The Social Security Administration administers several programs to assist seniors and those with disabilities. Two of the most common are Social Security Disability Insurance, or SSDI, and Supplemental Security Income, or SSI. But what is the difference between these two programs, and who can benefit from them?
Social Security Disability Vs. SSI Benefits: A Closer Look
While both SSDI and SSI are federal assistance programs, they are entirely different programs, with different funding sources, benefits, and eligibility requirements.
What is SSI?
Although administered through the Social Security Administration, Supplemental Security Income is funded through the U.S. Treasury, not funds collected through Social Security payroll taxes. Many states also supplement SSI. Supplemental Security Income provides financial benefits to low-income individuals who have a qualifying disability, are blind, or are over the age of 65.
There are strict eligibility requirements to qualify for Supplemental Security Income. To collect SSI, an individual:
- Must make less than the eligibility income limits
- Must have fewer resources than the SSI resource limits
- Must be a U.S. citizen or a qualifying alien, and must reside in the United States
- Cannot live outside the U.S. for more than 30 days at a time
- Cannot be under institutional care
Depending on the state where the individual resides, an SSI recipient will typically qualify for Medicaid.
What is SSDI?
Social Security Disability Insurance is only available to people who have worked and paid into Social Security’s payroll tax program. Social Security funds this program, and individuals must have worked recently enough and long enough to qualify for these benefits.
SSDI has its own set of eligibility requirements. To collect SSDI, an individual:
- Must have a medical condition or disability that has prevented them from working for the past year or have a condition that will result in their death
- Must meet Social Security’s definition of disability
- Must be younger than full retirement age
If you are receiving SSDI benefits, you will automatically qualify for Medicare. In most cases, an SSDI benefit recipient must wait 24 months after the beginning of their benefits to be eligible for Medicare.
Social Security Disability Vs. SSI Benefits in a Nutshell
Supplemental Security Income and Social Security Disability Insurance are two different programs designed to benefit different populations of people, but many individuals get confused between the two. Here is a simple way of understanding the differences:
- Who they benefit – SSI benefits low-income individuals who are blind, disabled, or elderly. SSDI benefits individuals who have worked in the past and paid into Social Security but have become disabled and can no longer work.
- Who is eligible – SSI eligibility depends on financial need and the recipient’s age or disability. Eligibility for SSDI is based on a disabled individual’s work history and disability.
- Associated healthcare – SSI recipients generally qualify for Medicaid once their benefits begin. SSDI recipients can take advantage of Medicare after a 24-month waiting period after their benefits begin unless the recipient has ALS or end-stage renal disease. In this case, there is no waiting period.
- Financial limits – SSI recipients are entitled to benefits based on financial need and are limited in the amount of money they can make or assets they own. They can lose benefits or see a reduction in their benefits if they exceed these limits. SSDI is not a needs-based program, although there are some limitations in what a recipient can make if they work.
- Amount of benefits – The maximum monthly federal payment for SSI-eligible individuals is $941 for 2023, $1,371 for an eligible person with an eligible spouse, and $458 monthly for an essential person or someone who lives with and provides essential care to an SSI recipient. The average monthly benefit payment to a disabled SSDI recipient is $1,483 in 2023.
Getting Help With Your Social Security Benefits
If you are having difficulty understanding and navigating Social Security disability benefits or have been denied benefits, you are not alone. Let us help. Call the experienced SSDI lawyers at Silver & Silver at (610) 638-7255 or schedule a free consultation through our website contact form.
Disclosure:
This website is designed to provide only general information. The information presented on this website is not formal legal advice. You should not rely on any general information from any source for making legal decisions. Each legal matter is unique and requires specific attention from a qualified and experienced attorney. Unless a representation agreement has been signed with the Law Offices of Silver and Silver, we are not your legal representatives.
