The main programs that pay disabled people

There are two federal programs that pay cash benefits to disabled people: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Both are run by the Social Security Administration. They have different rules about who can receive them, how much they pay, and what you can earn while receiving them.

SSDI is based on your own work history or your parent's work history if you became disabled before age 22. SSI is based on financial need — it goes to disabled people with very low income and assets, regardless of work history. Some people receive both at the same time, though the total amount is capped.

Beyond these two, disabled people may also receive Medicare (health insurance) and Medicaid (health coverage and long-term care), though the rules for each vary by program and state. There are also work incentives built into both SSDI and SSI that let you earn money without losing all your benefits.

Key Takeaways

  • SSDI pays based on your work record; SSI pays based on financial need — they have different income limits, asset limits, and monthly payment amounts.
  • You can receive Medicare or Medicaid (or both) while on disability, and the rules for keeping coverage differ between programs.
  • Both SSDI and SSI have work incentives that let you earn some money without losing your full benefit, though the rules are complex.
  • The Social Security Administration handles the initial decision, but appeals and ongoing may be able to access reviews happen through a formal process with specific timelines.
  • State and local programs may also offer cash information, housing support, or job training for disabled people, separate from federal benefits.

How SSDI and SSI differ

SSDI requires that you or your parent paid into Social Security through payroll taxes for a certain number of years. The amount you receive depends on the earnings record used — yours or your parent's — and the benefit formula Social Security applies. There is no asset limit: you can own a house, a car, and savings without affecting your SSDI payment.

SSI has no work history requirement. Instead, you must have income below a monthly limit (which varies by state but is roughly $943 for an individual in 2024) and assets below $2,000 (or $3,000 if you are married). Your home and one vehicle do not count toward the asset limit. SSI payments are typically lower than SSDI payments because SSI is a needs-based program.

Both programs use the same medical definition of disability: a condition that prevents you from doing substantial work and is expected to last at least 12 months or result in death. But the financial rules are separate, and you may may have access to for one and not the other.

Medicare and Medicaid for disabled people

If you receive SSDI, you become covered by Medicare automatically after 24 months of receiving benefits. Medicare has four parts: Part A (hospital insurance), Part B (doctor and outpatient services), Part D (prescription drugs), and Part C (an alternative managed care plan). You pay premiums for Parts B and D, though the premiums are deducted from your SSDI check.

If you receive SSI, you are usually covered by Medicaid automatically in the same month your SSI begins. Medicaid rules vary by state — some states cover more services than others, and some have different income or asset rules. Unlike Medicare, Medicaid has no premiums, but it also has no national standard benefit package.

Some disabled people receive both Medicare and Medicaid at the same time. This happens most often when someone transitions from SSI to SSDI or receives both programs together. When you have both, Medicare is the primary payer for most services, and Medicaid covers costs Medicare does not pay.

Work incentives and how much you can earn

Both SSDI and SSI allow you to work and earn money without losing your entire benefit, but the rules are different for each program. On SSDI, you can earn up to $1,550 per month (in 2024) without Social Security counting it as "substantial gainful activity" — the threshold that would end your disability status. Above that amount, your benefit is reduced by $1 for every $2 you earn.

SSI has a different structure. The first $65 you earn per month is not counted, and then half of earnings above that are subtracted from your SSI payment. So if you earn $200 per month, Social Security counts $67.50 against your benefit ($200 minus $65, divided by 2).

Both programs also have longer work incentives that let you test your ability to work without when ready losing benefits. The Trial Work Period on SSDI lets you work any amount for nine months without affecting your benefit. The Plan to Achieve Self-Support (PASS) on SSI lets you set aside income and resources for a work goal without counting them toward your asset or income limit. These are complex rules, and how you use them affects your long-term benefits, so it is worth discussing them with a work incentives counselor before you start working.

How the process and appeal process works

You explore for SSDI or SSI through the Social Security Administration. You can explore online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. The process asks about your medical condition, your work history (for SSDI), your income and assets (for SSI), and your daily activities.

After you explore, Social Security sends your file to your state's Disability information Services (DDS) office. DDS reviews your medical records, orders new medical exams if needed, and makes the initial decision. This usually takes 3 to 6 months, though it can take longer if your medical records are incomplete or if you need to be examined.

If Social Security denies your claim, you have the right to appeal. The appeal process has four levels: reconsideration (a different DDS examiner reviews your file), a hearing before an administrative law judge, review by the Appeals Council, and federal court. Each level has a important date — usually 60 days — to request it. Many people hire a disability lawyer or representative at the hearing stage, and representatives are paid only if you win.

Other programs and state-level support

Beyond SSDI and SSI, disabled people may be able to receive help from state and local programs. Many states run Medicaid waiver programs that pay for home care, day programs, or residential support for disabled people who would otherwise need institutional care. These programs have waiting lists in most states, sometimes lasting years.

Some states offer state supplemental payments that add money to your SSI benefit if you live in that state. A few states also run their own disability programs for people who do not meet federal rules. Your state's disability council or vocational rehabilitation agency can tell you what is available where you live.

The Ticket to Work program lets SSDI and SSI recipients work with an employment network or vocational rehabilitation agency to prepare for work. If you use your ticket and then earn too much to receive benefits, you can keep your Medicare or Medicaid for a longer period than you normally would. This is a way to test work without when ready losing health coverage.

What happens during ongoing may be able to access reviews

Social Security does not just pay your benefit once and leave it alone. The agency conducts periodic reviews to confirm you are still disabled. How often depends on whether your condition is expected to improve. If improvement is possible, you may be reviewed every 1 to 3 years. If improvement is not expected, reviews may happen every 5 to 7 years or less frequently.

During a review, Social Security asks about your current medical condition, any treatment you are receiving, and your work and earnings. If your condition has improved enough that you can do substantial work, Social Security may end your benefits. You have the right to appeal any termination decision using the same four-level appeal process as an initial denial.

If you return to work and earn above the substantial gainful activity threshold, your benefits do not stop when ready. SSDI has a grace period and extended benefits period that let you keep some or all of your payment for a time while you test your ability to work. Understanding these rules before you start working can prevent an unexpected loss of income.

Frequently Asked Questions

Can I receive SSDI and SSI at the same time?

Yes. If your SSDI payment is very low, Social Security may also pay you SSI to bring your total benefit up to the SSI federal rate. This is called "concurrent benefits." Your state may add a state supplement on top of that. The total amount you receive is capped, but you can receive both programs.

What counts as income for SSI but not for SSDI?

For SSI, the first $65 per month of earned income does not count, and you can exclude certain types of income like food and shelter you receive from family. For SSDI, only earnings above the substantial gainful activity threshold affect your benefit. Unearned income like gifts or interest counts differently in each program, so it is important to report all income to Social Security.

If I am denied, how long does it take to get a hearing before a judge?

After you request a hearing, the wait time varies widely by location — from a few months to over a year in some areas. You can ask Social Security for an expedited hearing if your situation is urgent (for example, if you are homeless or have a terminal illness). Your local Social Security office can tell you the current wait time in your area.

Do I lose my benefits if I get married?

For SSDI, marriage does not affect your benefit. For SSI, marriage changes your asset and income limits — you and your spouse can have up to $3,000 in assets instead of $2,000, and your income limit increases. Your SSI payment may go down if your spouse has income, but you do not lose benefits straightforward because you married.

What happens to my benefits if I move to another state?

SSDI benefits follow you to any state — the payment amount does not change. SSI benefits may change because some states add a state supplement and some do not. If you move to a state with a lower supplement or no supplement, your total payment may decrease. Tell Social Security about your move before you go so your payment address updates and your benefits continue without interruption.