Understanding Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) Benefits

Understanding
Social Security Disability Insurance (SSDI)
and
Supplemental Security Income (SSI) Benefits

The United States Social Security Administration categorizes disability assistance into Social Security Disability Insurance (SSDI, sometimes called SSD) and Supplemental Security Income (SSI). Both SSDI and SSI Social Security benefit programs provide supplementary payments to disabled individuals, but both typically serve two separate and distinct groups of people. Eligibility accounts for one of the main differences between Social Security Disability Insurance and Supplemental Security Income.

What is the difference between SSI and SSDI?

SSDI and SSI benefits both provide medical care based on a person’s disability, but there are some key differences. The benefits can be allocated to blind or disabled employees. They can also be allocated to the employee’s surviving partners and children. Both of these programs evaluate applications with the same system and require that the applicant’s mental or physical disability be expected to endure for at least twelve months or until the candidate dies.

Social Security Disability Insurance (SSDI or SSD)

• It is an “entitlement program” that provides a monthly check to those who once worked for at least the minimum amount of time (usually 10 years) and can no longer perform their duties due to mental or physical deficiencies. The funding for Social Security Disability Insurance is collected from funds allocated from payroll taxes that are paid by all American workers, employers, and self-employed individuals. Comparable to the United States Social Security Retirement Benefits, only those who qualify are eligible for SSDI assistances.
• There are no income or asset limits
• Children under 18 years-of-age with parents that receive SSDI are also eligible for benefits.
• SSDI benefits are not a fixed amount.  They are based on the beneficiary's previous income, family size, and the amount paid into the Social Security system by the person (or on their behalf by parents) before becoming disabled.
• Beneficiary is not affected by other income
• Once a person qualifies for SSDI, they receive healthcare through the Medicare program, which does not offer the same range of medical services as Medicaid. Furthermore, Medicare coverage is not available until after two years from the SSDI approval date.

Supplemental Security Income (SSI)

• It is a “needs-based program” that provides a monthly stipend that functions as a security net for the individuals who cannot qualify for SSDI or have other limited resources. The intention is to assist individuals who are classified as being low-income ( due to lack of income and a total value of their assets that is below the limit requirement. Some individuals in this category have worked, but they not been employed long enough to qualify for the SSDI. SSI is not based on an applicant’s employment history
• There are income and asset limits. If a parent that receives SSI has a change in their income or assets, this can affect SSI benefits for a child that is 18 or younger
• The benefit amount is fixed.
• Depending on the state, once a person qualifies for SSI, they are immediately eligible for Medicaid

Concurrent Services are also possible

Those SSDI beneficiaries whose incomes are below the SSI benefit amount can also qualify for SSI and receive both Medicare and Medicaid health coverage.

Knowing if you qualify for SSDI or the SSI can be a difficult task. Furthermore, preparing the documentation can be quite complex. Consult with a qualified and professional attorney who can guide you through the process as well as help you learn which of the two programs you qualify for. The subsequent material will give you background information about the differences between the two programs and the benefits they offer to those who are disabled or handicapped.

Social Security Disability Insurance (SSDI)
At-A-Glance

Individuals that receive SSDI benefits must have previously allocated part of their salary into the program through FICA  (Federal Insurance Contributions Act) income for at least 10 years. FICA taxes are what many refer to as “payroll taxes.”

Unique Eligibility Requirements for SSDI

1. Be “fully insured” by the Social Security Administration

Fully insured means that a person has produced twenty or more of what are known as Quarters of Coverage (QC). The Social Security Administration explains that “Quarter of coverage” is a legal term for a "Social Security credit" (or just "credit"). A QC is the basic unit for determining whether a worker is insured under the Social Security program. You need at least one QC for each calendar year after you turned 21

AND

You need to have earned a QC either the year before you turned 62, the year before you die, or the year before you become disabled.

―OR―

2. Be Disability Insured

Have earned at least 20 QCs in the past 10 years

AND

Previously fully insured

After Approval

All monthly assistance awards will be given based on the applicant’s Social Security wage record. In other words, the higher the applicant’s salary was, the higher his or her monthly benefits will be. Once an applicant has qualified for Social Security Disability Insurance benefits for a minimum of two years, the medical assistance program known as Medicare will automatically cover the applicant.

Supplemental Security Income (SSI)
At-A-Glance

Assistances from the Supplemental Security Income are from income allocated from general taxes. These benefits do not necessitate an applicant’s prior employment history. Therefore, individuals who could not produce enough income to qualify for Social Security Disability Insurance can apply for this program.

Unique Eligibility Requirements for SSI

• SSI awards can be given to applicants who are 65 years and older, disabled adults, or to children who are either disabled or blind.
• Monthly awards are established upon each candidate’s income. It is important to note that there is a federal maximum to the benefit rate. The amount of SSI a person receives  is based on a candidate’s financial situation. The Social Security Administration will determine the candidate’s income by calculating all of his or her financial resources. Therefore, an individual with less financial resources will be more likely to qualify.
• Certain states can award an applicant additional benefits. Depending on the state, once an applicant has been approved for benefits, he or she will be eligible for the medical program known as Medicaid.

How  long does it take to get benefits?

It is important to note that there is at least a 3 month wait period for SSDI, but it is not uncommon for it to take 5 months. This is because the Social Security Administration investigates each applicant’s physical and mental disability in order to ultimately validate their case. During this waiting period, the applicant is not eligible to receive any benefits or awards. In the event that the applicant suffers from a serious condition, the claim may qualify for quicker processing.

Help!  I have been rejected!

If the application has been ultimately rejected, the applicant has a right to an appeal. If you are rejected do not be discouraged.  Sometimes it takes several attempts in order for an applicant to be accepted.

If you are applying for SSDI, contact an expert attorney who can help you throughout the process. If your application has been denied, an experienced attorney will be able to determine the reasoning behind the rejection. Furthermore, he or she will guide you through the appeals process and help you to have the best possible chance to qualify so that you can receive benefits.

Seek Professional Assistance

The Social Security Administration's rules and regulations can be highly complex and complicated to understand. Determining the type of Social Security assistance you may qualify for can be an overwhelming task. If you are unsure about your eligibility for Social Security Disability Insurance or Supplemental Security Income, the first step is to obtain the guidance and support of an experienced attorney. A qualified attorney will be able to assist you to pursue your application with assurance.  Click here to find a lawyer to help you now.