What Should You Do If Your Disability Benefits Run Out?
Key takeaways:
The U.S. Social Security Administration provides disability benefits through two programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
If your benefits run out, you can appeal the decision.
SSI can provide financial support if you lose disability benefits. You must meet income and resource requirements.
The Social Security Administration (SSA) has two programs for disability: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Both disability programs require that your impairment is expected to result in death or last at least 12 months. The SSA’s own network of doctors and experts make this decision.The SSA’s programs cover about 8.1 million disabled workers and 1.4 million dependents. The average monthly payment is $1,280 as of June 2021.
Below, we will look at how these programs work and what happens if your benefits run out.
Can your disability benefits run out? What happens if they do?
Yes. Your disability benefits can run out. You will lose your benefits when the following situations occur:
You are able to go back to work.
You are incarcerated.
You are at full retirement age. You will then collect Social Security retirement benefits.
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The SSA periodically reviews disability cases. The agency wants to make sure the beneficiary is complying with its rules. The frequency of the reviews depends on the nature and severity of the disability. Here’s a general timeline:
| Improvement status | Estimated frequency of reviews |
|---|---|
| Expected | 6 to 18 months after the disability |
| Possible | Roughly every 3 years |
| Not expected | Every 7 years |
After the SSA reviews your disability case, it will send you a letter indicating whether your disability benefits will continue or be terminated.
What should you do if your disability benefits run out?
If the SSA terminates your SSDI or SSI benefits, you have the right to appeal the decision. You must file a response within 10 days of receiving the letter.
There are four levels of an appeal. You must complete each step before moving to the next one:
Reconsideration: This is an online appeal. The application form takes about 40 to 60 minutes to fill out. The reviewer of your claim will be someone who did not participate in the original decision.
Hearing: An administrative judge will preside over this proceeding. They will have not participated in the prior decisions. The hearing can be online or at an SSA office.
Review by the Appeals Council: You apply online, which can take 10 to 15 minutes. The Appeals Council will either reject your request, rule in your favor, or return the case back for another hearing at a lower court for reconsideration.
Federal court review: You can file a civil suit in federal court. You cannot file your complaint online.
If the appeals do not work, you can apply for SSI. You do not have to be disabled. However, you will need to meet the following resource and income requirements:
Limited resources: Your countable assets must be lower than $2,000 if you are single, or $3,000 if you are married. This typically does not include your home, car, and household items.
Limited Income: The monthly federal benefit rate (FBR) is $841 if you are single and $1,261 if married. You must subtract wages, self-employment income, Social Security benefits, pensions, and other income from this amount.
How do you know if you have short- or long-term disability benefits?
Your disability benefits are short-term if they are temporary, such as 3 to 6 months. The maximum time frame for short-term disability benefits is generally 1 year.
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Some states like California have a payroll tax to pay for short-term disability. But it’s more common for employers to provide this type of insurance.
Long-term disability is for those who have prolonged problems. You can buy this insurance directly from an insurance company, or an employer may provide this benefit. Long-term disability insurance has fixed limits for coverage like 5, 10, or 15 years.
SSDI and SSI are not considered short- or long-term disability insurance.
Do you need Social Security Disability Insurance (SSDI)?
If you meet the definition and requirements for disability, then you should apply for SSDI.
The SSDI program does not prohibit you from receiving other benefits or private insurance. However, there could be offsets, such as with workers’ compensation. This reduces your combined benefits to about 80% of your earnings prior to your disability.
Can Supplemental Security Income (SSI) help cover lost disability benefits?
It depends. You can receive SSI if you are disabled and meet the financial requirements. This benefit will provide a modest amount of replacement for your income. In 2020, the average monthly amount was $576 for a disabled person.
If you receive SSI, you may qualify for the following:
Medicaid: State and federal governments manage this healthcare program. The benefits are for adults with low incomes, pregnant women, and children.
Supplemental Nutrition Assistance Program (SNAP): The USDA Food and Nutrition Service manages SNAP benefits to help individuals and families pay for food. You can apply for the program at a local SNAP office.
If you lose disability benefits, can you appeal the decision?
Yes, you can. You can handle the process yourself or appoint someone to represent you during the Social Security appeals process. This is usually an attorney who has experience with disability law.
You must sign a statement to name your representative. The SSA has a form for this.
There are legal services and community organizations that provide representation without charge. The SSA can provide referrals. Examples include:
Local bar associations
Legal aid societies
Legal service corporations
If you file a federal civil suit, you will need to hire an attorney. This can cost thousands of dollars. A case can also take several years until there is a ruling.
What are the different types of disability benefits?
The table below shows the various benefits available:
| Benefit programs | Description |
|---|---|
| Supplemental Security Income (SSI) | Needs-based federal program |
| Social Security Disability Insurance (SSDI) | Federal program that requires work credits based on Social Security taxes paid |
| Workers’ compensation | State program for job-related illnesses and injuries |
| Short-term disability | Typically, private or employer-sponsored insurance that covers a person’s disability for less than 1 year |
| Long-term disability | Typically, private insurance that covers a person’s healthcare costs for a prolonged disability |
| Mortgage disability | Private insurance that covers part or all of your mortgage payments if you are disabled |
Source: Medicare.gov
Who is eligible for SSDI or SSI? How do you apply?
Generally, you need 40 work credits to qualify for SSDI, and 20 of them must have been earned during the past 10 years. But there are lower requirements if you are age 31 or younger.
You also need to meet one of the following:
Blind or have low vision
Disabled and under 65 (Applies to the family)
Disabled widows or widowers (Must be age 50 or over and deceased spouse needs to meet SSA work requirements)
Adult disabled before age 22 (The parent or grandparent must either have Social Security coverage and is disabled, retired, or has died)
SSI is a needs-based program. You do not have to meet any work requirements with the SSA. The program is available to those who are:
Disabled
65 or older
Blind
To apply for SSA disability programs, you have the following options:
Phone (1-800-772-1213)
Visit a local Social Security Administration (SSA) office
Can you collect disability and Social Security at the same time?
No. Your SSDI benefits will automatically convert to Social Security retirement benefits.
But you may want to keep your SSDI rather than take an early retirement. While you can get benefits when you turn 62, the SSA will reduce them if you haven’t yet reached full retirement age. You will not get full benefits until you turn 70.
This chart shows the reduction in your benefits if you retire early:
| Date of birth | Full retirement age based on the year you were born | Months between age 62 and full retirement age | Estimated amount your benefits are reduced | An estimated monthly benefit of $1,000 at full retirement age would be reduced to … |
|---|---|---|---|---|
| 1943-1954 | 66 | 48 | 25.00% | $750 |
| 1955 | 66 and 2 months | 50 | 25.83% | $741 |
| 1956 | 66 and 4 months | 52 | 26.67% | $733 |
| 1957 | 66 and 6 months | 54 | 27.50% | $725 |
| 1958 | 66 and 8 months | 56 | 28.33% | $716 |
| 1959 | 66 and 10 months | 58 | 29.17% | $708 |
| 1960 and later | 67 | 60 | 30.00% | $700 |
Source: SSA.gov
The bottom line
If your disability benefits run out, you can appeal the decision. The SSA has four levels in the appeal process.
You can appoint someone to represent you. This is often an attorney. But the SSA has referrals for organizations that provide free help.
If your appeal does not work, you may be eligible to apply for SSI. This program is for those with limited income and resources. You may also qualify for Medicaid and SNAP.
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References
Food and Nutrition Services. (n.d.). SNAP state directory of resources. U.S. Department of Agriculture.
Social Security Administration. (n.d.). Appeals council request for review.
Social Security Administration. (n.d.). Apply online for disability benefits.
Social Security Administration. (n.d.). Disability appeal.
Social Security Administration. (n.d.). How do we define disability?
Social Security Administration. (n.d.). How you qualify.
Social Security Administration. (n.d.). Retirement benefits.
Social Security Administration. (n.d.). Starting your retirement benefits early.
Social Security Administration. (2020). Instructions for completing form SSA-1696.
Social Security Administration. (2021). Fact sheet.
Social Security Administration. (2021). SSI annual statistical report, 2020.
Social Security Administration. (2021). What you need to know when you get social security disability benefits.
Social Security Administration. (2022). Spotlight on resources -- 2022 edition.
Social Security Administration. (2022). SSI federal payment amounts for 2022.
Social Security Administration. (2022). Understanding supplemental security income appeals process -- 2022 edition.
Social Security Administration. (2022). Understanding supplemental security income how someone can help you with your SSI -- 2022 edition.
Social Security Administration. (2022). Understanding supplemental security income SSI eligibility requirements -- 2022 edition.
