What Pennsylvania offers people with disabilities

Pennsylvania runs several programs for people with disabilities, but they operate separately and serve different purposes. Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are federal programs administered through Social Security, not the state. Pennsylvania also runs its own programs: Pennsylvania Medicaid (which covers medical care), ABLE accounts (tax-advantaged savings), and work incentive programs that help people on disability benefits earn money without losing coverage.

The key difference is that federal programs (SSDI and SSI) determine whether you have a disability severe enough to prevent work. Pennsylvania programs then layer on top—they provide health coverage, help you save, or support you in returning to work. You do not have to choose one or the other. Many people receive SSDI or SSI and Pennsylvania Medicaid at the same time.

Understanding which program does what, and how they connect, matters because the rules overlap in ways that can help or hurt you. For example, if you work and earn too much, you might lose SSDI benefits but keep Pennsylvania Medicaid. Or you might use a Pennsylvania work incentive to keep earning without losing health coverage.

Key Takeaways

  • SSDI and SSI are federal programs run by Social Security; Pennsylvania Medicaid and work incentive programs are state-level and layer on top of federal benefits.
  • Pennsylvania Medicaid covers people receiving SSI automatically, and covers many SSDI recipients through special rules that do not explore in other states.
  • Pennsylvania's work incentive programs let you earn money and keep Medicaid coverage longer than federal rules alone would allow.
  • You can have SSDI or SSI and still work part-time if your earnings stay below certain thresholds, and Pennsylvania programs can help you manage that transition.

Federal disability programs: SSDI and SSI

SSDI is for people who worked long enough and paid Social Security taxes before becoming disabled. You do not have to be poor to receive SSDI. SSI is for people with disabilities who have little or no income and few assets, regardless of work history. Both programs require that Social Security find you unable to work due to a medical condition expected to last at least 12 months or result in death.

The Social Security Administration (SSA) makes the disability decision. Pennsylvania does not. You explore through Social Security's website, by phone at 1-800-772-1213, or in person at your local Social Security office. The process typically takes three to six months, though many people are initially denied and must appeal.

If you are approved for SSDI, you receive a monthly benefit based on your work history. If you are approved for SSI, your benefit is lower and depends on your living situation and other income. Both programs have rules about how much you can earn while working and still receive benefits. Those rules are the same nationwide, but Pennsylvania adds its own layer of support on top.

Pennsylvania Medicaid and disability

Pennsylvania Medicaid covers medical care—doctor visits, hospital stays, prescriptions, mental health services—for people with low income. If you receive SSI, you are automatically enrolled in Pennsylvania Medicaid. You do not have to explore separately. Your Medicaid coverage begins the same month your SSI begins.

If you receive SSDI, you are not automatically enrolled in Medicaid. However, Pennsylvania has a program called Medicaid Buy-In for Workers with Disabilities that lets SSDI recipients keep Medicaid even if their earnings are too high for SSI. This is crucial: you can work, earn money, and lose your SSI benefit, but keep your Medicaid coverage through the Buy-In program. The income limit for the Buy-In is much higher than the SSI limit—currently around $75,000 per year, though this changes annually. You must have an SSDI benefit to use the Buy-In; it does not explore to people who never received SSDI.

Pennsylvania also covers people with disabilities through General information Medicaid if they do not may have access to for SSI or SSDI but have very low income. The rules and income limits vary by county.

Work incentives that let you earn and keep coverage

Pennsylvania offers several programs designed to help people on disability benefits return to work without when ready losing their benefits or health coverage. These are state-level programs that work alongside federal Social Security rules.

Plan to Achieve Self-Support (PASS) is a federal program administered in Pennsylvania that lets you set aside income and resources for a specific work goal—starting a business, getting training, buying equipment—without that money counting against your SSI or Medicaid. For example, if you receive SSI and want to save $5,000 to buy a computer for freelance work, you can exclude that $5,000 from your SSI calculation. You must have a written plan approved by Social Security.

Impairment Related Work Expenses (IRWE) lets you deduct the cost of items or services you need because of your disability to work. If you are deaf and need a sign language interpreter at your job, or if you have mobility issues and need a personal assistant, those costs can be deducted from your earnings before Social Security calculates your benefit. This keeps more of your benefit intact.

Medicaid Buy-In for Workers with Disabilities, described above, is Pennsylvania's most powerful work incentive. It lets you work full-time, earn above the SSI limit, and keep Medicaid. You must be receiving SSDI to use it.

Pennsylvania also runs Ticket to Work, a federal program that gives you a nine-year window to test your ability to work without losing SSDI benefits or Medicaid. During this period, your earnings do not trigger the usual benefit reductions. You work with an approved employment network or vocational rehabilitation provider.

ABLE accounts for saving money

ABLE accounts are tax-advantaged savings accounts for people with disabilities. Pennsylvania offers ABLE accounts through the Pennsylvania ABLE program. You can save up to $17,000 per year (as of 2023; this limit changes annually) without that money counting against your SSI resource limit. If you have more than $2,000 in resources, you lose SSI may be able to access, but money in an ABLE account does not count toward that $2,000 limit.

ABLE accounts are useful if you want to save for emergencies, education, housing, or work expenses without triggering SSI termination. You must have become disabled before age 26 to open an ABLE account. The account earns interest, and you can withdraw money anytime without penalty.

How to find Pennsylvania disability services

Start by contacting Social Security if you believe you have a disability that prevents work. Call 1-800-772-1213 or visit ssa.gov. Social Security handles SSDI and SSI applications.

For Pennsylvania-specific programs—Medicaid, work incentives, ABLE accounts—contact Pennsylvania Department of Human Services at 1-800-692-7462 or visit dhs.pa.gov. You can also reach out to your county information office, which handles Medicaid and SSI payments in your area.

If you are working or want to return to work, contact Pennsylvania Office of Vocational Rehabilitation (OVR) at 1-800-442-6351 or visit oca.pa.gov/ovr. OVR provides job training, assistive technology, and other supports to help people with disabilities work. OVR services are free.

For questions about work incentives specifically, ask Social Security for a Benefits Planning, information and Outreach (BPAO) counselor in your area. BPAOs are trained to explain how work affects your benefits and help you plan.

How Pennsylvania Medicaid affects your federal benefits

Pennsylvania Medicaid does not reduce your SSDI or SSI benefit. Your benefit amount is set by Social Security and does not change based on whether you have Medicaid. However, Medicaid does affect your ability to work and keep benefits, because Medicaid coverage makes it safer to try working. If you know your medical care is covered, you are more likely to risk losing SSI by earning too much—because you can use the Medicaid Buy-In to keep coverage.

Conversely, if you lose Pennsylvania Medicaid, you lose a major reason to stay on disability benefits. Some people choose to leave the disability system entirely once they can afford private health insurance through an employer.

Frequently Asked Questions

Can I get SSDI or SSI if I live in Pennsylvania?

SSDI and SSI are federal programs available to people with disabilities in all states, including Pennsylvania. Your state of residence does not affect your may be able to access for these programs. You explore through Social Security, not through Pennsylvania. However, Pennsylvania Medicaid rules may be more generous than other states, which can make living in Pennsylvania advantageous if you receive disability benefits.

What happens to my Pennsylvania Medicaid if I start working?

If you receive SSI and start working, your SSI benefit will decrease as your earnings rise. However, you can keep Pennsylvania Medicaid even after your SSI ends, as long as your income stays below the Medicaid limit (which varies by county). If you receive SSDI and work, you can use the Medicaid Buy-In program to keep Medicaid as long as your income is below the Buy-In limit, currently around $75,000 per year.

Do I have to report my work earnings to Pennsylvania?

You must report earnings to Social Security if you receive SSDI or SSI. You should also report to your county information office if you receive Pennsylvania Medicaid or other state benefits. Failing to report can result in overpayment, which you may have to repay. Use the work incentives described above to make sure your earnings are calculated correctly.

Can I use a PASS plan to save money while on SSI?

Yes. A PASS plan lets you set aside income and resources for a work-related goal without that money counting against your SSI limit. You must submit a written plan to Social Security for approval. PASS plans are useful if you want to save for training, equipment, or starting a business while staying on SSI and Medicaid.

How do I know if I may have access to for the Medicaid Buy-In program?

You must be receiving SSDI to use the Medicaid Buy-In. Your income must be below the Buy-In limit (currently around $75,000 per year in Pennsylvania). Contact your county information office or call the Pennsylvania Department of Human Services at 1-800-692-7462 to confirm your income qualifies and to enroll.