Work and Benefits: An Overview Brian Forsythe, CWIC

What is BenePLAN? A team of Community Work Incentives Coordinators (CWICs) who are trained and certified by Virginia Commonwealth University and the US Social Security Administration (SSA). Possess extensive experience in both employment and public benefits A part of Work Without Limits at the Disability, Health and Employment Policy unit at UMass Medical School Goal: Increase awareness and understanding of how working and earning wages impacts SSI, SSDI, healthcare & other public benefits.

When children are under 18 They may qualify for SSI if under 18 and Disabled : And meets SSA’s definition of disability Physical or mental condition that severely limits functioning The condition is expected to last for at least 12 months The family has limited income and resources

When a Child Turns 18 Social Security will evaluate or re-evaluate eligibility using medical standards for adults What will be needed for SSA Documentation of disability Individual’s living situation Resources: how much money does the individual have or will have at 18 (not the family’s income)

For Starters… Get An Application At your local Social Security office Available online at www.ssa.gov REMINDER 1: Must be 18 and over REMINDER 2: Write down the application number so you can go back to it anytime

Social Security Benefit Programs Social Security Disability Insurance (SSDI) A beneficiary receives SSDI based on: Their own work record Being a minor dependant or the widow/er of a worker Childhood Disability Benefit* (CDB or known as DAC-Disabled Adult Child) Medicare eligibility after 2 years on SSDI Can apply for MassHealth while waiting for Medicare Supplemental Security Income (SSI) Provides assistance to elderly, blind and disabled people who have limited income and resources A low income program Must have less than $2,000 in the bank No work history is needed Automatically eligible for MassHealth Standard

Childhood Disability Benefit: (CDB) Social Security has an additional benefit for adults with disabilities whose parents have worked enough to qualify: A young person must be: The child of a parent who worked and is now deceased, disabled or retired Disabled before the age of 22 18 years of age or older Since turning 22, has never earned money at or above the Substantial Gainful Activity (SGA) level which this year is $1,130.00

Myths about Working I will lose all of my benefits immediately if I work I will be worse off financially if I work too much I will lose MassHealth I will lose Medicare If I lose my benefits I will never get them back if I need them

Work is Possible! Work is an attainable goal It is possible to work and come out financially ahead even if benefits are reduced or stop all together Work Incentives can help beneficiaries get ahead financially It is possible to work and keep MassHealth If benefits stop there are “safety nets” to reinstate them There is help and support to figure all of this out

Please Note: It is imperative to report all work and other income to Social Security every month!

SUPPLEMENTAL SECURITY INCOME (SSI)

SSI Payment Levels The amount of SSI received is based upon the living situation and marital status of the beneficiary in Massachusetts, the five amounts for 2016 are: Living Alone: $847.39 ($733 FBR + $114.39 SSP) Shared Living: $763.40 ($733 FBR + $30.40 SSP) (including group homes) Household of Another: $576.25 ($488.67 FBR + $87.58 SSP) Blind Individual: $882.74 ($733 FBR + $149.74 SSP) regardless of living situation Couples Rate: $640.03 ($550 FBR + $90.03 SSP) each for married and both collecting SSI FBR = Federal Benefit Rate SSP = State Supplemental Payment* *SSP is paid separately from the SSI check, but comes on the same day. Please note the amounts shown are maximum amounts and could be lowered by other factors.

SSI and Working Individuals have more money each month in their pocket when they work, even though the SSI check goes down. They will keep all their money from work and will still receive a (reduced) SSI check. There are Work Incentives that can help them keep even more money!

SSI Employment Calculation When an individual works their SSI check will be reduced in proportion to the amount of money they earn. Basically, the SSI check will be reduced $1 for every $2 earned over $85.00 each month. SSA does this calculation each month so it is very important that earnings are reported before the 6th of the month to SSA. Work earnings can be reported to SSA by using either the Phone in Wage Reporting System or the Smart Phone App. 14

The SSI Calculation: An individual living alone receiving $847.39 in SSI and earning $800. gross per month: Gross Work Income $ 800.00 - $ 85.00 $ 715.00 /2 $ 357.50 $ 847.39 - $ 357.50 $ 489.89 Disregarded Income Countable Income Old SSI Amount Countable Income New SSI Amount

An SSI and Working Example An individual living alone receiving $847.39 in SSI and earning $800. gross per month: Income before working: $847.39 SSI Income after working: $ 489.89 Reduced SSI + $ 800.00 Earnings = $1,289.89 SSI & Earnings This is an increase of $442.50 a month as a result of working!

Student Earned Income Exclusion (SEIE) Must be a student under the age of 22, expires on 22nd birthday SSA’s definition of a student: Must be regularly attending school (grades 7-12 at least 12 hours a week) College or university (8 hours a week) Other training designed to prepare for a paying job Including vocational or technical training (12 hours a week) Fewer hours acceptable if due to disabling condition Job Corps May be used during the summer if planning to return to school in the fall SSA will exclude the first $1,780 earned each month up to an annual maximum of $7,180.

SSI Example - SEIE Jim, who is 20 years old and in college, collects SSI in the amount of $847.39 per month. He starts working a part-time job 20 hours per week at $10.00 per hour. In a four week month, how will his SSI payment be affected?

$847. 39 a month in SSI working and earning $800 $847.39 a month in SSI working and earning $800.00 a month with Student Earned Income Exclusion Gross Earned Income $ 800.00 Student-Earned Income - $ 800.00 Countable Income $ 0.00 Base SSI Payment $ 847.39 Total Countable Income - $ 0.00 New SSI Payment $ 847.39 Gross Earned Income $ 800.00 New SSI Payment + $ 847.39 Total Gross Monthly Income $ 1,647.39

SSI and Impairment Related Work Expenses (IRWEs) An IRWE is something paid for by the individual, due to the disability, that is needed in order to work. Half of what spent for the IRWE will come back in the SSI payment.

Examples of IRWEs Co-Payments for Medication Co-Payments for Doctor’s Visits Cost of Specialized Transportation if needed to get to and from work Specialized Equipment needed as a reasonable accommodation at work, if the individual purchases or leases them

The SSI Calculation with an IRWE An individual living alone receiving $847.39 in SSI and earning $800 gross per month with a $50 per month IRWE: Work Income $ 800.00 - $ 85.00 $ 715.00 - $ 50.00 $ 665.00 /2 $ 332.50 $ 847.39 - $ 332.50 $ 514.89 Disregarded Income IRWE Countable Income Old SSI Amount Countable Income New SSI Amount

An SSI, Working and IRWE Example This person living alone and is earning $800.00 gross/month, plus they have an IRWE of $50: Income before working: $847.39 SSI Income after working: $ 514.89 Reduced SSI + $ 800.00 Earnings = $1,314.89 SSI & Earnings This is an increase of $467.50 a month as a result of working and using an IRWE!

REMEMBER! SSI recipients will always have more money to spend each month by working!

Healthcare Coverage 25

MassHealth Standard Eligibility for MassHealth Standard is based on income Adults with disability – income less than 138% of Federal Poverty Level or $1,367 per month SSI recipients are automatically eligible for MassHealth Standard MassHealth will count SSDI as income MassHealth is considered comprehensive coverage

Health Coverage under 1619b: SSI-1619b Health Coverage under 1619b: When the SSI check stops due to earnings, MassHealth benefits WILL NOT stop if: Earnings are below $39,662 per year (Blind Individuals $40,511) in 2016 AND; Assets remain below $2,000 (individual) or $3,000 (couple) AND; The individual remains medically eligible and uses MassHealth at least once a year.

MassHealth CommonHealth MassHealth CommonHealth is a program for people with disabilities whose earnings are too high for MassHealth Standard (Single = $1,367/month 2016) Individual must meet one of three eligibility criteria: Be working at least 40 hours per month Have worked 240 hours or more in the previous 6 months before application or review Meet a one-time deductible based on income if they are not working Must pay a monthly sliding scale premium based on gross income There is no income limit or asset test

What You Need to Report to SSA When you start or stop working Your monthly work income before taxes IRWEs, or other Work Incentives being used Other income (unemployment, child support, alimony, lottery winnings) Changes in living situation Change of address Change in Bank or Bank Account Hospitalization Incarceration

How to Report Earnings to Social Security Save all paystubs to submit to SSA and make copies for your own records (for SSDI & SSI) Mail or hand deliver paystubs to the local SSA office (for SSDI & SSI) Telephone Wage Reporting or Smart Phone App. (Only for SSI recipients who are not using work incentives)

Summary… When individuals work they will be better off financially! Earnings from work will affect benefits so be informed and stay on top of things. Work incentives can be used to help keep more of the SSI check. It is important to report any changes to Social Security so that the check is correct. Avoid overpayments and underpayments! Individuals will have access to healthcare when they work! Don’t make work decisions based on hearsay and myths! GET THE FACTS!

JobsWithoutLimits Job Seekers To get started visit: Are you a person with a disability looking for a job in Massachusetts? Work Without Limits is excite to announce the launch of their new job board. Jobs Without Limits is a unique online job site created to connect job seekers with disabilities with committed employers in Massachusetts. To get started visit: www.jobswithoutlimits.org

Website Resources BenePLAN Disability Law Center, Inc. SSA Red Book www.beneplan.org Disability Law Center, Inc. www.dlc-ma.org SSA Red Book www.socialsecurity.gov/redbook/ SSA Work Incentives www.social security.gov/work Medicare Cost Information www.socialsecurity.gov/pgm/links_medicare.htm MassHealth: 800-841-2900 www.mass.gov/masshealth One Care Information http://www.mass.gov/eohhs/consumer/insurance/onecare/

THANK YOU! Brian Forsythe, CWIC 508-856-2513 Brian.Forsythe@umassmed.edu