Many Social Security Disability Insurance (SSDI) beneficiaries find it hard to get by solely relying on their benefits. As such, it’s normal for them to apply for Supplemental Security Income (SSI) as well. But would having SSDI affect SSI at all?
While it’s possible for SSDI beneficiaries to apply and receive SSI benefits, it will very likely affect their SSI benefit amount. This is due to the strict income limits that SSI has. In any case, if your SSDI benefit payout is low, it might be beneficial to apply for SSI as well.
In this article, we’ll talk in more detail about how having SSDI can affect your SSI payout.
Will Having SSDI Affect SSI at All?
It is possible to get both SSDI and SSI at the same time. Social Security uses the term “concurrent” to describe when an individual is eligible for both types of disability benefits.
However, receiving SSDI payments may lower your SSI payout or perhaps disqualify you from receiving SSI altogether. That’s because the goals and eligibility requirements of each program are different.
Both SSDI and SSI are available to anyone who has become unable to work due to a medical condition (either physical or mental) and has satisfied Social Security’s definition of disability. However, SSDI gives money to disabled people, no matter their income level. A recipient’s average lifetime earnings determine their payment levels, whereas their eligibility is based on the number of years they worked in a job where they contributed to Social Security tax payments.
However, SSI is a needs-based program. People with disabilities, blindness, or who are at least 65 years old and have low incomes and few assets are eligible to receive benefits. It has nothing to do with your work history, so you can get SSI even if you’ve never had a job or paid into the system.
However, if your “countable” income in 2023 is more than $914 for an individual or $1,371 for a couple, you will not be eligible for SSI. These are also the maximum allotted amounts that a person can receive from the federal government under the SSI program.
SSDI and other benefit payments are considered countable by Social Security, although each individual is allowed to exclude the first $20 of their monthly earnings from that calculation.
Therefore, you will not be eligible for SSI if you get an SSDI payout of more than $934 each month. It’s possible to qualify for SSI if your SSDI payout is lower than the threshold; however, you’ll end up with a much smaller monthly check.
For the sake of argument, let’s assume that you are eligible for both SSI and a $500 SSDI payment. After accounting for the $20 exemption, the amount of SSI you receive will be reduced by $480.
SSDI payments would remain at $500 per month, with SSI payments of $434 ($914 minus $480).
When Is It Possible to Get Both SSI and SSDI?
It is possible to get SSDI and SSI at the same time, provided the recipient’s monthly benefit amount is very low. If you haven’t worked much recently or made very little money, your SSDI payment could be rather small.
in order to receive both SSI and SSDI at the same time, your combined monthly income (including SSDI) must be less than the standard SSI payment amount (which is $914 for 2023).
However, it’s not as simple as ensuring that your monthly income is below $914 to qualify for SSI. In other states, for instance, the minimum income requirement is higher. And if you are working and bringing in some cash, not all of that money will be counted against the limit.
The Supplemental Security Income program also entails asset limits, which means that even if your income is low enough, the value of the property you hold could have an impact on whether you are eligible for the program or the amount of the benefit that you receive.
Why Should I Apply for Both SSDI and SSI?
When you have a successful claim for concurrent disability, you may be eligible for several benefits. If you are receiving a small monthly benefit from SSDI, collecting SSI can be beneficial for many reasons, the most important of which is that the SSI payment can enhance your maximum benefit to $914 per month.
Backpay
The ability to get back payments for both SSI and SSDI is another perk. Backpay, also known as past-due benefits, refers to the money Social Security is supposed to pay you for the period before your claim was approved.
It may take the SSA anywhere from three months to two years to decide on your benefits, during which time you may be eligible for back pay equal to your SSDI payment plus the additional SSI payment.
If you receive $500 in Social Security Disability Insurance and $361 in Supplemental Security Income, you’ll receive $861 each month. Back pay from Social Security could reach $8,610 if it takes the SSA ten months to process your claims.
Access to Health Insurance Programs
Receiving SSDI when you’re already receiving SSI may also make you eligible for Medicare at an earlier age than 65. However, you won’t be able to enroll in Medicare until you’ve been receiving disability payments for at least two years (24 months).
You can’t get Medicare if you aren’t 65 and don’t qualify for Social Security Disability Insurance. However, if you are receiving SSI benefits in addition to SSDI, in most states, you will be eligible for Medicaid.
There are differences between the two programs, but both can help you get medical attention that you might not have had otherwise.
Medicaid, in most states, pays for greater medical expenses than Medicare does. However, because more physicians participate in Medicare, it may be less of a hassle to locate a doctor who accepts Medicare.
How Do I Apply for Both SSI and SSDI?
When you apply for SSI and SSDI benefits, the Social Security Administration will determine if you are eligible for SSI or SSDI benefits.
The decision will be made after taking into consideration your existing income and assets, as well as those of your spouse. Your application will be examined in the same manner, regardless of how your claim has been presented.
For your claim to be considered for SSI and/or SSDI, you will be required to meet the medical requirements. The Social Security Administration evaluates every claim with the help of the Blue Book to determine whether or not the necessary medical requirements have been satisfied.
There are a wide variety of medical issues that can make a person eligible for disability benefits. The Blue Book contains hundreds of entries, each with its own set of medical requirements.
Discuss your eligibility for Blue Book benefits with your doctor to make sure that the condition that is keeping you from working is one that is listed in the Blue Book. To prove that you are unable to work because of your disability, you will need to provide extensive medical documentation. Consult the Blue Book to ensure you have sufficient documentation to support your claim. Additionally, certain other requirements must be met to qualify.
SSDI
Aside from meeting the necessary medical criteria, the SSDI program also requires you to have a sufficient number of work credits. Working and paying into the Social Security system will get you these credits.
Age affects the required minimum amount of work credits. You will typically need to have worked for at least five out of the previous 10 years to have sufficient work credits and be eligible for benefits.
SSI
Unlike SSDI, eligibility for SSI is not based on past employment or earnings. A single person must have combined assets of less than $2,000 to qualify for SSI. You and your spouse’s assets must total less than $3,000 in order for you to qualify.
SSI is generally for individuals who don’t earn more than $1,913 from work each month. The income limit increases for couples and when parents apply for children. It also considers other sources of income besides your job, like disability benefits, unemployment, and pensions.
Other Benefits Available to Those Receiving SSDI
Apart from SSI, there are many other benefits that SSDI beneficiaries may be entitled to. We’ll discuss some of these in this section.
Medicare
If you have been receiving SSDI benefits for the past 24 months, you will be qualified to get Medicare benefits after that period.
Medicare is a program of the federal government that provides medical coverage mostly to those 65 and older. Coverage includes inpatient and outpatient services, with deductibles and copayments.
You can also sign up for Medicare Part D, which provides coverage for prescription drugs. You will be liable for premium payments as well as deductibles and copayments.
Because Medicare covers medical expenses for eligible individuals with disabilities, it’s a great alternative to commercial health insurance for those in this situation (which can be expensive and difficult to obtain without employer-subsidizing premiums).
COBRA
The Consolidated Omnibus Budget Reconciliation Act, also known as COBRA, is a piece of federal legislation that gives you the option, after leaving your job, to continue receiving insurance coverage from your former employer for a predetermined amount of time.
Individuals who become disabled may be eligible to extend their time on an employer’s plan beyond the standard 18 months.
You may be responsible for paying the full premium for your insurance during the 11-month extension that brings your total coverage period to 29 months, and your employer may charge you up to 150% of the premium if they were helping to pay it during your employment.
Workers’ Compensation Disability Benefits
Disability benefits from both workers’ compensation and SSDI should be available if you become ill or injured on the job. However, the total of your Social Security Disability Insurance and workers’ compensation disability benefits cannot be more than 80% of your average pre-disability wages.
This holds true whether you receive a lump sum or installments for your workers’ compensation. A lump-sum settlement payment is calculated by dividing the total settlement amount by 12 to estimate the monthly payment amount.
This number is subtracted from disability payments to ensure that you never get more than 80% of your average pre-disability income.
Private Disability Insurance
Depending on the conditions of your private disability insurance policy, you may be eligible to receive monthly benefits equivalent to a portion of your regular income. The money you receive won’t change how much you get from SSDI.
State Disability Insurance (SDI)
If you happen to reside in one of the few states that offer their own disability benefits program or are a member of the Civil Service Retirement System, you may be eligible for a variety of public disability benefits. SDI pays benefits to workers who suffered a wage loss due to no longer being able to work because of their own illness or injury. Their injury or illness does not have to be work-related.
You may see a reduction in your Social Security Disability Insurance benefit if the sum of your SSDI and public disability benefits is greater than 80% of your average earnings before your disability began.
Family Benefits
The following members of your household may qualify for family benefits:
- Minors (those under 18 years old)
- Spouse
- Disabled people above the age of 22 who received their diagnosis at a younger age.
- Ex-spouses may also be eligible for assistance after a divorce.
Each eligible dependent listed here may get up to 50% of your approved monthly benefit, up to the maximum allowed. These benefits vary and are subject to each person’s unique situation.
Tax Benefits
Disability Insurance payments are often exempt from taxation. You are only required to file tax returns if you have additional household income as a result of a working spouse or unearned income, including rent from a property that you own.
Return to Work Benefits
With the help of the Ticket to Work program, you can get back to work while still collecting SSDI benefits. This program provides access to a variety of educational and professional development resources.
If your disability prevents you from returning to your prior line of work but does not prevent you from working in another area, Ticket to Work may be a good choice for you.
Survivor Benefits
When an SSDI recipient passes away, their loved ones may be eligible for survivor payments.
Conclusion
In conclusion, while it’s possible to receive both SSI and SSDI at the same time, the amount of your SSI benefits may be reduced as a result of doing so. If you would like more information on which program is best for you, you can visit the SSA’s website or speak to a SSDI advocate.
