(SSDI) Social Security Disability Insurance
There are two main type of social security claims Social Security Disability Insurance Benefits, also known as “SSDI” or “Title II” and Social Security Supplemental Income, also known as “SSI”.
The SSDI program provides benefits to the disabled or blind individuals who are considered “insured” because of their contributions to the Social Security trust fund. These contributions are the Federal Insurance Contributions Act (FICA) social security tax paid on the workers’ earnings. If you have worked and paid taxes to social security then you may qualify for SSDI.
According to the Social Security Administration, a person qualifies for SSDI, also called Social Security Disability Benefits or SSD, if they have a physical or mental condition that prevents them from working for at least twelve months or that will cause them to die. Eligible candidates must also be younger than 65 and have worked at least five out of the last ten years. Disabled people who qualify should receive SSDI until their condition improves. If their condition will not improve, SSDI is intended to be a guaranteed source of income for them.
Social Security Disability Insurance Program (SSDI)
SSDI provides benefits to disabled or blind persons who are “insured” by workers’ contributions to the Social Security trust fund. These contributions are based on your earnings (or those of your spouse or parents) as required by the Federal Insurance Contributions Act (FICA). Title II of the Social Security Act authorizes SSDI benefits. Your dependants may also be eligible for benefits from your earnings record.
What is SSI?
Supplemental Security Income Program (SSI)
The SSI program makes cash assistance payments to aged, blind, and disabled persons (including children) who have limited income and resources. The Federal Government funds SSI from general tax revenues. Many states pay a supplemental benefit to persons in addition to their Federal benefits. Some of these states have made arrangements with us to combine their supplemental payment with our Federal SSI payment into one monthly check to you. Other states manage their own programs and make their payments separately. Title XVI of the Social Security Act authorizes SSI benefits.
Comparison of the SSDI and SSI Disability Programs
The SSDI and SSI programs share many concepts and terms, however, there are also many very important differences in the rules affecting eligibility and benefit payments. The following table summarizes differences between the SSDI and SSI programs. These differences are important as many persons may apply or be eligible for benefits under both programs.
Comparison of the SSDI and SSI Disability Programs
| SSDI | SSI | |
|---|---|---|
| Source of payments | Disability trust fund | General tax revenues |
| Minimum Initial Qualification Requirements |
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| Health Insurance Coverage Provided | Medicare. Consists of hospital insurance (Part A), supplementary medical insurance (Part B), and Medicare Advantage (Part C). Voluntary prescription drug benefits (Part D) are also included. Title XVIII of the Social Security Act authorizes Medicare. | Medicaid. Medicaid is a jointly funded, Federal-State health insurance program for low-income and needy individuals. It covers certain children, some or all of the aged, blind, and/or disabled in a State who are eligible to receive Federally assisted income maintenance payments. Title XIX of the Social Security Act authorizes Medicaid. The law gives the States options regarding eligibility under Medicaid. |
| How do we figure your monthly payment amount? | We base your SSDI monthly payment amount on the worker’s lifetime average earnings covered by Social Security. We may reduce the amount if you receive Workers’ Compensation payments (including Black Lung payments) and/or public disability benefits, for example, certain state and civil service disability benefits. Other income or resources do not affect the payment amount.We usually adjust the monthly payment amount each year to account for cost-of-living changes.We can also pay SSDI monthly benefits to dependents on your record, such as minor children. | To figure your payment amount, we start with the Federal Benefit Rate (FBR). In 2011, the FBR is $674 for a qualified individual and $1,011 for a qualified couple. We subtract your countable income from the FBR and then add your state supplement, if any. We do not count all of the income that you have. The income amount left after we make all the allowable deductions is “countable income”. The sections on SSI employment supports explain some of the ways that we can exclude income. We usually adjust the FBR each year to account for cost-of-living changes. |
| Is a State Supplemental Payment provided? | There is no State Supplemental payment with the SSDI program. | Many states pay some persons who receive SSI an additional amount called a “state supplement”. The amounts and qualifications for these state supplements vary from state to state. |
