Introducing the Social Security Administration's Supplemental Security Income Work Incentives: Helping American Indians and Alaska Natives With Disabilities go to Work
Practice Guideline
American Indian Disability
Technical
Assistance Center
November 2004
American Indians and Alaska Natives with disabilities would often like to work, but those who receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) cash benefits, and Medicaid or Medicare health insurance coverage may be concerned about losing these benefits if they seek employment. The good news is the Social Security Administration (SSA) has work incentives that make it possible for these individuals to continue receiving these benefits until they can work on a regular basis.
What are Social Security Administration Work Incentives?
The Social Security Administration developed work
incentives to help American Indians and
Alaska Natives with disabilities, and others with disabilities, to achieve work
goals and continue, for a time, to receive SSI or SSDI cash payments, and
Medicaid or Medicare coverage. These work incentives were also developed to help
increase employment and self sufficiency of SSI and SSDI recipients; thus,
reducing their dependency upon disability benefits. Work incentives differ
between the SSDI and SSI programs; therefore this practice guideline provides a
simple overview of the major work incentives available under the SSI program. A
future AIDTAC practice guideline will introduce work incentives available under
the SSDI program.
What is Supplemental Security Income (SSI)?
SSI benefits are cash payments to aged, blind, and
disabled individuals who, according to Social
Security rules (including children under age 18), have limited income and
resources. The federal
government funds the SSI program with general tax revenues. SSI payments are
intended to
"supplement" an individual's income up to a certain level. This level varies
from state-to-state
and is adjusted each year based on cost-of-living increases. Different rules are
used to determine SSI eligibility for children under age 18.
What major Social Security Administration Work Incentives are available to SSI recipients?
Continuation of SSI payments: This program allows an SSI recipient to receive
SSI cash
payments even when earnings are at the SGA level (gross wages and/or net
earnings from
self-employment). To qualify an individual must have been eligible for an SSI
payment for at least 1 month before beginning to work at the SGA level;1must still be disabled; and must meet all other eligibility rules, including the
income and resources tests. Eligibility for SSI will continue as long as the
individual meets the basic eligibility requirements, and the income and
resources tests. SSA will continue to determine SSI payments as before.2 If the State provides Medicaid to individuals on SSI, then Medicaid can
continue.
Continuation of Medicaid Eligibility:
This program continues Medicaid coverage for the SSI recipient whose earnings and other income become too high to qualify for SSI cash payments. To qualify, an individual must have been eligible for an SSI cash payment for at least one month; must still be disabled; must continue to meet all other SSI eligibility rules, including the resources test; must need Medicaid in order to work; and must have gross earned income that is insufficient to replace SSI, Medicaid, and any publicly funded attendant care.3SSA uses a measure called "threshold amount" to decide whether an individual's income is high enough to replace SSI and Medicaid benefits. The threshold amount is based on the amount of earnings that would cause an individual's SSI cash payments to end in his/her State, and the annual per capita Medicaid expenditure for his/her State.
Student Earned Income Exclusion (SEIE):
Under this program, when calculating a monthly SSI payment, SSA does not count up to $1,370 of earned income per month (up to a yearly maximum of $5,520) for an individual under age 22, who is neither married nor the head of household, and regularly attends school. This means that the individual is taking one or more courses of study and attends classes in a college or university for at least 8 hours a week; or in grades 7-12 for at least 12 hours a week; or in a training course to prepare for employment for at least 12 hours a week (15 hours a week if the course involves shop practice); or for less time for reasons beyond the student's control, including illness. SSA applies the student earned income exclusion before any other exclusions. The amounts listed are for 2004; these amounts are adjusted yearly based on the cost-of-living.
Impairment Related Work Expenses (IRWE):
Under this program SSA will deduct from an individual's "countable" earnings the cost of certain impairment-related items and services needed to work when calculating the monthly SSI payment. To qualify, the item or service must be necessary for the individual to work; the item or service must be related to the individual's disabling impairment; the item or service must be paid by the individual and not reimbursable by another source; the cost must be reasonable; and the cost of the item or service must be paid by the individual in a month during which he or she worked. Examples include: Attendant care expenses performed in a work setting; transportation costs such as vehicle modifications needed to travel to work; cost of drivers or taxicabs; and SSA approved mileage expenses for travel to and from work.
Blind Work Expenses (BWE):
Under this program SSA, when deciding SSI eligibility and payment amounts, excludes from an individual's earned income those expenses that enable the individual to work. To qualify an individual must be under age 65, or age 65 or older and receiving SSI payments due to blindness. These expenses do not have to be related to an individual's blindness. Examples include service animal expenses; transportation to and from work; federal, state and local income taxes; social security taxes; attendant care services; visual and sensory aids; and translation of materials into Braille.
Plan For Achieving Self-Support (PASS):
This program allows an individual with a disability, or is blind, to set aside countable income and/or resources for a specific time to achieve a work goal. SSA will not count the income set aside under a PASS when calculating initial and continuing eligibility for SSI payments. A PASS can help an individual establish and maintain SSI eligibility and increase SSI payment amounts.4 For more information about PASS see Plan for Achieving Self-Support (PASS) (August 2004).
Ticket to Work:
This SSA program provides individuals with disabilities more choices in obtaining employment services, vocational rehabilitation services, and other support services. SSI and SSDI recipients receive a Ticket to obtain services from a state vocational rehabilitation (VR) agency or another approved provider (Employment Network). The program is voluntary and services are provided free of charge to SSDI and SSI recipients.5, 6
Continued Payment Under a Vocational Rehabilitation Program (Section 301):
This program allows an SSI recipient who is determined to no longer be disabled due to medical improvement to continue receiving disability benefits. Section 301 requires an individual to be participating in an approved program of vocational rehabilitation, employment services, or other support services at the time disability ended under SSA rules. Additionally, SSA must review the situation and decide that continued participation in the program will increase the likelihood of permanent removal from the disability benefit rolls. Under this program, disability benefits may continue until an individual completes the vocational rehabilitation program, participation in the program stops, or SSA decides that continued participation in the program will not increase the likelihood of permanent removal from disability benefit rolls.
Important Phone Numbers
Social Security Disability Insurance, Supplemental Security Income, and Work Incentives
Social Security Administration, Office of Public Inquiries, Windsor Park
Building, 6401 Security
Blvd., Baltimore, MD 21235. Call Toll Free (800) 772-1213 or Toll Free (800)
325-0778 (TTY), (7:00 a.m. to 7:00 p.m., Monday-Friday). Recorded information
and services are available 24 hours a day including weekends and holidays by
touch-tone telephone. Have your Social Security number available when calling.
On the Internet go to http://www.socialsecurity.gov
Medicare or Medicaid Health Insurance Programs
Centers for Medicare & Medicaid Services (Formerly the Health Care Financing Administration), 7500 Security Boulevard, Baltimore, MD 21244-1850. Call Toll Free (877) 267-2323 or Toll Free (866) 226-1819 (TTY). On the Internet go to http://www.cms.hhs.gov .
Endnotes:
1 In 2004, earning over $810 (amount changes each year) is considered to be Substantial Gainful Activity (SGA) by the Social Security Administration. For individuals meeting the medical definition of blindness, the law prevents SSA from using SGA as a factor in determining SSI eligibility; thus SSI eligibility continues until a blind person medically recovers, or SSA ends eligibility because of a non disability-related reason.
2 Authorized under 1619(a) of the Social Security Act.
3 Authorized under 1619(b) of the Social Security Act.
4 For more information about PASS visit the SSA website at http://www.ssa.gov/pubs/11017.html#1.
5 For information about other SSI work incentives please contact your local SSA
office. Call
Toll Free (800) 772-1213, or Toll Free (800) 325-0778 (TTY); or visit the SSA
website at
http://www.socialsecurity.gov .
6 For more information about Ticket-To-Work please contact MAXIMUS, Inc. Call
Toll Free
(866) 968-7842, or (866) 833-2967(TTY); or visit the SSA website at http://www.ssa.gov/pubs/10061.html .
References:
Shelly, R., Katz, M., & Hammis, D. (2003). It Doesn't Take
A Rocket Scientist To Understand &
Use Social Security Work Incentives. (Available from The University of Montana
Rural Institute,
Adult Community and Supports/Training Department, 52 Corbin Hall, Missoula, MT
59812).
Social Security Administration. (n.d.). Welcome to the Social Security
Administration's
American Indians and Alaska Natives (AIAN) website. Retrieved November 23, 2004
from
http://www.ssa.gov/aian/index.htm
Social Security Administration (2004, February). Red Book (SSA Publication No.
64-030).
Retrieved November 23, 2004 from http://www.ssa.gov/work/ResourcesToolkit/redbook.html
Social Security Administration. (2001, April). The Ticket To Work And
Self-Sufficiency
Program . (SSA Publication No. 05-10061). Retrieved November 23, 2004 from
http://www.ssa.gov/pubs/10061.html
Social Security Administration. (2004, February). Working While Disabled: A
Guide To Plans
For Achieving Self-Support. (SSA Publication No. 05-11017). November 23, 2004
from
http://www.ssa.gov/pubs/11017.html
Social Security Administration. (2004, January). Working While Disabled How We
Can Help.
(SSA Publication No. 05-10095). Retrieved November 23, 2004 from
http://www.ssa.gov/pubs/10095.html
Note: This practice guideline presents a simple overview of Social Security
Administration
Work Incentives. Always consult SSA guidelines when beginning the application
process for work
incentives.
This practice guideline is supported by a cooperative agreement (#H235K00002)
with the U.S.
Department of Education's Rehabilitation Services Administration.
This practice guideline was developed by Alan P. Fugleberg.
