When working with clients who have family members on Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI), it is important to understand which program the family member is a part of. Both SSI and SSDI are federal programs that provide cash payments to people who meet the federal definition of “disabled.” But the similarities between the two programs end there. Here are the some of the SSI and SSDI differences.
Means-Tested Program versus Entitlement Program
The Social Security Administration administers both SSI and SSDI; however, the two programs have vastly different financial requirements. SSI is designed to meet the basic needs of elderly, blind and disabled individuals who have income and resources below specific financial limits and would otherwise have a hard time paying for food and shelter. Because SSI is narrowly tailored for this particular set of people, it has a very strict set of financial requirements, making it what is known as a “means-tested” benefit.
In the alternative, SSDI is an entitlement program that is typically available to any person who has paid into the Social Security system and earned at least forty (40) credits, of which twenty (20) were earned in the last ten (10) years, regardless of current income and assets. (Younger beneficiaries and disabled adult children of retired or deceased workers may have to meet different requirements.) In theory, all qualified workers are potential SSDI recipients, even high-income earners.
SSI Beneficiaries Typically Receive Medicaid, SSDI Provides Access to Medicare
In most cases, a person who receives SSI immediately qualifies for Medicaid benefits. Because Medicaid is a joint state and federal health care program that typically provides very comprehensive coverage for its beneficiaries, many people may apply for SSI primarily because of the health care that comes with it.
On the other hand, SSDI beneficiaries may be eligible to receive Medicare after they are deemed eligible for SSDI benefits. Medicare is a federal health insurance program for persons 65 or older, eligible persons with disabilities, and persons with End-Stage Renal Disease or ALS.
Different Financial Benefits
Additionally, SSI and SSDI benefits vary widely when it comes to the amount of money provided. In 2023, the federal SSI payment standard is $914 per month for an individual and $1,371 for a couple, while the average SSDI payment is $1,358 a month for an individual. Since SSDI is based on the beneficiary’s earnings record, some SSDI recipients can receive much more than this with the maximum monthly payment of $3,627 in 2023. In addition, SSI benefits are reduced by any other income received by an SSI beneficiary.
We work with individuals and families to develop estate plans that meet their needs in their current stage of life. Each individual’s needs are unique and this article only provides a brief, general introduction to the differences between SSI and SSDI. For more detailed information and to discuss your specific case, call us today at (678)781-9230 to schedule an appointment.
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