Common Pitfalls

Social Security has two disability benefits programs with very similar names:

• Supplemental Security Income (SSI) gives monthly payments to people with disabilities who have low income and low resources. You do not need to have worked in the past to get SSI.
• Social Security Disability Insurance (SSDI) gives monthly payments to people with disabilities who qualify because they used to work or have a parent who worked.

Some people qualify for both programs at the same time. If you get benefits from Social Security, but aren’t sure which ones you get, open a free my Social Security account or order a free Benefits Planning Query (BPQY) at your local Social Security office or by calling 1-800-772-1213 or 1-800-325-0778 (TTY).

Different agencies operate different disability benefits programs:

• The Social Security Administration (SSA) runs the Supplemental Security Income (SSI) and the Social Security Disability Insurance (SSDI) programs. If you need to talk with somebody about these programs, you can contact your local Social Security office.
• The Alaska Division of Public Assistance (DPA) runs the Adult Public Assistance (APA), Medicaid, SNAP (formerly Food Stamps), and Alaska Temporary Assistance Program (ATAP) programs. If you need to talk with somebody about these programs, contact your Division of Public Assistance (DPA) office.
• Other benefits may be run by other agencies. View the complete list of experts who can help you understand different programs.

When you apply for Supplemental Security Income (SSI) and Adult Public Assistance (APA) benefits, the decision can take a long time. You don’t want your applications to be denied because of some missing piece of information. Make sure you include contact information for all doctors, physical therapists, and others who have treated you for your disability.

However, you also want to apply as soon as you can, because if you are approved for SSI you will be paid your benefits for the entire time back to the date you applied. If you don’t have everything ready when you apply, that’s OK — go ahead and apply with as many details as you can, but be sure to send any missing information as quickly as possible.

Many people who get Supplemental Security Income (SSI) and Adult Public Assistance (APA) benefits are afraid to work because they think they’ll lose their benefits and Medicaid coverage. However, SSI and APA are designed to make work possible.

When you work, the Earned Income Exclusion means that you get to keep at least your first $65 in earned income each month without lowering your SSI or APA benefits at all. After that, every dollar of earnings only reduces your SSI or APA benefits amount by 50 cents, so you usually end up with more money than you would if you weren’t working.

If you earn enough that your countable income goes over the APA RC limit and you stop qualifying for APA-related Medicaid, you may be able to keep your Medicaid coverage through SSI’s 1619(b) rule or through the Working Disabled Medicaid Buy-In. Note: The APA RC limit is also called the "Expanded Refused Cash Income Limit." What it means is that you may qualify for APA-related Medicaid even if you don't qualify for APA cash benefits.

Even if you lose your Medicaid, you should either become eligible for employer-sponsored coverage or private individual coverage. And, if you can’t afford the individual coverage, the government may help you pay for it through tax credits.

Try DB101's Finding the Right Health Coverage for You interactive guide.

If you stop getting SSI benefits and then your job doesn’t work out, you may be able to get back on SSI benefits quickly through quick benefits restart or Expedited Reinstatement (EXR), as long as you still have a disability and meet other SSI rules.

The bottom line: Most people who get SSI and APA who go back to work end up better off.

Impairment Related Work Expenses (IRWEs) or Blind Work Expenses (BWEs) are expenses that allow you to work. These expenses are subtracted from your countable income when calculating your benefits amount. This means you get higher SSI and APA benefits.

You must have receipts or cancelled checks for all IRWEs or BWEs, otherwise they won’t be subtracted from your countable income. Make sure you always get receipts for all work expenses and file them with both Social Security and the Division of Public Assistance.

If you have any questions about IRWEs and BWEs or about how to tell Social Security about them, talk with a benefits planner.

If you have a change in your earned income, unearned income, resources, living situation, or marital status, you must report the change twice:

• To the Division of Public Assistance (DPA) by calling 1-800-478-7778, by fax to 1-888-269-6520, by email to hss.dpa.offices@alaska.gov, or in person at any Division of Public Assistance (DPA) office. For APA, report changes within 10 days of when you know about the change.
• To Social Security at the start of the month after the change. You can report:
  • In person, by phone, or by fax during the first 10 days of the next month.
  • Using the SSI Telephone Reporting System, the SSI reporting app, or My Social Security during the first 6 days of the next month.

Learn more about how to report changes.