The Basics
You may have heard many myths about how working will affect your disability benefits and health care coverage. You may be afraid that you will lose your benefits if you work. You may be concerned about how to get your benefits back if you stop working or need to work fewer hours because of your disability. We want to give you the facts about those myths so you will feel comfortable and safe beginning, or returning to, work, and so you won’t worry about losing your benefits before you are ready.
The Social Security Administration has built many safeguards into their benefits programs that will let you begin working without losing your benefits. These safeguards are ways to keep your cash benefits and health insurance benefits, if you still need them, when you go to work or change the number of hours that you work.
- Myth #1: I can’t work because of my disability.
- Myth #2: I will lose my SSI/SSDI checks when I start to work.
- Myth #3: If I work, I will lose my health care benefits.
- Myth #4: If I start working, Social Security will decide I’m not disabled anymore.
- Myth #5: There are no resources that can help me find and keep a job.
- Myth #6: I can’t afford the extra costs of starting to work.
- Myth #7: I don’t need my benefits as long as I have a job, but if I have to stop working I won’t be able to get my benefits back.
Are You on SSI or SSDI? Why You Need to Know the Difference
People often get confused about the difference between SSI and SSDI—this is very common. It is important for you to know which program(s) you are on. This will help you understand which programs mentioned below will be able to help you. If you don’t know which program(s) you are on, see if these brief explanations will help you figure it out.
If you’re still not sure, you may want to request something called a Benefits Planning Query (BPQY) from your Social Security office. A BPQY statement has information about which disability benefits you receive, including your cash benefits, health benefits, and work history. For more information on BPQY, click here.
SSI is a ‘needs-based’ program. This means it is for low-income people with little or no income and assets. SSI pays up to $1,133.73 per month. You may know if you are on SSI if you have had little or no paid work history. Another sign is that you get your payment on the first of every month. If you are enrolled in the 1619(b) program, you are on SSI. People on SSI have a limit of $2,000 in assets. Click here for more information on SSI.
SSDI is also called "SSD" or ‘disability’ or ‘disability insurance benefit’. SSDI is like an insurance policy. When you work, a tax is deducted from your check, called FICA, which is how you pay into this insurance policy. If you become disabled, you can get cash benefits from SSDI. So, to be eligible for SSDI you must have worked in the past and paid FICA taxes. The cash benefit can be anywhere from $1 per month to more than $2,000 per month, depending on how long you worked and paid into this system. There are no unearned income or resource limit for SSDI. SSDI benefits are not paid on the first of the month. These benefits are paid on the third of the month or on the second, third or fourth Wednesday of the month. For more information on SSDI, click here.
The possibility of work for people with disabilities is more of a reality than ever before. Many people with disabilities have meaningful jobs that they enjoy and are successful at doing. With the right kind of training, preparation, and workplace accommodations, you can have a successful career. Not only will work let you earn your own money, it will also give you independence from public benefits. You will likely meet new people and make new friends at your job. You will have the opportunity to make choices about the type of job you want to do and where you want to work.
Here are some common myths about working, with explanations of how they can be misleading and often discouraging for people with disabilities who want to work. For more information on how working will affect your benefits, please talk to a benefits planner.
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Myth 1: I Can't Work
It is common to have fears about your ability to work. You may be nervous about leaving your house, finding transportation to and from work, and handling your new work schedule. It is normal to have these concerns, but there are many resources and laws that will support you.
Americans with Disabilities Act (ADA)
This law makes it illegal for employers to discriminate against people with disabilities if they are qualified for a job. This includes all areas of employment such as interviewing, hiring, firing, training, promotions, and benefits. Often, with reasonable accommodations you can be successful at more jobs than you may have thought possible. Employers are required by law to provide reasonable accommodations, but these accommodations will be different depending on each individual and each job setting.
Department of Rehabilitation (DOR)
DOR can help you prepare for, find, and keep a job. The services can be different depending on the individual. DOR will work with you to determine which services you will need and a DOR counselor will develop a plan with you to help you reach your work goals. If you get Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), DOR is also an example of an Employment Network at which you can use your Ticket to Work. Click here for more information on DOR eligibility and application process.
Job Coach
A job coachis a person who provides specialized on-site training to help you with learning and performing the job, and adjusting to the work environment.This person can help you with work-related concerns such as how to talk to your boss about questions you have on the job and what accommodations you may need. You might have a job coach through your Ticket to Work program, Department of Rehabilitation, or through another agency.
Disability Disclosure
People with disabilities often wonder if they should tell their potential employer about their disability at the interview, when the job is offered to them, after they are hired, or at all. According to the Americans with Disabilities Act, the only reason to disclose your disability is if you need to request a reasonable accommodation from your employer to perform an essential function of your job. There are many reasons you may want, or not want, to disclose your disability—this will be different with each person and each situation.
You may not have the option to not disclose your disability (for example, you may need to ask if the place of the interview is accessible or you may need an interpreter for the interview). If so, you will need to carefully write a disclosure statement to the employer. Remember to focus on your abilities, not your disabilities. You may want to talk to a benefits planner for more information on disclosing your disability.
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Myth 2: If I Work, I'll Lose SSI/SSDI
It is a common concern to be worried about starting work and not earning enough money to pay your expenses and, at the same time, not getting your SSI/SSDI checks anymore.
Both SSI and SSDI have rules to protect your benefits so you can try working and not worry about losing your cash benefits if you can’t keep working, or you need to work fewer hours. Some of these rules are the same if you are on SSI or SSDI, but most of them are different. It is important to know if you are on SSI or SSDI, or both. If you are not sure, you may want to request something called a Benefits Planning Query (BPQY) from your Social Security office to find out. For more information on BPQY, click here. You can also read the first page of this section, which has information on figuring whether you are on SSI or SSDI.
- SSI uses a Countable Income Calculation to determine your cash benefits based on your monthly total countable income. See the SSI and Work section for details on how this calculation works. Important note: if you are only on SSI, you will always make more money by working.
- Also, if you are under age 22, are going to school, are on SSI, and are working, you may be eligible for the Student Earned Income Exclusion (SEIE). This program will let you work while going to school and earn up to $2,220 per month without it reducing your SSI cash benefit. The maximum yearly exclusion is $8,950.
- Impairment Related Work Expenses (IRWEs) are disability-related expenses you pay out-of-pocket so that you can work. Some examples are: transportation expenses for persons with mobility disabilities, assistive technology, and specialized or modified office equipment (desks, phones, or computers). Click here for more examples of IRWEs. You may be able to deduct these expenses when calculating your income so your countable income is lower and you can keep more of your SSI cash benefits. To be deductible, the expense must:
o Be paid by you and not paid or reimbursed by another source
o Relate to a serious medical condition, and
o Be necessary; without it, you will be unable to work
- If you get SSI and have a specific work goal, you may be eligible for the Plan to Achieve Self-Support (PASS) program. This program will let you save your earnings or unearned income, like SSDI, for expenses related to your work goal. While using a PASS, you will keep getting your SSI benefits for living expenses. PASS funds have to be kept separate from your other money, and you have to keep records of your PASS expenses.
- The Social Security Administration provides special staff people, called PASS Cadre, to help you understand and coordinate your PASS. To learn more, read the DB101 article on PASS or contact a PASS Cadre.
- The Trial Work Period (TWP) will let you earn income while you keep getting your SSDI benefits. You have 9 months of TWP to use; they do not need to be in a row. This year if you earn more than $1,050 in a particular month, it counts as a Trial Work month. If you earn less than $1,050, it doesn’t. Either way, you keep getting your full SSDI benefits until you’ve used all 9 TWP months within a 5-year period. For more information on TWP, read DB101's SSDI and Work page.
- You may also be eligible for an Extended Period of Eligibility (EPE). The EPE begins the first month after your Trial Work Period ends and it will continue for 36 months in a row. During this time, if you earn less than the Substantial Gainful Activity (SGA) level ($1,470 per month in 2023; $2,460 if you are blind) in any of the 36 months, you will get your SSDI benefits that month. If you earn more than the SGA, you will not get SSDI benefits, but you will still be in SSDI eligibility status. That means if your earnings fall below SGA, your SSDI benefits can simply be restarted. For more information on EPE, click here.
- If you are on SSDI and have Impairment Related Work Expenses (IRWEs), Social Security may allow you to deduct the value of these expenses from your gross earnings after the Trial Work Period. Deducting your IRWEs may allow you to keep your SSDI benefits if it reduces your earnings below the SGA level.
- If you get SSDI and have a specific work goal, you may want to look at the Plan to Achieve Self-Support (PASS) program. This program allows you to save earned income and unearned income to pay for expenses related to your work goal. Note that you must be eligible, or become eligible, for SSI to qualify for a PASS. While using a PASS, you will continue to get your SSI benefits for living expenses. To learn more, read the DB101 article on PASS or contact a PASS Cadre.
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Myth 3: If I Work, I'll Lose Health Benefits
Losing your health care benefits can be a huge concern if you are thinking about work. However, there are several ways you can keep your health care benefits when you go to work. Many jobs will also offer employer-sponsored health care benefits. In general, you can keep your Medi-Cal or Medicare benefits when you start working. The sections below will explain several different options for health care benefits.
Medi-Cal Program
Keeping Medi-Cal is a big concern for people with disabilities who want to work. After you begin working, you may be able to maintain your Medi-Cal in several different ways. The following programs might help you keep your Medi-Cal coverage even if you make more money than usually allowed by Medi-Cal.
SSI 1619(b) Program
If you are eligible for SSI and you are working, your Medi-Cal coverage can continue under the 1619(b) program, even if your earnings become too high for SSI cash payments. However, you still have to stay under the SSI asset limit which is $2,000 for an individual; $3,000 for a couple. You can stay on this program until you earn $57,251 per year or more. In order to continue your Medi-Cal coverage under this program, you must:
- Have been eligible for an SSI cash payment for at least 1 month
- Still meet SSI requirements, like disability, blindness, or age, that don’t have to do with income
- Need Medi-Cal coverage to continue working, and
- Have less than $57,251 in gross earnings ($59,105, if blind) or have high medical expenses that will be evaluated on a case-by-case basis. Note that this program does not use the countable income calculation.
For information about 1619(b) eligibility, click here.
If you earn more than $57,251 per year ($59,105 if blind), you may be able to keep your Medi-Cal by enrolling in the Working Disabled Program.
Aged & Disabled Federal Poverty Level Medi-Cal
If you are not eligible for SSI, but you have a disability, you may be able to get Medi-Cal through the Aged & Disabled Federal Poverty Level Medi-Cal (A&D FPL) program. In order to qualify for A&D FPL Medi-Cal, you must:
- Be either aged (65+), or disabled (meet Social Security’s definition of disability, even if your disability is blindness)
- Have less than $130,000 in assets ($195,000 for a couple). Like SSI, this program does not count all of your assets. Click here for a list of exemptions.
- Have less than $1,677 in countable monthly income for an individual ($2,268 for a couple).
Read here for more information on the Aged & Disabled Federal Poverty Level Medi-Cal program.
Big changes for disability-based Medi-Cal categories with asset limits:
- On July 1, 2022, Medi-Cal asset limits increased to $130,000 for individuals, $195,000 for couples
- On January 1, 2024, these asset limits will be removed completely.
This applies to Medi-Cal through A&D FPL, the Working Disabled Program, and ABD–MN, as well as Medicare Savings Programs (MSPs). If you've been denied Medi-Cal or an MSP because you had too much in assets, try applying again.
Note: This doesn't change SSI-linked Medi-Cal or Medi-Cal through SSI 1619(b), as they still have SSI's $2,000 asset limit. And it doesn't change income-based Medi-Cal, which doesn't have an asset limit.
Working Disabled Program (WDP)
The WDP program is another great safeguard for people in the state of California with disabilities. The WDP program lets working people with disabilities qualify for Medi-Cal even though you may be earning more than allowed, or have higher assets than allowed under other types of Medi-Cal. Note: Medi-Cal's Working Disabled Program used to have a monthly premium. Starting on July 1, 2022, there is no more premium. Learn more about this change.
To qualify for the WDP program, you must:
- Have a disability that meets Social Security’s definition
- Be working
- Have assets worth less than $130,000 for an individual ($195,000 for a couple). Some assets are excluded for this program. Additionally, retirement funds like 401(k)’s are not counted as assets for this program. Click here for more about the asset rules.
- Have countable income less than 250% of the Federal Poverty Level. Disability income does not count for the WDP program. This means that SSDI, Worker’s Compensation, California State Disability Insurance, and any federal, state, or private disability benefits are not considered as income for this program, and
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Not be eligible for regular Medi-Cal, including 1619(b)
The WDP program is a great option if you like your current Medi-Cal coverage and get a job. You don’t have to be afraid you will lose your health coverage. Even if you are only working part time, you may qualify for this program. For more information on the WDP program and to see if you qualify, click here.
Aged, Blind, and Disabled – Medically Needy Medi-Cal
If you are aged, blind, or disabled, but your income is too high for other Medi-Cal programs, you may be eligible for Aged, Blind, and Disabled – Medically Needy Medi-Cal. For this program, you may need to spend a certain amount of your own money before Medi-Cal begins to pay for medical services. This payment is called a share of cost. To see if you are eligible and what your share of cost would be, click here.
Employer-Sponsored Health Care Benefits
You can enroll in your employer-sponsored health care plan and still keep your 1619(b) program and/or your WDP program. In fact, if the employer-sponsored plan requires you to pay a share of the cost, the state of California may pay for some or all of this if it is cost effective for them to have you covered in both health care plans (Medi-Cal and employer-sponsored). Click here for more information on the Health Insurance Premium Payment program. Read more about private health coverage here.
Medicare
If you have been on SSDI for 24 months or more, you are eligible for Medicare. There are three ways you can keep your Medicare benefits after you begin, or return to, work:
- A Trial Work Period (TWP) lets you work and keep getting your Medicare benefits. You have 9 months of TWP to use; they do not need to be in a row. If you earn more than $1,050 in that month, it counts as a Trial Work month.If you earn less than $1,050, it doesn’t. Medicare hospital insurance coverage continues for 93 months (7 years, 9 months) after the end of the Trial Work Period. For more information on TWP, click here.
- An Extended Period of Eligibility (EPE) begins after TWP ends and continues for 36 months in a row whether you are working or not. During the Extended Period of Eligibility you remain eligible for your Medicare benefits. After the end of your Extended Period of Eligibility, you remain eligible for Medicare as long as you continue to be eligible for your SSDI payment. If your SSDI payments stop you may be eligible for Extended Medicare. Talk to your local Social Security office about Extended Medicare. For more information on the EPE, click here.
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If you continue to receive your SSDI when you work, your eligibility for Medicare simply continues. You can also keep your Medicare even if earnings cause your SSDI check to stop, as long as Social Security still considers you disabled. If your SSDI stops due to work, you can keep your Medicare coverage for at least 7 years and 9 months from the end of your Trial Work Period. After that, if you still have a disability and would like to keep Medicare, you can maintain it by paying a monthly Part A premium. For more information on Medicare Part A, click here.
If your income goes up so much that you no longer qualify for Medi-Cal and you can't get Medicare or employer-sponsored coverage, the government may help you pay for a private health coverage plan on Covered California.
For more information, read DB101's Buying Health Coverage on Covered California article.
Note: There is no income limit for getting subsidies that help pay individual coverage premiums. (Before 2021, the limit was 400% of FPG for federal subsidies and 600% of FPG for state subsidies.) To get subsidies, you still must meet other eligibility rules and the premium amount you pay depends on your income and your plan.
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Myth 4: If I Work, I'll Lose Disability Status
You may have heard that if you are working, Social Security will assume you do not have a disability anymore and then you will not be eligible for any of their programs. This is not true. Although they may review your case, they will not automatically stop your benefits just because you are working.
Social Security will periodically review your case to decide if you still meet their definition for a disability and if you will be allowed to keep getting benefits. This is called a Continuing Disability Review (CDR). Social Security does not do these reviews just because you started working. CDRs are routinely scheduled for everyone who receives Social Security disability benefits. Social Security will probably do a CDR about every three years unless they expect your condition to change sooner than that. If they expect changes sooner, they may do a CDR more often. If they do not expect your condition to improve, Social Security can wait longer to do a CDR.
However, if you are using the Ticket to Work program, and you are meeting timely progress requirements, Social Security will not do a medical Continuing Disability Review while your ticket is still valid. For more information on the Ticket to Work program, click here.
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Myth 5: I Can't Get Help Finding Work
It can be difficult looking for and finding a job if you think you have to do it all on your own. Actually, there are several excellent resources to help you in the state of California, and also nationally. These organizations can help you prepare for your job search, can help you find a job right for you, and can give you advice and support services you need to keep your job.
America's Job Centers of California
America's Job Centers of California (AJCCs), formerly known as One-Stops, offer the tools, resources, and services you need for your employment, training, and other work related needs.There are over 200 centers around the state of California with knowledgeable staff to help you. Almost all services are provided for free.
AJCCs must provide assistace and accomodations for persons with disabilties, including:
- Accessible employment preparation services such as help with resume writing, job searching, referrals, educational resources, and networking opportunities
- Information on Social Security's Ticket to Work program
- Information to you about Medi-Cal and Medi-Cal’s Working Disabled Program.
Learn more about AJCCs or find a local America's Job Center of California (AJCC) (One-Stop).
The Department of Rehabilitation (DOR)
DOR can help you prepare for, find, and keep a job. To be eligible for DOR, you must have a physical or mental disability that makes it difficult for you to prepare for, get, or keep work. If you are eligible for SSI or SSDI based on your disability, and you are not at retirement age, you are eligible for DOR services. The services can be different depending on the individual. DOR will work with you to determine which services you will need and a DOR counselor will develop a plan with you to help you reach your work goals. DOR is an example of one Employment Network in which you can use your Ticket to Work. Click here for more information on DOR eligibility and application process.
Ticket to Work
The Ticket to Work program is designed to help people with disabilities find and keep work. If you are between 18 and 64 years old, and are getting SSI and/or SSDI, you can use a Ticket to Work from the Social Security Administration. With this program, you can get employment-related services and supports such as training, job placement, job coaching, and vocational assessments from an Employment Network. For more information on this program, click here.
Job Accommodation Network (JAN)
JAN, part of the Office of Disability Employment Policy, provides free consulting services to increase employment for people with disabilities by: 1) providing solutions for individualized worksite accommodations, 2) providing technical assistance regarding the ADA and other disability related legislation, and 3) educating callers about self-employment options. JAN also has one of the best websites nationally with information on reasonable accommodations. Click here for more information on JAN services.
Social Security Work Site
The SSA Work Site is a Social Security website with information on work, your benefits, and the Ticket to Work program. Click here to visit the SSA Work Site.
Guide for People with Disabilities Seeking Employment
This guide explains how the Americans with Disabilities Act applies to you when you are looking for a job. Click here to read more about this.
Goodwill Industries
Goodwill Industries provides services from personal evaluation and office skills training to career counseling, childcare, and transportation. Some of these centers also provide benefits planning services related to employment if you get Social Security benefits. To find locations, click here or call 1-800-466-3945.
California Independent Living Centers
Your local Independent Living Center might know of local resources to help you find a job. They can also provide information on reasonable accommodations, assistive technology, benefits, and many other types of disability-related information.
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Myth 6: I Can't Afford to Work
Sometimes you may need to pay for transportation to get to and from your job, or you may need to buy special tools or equipment for your job. The following programs can help you with these costs.
Impairment Related Work Expenses (IRWEs)
Impairment Related Work Expenses (IRWEs) and Blind Work Expenses (BWEs) are disability-related expenses you pay out-of-pocket so that you can work (see here for examples of IRWEs). You may be able to deduct these expenses when calculating your income so your countable income is lower. Lower countable income can let you keep your SSI benefit higher when you are working, or keep your SSDI check when you are earning more than Substantial Gainful Activity. Click here for more information on IRWEs.
Plan to Achieve Self-Support (PASS)
If you get SSI and/or SSDI and have a specific work goal, you may be eligible for the Plan to Achieve Self-Support (PASS) program. This will let you save money from your earnings and/or SSDI check for expenses related to your work goal. While using a PASS, you will be getting an SSI check for living expenses. PASS funds have to be kept separate and you have to keep records of your PASS expenses.
The Social Security Administration provides special staff people, called PASS Cadre, to help you understand and coordinate your PASS. For more information on the PASS program, click here.
Department of Rehabilitation (DOR)
Sometimes the DOR can help pay for the costs of assistive technology, tools, and/or equipment related to your new job. DOR will work with you to determine which services you will need and a DOR counselor will develop a plan with you to help you reach your work goals. Read more about the Department of Rehabilitation (DOR).
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Myth 7: If My Benefits Stop, I'll Never Get Them Again
If you are not able to continue working, or if you need to work fewer hours, you might be worried about having to go through the long process of applying for benefits again. Luckily, there are some helpful rules that allow your benefits to be restarted without your needing to reapply for benefits.
- If you are on the SSI 1619(b) program and your income drops below a certain level, you will be eligible for SSI cash benefits again without needing to re-apply. For information on the 1619(b) program, click here.
- Once you are no longer eligible for SSI and/or 1619(b), you may be eligible for Expedited Reinstatement (EXR). If your SSI benefits stopped because of your earnings from work, and you were eligible for SSI within the last five years, you can use EXR to begin getting SSI benefits again. Click here to learn about eligibility.
- Once again, the Extended Period of Eligibility (EPE) can help you here. The EPE begins the first month after your Trial Work Period ends and it will continue for 36 months in a row. During this time, if you earn less than the Substantial Gainful Activity (SGA) level in any of the 36 months, you will get your SSDI payment that month. If you earn more than the SGA, you will not get an SSDI check. No new application is required to get your SSDI benefits if your earnings are less than SGA. Click here for more information on EPE.
- You may also be eligible for Expedited Reinstatement (EXR). If your Social Security benefits stop because of your earnings, you can use EXR to get your SSDI benefits re-started, if you stopped working within five years of when your benefits terminated. Click here to learn about eligibility.