disability claims.

While one of the largest disability companies operating today, Unum has faced millions of dollars in fines for issuing bad-faith LTD denials.

Notable Unum disability denial statistics include: 

• In 2024, Unum once again had to settle with the U.S. Department of Labor and change the way they handle disability claims. An investigation found that Unum allegedly failed to verify insurability for life insurance policyholders and, upon death, tried to deny payouts to next of kin.
• In 2005, the company had to pay an $8 Million settlement to the California Department of Insurance to resolve concerns around the way they processed and handled disability claims.
• In 2004, Unum had to offer reassessments for over 215,000 LTD claims they had denied over a 5-year period as part of a larger settlement agreement between Maine, Massachusetts, Tennessee, and the U.S. Department of Labor.
• Over 45% of those previously denied LTD claims were reversed upon reassessment, suggesting that nearly half had been improperly denied in the first place.

At Sokolove Law, our Unum disability attorneys may be able to fight for you and your family if the company has unfairly denied the disability benefits you paid for.

Short-Term Disability Statistics

Short-term disability (STD) covers a portion of your income for temporary periods, typically a few weeks to several months, when an illness or injury prevents you from working. About 5% of all Americans experience a short-term disability each year.

However, STD claims are routinely denied, often over technicalities that have nothing to do with whether the claimant is genuinely unable to work.

Short-term disability statistics include: 

• Nearly 15% of short-term disability claims made to private insurers are initially denied, according to ACLI.
• The majority of short-term disabilities don’t happen at work, so those affected only have STD coverage as an option rather than workers’ compensation.
• Pregnancies were the main reason families took STD, making up 22% of claims, according to the CDIA.
• Other common reasons to file STD claims included musculoskeletal problems (17%), broken bones or sprains (11%), and mental health issues (10%).
• Only about 42% of Americans working in the private sector had access to STD coverage, per the Bureau of Labor Statistics (BLS).
• Pre-existing condition "look-back" periods on group STD policies typically range from 3 to 6 months before coverage begins, meaning conditions diagnosed shortly before the policy started can be excluded.
• STD policies generally require claimants to file an appeal within 180 days of receiving a denial letter, the same deadline that applies to most ERISA-governed long-term disability plans.
• Most STD policies pay between 40% and 70% of an employee's wages, meaning even an approved claim could leave families short.

While STD claims can sometimes be shorter and less complex than LTD claims, a denial can still create serious financial pressure by preventing claimants from getting a portion of their income.

Social Security Disability Denial Statistics

Social Security Disability Insurance (SSDI) provides monthly income to Americans who can no longer work due to a long-term medical condition.

Every paycheck, workers pay into the SSDI system through Social Security taxes. However, when it comes time to collect, many applicants are turned away, with some facing multiple denials.

Essential Social Security disability denial statistics include:

• The Social Security disability initial denial rate reached 62% in 2024, according to the SSA.
• Social Security disability claim approval statistics show that just 35% of families received benefits in 2025, per an analysis of state-level data by the Urban Institute.
• At the reconsideration stage (the first appeal), 84% of cases were denied in 2024, and only 16% were approved.
• At the Administrative Law Judge (ALJ) hearing level, approval rates jumped to 51% in 2024, marking the first stage where approvals outpaced Social Security disability denial rates.
• There were more than 340,000 pending SSDI appeals being processed as of February 2026. The average processing time for these was nearly 9 months per claim.
• As of 2025, it takes roughly 8 months for the SSA to review SSDI benefit appeals, per the American Association of Retired People (AARP).
• If more reviews are needed, wait times can reach as long as 17 months.
• Only 16% of SSDI appeals were successful as of 2025, according to the SSA.

Even when an SSDI application goes through, it only pays out an average of $19,616.40 per year, according to the Bureau of Labor Statistics (BLS). This means that families are still below the poverty level of a 2-person household, which sits at $21,640, according to the CDIA.

At Sokolove Law, we may be able to help you through the SSDI appeals process, so you can more easily pursue the benefits you deserve with less stress.

VA Disability Claim Statistics

The VA processes millions of benefit claims each year, but a significant share of them are denied. According to the latest veterans disability claims statistics, 36% of veterans were denied benefits in 2024, meaning roughly 1 in 3 U.S. veterans were initially turned down.

Factors like paperwork errors, missing nexus letters, or disputes over whether a condition is service-connected may all cause U.S. veterans disability denials.

Find out more about VA disability claims statistics:

• VA appeals success rates range from 30% to 40%, depending on the appeal path (Higher-Level Review, Supplemental Claim, or Board Appeal).
• PACT Act claims have a denial rate of around 25% — a lower percentage than general disability denials, but still impacting many U.S. veterans and families.
• The VA updated their benefits appeals process in 2019 with the goal of expediting reviews. The goal was to get Supplemental Claims and Higher-Level Reviews finished within 125 days and Board Appeals done within 1 year.

While the VA works to resolve disability denials and appeals, some claims are left waiting in limbo for years. In 2025, the VA reported that there were almost 36,000 claims known as “legacy appeals” awaiting decisions that dated back to 2017.

U.S. veterans may face disability denials because of insufficient evidence and documentation showing how their service stems from their military service. In these cases, U.S. veterans may benefit from working with attorneys who can help them handle the VA appeals process.

Workers' Compensation Denial Statistics

Workers' compensation is insurance that helps cover medical expenses and replace wages for employees who are injured or become sick. Approximately 4.9 million workers' compensation claims are filed each year by private and government employees combined.

However, insurance companies still deny a meaningful percentage of claims, often by disputing whether the injury was truly work-related.

Find out more about workers' compensation denial statistics:

• Workers’ compensation denial rates increased by 20% over a 5-year period, according to an analysis of 273,000 claims by Lockton Analytics.
• The most common reason for a denied workers’ compensation claim was a lack of medical evidence of an injury, according to the Lockton Analytics report.
• Of denied workers’ compensation claims, 67% were successfully appealed within 12 months.
• Denied workers’ compensation claims paid 55% more if they were successfully appealed.
• The average payout for workers’ compensation claims that were initially approved was $10,153. Denied claims that were appealed paid out an average of $15,694.
• Workers' compensation claims that are initially denied but later paid after litigation cost insurers an average of $36,991, compared to $7,489 for claims paid without dispute.

Being denied workers’ compensation isn't the final word, but appealing may involve hearings, mediations, or even formal litigation.

At Sokolove Law, our workers’ compensation attorneys may be able to make the process easier by negotiating with insurance companies, fighting on your behalf, and working to recover a fair payout.

Statistics on Costs of Denied Disability Claims

A denied disability claim doesn't just mean lost income. It often triggers a cascade of financial consequences that can devastate families, putting them through needless suffering.

Roughly half of U.S. households would face financial hardship within 6 months if the primary wage earner could no longer work, per the LIMRA 2024 Insurance Barometer Study.

Important statistics on the financial impact of disability denials include:

• About 1 in 4 American workers (26%) will experience a disability lasting 90 days or longer during their working years, according to the SSA.
• The average SSDI benefit in 2026 is worth $1,633 per month for disabled workers, per SSA data.
• This means a denied claim could represent $19,596 in lost compensation per year.
• VA disability compensation in 2026 ranges from $180.42 per month for a 10% rating to $3,938.58 per month or more for a 100% rating. A denial shuts U.S. veterans out from compensation they may rightfully deserve.
• The financial toll of wrongful denials extends across all types of claims. In health insurance alone, $19.7 Billion per year is spent on reviewing appeals, per Premier. Of that amount, $10.7 Billion was spent on claims that were wrongfully denied from the outset.

Insurance companies have teams of lawyers ready to defend their interests. At Sokolove Law, our experienced disability attorneys can even the playing field with insurance companies and fight for the benefits you may be owed.

How Sokolove Law Can Help with a Denied Disability Claim

People across the country have been unfairly denied the disability benefits they paid for, leading to delays in essential treatment, financial uncertainty, and family hardship.

At Sokolove Law, our disability denial lawyers have spent over 45 years standing up to powerful insurers and government agencies on behalf of disabled Americans.

We've recovered over $146 Million total for clients who were wrongfully denied disability benefits. With offices across the country, we’re ready to help no matter where you live.

There are no upfront costs and no hourly fees to work with our team, and we only get paid if we recover compensation for you.

Call (800) 995-1212 now or fill out our contact form to find out if our disability denial lawyers may be able to help your family.

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