Comparing Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) Benefits
Learn When to Apply for Disability Under SSDI, SSI, or Both Programs
The Social Security Administration (SSA) makes disability payments through two programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). SSDI claims are called Title 2 claims because they are allowed under Title 2 of the Social Security Act. SSI claims are called Title 16 claims because they are authorized under that part of the Social Security Act.
The SSDI and SSI programs share the same medical requirements. That means if you are found disabled medically under one program, you are also considered disabled medically under the other.
The two disability programs differ, however, in their non-medical eligibility requirements and in their payment features.
The purpose of this article is to discuss these differences between SSDI and SSI benefits and to explain when you should apply for disability benefits under just one program, or under both.
Keep reading to learn more.
If you have any questions about your claim, or are looking for a top-rated Richmond disability lawyer or Norfolk Social Security attorney to help you win your SSDI or SSI hearing before an administrative law judge (ALJ), call me for a free consultation: (804) 251-1620 or (757) 810-5614.
SSDI Benefits are Only Available if You Worked and Paid Social Security Taxes, SSI is Available Even if You Have Never Worked
SSDI is an entitlement program that is available if you worked and paid Social Security taxes on your earnings for a certain amount of time during the past ten years. If you worked under the table and did not pay a Social Security tax on your earnings, then it is unlikely that you will qualify for SSDI no matter how much you worked or earned.
SSDI is also available to certain dependents of workers who are found disabled and who paid enough Social Security taxes to qualify.
SSI, by contrast, is meant to meet the basic needs of elderly, blind, and disabled persons who would be unable to pay for food and shelter without the payments. You can receive SSI benefits even if you never paid the Social Security tax on your earnings or never worked.
SSI is a Means-Tested Program and Has a Resource Limit, SSDI Does Not
SSDI benefits are available to any person who meets the non-medical and medical requirements of the program, no matter how much money you have the bank, how much money your spouse earns, or how many homes or cars you own. You can even receive SSDI benefits if you are receiving workers compensation payments in the form of weekly temporary total disability checks,
By contrast, the SSI program provides payments only if you are disabled and have limited income, assets, and resources. If your household income and resources are too high, the Social Security Administration will deny your claim for SSI benefits no matter how severe your physical or mental impairments are.
Usually SSDI Pays More Than SSI, But That is Not Always True
The amount of your monthly SSDI benefit depends on your average lifetime earnings. It is not based on your household income or the severity of your mental or physical disability.
In 2019, the average benefit amount for a disabled worker receiving SSDI was $1,258.00 per month. Many of my clients, however, receive much more than this. Some receive more than $2,000.00 per month.
Your monthly payment amount for SSI benefits is based on the federal benefit rate (FBR) for the year, not your past earnings. The FBR is set by law and increases annually.
In 2020, the SSI amount is $783.00 per month for individuals and $1,175.00 per couple. No matter the severity of your medical impairments, you cannot receive more than $783.00 per month if you qualify for SSI only. And, if you receive other income while receiving SSI payments, the amount of your SSI monthly benefit may be reduced.
SSDI Has a Waiting Period Before Benefits Begin, SSDI Does Not
There is a mandatory five-month waiting period for SSDI claims. That means your monthly SSDI payments will not start until five months after the date you are found disabled by the Social Security Administration.
For example, let’s say the administrative law judge presiding over your case finds you disabled as of January of 2020. Your SSDI payments will not begin until June of 2020.
By contrast, there is no waiting period for SSI claims. Your monthly SSI payments begin the first month after you are found disabled.
SSDI Back Payments May Begin to Accrue Before the Date of Your Application, SSI Back Payments Do Not
Under the SSDI program, you can receive retroactive disability benefits going back to the date you are found disabled, even if that date is before you applied for SSDI. You cannot, however, receive more than 12 months of retroactive SSDI payments.
For example, if you applied for SSDI benefits in January of 2019 and were found disabled as of January of 2017, you can only receive retroactive benefits beginning January of 2018 and continuing through the date the Social Security Administration declared you disabled. Then you will start receiving your regular monthly disability benefits.
On the other hand, the SSI program does not allow retroactive benefits going back to the date you are found disabled. Rather, the furthest back you can receive SSI payments is the month after you first applied for disability.
For example, if you applied for SSI benefits in January of 2019 and were found disabled as of January of 2017, your SSI payments will not start to accrue until February of 2019, even though there is no dispute you were disabled before then.
SSDI Beneficiaries Receive Medicare, SSI Beneficiaries Receive Medicaid
The federal government funds two major health insurance programs: Medicare and Medicaid. Both are run by the Centers for Medicare & Medicaid Services (CMS) under the direction of the United States Department of Health and Human Services (HHS).
You will qualify for Medicare coverage if you are approved for SSDI benefits. Your coverage, however, will not start until two years after the date your monthly SSDI payments start, which is 27 months after your onset date of disability. That means you may not have medical insurance coverage for a long period if you do not have some other type of health insurance coverage or do not qualify for Medicaid coverage.
You will qualify for Medicaid coverage if you are approved for SSI benefits. Unlike SSDI and Medicare, your Medicaid coverage will start immediately upon approval of your SSI claim.
Children under the Age of 18 Can Receive SSI But Not SSDI
The SSI program pays disability benefits to children under the age of 18 who are found disabled medically and whose households do not exceed the income and resource limits. These income and resource limits prevent many disabled children and their families from getting the money and medical coverage they need to get all the health care they require.
By contrast, children under the age of 18 cannot receive SSDI benefits. Adult children, however, can receive SSDI benefits if they can prove they were disabled before the age of 22 and at least one parent is or was receiving Social Security retirement or disability benefits.
For more information on this topic, read my article: Social Security Benefits for Children with Disabilities.
SSDI Pays Auxiliary Benefits But SSI Does Not
The SSDI program pays auxiliary benefits, also called dependents’ benefits, to other family members if you qualify for Title 2 benefits.
For example, you may receive additional monthly payments under the SSDI program if you are married or have dependent children.
By contrast, the SSI program does not provide additional payments for your spouse or children.
Can You Get SSDI and SSI at the Same Time?
Some of you may be eligible for both SSI and SSDI benefits at the same time. This is known as having concurrent claims or receiving concurrent benefits.
To receive both SSDI and SSI, you must qualify for SSDI but receive low monthly payments. Common reasons for having a low monthly SSDI benefit amount are:
- You became disabled at a young age and do not have a significant work history or earnings.
- You worked but did not earn very much during your career.
If you are approved for both SSDI and SSI, your SSDI payments will count as income against your SSI benefits. That means your SSI payments will likely be reduced, maybe even completely.
Even though your SSI payments may be reduced or eliminated if you receive SSDI benefits, you should still apply for both programs if you are eligible. Doing so not only allows you to maximize the amount of Social Security Disability benefits you receive each month, it may also allow you to get additional funds. Because the SSI program does not have a waiting period, you can receive five months of SSI before those benefits are reduced.
Get Help with Your SSDI or SSI Claim
The Social Security Disability process can seem like a never ending maze. But you don’t have to navigate it alone.
From helping you apply for SSDI benefits or SSI to presenting your claim at the hearing to fighting for your benefits before the Appeals Council when necessary, I can help. Even if you have applied for Social Security Disability and been denied before.
Call (804) 251-1620 or (757) 810-5614 to get started.
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