Social Security Benefits for People with Disabilities

This is a general overview and not meant to be all inclusive of the two programs. More post about how earned income will affect each benefit will follow. For more information you can go to www.socialsecurity.gov/redbook/.

The Social Security Administration administers two programs for people with disabilities. A person may be eligible for one or both of these programs. In Georgia, the initial application for Social Security benefits determines eligibility for both programs.

1. Title II Benefits include Social Security Disability Insurance (SSDI), Childhood Disability Beneficiary (CDB), and Disabled Widow/Widowers benefits. Medical insurance provided with this type of benefit is Medicare.

2. Title XVI Benefits are commonly known as Supplemental Security Income (SSI). Medical insurance provided with this type of benefit is Medicaid.

Eligibility criteria for Social Security benefits for people with disabilities.

1. The person must have a disability that can be medically documented.

2. The disability must be expected to last at least twelve months or be terminal.

3. The impairment must be so severe that the person cannot work, or, if they are working they must be working at a level below Substantial Gainful Activity (SGA). For the year 2009 SGA is $980 per month gross income before exclusions.

4. The Social Security Administration says that a person may be declared ineligible for benefits if there is a job available to them in the national economy if that job would pay them at a level above SGA even if that job is different from the job they were doing prior to onset of disability.

Title II Benefits (SSDI)

1. In order to be eligible for SSDI a person must have worked and paid into the Social Security system. The amount of money a person will receive is based on the amount of money the person has paid into the Social Security system over the lifetime of that person’s work history.

2. Some money must have been paid in to the Social Security system in recent years.

3. There is a six-month waiting period from the date that Social Security declares eligibility for benefits to the first cash benefit check.

4. Medicare will begin 24 months after the date of eligibility for the first check.

Factors that may impact the amount of cash benefit that a person is eligible for.

1. Workers compensation benefits will reduce the amount of SSDI cash benefits.

2. A person who has worked in profession i.e. a federal job where they do not pay into the Social Security system is not eligible for Social Security disability benefits. They may, however, be eligible for Medicare coverage.

Eligibility for Social Security disability benefits will reduce the amount of money paid by Long Term Disability policyholders.

Childhood Disability Beneficiary (CDB)

1. A CDB receives benefits based on a parent’s work history. The parent must be deceased, retired, or receiving benefits based on a disability.

2. The person must be at least eighteen years old and the onset of disability must be prior to the age of 22. A person who is 45 years old may be considered a CDB.

3. A CDB is entitled to all the same work incentives reserved for a person who gets SSDI.

4. A CDB’s benefits will stop if they marry unless they are married to another person who receives Social Security benefits.

Disabled Widow/Widower

1. This person may receive benefits based on the spouses work history.

2. They must have a disability as described above and they must be age 50 or over in order to be eligible for the work incentives reserved for people who get SSDI. They must be unmarried until the age of 60.

3. A person might be eligible for benefits based on a spouse’s record under the age of 50; however, this person is getting Survivors Benefits and is not eligible for the SSDI work incentives.

Work

Social Security Disability Insurance (SSDI) is an all or nothing program when a person has earned income. Eventually, if earned income exceeds Substantial Gainful Activity a person would be ineligible for any cash benefit. For 2009 SGA is $980 for a person who is disabled and $1,640 for a person who is blind. Medicare would continue for at least 8 ½ years after return to work.

This is an oversimplification of the work incentives and every case is a little different. If you would like a full explanation of how the work incentives apply you may call us or you can go to the link at the top of the page to see an in depth explanation of how work incentives apply.

Title XVI recipients (SSI)

A person with a disability may receive in SSI cash payments at any age, however, prior to the age of 18 a recipient is considered to be a child and eligibility for benefits is based on the parent’s income and resources. At age 18 the person is considered an adult and must go through a redetermination. At redetermination, only the assets and resources of the individual are considered.

For children under the age of 18 there are programs that would make them eligible for Medicaid even if the parent’s income is above the resource limits. These are called Deeming Waivers, sometimes called the Katie Beckett Waiver.

SSI

1. This is the needs based program.

2. A person must have little or no assets, resources, or income in order to be eligible for SSI.

3. A single person />/> can have no more than $2000 in any savings account, checking account, or other type of account. The amount for a couple is $3000. A single person may have an insurance policy with a Cash Surrender Value of no more than $1500 and a Burial Fund of $1500.

4. The most an individual can receive for the year 2009 is $674 per month. This is called the Federal Benefit Rate. The most a couple can receive for the year 2009 is $1,011 per month. Some states offer a supplement to the Federal Benefit Rate. Georgia does not.

5. A house and the land it sits on, the primary vehicle that a person uses, and tools, items, or equipment that a person needs for self-support are not considered assets or resources.

6. There is no waiting period for benefits to begin.

Factors that may impact the amount of cash benefit that a person is eligible for.

1. The Social Security Administration takes into account the living arrangement of the person applying for benefits. A person who does not pay a fair portion of household expenses will have their cash benefit reduced by one-third. This is called in-kind support and maintenance i.e. someone else in the household is providing food and shelter for the person with the disability. Example: a child living at home who pays no portion of the household expenses.

2. The Social Security Administration takes into account marital status. If a person is married and the spouse has income, part of that income is deemed available to the SSI recipient. This can reduce the FBR.

3. Any other income for support that a person receives may reduce or eliminate eligibility for SSI cash payments.

Work

With SSI there is a gradual reduction in cash benefits when a person has earned income. The more one works the more the SSI check is reduced. The general rule of thumb is that the SSI check will be reduced $1 for every $2 earned. Even with the reduction in the SSI cash benefit a person will almost always have more spendable income when they work.

Medicaid will continue until annual gross earned income exceeds $26,816 (2009 State Threshold). If a person has higher than the average per capita Medicaid the amount could be even higher by establishing an Individualized Threshold.

This is an oversimplification of the work incentives and every case is a little different. If you would like a full explanation of how the work incentives apply you may call us or you can go to the link at the top of the page to see an in depth explanation of how work incentives apply.