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Published on: September 30, 2020
Disability benefit coverage and program interactions in the working-age population.
Kalman Rupp1, Paul S Davies, Alexander Strand
1Division of Policy Evaluation, Office of Research, Evaluation, and Statistics, Office of Retirement and Disability Policy, Social Security Administration, USA.
The Supplemental Security Income (SSI) program significantly expands financial protection for working-age individuals facing severe disability. SSI increases overall coverage, enhances cash benefits, and improves access to health insurance, forming a crucial part of the disability safety net.
Area of Science:
- Social Sciences
- Economics
- Public Policy
Background:
- The U.S. working-age population has substantial Disability Insurance (DI) coverage, yet the role of Supplemental Security Income (SSI) in mitigating financial risks of severe disability remains understudied.
- Understanding SSI's contribution is crucial for accurate assessments of disability and health insurance coverage, and the overall well-being of disabled working-age individuals.
Purpose of the Study:
- To analyze the extent to which the Supplemental Security Income (SSI) program protects the working-age population against the financial consequences of severe disability.
- To investigate how SSI interacts with the Disability Insurance (DI) program and other social safety net programs to enhance financial and health insurance coverage for disabled individuals.
Main Methods:
- Analysis of the U.S. working-age population's coverage by DI and SSI, considering potential eligibility changes due to disability-related income loss.
- Examination of how SSI supplements DI benefits, including during the DI waiting period and for beneficiaries with lower DI payments.
- Assessment of the role of SSI in providing access to health insurance, particularly Medicaid, and its interaction with other social assistance programs like TANF and Food Stamps.
Main Results:
- Over one-third (36%) of the working-age population is covered by SSI in case of severe disability, significantly increasing overall protection.
- Combined DI and SSI coverage extends to approximately 90% of the working-age population.
- SSI enhances cash benefits by providing payments during the DI waiting period and supplementing lower DI benefits, and crucially, offers access to Medicaid, improving health insurance coverage.
Conclusions:
- The Supplemental Security Income (SSI) program plays a substantial and often overlooked role in protecting the working-age population from the financial hardships of disability.
- SSI's contributions include expanding coverage beyond DI, augmenting cash benefits, and improving health insurance access through Medicaid, thereby strengthening the social safety net.
- Policy and economic research on disability must incorporate SSI's multifaceted role to avoid inaccurate conclusions about financial security and well-being among disabled individuals.
