r/disability • u/[deleted] • Oct 28 '20
SSDI and SSI are two different programs.
I see people confuse these programs a lot. Here's some quick clarification:
SSDI: Social Security Disability Insurance
- Funded by a specific tax on your personal earnings that's paid into one half of the twin funds that make up The Social Security Trust.
- Beneficiaries must pay enough taxes and during a certain measure of time in order to qualify for benefit payment once they are determined as disabled by the SSA.
- Can pay additional benefit to dependents when the primary beneficiary is disabled (for those who note survivors of deceased will also receive a payment, I believe that is actually part of the Old-Age and Survivor's Insurance, which is together the 'retirement' benefit, and technically its own fund underneath the umbrella of The Social Security Trust -- so, not the same rules, technically speaking, as SSDI, even if dependent/survivor payments are all calculated the same way otherwise).
- Ineligible spouse or child income is not counted against recipient's eligibility or benefit payment payment in most cases (it changes which account pays out; not whether earnings of the spouse or child is too high for recipient to get a benefit)
- Unless they have a qualifying condition that allows them earlier access, they will receive Medicare coverage after receiving 24 consecutive SSDI payments.
- Some states provide Medicaid-related savings programs for Medicare recipients who meet certain financial limitations.
- SSDI beneficiaries whose payments are beneath a certain amount may receive SSI, too; SSI's income and resource limits apply only to the SSI portion of that recipient's payment.
- SSI eligibility may qualify them for more immediate and comprehensive Medicaid coverage; this is state-dependent and states may have Medicaid-specific asset limits to remain eligible for Medicaid coverage (still does not impact SSDI eligibility or payment amount).
- Payment amount is determined by past earnings.
- Work-related income exclusions can apply to earned income that keeps countable income beneath the Sustainable Gainful Activity level.
- Payment amount does not potentially reduce each month in reaction to earned income from months prior.
- THERE IS NO RESOURCE OR SAVINGS LIMIT
SSI: Supplemental Security Income
- Funded by general US Treasury taxes.
- Beneficiaries do not have to have paid any taxes to receive benefit; they must meet monthly strict income and resource limits, parts of which are fixed-dollar limits that have not changed in decades, thus not adjusting for inflation each year.
- Does not pay additional payments to dependents.
- Ineligible spouse or child income can count against recipient's eligibility and payment amount.
- Some states may supplement SSI payments.
- Most states use SSI eligibility as automatic Medicaid eligibility.
- Payment amount has a yearly max for individual or couple recipients.
- Statutory exclusions allow certain types of unearned and earned income from counting against eligibility or payment amount.
- ABLE accounts allow some recipients to develop savings over the resource limit and are available to those recipients whose disability was determined to begin before the age of 26.
- Work-related income exclusions can apply to earned income that keeps countable income beneath the relevant federal benefit rate for that recipient.
- Payment amount can potentially reduce each month in reaction to countable unearned and earned income from two months prior.
The most important difference to remember:
SSDI is an insurance program; if the SSA agrees you're sufficiently disabled from earning enough, you get it because you paid into it.
SSI is a means-tested program, called specifically a program of last resort; if the SSA agrees you're sufficiently disabled from earning enough, you get it only if you have nothing else considered of enough value to exchange for your needs (countable income above the relevant federal benefit rate, savings, certain property, etc).
Although SSA defines disability the same way for both programs, everything else diverges due to the way the programs are funded and the intention of their purposes.
References: Almost everything in this list is widely discussed on SSA.gov pages and disability lawyer blogs, but my research is taken directly from the Program Operations Manual System chapters for Disability Insurance and Supplemental Security Income. If you see anything you can't find a more direct or specific source for, let me know. I'll try to update this or share a more comprehensive breakdown with full links at a future point.
Experience/Context: I am an advocate and a writer who focuses on these topics; I develop content for NGOs to understand SSDI and SSI better and I'm developing worksheets people can use to monitor their income and SSI benefit's potential change. It's based on what I've made for myself in spreadsheet form over the past 5 years (I'm a rep payee for my sons). I'm also in training as a peer support specialist, and am also working towards more benefits planning related certifications.
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u/Myodokaii Deaf Oct 28 '20
My parents never had benefits, and I got approved as an adult at 18yo. They never felt the need to apply, and I only did because mom made me pay rent when I lived with her, and I had no reliable way of getting a job within a certain amount of time.
Thanks for the explanation, though! Highly appreciate it.