Posts Tagged "Supplemental Security Income program"

Affordable Care Act Indirectly Affects SSI

Disabled man in physical therapy

The Affordable Care Act (ACA) requires that insurance companies offer coverage to young adults with disabilities – like all young people – through their parents’ employer coverage until age 26.

So, up to this point, many adults with disabilities now have a viable way to get health services, independent of any government assistance. But at 26, that changes.

A Mathematica study finds that’s when some start applying to the federal Supplemental Security Income Program (SSI) – probably partly to gain access to Medicaid health coverage. Health insurance is critically important to people with disabilities, who often need expensive, specialized medical services. SSI’s purpose is to provide monthly cash assistance for living expenses if they lack financial resources and don’t have the work history required for federal disability insurance. SSI recipients also qualify automatically for Medicaid in a majority of states.

The researchers examined the trends in applications to SSI by people in their 20s before and after the Affordable Care Act’s 2010 passage. They found that the annual application rates among people right around their 26th birthdays have recently been 3.4 percent higher than what would be expected based on the steady pattern of overall age trends. This jump in applications at age 26 was not evident before the ACA – when people tended to lose parental insurance earlier in their 20s.

The number of SSI applications that were approved was also somewhat higher, according to the study, which was funded by the U.S. Social Security Administration.

The risk to young adults who go on SSI, the researchers said, is that they might develop a long-term dependence on the program’s cash assistance and Medicaid. And this, in turn, could discourage people with less severe disabilities from trying to work at a critical point in their lives, because SSI strictly limits how much money its recipients can earn. …Learn More

Low income housing

Housing Subsidies May Fuel SSI Growth

Federal spending on the Supplemental Security Income (SSI) program has grown substantially in recent decades, making it the single largest source of cash assistance for older or disabled Americans with little or no income.

For people with disabilities to qualify for SSI’s benefits – the federal maximum is currently $783 per month, with most states adding in smaller amounts – the disability must severely restrict their ability to work. The average monthly payments under Social Security’s separate disability insurance (DI) program are larger, but people who lack the necessary work history required to apply for DI can seek disability status through SSI.

To better understand SSI’s rapid growth, researchers asked whether the preference for housing assistance that some cities give to people with disabilities might create an incentive – albeit an indirect one – to seek approval for SSI. The possibility of moving higher on a city’s long waiting list for housing is highly prized, because the demand for low-cost housing vastly exceeds the supply.

The housing assistance comes in two forms: apartments in public housing developments or federal rental vouchers that pay landlords the difference between their market-rate rents and what the low-income household can afford. Both types of assistance cap rental payments at 30 percent of the household’s income.

First, the researchers found that people with disabilities are, indeed, more likely to get the scarce housing assistance, and their advantage has increased over the past 20 years. Single mothers and people with no more than a high school education in particular benefit from these housing preferences.

The researchers also confirmed their hunch that the prospect of obtaining low-cost housing is a factor in the growth in SSI’s enrollment. And the more expensive the rents in an area, the stronger the incentive to seek SSI: a $1,000 increase in the value of the assistance increases enrollment in SSI by almost a third, according to the study. …Learn More