Busting the Myths About Disability Benefits and Work Presented by Gene Rada and Paula Fitch The Work Incentives Network 1

Why work? Benefits programs are only meant to provide for the basic necessities of living: food, shelter and medical care Receiving public benefits only often means poverty o SSI check ($733/2015) is 25% below the federal poverty level o Average SSDI check ($1165/2015) is only 18% above federal poverty level Employment is a way out of poverty and allows people to THRIVE not just SURVIVE Other benefits to employment o Social connection o Sense of purpose o Better mental and physical health 2 Oregon Vocational Rehabilitation Program

Bust the Myths Combination of public benefits create a basic safety net Each benefit has it’s own set of work rules Complexity of the rules create MYTHS! 3 Oregon Vocational Rehabilitation Program

Know the Facts Benefit programs have work rules that support working- Work Incentives Don’t let the complexity and myths be a barrier to employment Know and Share the FACTS 4 Oregon Vocational Rehabilitation Program

The Basics: SSDI Payment and Medicare SSDI – Cash Benefit : Meet SSA definition of disability, and Be “insured” or draw off “insured” worker who is disabled, retired, deceased Check amount based on work history No asset test SSDI – Health Insurance : Medicare (after 24 month waiting period) SGA is a consideration, but only sometimes SGA is $1090 per month for Oregon Vocational Rehabilitation Program

SGA Countable Income Summary The Basic SGA Test $ Gross Wages (earned in a month) (-) $ Sick/Vacation/Holiday pay (-) $ IRWE (-) $ Subsidy/Special Conditions (-) $ Unincurred Business Expenses/Unpaid Help (=) $ Countable Earnings SSA uses Countable Earnings to determine if earnings are above or below SGA Income counted when it is EARNED 6 Oregon Vocational Rehabilitation Program

THE BASICS: SSI AND MEDICAID SSI – Cash Benefit: Meet SSA definition of disability; Little to no assets (less than $2,000-individual); Little to no income (countable income less than $733individual/2015); Check amount-maximum $733 (individual/2015), lower if other income SSI – Health Insurance: Medicaid (OHP+) SGA is NOT a factor AFTER SSI eligibility is obtained Income is counted when received 7 Oregon Vocational Rehabilitation Program

8 MYTHS AND THE REAL FACTS Myth #1: Benefit Program Rules Determine How Much I can Earn FACT #1: Combining Several Work Incentives can Support you in Reaching your Work and Financial Goals! o What are the beneficiaries life goals? Financial goals? o Determine your work goal (type, amount, wage) 8 Oregon Vocational Rehabilitation Program

8 MYTHS AND THE REAL FACTS Myth #2: I will lose my SSDI if I work FACT #2: Work Incentives exist that allow you to maintain the SSDI check or eligibility status when you work: o Trial Work Period o Extended Period of Eligibility o Impairment Related Work Expenses, Subsidy, Unsuccessful Work Attempts 9 Oregon Vocational Rehabilitation Program

8 MYTHS AND THE REAL FACTS Myth #3: I’ll lose my Medicare if I work FACT #3: There are 2 Work Incentives that allow you to maintain Medicare indefinitely! o Extended Period of Medicare Coverage o Medicare for People with Disabilities Who Work 10 Oregon Vocational Rehabilitation Program

8 MYTHS AND THE REAL FACTS Myth #4: I get SSI and have heard I will have less money when I work FACT #4: Work Incentives exist to make sure you financially get ahead when you work o Basic deductions: General Income Exclusion, Earned Income Exclusion, One-Half Disregard o Additional deductions: Student Earned Income Exclusion, Impairment Related Work Expenses, Blind Work Expenses 11 Oregon Vocational Rehabilitation Program

8 MYTHS AND THE REAL FACTS Myth #5: I have to keep a $1 of SSI or I’ll lose my Medicaid (OHP+) FACT #5: If EARNINGS cause SSI to drop to $0, you can KEEP MEDICAID! o 1619b- earn at least $33,098/year (2015) and keep Medicaid o Employed Persons with Disabilities- earn at least $59,870/year and keep Medicaid (2015 Estimate) 12 Oregon Vocational Rehabilitation Program

8 MYTHS AND THE REAL FACTS Myth #6: There are not any resources to help me reach my work goal of self-sufficiency FACT #6: There are work incentives that match funds you set aside to pay for work expenses o Plan for Achieving Self Support o Individual Development Account 13 Oregon Vocational Rehabilitation Program

8 MYTHS AND THE REAL FACTS Myth #7: If I work I’ll end up with an overpayment FACT #7: There are strategies to prevent overpayments o Report regularly; o Get a receipt from SSA to document you reported; and o Create a folder to save paystubs and SSA letters 14 Oregon Vocational Rehabilitation Program

8 MYTHS AND THE REAL FACTS Myth #8: The SGA dollar amount limits the amount I can work FACT #8: Many work incentives exists to enable an individual to earn far more than the SGA dollar amount o 1619a eliminates SGA as a consideration for SSI beneficiaries o TWP, IRWES, Subsidies, Sick Pay, Vacation Pay all act as “deductions” and reduce the countable income of SSDI beneficiaries 15 Oregon Vocational Rehabilitation Program

Benefits Planning Programs in Oregon The Work Incentives Network o To Refer: Referrals typically happen through local VR branch Self referrals are OK, but must be a participant of VR services o Questions about program: Paula Fitch at Gene Rada at Plan for Work (Disability Rights Oregon) o To Refer: Call , x227 or , x227 o Questions about program: Arlene Jones: 16 Oregon Vocational Rehabilitation Program

Other Resources The Redbook o Legal Aid Services of Oregon o o Public Benefits Hotline: Plan to Achieve Self Support o o PASS Cadre (Northwest): Oregon Vocational Rehabilitation Program