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Any Social Security Disability Insurance (SSDI) benefits you receive will come from the Social Security trust fund. To qualify for these benefits, generally you must have worked and paid into the trust fund for at least five years within the past ten years. According to Social Security rules, a claimant must meet specific medical requirements to qualify for Social Security disability benefits. These can include a developmental disability, long-term disability, a mental health diagnosis or any other limiting medical condition. To receive SSDI payments, the applicant must show evidence that their disabling condition will last for at least twelve months or result in death. An organization’s disabled employees might not qualify for SSDI if they can continue to work under reasonable accommodations. Additionally, SSA does not cover short-term disability insurance. Minnesota’s Department of Labor and Industry has a worker’s compensation program to help people with work-related disabilities. The law requires every employer to have workers’ compensation insurance or be self-insured to take care of work-related injuries and illnesses among their staff. Options To File The SSA provides three ways to apply for disability: You can go online and fill out the application, visit your local Social Security office and fill it out with a Social Security representative, or do it over the phone. You can apply for SSDI online at www.ssa.gov/pgm/disability.htm. In-person. If you want to apply for SSI or SSDI in person, visit your local SSA field office. The employees there can help you with the paperwork and explain the forms, but they cannot give legal advice. Go to the SSA’s website to find your local field office in Minnesota. By telephone. You can apply for SSI or SSDI by phone. If your field office is too distant or if you have a disability preventing travel, this may be a better solution for you. You can call 800-772-1213 and apply by phone, or if you are deaf or hearing impaired, call 800-325-0778.

One of the obstacles of a program that is designed to help the public is making sure the public is aware of the program so they can seek assistance, but a recent study shows that far too many people are still unaware of Social Security’s disability programs. A recent survey conducted by the University of Southern California’s Center for Social and Economic Research found that about 25 percent of respondents were unaware of Social Security’s disability programs. Considering research shows that about one in four Americans will become disabled before reaching retirement age, this is a significant problem. How can you apply for a program you do not know exists? More than half the respondents were also unaware of the Supplemental Security Income (SSI) program. This program provides benefits to the elderly and disabled who meet extremely low-income requirements. If half of the public is unaware of the program, it is likely many people who might qualify for desperately needed assistance never do because they do not know about SSI. There should be undoubtable conclusions from this study. First, Social Security must do a better job of informing the public about its disability programs, and second, many more people are likely disabled than we count because they are unaware of the programs that may offer some help.

The Social Security Disability program is a crucial asset that provides income to disabled workers who are unable to maintain full-time employment due to impairments, but because the process to obtain benefits can be long and drawn out there are many pitfalls that claimants can’t avoid before benefits are approved. The first problem is that many people who apply for Social Security disability have little to no income to survive on because they can’t work. Asking these people to survive for a year or longer, which is how long it can take to obtain benefits, is asking too much. Because many of these people have limited resources many go bankrupt. The Government Accountability Office (GAO) found that 48,000 individuals had to file for bankruptcy while waiting for a final decision on their disability claim between fiscal year 2014 and fiscal year 2015. Even worse than having to file for bankruptcy is that a portion of claimants actually pass away before a final determination is made and they are awarded benefits. The GAO reported that nearly 110,000 claimants died prior to receiving a final decision on their disability claim between fiscal year 2008 and fiscal year 2019. Below is a portion of the GAO report that shows wait times on disability claims remain a problem. As the report indicates, too many claimants have to file for bankruptcy during this process or don’t even survive the outcome to where they would receive benefits. GAO found that most applicants for disability benefits who appealed the Social Security Administration’s (SSA) initial disability determination from fiscal years 2008 through 2019 waited more than 1 year for a final decision on their claim. Median wait times reached 839 days for claims filed in fiscal year 2015, following an increase of applications during the Great Recession.

The Social Security disability program is America’s safety net and includes the “regular” disability program (SSDI) that calculates benefits based on a work record within the past five years. Additionally, there is Supplemental Security Income (SSI) for people with no appreciable earnings record, which protects groups such as the very young, homeless, or mentally ill – those whose impairments make them unemployable. You can only receive Social Security disability benefits (SSDI) or Supplemental Security Income (SSI) if your impairment prevents you from working any full-time job, even the slightest. To be eligible, your disability must have lasted or be expected to last for 12 consecutive months. Social Security screens applicants for SSI eligibility based on financial assets and countable income before determining if the person is disabled. The medical disability standard is consistent across all Social Security disability programs. It’s possible to receive both SSI and regular Social Security disability payments. Past earnings If your SSDI is low, you may be eligible to receive up to the SSI amount if you meet all financial qualifications. In most cases, SSI eligibility entitles a person to immediate state Medicaid coverage. Entitlement gives Waiting periods aside from those who qualify for SSDI to Medicare. The monthly SSI payment in 2010 was $674 for one person or $1011 for a disabled couple. SSI has an asset limit which they use to determine if someone has more than $2000 as an individual or $3000 as a couple by evaluating their resources (the things they own). The value of a home and, usually, of a car is excluded when determining assets. There is no asset limit for SSD, and it functions like an insurance policy. SSI views cash and anything that can be easily converted to cash as a countable asset, including but not limited to earnings, stocks, bank accounts, bonds, etc. Furthermore, things with inherent value, such as Social Security benefits or other pensions, are also seen as assets. Finally, any goods or services you receive from others – e.g., food, clothes, or shelter – are included in the definition of an SSI asset. SSI benefits are conditional on applying for other available benefits, like food stamps, Medicaid, and VA benefits. If you have a developmental disability, long-term disability, mental illness, or another medical condition that impedes your ability to work, you may be eligible for Social Security disability benefits. A person cannot qualify for SSDI unless their disability meets one of two requirements: either the disability will last for a year or more, or it will result in death. An employee who is disabled but can still work under reasonable accommodations might not qualify for SSDI, and SSA does not provide short-term disability insurance. The state’s Department of Labor and Industry worker’s compensation program covers anyone injured while working in Minnesota. The law requires every employer to have workers’ compensation insurance or be self-insured in case their employees get hurt or sick from work.

The Social Security disability process can be confusing for people who have never attempted to apply for benefits. One issue many people are confused about is the types of disability programs that pay people benefits who the agency has determined to be unable to maintain fulltime employment. Social Security disability is not a one-sized program that fits all. Generally there are two different Social Security disability programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). These two programs basically have the same medical rules that a claimant must qualify for before any benefits are due, but both programs have very different technical rules in order to qualify for benefits. There is potential to qualify for both programs, depending on work history and household income, if someone is found disabled, but that will be determined by the Social Security Administration. Below is a description of both programs below and an explanation of how the two programs differ to give an idea of who might be eligible. SSI SSI provides minimum basic financial assistance to older adults and persons with disabilities (regardless of age) with very limited income and resources. Federal SSI benefits from the Social Security Administration are often supplemented by state programs. SSDI SSDI supports individuals who are disabled and have a qualifying work history, either through their own employment or a family member (spouse/parent). The Difference The major difference is that SSI determination is based on age/disability and limited income and resources, whereas SSDI determination is based on disability and work credits. In addition, in most states, an SSI recipient will automatically qualify for health care coverage through Medicaid. A person with SSDI will automatically qualify for Medicare after 24 months of receiving disability payments (individuals with amyotrophic lateral sclerosis [ALS] are eligible for Medicare immediately).

The Supplemental Security Income (SSI) program is a need-based program for the elderly and adult disabled individuals who have limited finances, but it also serves disabled minor children. When a disabled child reaches the age of 18 Social Security will conduct a redetermination for those children to determine if they are still disabled. It is a good idea to understand the process prior to this happening. Below is a description of the redetermination process for SSI when a child turns 18. Children eligible for SSI payments in the month before they reach age 18 are required to go through the redetermination process. SSA’s field offices collect disability and functional reports—including the names and addresses of medical sources for the previous year—and work, education, rehabilitation, and support services received. Social Security send completed cases to a state agency (the disability determination service, or DDS), and are responsible for making the initial determination for SSA. The DDS obtains evidence and makes the determination whether the individual’s condition satisfies the adult definition of disability using SSA’s rules. If the field office is unable to reach a claimant and insufficient medical information has been collected to decide, payments can be ceased for failure to cooperate (FTC). Regardless of what decision Social Security makes, it does not have to be the final decision on the matter. If Social Security decides the child is no longer disabled and entitled to SSI benefits the claimant has a right to appeal that decision. Many newly 18 SSI claimants are denied for benefits on the redetermination but are eventually successful if they appeal and continue the case. If you are interested in a more comprehensive look at the redetermination process, click here.

October is the time of year when the Social Security Administration announces the cost-of-living adjustment (COLA) Social Security retirement and disability beneficiaries can expect the following year. In 2023 the COLA increase is expected to be one of the largest increases in benefits in decades time due to high inflation. The annual COLA increases are used by Social Security to help Social Security and Supplemental Security Income (SSI) recipients keep up with the cost of inflation. It is projected that the 2023 increase will be about 8.7 percent, based on projections from the Senior Citizen’s League. That means that Social Security and SSI beneficiaries will see a significant increase in monthly benefit amounts in 2023 based on recent increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is used to determine annual COLA increases each year. The average Social Security beneficiary receives about $1,656 per month. Based on the projections the average beneficiary will see about a $144 increase in their monthly benefit amount in 2023. The official announcement on COLA numbers for 2023 is expected to be released by mid-October 2022.

Many times there is a stigma about who receives Social Security benefits, but rarely do we discuss the difficult qualification process to receive benefits. It is not easy to qualify for Disability Insurance benefits and the Center on Budget and Policy Priorities released the following to show the stringent guidelines that must be met. Eligibility criteria are strict, and most SSDI applicants are rejected. Applicants for SSDI benefits must be: Insured for disability benefits (essentially, they must have worked for at least one-fourth of their adult life and five of the last ten years). Suffering from a severe, medically determinable physical or mental impairment that is expected to last 12 months or result in death, based on clinical findings from acceptable medical sources. Unable to perform “substantial gainful activity” (any job that generates earnings of $1,350 per month for most people, $2,260 for blind people) anywhere in the national economy — regardless of whether such work exists in the area where the applicant lives, whether a specific job vacancy exists, or whether he or she would be hired. Lack of education and low skills is considered for older, severely impaired applicants who can’t realistically change careers — but not for younger applicants. There is a five-month waiting period for SSDI, but Supplemental Security Income may be available during that period for poor beneficiaries with little or no income and assets. SSA weeds out applicants who are technically disqualified (chiefly because they haven’t worked long enough) and sends the rest to state disability determination services (DDS) for medical evaluation. Applicants denied at that stage may ask for reconsideration by the same state agency, and then appeal to an administrative law judge (ALJ) at SSA. Roughly half of people who get an initial denial pursue an appeal. Ultimately — if we follow a cohort of applicants to the end of their application and appeal process — fewer than 4 in 10 are awarded benefits. Among applicants who meet the program’s technical requirements, slightly more than half are found medically eligible for SSDI.

Each year thousands of Social Security disability beneficiaries receive a notice that their benefits will stop because there are no longer disabled. This is known as a cessation notice. This notice is never a pleasant one to receive, but understand that if you do receive a cessation notice there are important actions to take. Social Security does not define disabilities as permanently disabling and after a few years Social Security is likely to review all the evidence available to determine if the claimant is still disabled and entitled to benefits. If Social Security makes a decision that the claimant has improved medically enough to no longer meet the agency’s disability eligibility the claimant will receive a cessation notice indicating benefits will stop because the agency has determined their disability has ended. At this point the claimant has the option to appeal this decision and can elect to continue to collect benefits during the decision process on the appeal, but if the claimant is not found disabled after the appeal process plays out Social Security can ask for all or a portion of the money received during the appeal process to be returned. Below is an explanation about how the cessation process works and identified by the Social Security Administration. • Medical Disability Cessation You may write to us or complete a Form SSA-789-U4 (Request for Reconsideration Disability Cessation). You or your representative must ask in writing for reconsideration within 60 days of the date you receive the written notice of the initial determination. We consider that you receive a notice five days after the date on the notice unless you show us evidence it was received after the five days. Payment Continuation for non-medical initial determination and medical disability cessation determination: • Non-Medical Initial Determination If you ask for reconsideration in writing within 10 days of the date you receive the notice, any payment we are currently making will continue until we make our reconsideration determination if you continue to meet all other SSI eligibility requirements. If you ask for a reconsideration more than 10 days after the date you receive the notice, but within 60 days of the date you receive the notice, your payment may decrease temporarily. However, we will restart any payment we are currently making once we receive and enter your reconsideration. You will continue to receive that payment until we make our reconsideration determination if you continue to meet all other SSI eligibility requirements. If you do not want to continue to receive payments, you can ask us not to continue payments by completing Form SSA-263 (Waiver of Supplemental Security Income Payment Continuation).

Supplemental Security Income (SSI) is a need-based program for low-income individuals who have been found disabled, or the elderly, who meet strict income and asset guidelines, but other types of financial support, including housing and food, can reduce an SSI beneficiary’s benefits as well. Social Security classifies this type of support as “in-kind” support and is required under the agency’s rules to consider in-kind support as income that can lower monthly benefit amounts. Below is a description of in-kind support as identified by Social Security. In-kind support and maintenance is food, shelter, or both that somebody else provides for you. We count in-kind support and maintenance as income when we figure the amount of your SSI benefits. For example, if someone helps pay for your rent, mortgage, food, or utilities, we reduce the amount of your SSI benefits. The maximum SSI monthly benefit for 2022 is $841, an extremely modest amount so any type of reduction in benefits can cause extreme financial distress for SSI beneficiaries, but the agency may no longer consider food support as in-kind support, which could be a positive development for SSI beneficiaries who have seen their benefit amounts reduced. In February 2022 Social Security requested approval from the Office of Information at Regulatory Affairs at the Office of Management and Budget remove food as a classification of in-kind support for SSI beneficiaries. Unfortunately, no action has yet to be taken on the proposal. Below is copy of the proposal sent in for review. We propose to change the definition of In-Kind Support and Maintenance (ISM) to no longer consider food expenses as a source of ISM. Instead, ISM would only be derived from shelter expenses (i.e. costs associated with room, rent, mortgage payments, real property taxes, heating fuel, gas, electricity, water, sewerage, and garbage collection services). The present definition of ISM is used across several regulations and this regulatory change would necessitate minor changes to other related regulations.