Definition§
Disability Work Incentive refers to specific provisions under the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs designed to encourage beneficiaries with disabilities to return to work. These incentives help reduce the financial risk associated with attempting to reenter the workforce by providing continued support, such as healthcare coverage and protection from abrupt loss of benefits.
Examples§
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Trial Work Period (TWP): Allows a disabled individual to test their ability to work for at least nine months without losing their Social Security benefits, regardless of how much they earn during the period.
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Extended Period of Eligibility (EPE): Following the trial work period, beneficiaries receive a 36-month period where they can work and still receive benefits for any month their earnings are below the substantial gainful activity (SGA) level.
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Impairment-Related Work Expenses (IRWE): Allows the deduction of expenses related to enabling a disabled individual to work, which can include costs for special transportation, assistive devices, medications, and personal attendants necessary for the work.
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Medicare Continuation: Ensures that Medicare coverage continues for up to 93 months beyond the trial work period, regardless of the person’s work status, mitigating the risk of losing healthcare benefits.
Frequently Asked Questions (FAQs)§
What is the Trial Work Period (TWP)?§
The TWP allows you to test your ability to work for nine months while still receiving full Social Security disability benefits, no matter how much you earn.
How long does the Extended Period of Eligibility (EPE) last?§
The EPE lasts for 36 months after the nine-month trial work period. During this time, you can work and still receive benefits for any month your earnings fall below the substantial gainful activity (SGA) level.
What qualifies as an Impairment-Related Work Expense (IRWE)?§
IRWEs are costs you incur that are necessary for you to work, and they include expenses for transportation, assistive equipment, medications, and personal attendant care.
Will I lose my Medicare if I start working?§
No, Medicare will continue for at least 93 months after your nine-month trial work period, even if you continue to work.
What happens if I earn more than the SGA level during the EPE?§
If you earn more than the SGA level during the EPE, you might not receive a Social Security benefit for that month, but the benefits can be reinstated if your earnings fall below the SGA level during the EPE period.
Related Terms§
Substantial Gainful Activity (SGA): The threshold set by the Social Security Administration for determining whether an individual’s earnings are significant enough to disqualify them from receiving disability benefits.
Benefit Cessation: The point at which SSDI payments stop due to the beneficiary engaging in SGA following the trial work period.
Medicaid Buy-In Program: A program offered in many states that allows workers with disabilities to buy into Medicaid, ensuring they continue to receive necessary medical care.
Online References to Online Resources§
- Social Security Administration - Work Incentives for People with Disabilities
- Social Security Disability Benefits
- Ticket to Work Program
Suggested Books for Further Studies§
- “Disability and the Law: Policy and Regulatory Perspectives” by Peter Blanck
- “Social Security Disability Law: A Reference for Social Security Disability Claims Practitioners” by Thomas E. Bush
- “Work Disability in the United States: Understanding the Role of Social Insurance, Income Support, and Employment” by Ellen O’Brien
Fundamentals of Disability Work Incentive: Government Support Basics Quiz§
Thank you for exploring the provisions and significance of Disability Work Incentives within the Social Security framework. Continue to empower yourself with this knowledge and achieve excellence in your professional and personal endeavors!
