Federal government provides income support for the disabled
Federal government provides income support for the disabled
The Social Security Administration administers two income support programs for the disabled: Social Security Disability Insurance (SSDI) and Supplement Security Income (SSI).
SSDI is a program conceptually similar to unemployment insurance in that it is intended to replace the lost wages of a disabled worker. The amount of the award is calculated based on the length of a person’s participation in the work force. About 4.6 million disabled workers nationally receive SSDI payments; the average monthly amount is $722. Participants are eligible to make up to $500 per month—what the Social Security Administration considers "substantial gainful activity"—before cash benefits are terminated.
After two years of receiving SSDI, a beneficiary receives free Medicare coverage for hospital services and the option to purchase physician coverage. Such coverage generally lasts about three years, after which a person may purchase Medicare benefits at the same cost an uninsured person would pay.
About 4.3 million adults receive SSI because of a disability. It is need-based, targeted to people who had little or no income before incurring a disability. The Social Security Administration payments to disabled adults on SSI average just under $400 per month. Most states supplement that amount with an average of around $110 per month. People who are eligible for SSI also have access to food stamps, and, in most states, full Medicaid services.
The Social Security Administration generally reduces a disabled worker’s SSI cash award $1 for every $2 in earned income after the first $85 each month. In an effort to help people return to work, the federal government allows beneficiaries to deduct work-related and other expenses from their income. A person earning too much to receive SSI payments still may be eligible for Medicaid, depending upon the state.
Subscribe Now for Access
You have reached your article limit for the month. We hope you found our articles both enjoyable and insightful. For information on new subscriptions, product trials, alternative billing arrangements or group and site discounts please call 800-688-2421. We look forward to having you as a long-term member of the Relias Media community.