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If you live in Nebraska and have a disability that keeps you from working, you might be able to receive financial assistance through Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). What’s the difference between SSI vs SSDI benefits? While both programs benefit individuals with disabilities, they differ in eligibility requirements, benefit amounts, and other factors.
Understanding SSDI Benefits
Social Security Disability Insurance (SSDI) is a federal program that benefits those who have paid into the Social Security system through payroll taxes while working. To qualify for SSDI, you must:
- Have a medical condition that meets the Social Security Administration’s (SSA) definition of disability.
- Have worked long enough and recently enough to accumulate sufficient work credits to be eligible for SSDI.
Your average lifetime earnings before your disability will dictate your SSDI benefits. The higher your earnings, the higher your potential benefit. In 2024, the average monthly SSDI benefit is $1,537.
Understanding SSI Benefits
Supplemental Security Income (SSI) is a needs-based program that provides financial assistance to those with limited income. To qualify and apply for SSI, you must:
- Have a medical condition that meets the SSA’s definition of disability, or
- Be 65 or older, or
- Be blind, and
- Have limited income and resources.
Your work history does not affect SSI benefits. Instead, they are a fixed amount that varies based on your living arrangement and other factors. In 2024, the maximum monthly benefit for SSI is $943 for an individual and $1,415 for a couple.
Key Differences Between SSDI vs SSI
What’s the key difference between SSI vs SSDI disability? Although both these programs provide money for disabled individuals, there are significant differences of SSI vs SSDI benefits.
Eligibility requirements
SSDI and SSI have distinct eligibility requirements. To qualify for SSDI, you must have a sufficient work history and have earned enough work credits by paying into the Social Security system through payroll taxes.
The number of work credits needed depends on your age when you become disabled, but generally, you need 40 credits, with 20 of them earned in the last ten years before your disability began. On the other hand, SSI is a needs-based program that does not consider your work history. Instead, it focuses on your current income and resources.
To be eligible for SSI, you must have limited income and resources, meeting the strict limits set by the Social Security Administration (SSA).
Health insurance
SSDI and SSI also differ in terms of the health insurance coverage they provide. If you qualify for SSDI, you will become eligible for Medicare after a 24-month waiting period from the date your disability benefits begin. This waiting period can be a significant challenge for many SSDI recipients needing immediate healthcare services.
On the other hand, if you qualify for SSI, you are eligible for Medicaid in most states, including Nebraska. Medicaid is a joint federal and state program that gives health insurance to individuals with limited income and resources.
Retroactive benefits
Another key difference between SSI vs SSDI benefits is the availability of retroactive benefits. If you qualify for SSDI, you may be eligible to receive retroactive benefits dating back to 12 months before your application date. This means that if you became disabled before you applied for SSDI, you could receive a lump sum payment for the months you were eligible but not yet receiving benefits.
In contrast, SSI benefits may only be paid back for the first full month AFTER you applied for benefits. SSI benefits start on the first day of the month following your application date, provided you meet all eligibility requirements. If you applied on July 15, 2023, and you are approved on May 5, 2024, you could receive SSI retroactive benefits starting from August 2023.
Work incentives
What’s the difference between SII vs SSDI benefits in work incentives? Both SSDI and SSI offer work incentives that allow you to test your abilities without immediately losing your benefits. However, the specific rules and programs differ between the two.
For SSDI, the primary work incentive is the Trial Work Period (TWP). During the TWP, you can work and earn any amount for up to nine months (not necessarily consecutive) without affecting your SSDI benefits. After the TWP, you enter the Extended Period of Eligibility (EPE), where you can still receive SSDI benefits for any month your earnings fall below the Substantial Gainful Activity (SGA) level.
SSI has a more gradual work incentive program called the Plan to Achieve Self-Support (PASS). PASS allows you to set aside income and resources for a specified period to pursue a work goal, such as education or training. During this time, the countable income and resources set aside under PASS do not count against your SSI eligibility or benefit amount.
Contact Mueller Schmidt Mulholland & Cooling
Unsure about deciding between SSI vs SSDI benefits? People with limited income and resources can take advantage of health insurance programs and social security taxes. At Mueller Schmidt Mulholland & Cooling, our compassionate and knowledgeable Omaha personal injury attorneys dedicate themselves to helping individuals with disabilities secure the benefits they deserve. Don’t let the complexity of the SSI vs. SSDI difference overwhelm you. Contact Mueller Schmidt Mulholland & Cooling today or at 402-999-9000 to schedule your free consultation. Let our firm and our legal team help you navigate the Social Security Disability system in Nebraska.
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