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By John M. Bigler Supplemental Security Income, better known as SSI, has seen recent adjustments that can seriously affect an individual's benefit. And there are ways of maximizing the benefit, which many recipients aren't aware of. SSI is a federal program created in the early 70s for the purpose of removing the aged, blind and disabled poor from the welfare program and putting them in what was supposed to be a more benevolent federal program. SSI has financial requirements similar to the Medicaid program. In order to be eligible, an individual is entitled to $2,000 in assets and an additional $1,500 burial fund. If qualified, a person living alone can receive as much as $600 per month. The benefit rate decreases if you are living with others or in the household of others.
Prior to 1988, an individual attempting to qualify for SSI was subject to a period of ineligibility if that person had transferred assets prior to the application. However, in 1988, Congress passed a law that in part eliminated the period of ineligibility for transferring assets prior to an SSI application. The same law eliminated penalties for community based Medicaid services, a subject that I have discussed in previous articles. As of the year 2000, a new law has re-instated a period of ineligibility for transfer of assets prior to an application for SSI. Those now applying need to be aware that they will be subject to a period of ineligibility. This period of ineligibility is determined by taking the amount transferred or gifted and dividing that number by the average monthly benefit received from SSI. The resulting penalty will be the number of months of ineligibility. For example, if an individual transferred $6,000, and the average monthly benefit in New York is $600, then there would be a period of ineligibility of 10 months. One positive is that no matter how high the answer in the equation, the most the period of ineligibility can be is 36 months. If an applicant for benefits can show that a transfer was made for a reason other than SSI eligibility, then no period of ineligibility will be imposed. Also, if it can be shown that fair market value was received for the transfer, then there's no penalty. And, if the applicant is able to show that undue hardship will result from the denial of benefits, that applicant can be successful. A second concern for SSI recipients is the proper amount of benefits received. A person determined to be living in the household of others will have their benefit reduced by $200 or more per month. The local Social Security district office awards the maximum rate to those who live alone. They presume that an individual livingin the household of others, especially the household of parents or other relatives, is entitled to the lesser amount. It's up to the recipient to provide evidence that, although they're living in a household with others, they're paying their fair share of the expenses and therefore should be entitled to the benefit of an individual living alone. This can be true even if an individual isn't making actual payments to the other household member. A disabled adult child may be living in the home of his parents and with the meager income being received from SSI not have the financial ability to make monthly payments of room and board. In such a situation, the SSI recipient can present documentation to the local district office showing that room and board are being provided as a loan. He or she will be given the opportunity to explain that the loan will be repaid. I urge anyone who's receiving SSI benefits at less than the maximum rate to consult with someone who understands the program as to the possibility of maximizing those benefits. A legal services attorney is often familiar with the intricacies of the SSI program and can be of help. The SSI program, designed for the aged, blind and disabled, provides additional income for those who need it most. It's unfortunate that when laws change, complexities develop and can often result in those most needy not having full access to the benefits available. This program was originally designed so that this class of people wouldn't be subject to the indignities to which welfare recipients are often subjected. At this point, that objective has yet to be achieved. Reprinted with permission of the Suffolk Times © 2000 [ Contact Us ] [ Guestbook ] [ Email ]  The Law Offices of John M. Bigler, Attorney At Law 1421 Wantagh Avenue, Wantagh, New York 11793-2206 1-888-ELDER-LAW · 516-409-6565 · Fax: 516-409-6522 E-Mail: info@biglerlaw.com · Web Site: www.biglerlaw.com |
Individuals over 65 who aren't eligible for Social Security Retirement (SSR) benefits or whose retirement benefits are less than the SSI rate are eligible for benefits as well. And younger disabled individuals who may not have a work record and are therefore not eligible for Social Security Disability (SSD) benefit can be eligible. Individuals who fit both thes categories are not only entitled to a monthly benefit, but automatically qualify for Medicaid coverage.