Benefits from SSA for People with Disabilities

 

The Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities. While these two programs are different in many ways, both are administered by the Social Security Administration and only individuals who have a disability and meet medical criteria may qualify for benefits under either program.

Social Security Disability Insurance or Title II, Disability Benefits SSDI: pays benefits to people with disabilities and certain members of your family if the beneficiary is “insured,” meaning that he/she worked long enough and paid Social Security taxes.

Supplemental Security Income SSI pays benefits to people with disabilities based on financial need.

Comparison of SSI and Title II Disability Benefits

SSI:

• Welfare program funded by federal tax dollars, not SSA trust fund
• Limits on earned income, unearned income & resources
• Comes with Medicaid

Title II Disability or SSDI

• Entitlement program based upon insured status funded by SSA trust fund (SSDI, CDB, DWB)
• No limits on unearned income or resources – just earned income
• Comes with Medicare

 

Types of Benefits

Retired worker and auxiliary beneficiaries: Payment for these benefits is made from the Old-Age and Survivors Insurance Trust Fund.

• Retired worker—beneficiary who worked in covered employment long enough to be insured and who is at least 62 years old (benefits equal to the “primary insurance amount” are payable at the normal retirement age; maximum benefits are payable at age 70)
• Spouse of retired worker—must either (1) have a child under age 16 or a disabled child in his or her care, or (2) be at least 62 years old; applies also to divorced spouse if the marriage lasted at least 10 years
• Child of retired worker—see 3 types of child benefits below

Survivor beneficiaries Payment for these benefits is also made from the Old-Age and Survivors Insurance Trust Fund.

• Child of deceased worker—see 3 types of child benefits below
• Aged widow(er)—must be at least 60 years old
• Young widow(er)—must have a child under age 16 or a disabled child in his or her care
• Disabled widow(er) DWB—must be disabled and be at least 50 years old (converted to aged widow(er) upon attainment of age 65)
• Parent of deceased worker—must have been dependent on worker and be at least 62 years old

Disabled worker and auxiliary beneficiaries:  Benefits are paid from the Disability Insurance Trust Fund.

• Disabled worker—beneficiary who worked in covered employment long enough to be insured and who had been working recently in covered employment prior to disability onset
• Spouse of disabled worker—must either (1) have a child under age 16 or a disabled child in his or her care, or (2) be at least 62 years old; applies also to divorced spouse if the marriage lasted at least 10 years
• Child of disabled worker—see 3 types of child benefits below

  Types of children:

• Minor child (under age 18)
• Adult disabled before the age of 22
• High school student under age 19

Resources:

http://www.ssa.gov/oact/progdata/types.html

 

 

Work Incentives Protecting Health Coverage for People with Disabilities

by Lesley Lopez                      

Many SSA beneficiaries are afraid of losing their health insurance coverage because of employment, however, SSA provides protections to SSA beneficiaries to be able to work and keep their Medicare or Medicaid.

Extended Medicare Coverage for Working People with Disabilities. Beneficiaries receiving SSDI

As long as your disabling condition still meets our rules, you can keep your Medicare coverage for at least 8 ½ years after you return to work. (The 8 ½ years includes your nine month trial work Period)

Your Medicare hospital insurance (Part A) coverage is premium-free. Your Medicare medical insurance (Part B) coverage will also continue. You or a third party (if applicable) will continue to pay for Part B. If your Social Security Disability Insurance cash benefits stop due to your work, you or a third party (if applicable) will be billed every 3 months for your medical insurance premiums. If you are receiving cash benefits, your medical insurance premiums will be deducted monthly from your check.

Continued Medicaid Eligibility (Section 1619(B))

For beneficiaries receiving SSI

One of the biggest concerns SSI beneficiaries have about going to work is the possibility of losing Medicaid coverage. Section 1619(b) of the Social Security Act provides some protection for these beneficiaries. To qualify for continuing Medicaid coverage, a person must:

• Have been eligible for an SSI cash payment for at least 1 month;
• Still meet the disability requirement; and
• Still meet all other non-disability SSI requirements; and
• Need Medicaid benefits to continue to work; and
• Have gross earnings that are insufficient to replace SSI, Medicaid and publicly funded attendant care services.

This means that SSI beneficiaries who have earnings too high for a SSI cash payment may be eligible for Medicaid if they meet the above requirements. SSA uses a threshold amount to measure whether a person’s earnings are high enough to replace his/her SSI and Medicaid benefits. This threshold is based on the:

• amount of earnings which would cause SSI cash payments to stop in the person’s State; and
• Average Medicaid expenses in that State.

If an SSI beneficiary has gross earnings higher than the threshold amount for his/her State, SSA can figure an individual threshold amount if that person has:

• Impairment-related work expenses; or
• Blind work expenses; or
• A plan to achieve self-support; or
• Personal attendant whose fees are publicly funded; or
• Medical expenses above the average State amount.

The state of Florida 2016 annual threshold amounts for disabled and blind beneficiaries is $30,566

Other health care options:

Market Place or Affordable Care Act

A service that helps people shop for and enroll in affordable health insurance. The federal government operates the Marketplace, available at HealthCare.gov, for most states. Some states run their own Marketplaces.

The Health Insurance Marketplace (also known as the “Marketplace” or “exchange”) provides health plan shopping and enrollment services through websites, call centers, and in-person help.

When you apply for individual and family coverage through the Marketplace, you’ll provide income and household information. You’ll find out if you qualify for:

• Premium tax credits and other savings that make insurance more affordable
• Coverage through the Medicaid and Children’s Health Insurance Program (CHIP) in your state

On HealthCare.gov, you may be asked to select your state or enter your ZIP code. If you live in a state that runs its own Marketplace, we’ll send you to your state’s Marketplace website.

 Medicaid Share of Cost or Medically Needy

The Department of Children and Families (DCF) determines eligibility for the Medically Needy Program. It may also be referred to as the “Share of Cost” program. The Medically Needy Program assists individuals who would qualify for Medicaid except for having income that is too high. Individuals enrolled in Medically Needy may have a monthly “share of cost,” which is similar to an insurance deductible. The share of cost is determined by household size and gross monthly income. When there are changes to the household size and income, the share of cost amount may change.

Some examples of medical expenses that can be used to meet the “share of cost”

• Unpaid medical bills owed that have not been used to meet the share of cost before.
• Medical bills the individual paid within the last three months.
• Health insurance premiums
• Medical bills that will not be paid by health insurance or any other source.
• Co-pays for medical bills.
• Medical services prescribed by a doctor.
• Transportation by ambulance, bus or taxi to get medical care.

For more information about the Medicaid share of cost please visit http://www.myflorida.com/accessflorida/

 Community Health clinics (CHI)

Community Health of South Florida Inc. is a non-profit health care organization providing affordable quality primary and behavioral health care services to the residents of rapidly growing South Florida. CHI operates 11 state-of-the-art primary care centers and 31 school-based programs. All centers offer quality comprehensive primary and behavioral health care services. Our physicians are board certified or board eligible. Additionally, CHI is accredited by the Joint Commission and is accredited as a Level 3 Patient-Centered Medical Home by the National Committee for Quality Assurance (NCQA). CHI offers a “one-stop-shop” model where the organization and delivery of quality services are seamless, affordable, accessible and culturally sensitive.

For more information visit the website http://www.chisouthfl.org/

If you are a SSI or SSDI beneficiary and needs an individualized analysis of your situation please contact the Community Work Incentives Coordinator or benefits Planner in your area.  Please check the SSA Website for more details: http://choosework.net.

Work Incentives Protecting Health Coverage for PWD

By: Lesly Lopez

Extended Medicare Coverage

For Working People with Disabilities

As long as your disabling condition still meets our rules, you can keep your Medicare coverage for at least 8 ½ years after you return to work. The 8 ½ years includes your nine month trial work Period.

Your Medicare hospital insurance (Part A) coverage is premium-free. Your Medicare medical insurance (Part B) coverage will also continue. You or a third party (if applicable) will continue to pay for Part B. If your Social Security Disability Insurance cash benefits stop due to your work, you or a third party (if applicable) will be billed every 3 months for your medical insurance premiums. If you are receiving cash benefits, your medical insurance premiums will be deducted monthly from your check.

Continued Medicaid Eligibility (Section 1619(B))

For beneficiaries receiving SSI

One of the biggest concerns SSI beneficiaries have about going to work is the possibility of losing Medicaid coverage. Section 1619(b) of the Social Security Act provides some protection for these beneficiaries. To qualify for continuing Medicaid coverage, a person must:

• Have been eligible for an SSI cash payment for at least 1 month;
• Still meet the disability requirement; and
• Still meet all other non-disability SSI requirements; and
• Need Medicaid benefits to continue to work; and
• Have gross earnings that are insufficient to replace SSI, Medicaid and publicly funded attendant care services.

This means that SSI beneficiaries who have earnings too high for an SSI cash payment may be eligible for Medicaid if they meet the above requirements. SSA uses a threshold amount to measure whether a person’s earnings are high enough to replace his/her SSI and Medicaid benefits. This threshold is based on the:

• amount of earnings which would cause SSI cash payments to stop in the person’s state; and
• Average Medicaid expenses in that state.

If an SSI beneficiary has gross earnings higher than the threshold amount for his/her state, SSA can figure an individual threshold amount if that person has:

• Impairment-related work expenses; or
• Blind work expenses; or
• A plan to achieve self-support; or
• A personal attendant whose fees are publicly funded; or
• Medical expenses above the average state amount.

The state of Florida 2016 annual threshold amounts for disabled and blind beneficiaries is $30,566.

 Other Health Insurance Options for People with Disabilities

Medicaid Share of Cost or medically needy from Department of Children and Families(DCF)

In Florida, the Medicaid Share of Cost program is a type of health insurance for the medically needy. These are people who make too much money to qualify for regular Medicaid, but not enough money to pay for their healthcare needs. They meet all of the standard Medicaid eligibility requirements except the income requirement.

The day your healthcare expenses for the month exceed your share of cost, your Medicaid coverage begins. From that day until the end of the month, you have full Medicaid coverage.  You don’t actually have to pay the healthcare expenses used to reach your share of cost. You just have to owe that much. When Medicaid coverage begins, not only does Medicaid pay for your healthcare expenses for the rest of that month, it also pays for the expenses used to meet your share of cost that month. If you choose to pay those expenses yourself, they’ll still count toward meeting your share of cost, but you won’t be reimbursed by Medicaid for what you’ve paid.  To apply or for more information visit www.myflorida.com/accessflorida.

Affordable Care Act (ObamaCare) through? the Market Place

The Affordable Care Act (ACA) was signed into law on March 23, 2010. Beginning Jan. 1, 2014, the law requires all Americans to obtain health care coverage through an employer, an individual health plan or programs such as Medicare, Medicaid, or Children’s Health Insurance Program (Florida KidCare) unless they meet an exemption. Individuals who do not meet an exemption and fail to obtain coverage may be subject to a tax assessment.

On Oct. 1, 2013, the federal government opened the Marketplace where individuals can compare and shop for health care coverage. Each year an open enrollment period will take place for individuals who are seeking Marketplace coverage. Medicaid and Florida KidCare enrollment takes place year-round. If a person applies at the Marketplace and is found potentially eligible for Medicaid or Florida KidCare, their application will be sent to the appropriate agency for processing. The ACA also provides cost sharing and tax credits to assist low-income qualified individuals in purchasing health insurance through the Marketplace.

 

• Individuals seeking more information about services offered through the Marketplace may contact the Federal Call Center at 1-800-318-2596, Deaf and Hard of Hearing TTY 1-855-889-4325, or go to gov.

 

Community Health Centers like CHI (Community Health of South Florida Inc.)

CHI is a nonprofit health care organization providing affordable quality primary and behavioral health care services to the residents of rapidly-growing South Florida. CHI operates 11 state-of-the-art primary care centers and 31 school-based programs. All centers offer quality comprehensive primary and behavioral health care services. Our physicians are board certified or board eligible. Additionally, CHI is accredited by the Joint Commission and is accredited as a Level 3 Patient-Centered Medical Home by the National Committee for Quality Assurance (NCQA). CHI offers a “one-stop-shop” model where the organization and delivery of quality services are seamless, affordable, accessible and culturally sensitive.  For more information visit their website: http://www.chisouthfl.org/about-us/.

If you are an SSI or SSDI beneficiary and need an individualized analysis of your situation please contact the Community Work Incentives Coordinator or benefits planner in your area.  Please check the SSA Website for more details: http://choosework.net.

Asset Building for Individuals with Disabilities

Public benefit programs for people with disabilities, especially Supplemental Security Income (SSI), are not aimed at increasing assets and independence for people with disabilities as a result individuals with disabilities often have very limited income and few, if any, assets. The intent of asset building initiatives is that as individuals develop assets, they will be able to move out of poverty and remain out of poverty. Many asset building services for people with disabilities will NOT cause loss of critical SSA disability cash payments and essential health insurance such as Medicaid or Medicare.

Types of asset building services for people with disabilities:

•  Financial literacy education
• IDAs: Individual Development accounts
• Earned Income Tax Credit (EITC)
• College Savings Accounts
• ABLE account
• Work Incentives from SSA: WIPA program and work incentives like PASS, Plan to achieve self-support and Self-employment/entrepreneurship.

Financial Literacy:

Skills and knowledge that successfully enable low and moderate income individuals to become part of the mainstream financial system by learning to effectively manage their finances, participate in banking services, and save for assets and other financial goals. The Federal Deposit Insurance Corporation (FDIC) recognizes the importance of financial education, particularly for people with little or no banking experience. That’s why they created Money Smart, a training program to help adults outside the financial mainstream enhance their money skills and create positive banking relationships. Check this financial literacy training resource: MoneySmartCurriculum

AFI Individual Development Accounts (IDAs)

One federally-supported IDA program is the Assets for Independence (AFI) program. The AFI IDA program is a discretionary grant program authorized under the Assets for Independence Act of 1998. AFI Individual Development Accounts are an important tool in asset building for low-income people. AFI projects assist client families to save earned income in IDAs– special matched savings accounts. For more information and to find a agency close to you, please visit Office of Community Services – Assets for Independence  Clients can use their IDA savings and matched funds to acquire one of the following assets:

• A first home,
• Capitalization of a small business,
• Post-secondary education or training.

Earned Income Tax Credit (EITC)

Refundable federal income tax credit for low-income workers. EITCs enable many low-income tax filers to receive a refund from their payroll taxes on their annual income. To claim the credit, it is necessary for individuals to file their income taxes and apply for federal and / or state EITCs. Some facts:

• SSI and SSI-Medicaid – EITC payments are excluded from the resource test for nine months following the month the refund is received.
• SSDI – there is no asset limit.
• State Medicaid – This can vary by State so please check with your local Medicaid office.
• Food Stamps – EITC payments are excluded from the resource test.
• Federally assisted housing – interest accrued on your EITC payments may count as income.
• Cash assistance programs – These can vary so please check with your local office.
  For more information about Earned Income tax credit visit www.irs.gov/eitc
• College Savings Accounts – Special savings accounts that enable families to save for the costs of college at an accelerated rate.

ABLE accounts

ABLE accounts will allow more individual choice and control over spending on qualified disability expenses and limited investment decisions, while protecting eligibility for Medicaid, SSI, and other important federal benefits for people with disabilities.

States have started to develop their own legislation to implement the federal law. As a result, in over half of the states, ABLE Act legislation has emerged in the past several months. To assist individuals with disabilities, their families, and advocates in tracking their states’ progress, The Arc has produced a comprehensive listing of state-by-state legislation. This can be used as an advocacy tool and offers valuable information, such as names and contact information of sponsors, current status of the bill(s), and a link to bill language. Go here for more information:

Work Incentives Planning and Assistance

The Ticket to Work and Work Incentives Improvement Act of 1999 authorized Social Security to award grants, contracts or cooperative agreements to provide community-based work incentives expertise to beneficiaries of Social Security or Supplemental Security Income benefits based on disability. The goal of the WIPA program is to enable beneficiaries with disabilities to make informed choices about work, and to support working beneficiaries to make a successful transition to self-sufficiency. You may find contact information for these projects on http://choosework.net.

I believe that if we all work together on education, support, and advocacy we can make asset buildup a reality for people with disabilities and low income families.

What is a Community Work Incentives Coordinator (CWIC) or benefits planner?

By: Lesly Lopez

If you receive Social Security benefits and you have a job or are looking for one, there are specially trained professionals known as Community Work Incentive Coordinators (CWIC) to help you make sense of complex employment and benefit-related issues.

What is a CWIC?

A highly skilled and rigorously trained cadre of Community Work Incentives Coordinators (CWICs) provide individual counseling to beneficiaries seeking employment and intensive follow-up services to ensure that they are using the work incentives appropriately. CWICS provide confidential services to people with disabilities who receive Supplemental Security Income (SSI) and/or Social Security Disability Income (SSDI). CWICs educate beneficiaries on how employment will affect their public benefits such as SSI, SSDI, Medicare, Medicaid, subsidized housing and food stamps.
CWICs are funded through the Social Security Administration grant called WIPA, Work Incentives Planning and Assistance. CWICs are not SSA employees. However, they do serve SSI and SSDI beneficiaries, including young adults who are transitioning from school to work.

What a CWIC can do for you?

• Help you understand how working and earning wages will affect your public benefits
• Provide ongoing assistance to help you manage your benefits as you transition into employment or increase your earnings
• Provide information on available education, training, and employment services
• Help develop and implement PASS Plans and other Work Incentives that assist you to achieve your employment goal
• Understand the rules of specific Work Incentives and how they apply to you
• Decide whether the Ticket to Work program is right for you
• Understand the potential benefits of employment as a person who receives disability benefits from Social Security while dispelling the myths about working
• Analyze how work and earnings may impact your Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), health care, and other public benefits
• Understand the services provided by a State Vocational Rehabilitation (VR) agency or an Employment Network (EN), and how they might fit best with your needs
• Teach about the work incentives from SSA to beneficiaries and community partners.
• enhance self-sufficiency
• ensure informed choices,
• get rid of fear in pursuing employment
• problem solving and advocacy,
• benefits analysis and advisement/benefits support, planning/benefits management and
• Information and referral about other resources available to you in the community.

For additional questions please call the TTW help line at 1-866-968-7842 / 866-833-2967 (TTY) Monday through Friday from 8:00AM – 8:00PM EST. For general inquiries, you may e-mail support@chooseworkttw.net.

The PASS Plan

By: Lesly Quin

How a PASS plan can help you?
A PASS (Plan for Achieving Self Support) allows you to set aside other income besides your Supplemental Security Income (SSI) and/or resources for a specified period of time so that you may pursue a work goal that will reduce or eliminate the SSI or Social Security Disability Insurance (SSDI) benefits you currently receive.

Who can have a PASS?
If you receive SSI or could qualify for SSI after setting aside income or resources so that you may pursue a work goal, you could benefit from a PASS.

Requirements for a PASS:
Be designed especially for you;
Be in writing. Using the form, the SSA-545-BK.You can get copies of the PASS form from http://www.socialsecurity.gov/online/ssa-545.html;
Have a specific work goal that you are capable of performing;
Have a specific timeframe for reaching your goal;
Show what income you receive (other than your SSI payments) and/or resources you have that you will use to reach your goal;
Show how you will use your income and resources to reach your work goal;
Show how the money you set aside will be kept separate from other funds;
Be approved by us; and
Be reviewed periodically by us to assure your plan is actually helping you make progress towards your work goal.

What can I purchase with a PASS?
The money you save in a PASS can be for education, vocational training, starting a business, or buying support services that enable you to work. This includes assistive technology to help you with your employment goal. With a PASS plan you can save to purchase assistive technology such as:
– Equipment and supplies you need to establish and carry on a trade or business;
– Equipment or tools you need because of your condition or for your job;
– Modifications to buildings and vehicles to accommodate your disability;

Can I get help to complete the PASS application?
You should write your PASS with the help of a rehabilitation specialist, such as a Department of Rehabilitation counselor. SSA has contracted with local organizations to provide benefits planning. Some of these organizations may be able to assist with completing a PASS application. For more information about the Work Incentives Planning Assistance, go to: http://www.ssa.gov/work/WIPA.html
Also, the PASS Cadre is required to keep a list of agencies that can help with completing the PASS application.
Tips for Success:
• Connect with your local Work Incentive Planning and Assistance project to better understand this work incentive as well as other work incentives available to assist you in your return to work:
• Contact a PASS Cadre
Other things to know about PASS plans:
You can use any money for a PASS plan other than SSI.
If setting aside your SSDI (Social Security Disability Insurance) would allow you to meet SSI’s income requirements, then you could qualify for both SSI and PASS. (You will need to show that you can live on the SSI payment and that you will be able to use your other income to pay for the items and services you need to achieve your goal.)
To build assets for your PASS plan, you will open a PASS account with your local bank. A PASS account is a checking account that will be used for all your PASS plan banking transactions.

For more information on Plans for Achieving Self Support:
Social Security Administration – http://www.socialsecurity.gov/disabilityresearch/wi/pass.htm

Cornell University Employment and Disability Institute – http://www.passonline.org/

The University of Montana Rural Institute – http://www.passplan.org
Institute for Community Inclusion – http://www.communityinclusion.org/article.php?article_id=66

Work World – http://www.workworld.org/wwwebhelp/pass.htm

Work incentives Protecting Health Coverage for People with Disabilities

By: Claudia Luna

Extended Medicare Coverage for Working People with Disabilities For beneficiaries receiving SSDI

As long as your disabling condition still meets our rules, you can keep your Medicare coverage for at least 8 ½ years after you return to work. (The 8 ½ years includes your nine month trial work Period)
Your Medicare hospital insurance (Part A) coverage is premium-free. Your Medicare medical insurance (Part B) coverage will also continue. You or a third party (if applicable) will continue to pay for Part B. If your Social Security Disability Insurance cash benefits stop due to your work, you or a third party (if applicable) will be billed every 3 months for your medical insurance premiums. If you are receiving cash benefits, your medical insurance premiums will be deducted monthly from your check.

Continued Medicaid Eligibility (Section 1619(B)) For beneficiaries receiving SSI

One of the biggest concerns SSI beneficiaries have about going to work is the possibility of losing Medicaid coverage. Section 1619(b) of the Social Security Act provides some protection for these beneficiaries. To qualify for continuing Medicaid coverage, a person must

• Have been eligible for an SSI cash payment for at least 1 month;
• Meet the disability requirement; 
• Meet all other non-disability SSI requirements; 
• Need Medicaid benefits to continue to work; and
• Have gross earnings that are insufficient to replace SSI, Medicaid and publicly funded attendant care services.

This means that SSI beneficiaries who have earnings too high for a SSI cash payment may be eligible for Medicaid if they meet the above requirements. SSA uses a threshold amount to measure whether a person’s earnings are high enough to replace his/her SSI and Medicaid benefits. This threshold is based on the:

• amount of earnings which would cause SSI cash payments to stop in the person’s State; and
• Average Medicaid expenses in that State.

If a SSI beneficiary has gross earnings higher than the threshold amount for his/her State, SSA can figure an individual threshold amount if that person has:

• Impairment-related work expenses; or
• Blind work expenses; or
• A plan to achieve self-support; or
• Personal attendant whose fees are publicly funded; or
• Medical expenses above the average State amount.

The state of Florida 2015 annual threshold amounts for disabled and blind beneficiaries is $30,594

If you are a SSI or SSDI beneficiary and needs an individualized analysis of your situation please contact the Community Work Incentives Coordinator or benefits Planner in your area. Please check the SSA Website for more details: http://choosework.net

Work Incentives Planning and Assistance (WIPA) Projects

By: Lesly Quin

WIPA projects are community-based organizations that receive grants from SSA to provide all Social Security and SSI disability beneficiaries (including transition-to-work aged youth) with free access to work incentives planning and assistance. Each WIPA project has counselors called Community Work Incentives Coordinators (CWIC) who:

Provide work incentives planning and assistance to our beneficiaries with disabilities to assist them in achieving financial independence;

Conduct outreach efforts to those beneficiaries (and their families) who are potentially eligible to participate in Federal or state employment support programs; and

Work in cooperation with Federal, state, and private agencies and nonprofit organizations that serve beneficiaries with disabilities.

If you are one of the many SSDI or SSI disability beneficiaries who want to work, a WIPA project can help you understand the employment supports that are available to you and enable you to make informed choices about work and achieving financial independence.

If you would like to reach out to Lesly contact Jonathan in our office at 305 669 2822 or email him at: info@justdigit.org

ABLE Act of 2013: Update

By: Aaron Carter Bates

On Friday, September 19th, Federal lawmakers announced that a deal was reached to permit The Achieving a Better Life Experience (ABLE) Act of 2013 (S. 313/H.R.647) to move forward in Congress. The ABLE Act was introduced in 2013 and, with a model based on IRC 529 college savings plans, aims to amend Section 529 of the Internal Revenue Code to allow for creation of tax-free savings accounts for individuals with disabilities.

The ABLE Act is critical to further enabling independent, community-based living while eschewing institutionalized care. Typically, the amount of resources one may have access to on a monthly basis cannot exceed $1,100-$2,000 for individuals and $2,000-$3,000 for couples (Please check your State’s specific guidelines. Medicaid income limits also vary by state.  The range for individuals is typically $600-$800 and $1,000-$1,350 for couples.   Some states use a formula based on the individual’s federal SSI benefit level.  In these instances, the eligibility limits are usually three times the SSI benefit.).  Anything exceeding these thresholds, disqualifies an individual with a disability from benefits.

The ABLE Act is designed to lessen the impact of the financial burdens and thresholds associated with being disabled by permitting individuals with disabilities to have tax-free savings accounts available to cover qualified expenses such as education, housing, and transportation. The bill would supplement, but not supplant, benefits provided through private insurance, Medicaid, SSI, employment, and/or other sources. The Act also contains Medicaid fraud protection against abuse and a Medicaid pay-back provision when the individual passes away. It will eliminate barriers to work and saving by preventing dollars saved through ABLE accounts from counting against an individual’s eligibility for any federal benefits program, such as Medicaid or SSI.

On Friday, the Act’s chief sponsors and leaders of the Senate’s Committee on Finance said in a joint statement that they expect the legislation to be considered when Congress returns to Washington in November. “We are committed to working with our House colleagues to ensure this legislation will be passed in a bipartisan, bicameral manner and sent to the president’s desk in the lame duck session,” read the statement from Sen. Ron Wyden, D-Ore., Sen. Orrin Hatch, R-Utah, Sen. Bob Casey, D-Pa., and Sen. Richard Burr, R-N.C.

The ABLE Act has been under consideration in Congress since 2006 and is sponsored by more than half the members of both the U.S. House of Representatives and the Senate. The bill passed a House committee in July, but lawmakers indicated they would need to reach an agreement on how to pay for the measure before it would be put up for a floor vote. The deal reached last week will “serve as the foundation for final passage,” the senators said.

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2014 Disability Policy Seminar

On April 7-9, 2014, I had the privilege to attend the 2014 Disability Policy Seminar in Washington, D.C. and participate in advocacy efforts to make an impact on disability policy. The Disability Policy Seminar is an event that brings together advocates for individuals with disabilities with public policy experts and focuses on major federal issues and pending legislation that affect the lives of persons with disabilities and their families. The seminar provided me the opportunity to network with other advocates from around the country and share experiences about barriers that people with disabilities are facing throughout the country, as well as collaborate on ideas for solutions. Through the in-depth sessions, I learned about the federal policies, provisions, and pending legislation important to people with disabilities, including proposals related to Medicaid, Medicare, Social Security and SSI that may have effects on federal disability funding, housing, community living, education and employment, and services for individuals with disabilities. (click here to read more)