Federal government provides income support for the disabled
The Social Security Administration administers two income support programs for the disabled: Social Security Disability Insurance (SSDI) and Supplement Security Income (SSI).
SSDI is a program conceptually similar to unemployment insurance in that it is intended to replace the lost wages of a disabled worker. The amount of the award is calculated based on the length of a person’s participation in the work force. About 4.6 million disabled workers nationally receive SSDI payments; the average monthly amount is $722. Participants are eligible to make up to $500 per month—what the Social Security Administration considers "substantial gainful activity"—before cash benefits are terminated.
After two years of receiving SSDI, a beneficiary receives free Medicare coverage for hospital services and the option to purchase physician coverage. Such coverage generally lasts about three years, after which a person may purchase Medicare benefits at the same cost an uninsured person would pay.
About 4.3 million adults receive SSI because of a disability. It is need-based, targeted to people who had little or no income before incurring a disability. The Social Security Administration payments to disabled adults on SSI average just under $400 per month. Most states supplement that amount with an average of around $110 per month. People who are eligible for SSI also have access to food stamps, and, in most states, full Medicaid services.
The Social Security Administration generally reduces a disabled worker’s SSI cash award $1 for every $2 in earned income after the first $85 each month. In an effort to help people return to work, the federal government allows beneficiaries to deduct work-related and other expenses from their income. A person earning too much to receive SSI payments still may be eligible for Medicaid, depending upon the state.
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