Can’t Afford to Take Time Off?

A cancer diagnosis can bring a lot of unexpected expenses. And if you have to take Triage Cancer Blog SSA Disability Insurancetime off work, how do you still pay your bills? Disability insurance can help you manage the costs of a cancer diagnosis.

However, navigating the various disability insurance options can be a challenge. The first step is to learn about the different types of disability insurance you may be qualified to receive.

If you are unable to work because of your medical condition, depending on your diagnosis, time spent working and contributing to the Social Security retirement system in the past, you may be eligible for federal disability benefits through Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), state disability insurance programs, disability insurance offered by your employer, or private disability insurance that you buy directly from an insurance company.

SSDI is a federal program through the Social Security Administration (SSA) that provides a monthly payment for those who have worked for a sufficient amount of time, contributed to the Social Security retirement system by paying taxes, and meet SSA’s definition of disability. After receiving SSDI benefits for two years, recipients are also entitled to Medicare.

SSI is also a SSA program that pays monthly benefits to the elderly, blind, and people who have disabilities and very low income and assets. These payments begin immediately, and you would be able to receive them during the SSDI waiting period if you qualify for both SSI and SSDI. Typically, people who receive SSI benefits and are eligible for Medicaid.

Both the SSDI and SSI programs have the same standard of “disability.” To be considered “disabled” by Social Security, you must be “unable to engage in any substantial gainful activity (or any work activity where you earn more than $1,130 in 2016) by reason of any medically determinable physical or mental impairment that is expected to result in death or has lasted, or can be expected to last, for a continuous period of 12 months.”

If you are approved you will receive a letter with a date of “disability onset,” this date is the date that SSA believes your disability began and the start date of your “waiting period.” You must wait five months from this date before you will begin to receive SSDI benefits. Your monthly disability payment is calculated using a formula that takes into account how much you have paid in Social Security taxes over your work history.

If your initial application for SSDI or SSI is not approved you have the option of appealing the denial. In most states you can request a reconsideration of your application. If you are still denied, you may request a hearing by an administrative law judge (ALJ). If you are deemed disabled after appeals processes, you may receive retroactive payments.

In addition to the federal disability insurance programs, some states offer state disability insurance. California, Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico offer short-term disability insurance benefits to those who are unable to work due to a medical condition.

Private and employer-sponsored disability insurance is another option for you to consider. Private insurance is available for purchase directly from an insurance company. In some cases, employers offer both short and long-term disability coverage for their employees. A policy usually provides regular payments that replace a portion of your salary. One important thing to note is that you may qualify for your employer-based policy, even if you don’t qualify for SSDI or SSI.

Resources

Triage Cancer has resources to help you find out more about disability insurance and how it can help you:

  • Review our quick guide on Disability Insurance to see what type of disability insurance benefits might be available to you.
  • We also have a recent webinar, Demystifying Disability Insurance, delivered by Monica Bryant, Esq., CEO of Triage Cancer, which provides more detailed information on these options!

For more information about the Social Security Administration’s disability benefits, visit: www.ssa.gov/disabilityssi or read this guide: www.ssa.gov/pubs/EN-05-10029.pdf.

How disability insurance can help pay the bills

disability insuranceOne common concern after receiving a cancer diagnosis is, “How can I continue to earn a living if cancer leaves me unable to work, either for the short-term or long-term?” Disability insurance can provide you with some income when a medical condition, including cancer, leaves you unable to work. The federal government, some state governments, and private insurance companies offer different types of disability insurance benefits.  The key is to figure out which one fits best with your needs and situation. Federal disability insurance includes two programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), which are both administered by the Social Security Administration (SSA).  In order to receive federal SSA disability benefits, your cancer diagnosis and/or side effects from treatment must keep you from working on a  long-term basis, which is at least one year or longer.  You can receive SSDI benefits if you are “insured,” meaning that you have a long enough work history and have paid Social Security taxes.  You are able to receive SSI benefits, if you have a low income, and are age 65+, or blind, or have a disability. If you live in California, Hawaii, New Jersey, New York, Puerto Rico, or Rhode Island, you may qualify for short-term disability insurance from the state.  The amount varies per state, but the maximum amount of time that you can receive benefits for a short-term disability is between six to twelve months. Private disability insurance is another option for both short-term and long-term disability insurance benefits, and can be purchased directly from an insurance company or it can be available to you as an employee benefit from your employer.  Some individuals choose to purchase private disability insurance to supplement state or federal disability benefits, since they typically only pay a portion of a person’s income.  For example, the average payout from Social Security benefits is only about 40% of a person’s salary and some state disability insurance programs only pay about 50% of a person’s salary. For a quick guide to disability insurance, click here. For more information about SSDI, click here. For more information about SSI, click here. To find your state disability insurance program, click here.

Medicare Open Enrollment

medicareandyoucover2-300x225Medicare is a government sponsored health insurance program for most people who are 65 years old and older, or for individuals with a disability, who have been collecting Social Security Disability Insurance (SSDI) for at least 2 years.

Medicare can be confusing to navigate because its coverage is broken into four parts:

  • Part A covers inpatient hospital stays
  • Part B covers outpatient medical services
  • Part C (also known as Medicare Advantage Plans) allows beneficiaries the option of receiving their Medicare benefits through private health insurance plans and combines the coverage of Part A and Part B (meaning that if you have Part C, you do not also need A, B, and D)
  • Part D covers prescription drugs.  Anyone with Part A or B is eligible for Part D

Parts A and B are typically referred to as Original Medicare.  Everyone who is eligible and has paid into the system gets Part A and is automatically enrolled after age 65.  For most people there is no charge for Part A.  To receive Part A for free you generally have had to pay into Medicare for 10 years (40 quarters).  However, if you would like Part B, Part C (Medicare Advantage) and/or Part D you need to take proactive steps to enroll.  There is a fee for each of these Parts.  The standard 2014 premium for Part B is $104.90.  The premiums for Parts C and D will vary depending on the plans you choose.

Each year, during a period of Open Enrollment, you can sign up for a new plan or make changes to your existing plans.  Open enrollment starts October 15, 2013, and ends December 7, 2013.  While you don’t have to make changes this is your opportunity to review your coverage and change plans if you choose.

To find out more about when you can join or change a plan, click here.

To find out more about your Medicare coverage choices, click here or review this Medicare and You 2014 booklet.

Go to www.Medicare.gov to enroll in Medicare, check your current enrollment and compare your coverage options.