Thinking about work but worried about your benefits? You're not alone. Many people receiving SSI, SSDI, Medicaid or Medicare have questions about how employment may affect their benefits. Below are answers to some of the most common questions we hear.
While these FAQs provide general information, keep in mind that every situation is unique. Our free benefits webinars and individualized benefits counseling through the WIPA Program can help you understand how work may affect your specific benefits and employment goals.
1. Can I work and still receive my Social Security Disability Insurance (SSDI)?
Yes. Social Security encourages SSDI beneficiaries to test their ability to work.
The SSDI work incentives include:
- Trial Work Period (TWP): Allows you to test work and continue receiving your full SSDI check regardless of earnings.
- Extended Period of Eligibility (EPE): Provides a safety net if your earnings fluctuate.
- Expedited Reinstatement (EXR): Allows certain former beneficiaries to request benefits to be restarted without filing a new application if work stops.
Key takeaway: Many people can work and continue receiving SSDI benefits, at least temporarily, while testing their ability to work.
2. What happens to my SSI if I start working?
SSI benefits usually decrease gradually rather than stopping immediately.
Social Security does not count all your earnings when calculating your SSI payment. Several exclusions apply before earnings are counted.
In most cases:
- Working increases your total monthly income.
- SSI payments may decrease as earnings increase.
- Medicaid eligibility may continue even after SSI cash payments stop, if certain requirements are met.
Key takeaway: Earning wages almost always leaves an SSI recipient financially better off than not working.
3. Will I lose my Medicare if I work?
Not necessarily.
For SSDI beneficiaries:
- Medicare can continue long after cash SSDI checks stop due to work.
- Many beneficiaries qualify for Extended Medicare Coverage, allowing them to keep Medicare for several years after returning to work.
Key takeaway: Returning to work does not automatically mean losing Medicare coverage.
4. Will I lose Rhode Island Medicaid if I go to work?
Often, no.
Rhode Island Medicaid offers pathways that help individuals with disabilities maintain healthcare while working.
Examples include:
- SSI-related Medicaid protections.
- Medicaid continuation for certain individuals whose SSI cash benefits stop because of earnings.
- Ticket to Work/Sherlock plan Medicaid pathway allows workers with disabilities to obtain or maintain Medicaid, even with high earnings.
Because Medicaid rules can be complex and based on individual circumstances, beneficiaries should discuss their specific situation with a benefits counselor before making decisions about employment.
Key takeaway: Many Rhode Islanders with disabilities can work and keep Medicaid coverage.
5. When do I need to report my wages?
Report wages as soon as possible.
SSI recipients should report:
- Starting a job.
- Stopping a job.
- Changes in pay rate.
- Changes in hours worked.
SSDI beneficiaries should report:
- Work activity.
- Changes in job duties.
- Changes in hours or earnings.
Timely reporting, by the sixth of each month, helps prevent overpayments and ensures Social Security has the correct information.
Key takeaway: When in doubt, report. SSI and SSDI are reported separately.
6. What is an overpayment, and how can I avoid one?
An overpayment occurs when Social Security pays more benefits than a person was entitled to receive.
Common causes include:
- Failure to report wages.
- Delayed wage reporting.
- Changes in work activity that are not reported to Social Security.
- Changes in living arrangements or other eligibility factors.
Ways to reduce risk:
- Keep pay stubs.
- Report earnings timely, by the sixth of each month.
- Save copies of all reports submitted.
- Notify Social Security whenever employment changes.
Key takeaway: Report by the sixth of each month. Good recordkeeping is one of the best ways to prevent an overpayment.
7. Why should I contact a benefits counselor before accepting a job?
Every benefits situation is different.
A benefits counselor can help you understand:
- How wages may affect SSDI or SSI.
- Healthcare protections available through Medicare and Medicaid.
- Work incentives you may qualify for.
- Potential impact on SNAP, housing assistance, and other benefits.
- Reporting requirements.
Key takeaway: Getting individualized benefits counseling can help you make informed decisions and avoid surprises. Benefit counseling is provided with no cost to you.
Need a personalized answer? The impact of work depends on your specific situation and benefits.
8. Where can I get benefits counseling?
The Sherlock Center's WIPA program provides individualized benefits counseling for eligible Social Security disability beneficiaries.
If you are employed or are close to employment and have specific questions:
- Call the Ticket to Work Help Line: 1-866-968-7842
- If you are a consumer of ORS services, discuss benefits counseling with your VR counselor.
- If you are a BHDDH Department of Development Disabilities Services consumer, submit an EERF form.
Do you have a question that's not answered here? Join an upcoming webinar or reach out to us here at the Sherlock Center: 401-456-8072 or email sherlockcenter@ric.edu.
Many people receiving SSI or SSDI are interested in working but aren't sure how employment will affect their benefits. Our website includes some great resources, including free benefits videos and webinars to provide basic information about work incentives, reporting wages, health care coverage and other common concerns. Register for an upcoming webinar.