What extra benefits come with Social Security Disability

Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) for disability include more than the monthly cash payment. Depending on which program you receive and your situation, you may have access to Medicare or Medicaid, work incentives that let you earn money without losing benefits, and help paying for work-related expenses. Some of these are automatic; others require you to take a specific step to use them.

The extras differ between SSDI and SSI because they are separate programs with different rules. SSDI is based on your work history; SSI is based on financial need. A person can receive both at the same time, and each one carries its own set of additional supports.

Key Takeaways

  • SSDI recipients get Medicare after 24 months of receiving benefits, while SSI recipients get Medicaid when ready in most states.
  • Work incentives like Impairment Related Work Expenses (IRWE) and Plans to Achieve Self-Support (PASS) let you earn income and keep more of your benefits.
  • Both programs offer protection for family members: spouses and children can receive benefits based on your work record if you receive SSDI.
  • Vocational rehabilitation services and work support programs are available through your state to help you return to work if you choose.
  • You must report changes in income, living situation, or work activity to Social Security, or you may lose benefits or owe money back.

Medicare for SSDI recipients and Medicaid for SSI recipients

If you receive SSDI, you become covered by Medicare automatically after you have been receiving disability benefits for 24 consecutive months. This includes Part A (hospital insurance) and Part B (medical insurance). You do not pay a premium for Part A, but Part B has a monthly premium that Social Security deducts from your benefit payment. You can also choose to add Part D (prescription drug coverage) and supplemental coverage.

If you receive SSI, you are covered by Medicaid in most states as soon as your SSI benefits begin. Medicaid rules vary by state, so what is covered and which doctors accept it depends on where you live. Some states have different income limits or coverage rules for people receiving SSI, so contact your state Medicaid office to learn what your coverage includes.

In a few states, SSI recipients must meet additional requirements to keep Medicaid, such as staying below a certain income level even after SSI ends. If you work and your earnings cause your SSI to stop, you may lose Medicaid in those states unless you take steps to keep it. Ask your Social Security representative about your state's rules before you start working.

Work incentives that protect your benefits when you earn money

Social Security offers several work incentives designed to let you test your ability to work without when ready losing your benefits. These are formal programs with specific rules and dollar amounts.

Impairment Related Work Expenses (IRWE) let you deduct the cost of items or services you need because of your disability in order to work. Examples include a wheelchair ramp at your workplace, transportation to work because you cannot drive, or medication you take only while working. You report these expenses to Social Security, and they subtract the cost from your earnings before calculating how much your benefit should be reduced. IRWE is available to both SSDI and SSI recipients.

Plans to Achieve Self-Support (PASS) let you set aside income and resources for a specific work goal — such as paying for training, buying equipment, or covering transportation costs to a job. You write a plan describing your goal, how much money you need, and how long it will take. While you are following the plan, the money you set aside does not count against your SSI limit, and the income does not count toward your benefit calculation. PASS is available to SSI recipients and some SSDI recipients.

Trial Work Period gives SSDI recipients nine months (not necessarily consecutive) in which you can work and earn any amount without your benefits being affected. After the trial work period ends, Social Security enters an Extended may be able to access Period of 36 months during which your benefits continue but may be reduced based on your earnings. If your earnings stay below the substantial gainful activity level set by Social Security each year, your full benefit continues.

Family benefits based on your SSDI work record

If you receive SSDI, your spouse and unmarried children under age 19 (or up to age 19 if still in high school full-time) may receive benefits based on your work record. Your ex-spouse can also receive benefits if you were married for at least 10 years and they are at least 62 years old. These family members do not need their own disability; they receive benefits straightforward because they are related to you.

The total amount paid to your entire family cannot exceed a certain percentage of your benefit amount — typically 150 to 180 percent, depending on your situation. If multiple family members are receiving benefits, Social Security divides this family maximum among them, which may reduce each person's individual payment.

Family members must report their own earnings and life changes to Social Security, just as you do. If a spouse or child works and earns above the earnings limit, their benefit is reduced or stops. If a child turns 19 or leaves school, their benefit ends.

Vocational rehabilitation and employment support services

Your state's vocational rehabilitation agency can help you return to work if you choose. These services are free and may include job training, education, assistive technology, job coaching, and help finding employment. To use vocational rehabilitation, you must have a disability that creates a substantial barrier to work, and you must have a reasonable chance of returning to work.

You can also work with a Benefits Counselor or Work Incentives Planning and information (WIPA) project, which are funded by Social Security to help people understand how work affects their benefits. These counselors can model your specific earnings scenario and show you exactly how much your benefit would change if you worked a certain number of hours at a certain wage. They do not make decisions about your benefits; they provide information to help you make your own choice.

Some states offer Ticket to Work, a program that lets you assign your case to an approved employment network or vocational rehabilitation agency. While you are working with them, your benefits continue even if you earn above the usual limit, as long as you stay in the program. If you do not return to work, you can end the ticket and your benefits continue as before.

Reporting requirements and what happens if you do not report changes

You must report to Social Security any change that could affect your benefits: a change in your living situation, a new job or change in earnings, a marriage or divorce, the birth of a child, or a change in your medical condition. The important date to report varies by type of change — some must be reported within 10 days, others within 30 days. Social Security will tell you the important date when you report the change.

If you do not report a change and Social Security discovers it later, you may be overpaid — meaning you received more money than you were supposed to. You will be asked to repay the overpayment, usually by reducing your future benefit payments. In some cases, Social Security may also reduce or stop your benefits temporarily or permanently.

If you start working, report your job and earnings right away, even if you think your benefit will not change. Social Security uses this information to calculate whether work incentives explore and to track your trial work period or Extended may be able to access Period. Reporting early prevents mistakes and overpayments.

Frequently Asked Questions

Do I lose all my benefits if I work?

No. Work incentives like IRWE, PASS, and Trial Work Period are designed to let you work and keep some or all of your benefits. How much you can earn before your benefit is reduced depends on which program you receive and which work incentive you use. Report your work to Social Security so they can calculate your benefit correctly.

Can my family members get benefits if I receive SSI instead of SSDI?

No. Family benefits are only available if you receive SSDI based on your own work record. SSI is an individual benefit and does not extend to family members. However, family members may be able to receive their own SSI if they meet the age, disability, and income requirements.

What happens to my Medicare or Medicaid if I go back to work and my benefits stop?

If you receive SSDI and your benefits stop because you work, you can keep Medicare for up to 93 months (about 7.5 years) by paying the premium yourself. If you receive SSI and your benefits stop, Medicaid may continue in some states but not others. Ask your Social Security representative about your state's rules before you start working.

How do I find a Benefits Counselor or WIPA project in my area?

Contact your local Social Security office, or search the Work Incentives Planning and information website for projects in your state. Your state's vocational rehabilitation agency can also connect you with employment support services. These services are free and do not affect your benefits.

What if I disagree with how Social Security calculated my benefit after I reported work income?

You can request an explanation of how your benefit was calculated and ask Social Security to review the decision. If you disagree with the result, you can file an appeal. Contact your local Social Security office to start the appeal process, or ask a Benefits Counselor to help you understand the calculation.