Fact Sheet: SSA Disability Beneficiaries Returning to Work
Can Individuals Receiving SSA Benefits Based on Disability Return to Work?
/ Many individuals with disabilities receiving Social Security Disability Insurance, Supplemental Security Income, Medicare and/or Medicaid want to work but are afraid to do so. Often times, this fear is based on misunderstandings and misinformation about what happens to public benefits when a person returns to work. Social Security, Medicare and Medicaid have rules and programs to encourage returning to work called “work incentives”. It is possible for Social Security beneficiaries to make a successful transition into the workforce.What Happens to Social Security Disability Insurance (SSDI) When A Beneficiary Works?
/ SSDI works in stages and is a zero-sum game. You either get a check or you don’t get a check, based on the amount of your countable earnings and the stage of the return to work process you are in. During the Trial Work Period, which is triggered by a certain amount of earnings ($750 in 2013) and lasts 9 months, the check continues. After the Trial Work Period, the Extended Period of Eligibility begins and lasts the next 36 months. During this period, an individual can move in and out of cash payment status based on if countable wages fall above or below a set yearly amount called Substantial Gainful Activity ($1040 of countable income in 2013 for non-blind/$1740 blind). After the Extended Period of Eligibility, if earnings go above Substantial Gainful Activity, eligibility for benefits will terminate. But even after this, and for the next 5 years, an individual can re-apply for benefits through a special, quicker process called Expedited Reinstatement of Benefits, a privilege reserved only for those who worked their way off of benefits.Countable income includes deductions that can be explored further.
What Happens to Supplemental Security Income (SSI) When A Beneficiary Works?
/ SSI uses a formulary to determine the monthly amount of SSI. Earnings will reduce the amount of the SSI check. However, the way the formula works, the SSI check goes down at a slower rate than earnings rise. This means the combination of SSI and wages will always be higher than SSI alone. Countable income includes deductions that can be explored further.What Happens to Medicare When A Beneficiary Works?
/ Medicare connected to SSDI continues as long as the person continues to receive an SSDI check. Medicare also continues for at least 93 months from the Trial Work Period if an individual works their way off of cash benefits.What Happens to Medicaid When A Person Works?
/ Those who receive SSI and work will still have countable incomes low enough to receive Medicaid in Illinois. If countable income is high enough to stop the SSI check, the individual still receives Medicaid for free up to a standard yearly amount of $27,811 in 2013. This amount can go even higher if the individual has higher than average Medicaid expenses. This type of Medicaid is often referred to as “1619b Medicaid”. Other individuals with disabilities who work, including SSDI beneficiaries or those formerly on SSI who don’t qualify for 1619b Medicaid, can access Medicaid through Health Benefits for Workers with Disabilities (“HBWD”). HBWD has an countable income eligibility limit of 350% of the Federal Poverty Level.For More Information
/ Social Security Work Incentives and Impact of Return to Work on Medicare and Medicaid: www.socialsecurity.gov/redbookHealth Benefits for Workers with Disabilities: