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Social Security Benefits for
your Disabled Child
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PDF VERSION |
By: Barbara A. Isenhour and Sean R. Bleck
Who is Eligible for Child
Disability Benefits?
The most common income
benefit for disabled children and adults is the Supplemental Security Income
(SSI) program. Some disabled individuals are able to qualify for a different
(and usually more generous) income benefit called Child Disability Benefits (CDB).
This income benefit is only available to a disabled person age 18 or over who
is:
·
the child of a parent who is
currently receiving Social Security Disability Income (SSDI) or Social Security
Retirement Income (SSRI) or;
·
the child of a deceased parent who
was insured for Social Security benefits at the time of the parent’s death; and
·
was disabled before the age of 22
and remained continuously disabled until the parent became disabled, retired or
died; and
·
the child does not marry, unless the
spouse is also receiving social security benefits.
If the CDB is based upon the
parent’s disability, the child’s benefit will end if the parent no longer
qualifies for SSDI benefits because the parent’s disability ended. Natural and
adopted children can be eligible for this benefit and in some cases a step-child
or grandchild can qualify depending upon whether the stepparent or grandparent
supported the disabled child/grandchild before qualifying for SSDI or SSRI
benefits (or before dying).
Benefit Amount
The CDB benefit for the
child of a disabled or retired worker is 50% of the parent’s benefit amount.
The CDB benefit for the child of a deceased worker is 75% of the parent’s
benefit amount. If both parents are insured and either disabled, retired or
deceased, the child’s benefit amount will be calculated based upon the higher
account of the two parents.
In some cases the CDB benefit
may be reduced by the Family Maximum Amount (FMA). This is a cap on the total
benefits that the Social Security Administration will pay to the family,
including the insured worker, the spouse and other children if applicable. The
FMA cap is usually between 150% to 200% of the insured worker’s benefit amount.
Typically the CDB benefit is
higher than the SSI benefit amount ($674 for 2009).
Unlike SSI there is no asset limit for the CDB benefit. The child will be
eligible for Medicare 24 months from when the CDB benefits began, so the
earliest a child could receive Medicare based upon the parent’s account would be
age 20.
Medicaid and CDB Benefits
If a child was receiving SSI
and Medicaid at the time the child qualified for CDB, they can continue to
receive Medicaid as long as the child’s assets remain below the Medicaid asset
limit. Under a law called the Pickle Amendment, Medicaid will not count the CDB
income in calculating if the child has a co-payment or “spend down” for medical
coverage.
Disability Standard
The standard to be considered
“disabled” by the Social Security Administration is the same as to qualify for
SSDI benefits. The Social Security Administration must agree that the child was
unable to work for at least the next 12 months in standard gainful employment.
In assessing disability the Social Security Administration takes into account
the person’s age, education, and prior work history. Substantial gainful
employment occurs if the child earns gross income of at least $980 per month
($1,640 if blind) for 2009. This amount is adjusted annually.
In some cases it can be
difficult to prove that the child was disabled before age 22, especially if they
did not apply for SSI and Medicaid benefits before that age. School records and
medical records can be important to establish the date of disability in many
cases.
For the CDB it is important
that the child be continuously disabled before age 22. If for example, a child
worked in substantial gainful employment for a year after graduating from high
school and then applied for CDB benefits at age 20, they will not meet the
requirement of being continuously disabled before age 22. If a child is
receiving CDB benefits, however, and is then able to work after age 22, they can
reapply for CDB benefits if they cannot maintain employment. If a child is able
to work successfully at substantial gainful employment and is earning sufficient
income the Social Security Administration may eventually terminate the CDB
benefit on the basis that the child is no longer disabled.
Examples
The following are a few brief
examples of the CDB program:
- Sally is 35 when her
father, Tom, retires from Boeing. Sally has been diagnosed with Cerebral
Palsy since birth. At age 18 Sally qualified for SSI and Medicaid benefits
because of her disabilities. Tom’s SSRI benefit is $1700 per month. Sally
will be eligible for one half of that amount or $850 per month. (The
combination of Sally’s benefit amount and Tom’s do not hit the FMA so Sally’s
benefit amount is not reduced).
Sally will not longer receive SSI of $674 per month when her CDB starts. She
will start receiving Medicare two years after her CDB benefit starts. As long
as Sally’s assets remain below $2000 she can keep her Medicaid benefits with
no spend down or co-payment even though her income exceeds the Medicaid spend
down limit of $674 (Medically Needy Income Level or MNIL).
- Sally’s father dies when
she is 40. Her CDB will increase to $1,275 or 75% of Tom’s benefit at the
time of his death.
- Sally is able to work for
two years and earns sufficient income so that she cannot keep her CDB. After
two years her health problems prevent her from continuing to work. She can be
re-instated in the CDB program when her employment ends.
- Sally marries Jack when
she is 45. Jack is not retired or disabled so he is not receiving any social
security benefits. Sally will permanently lose her CDB benefit when she
marries Jack. If Jack was also disabled and receiving SSDI benefits himself
then she could keep her eligibility for CDB benefits.
- Tim is paralyzed from an
auto accident when he is 22. Because he was not disabled before age 22 he
will never qualify for CDB on his parent’s account when his parent retires or
dies.
- Rick was diagnosed with
mental illness from age 15 but when he graduated from high school he worked
for two years as a construction worker. At age 20 he could no longer work
because of his mental illness and qualified for SSI. When his father retired
at age 65 Rick was denied CDB because he was not disabled continuously before
the age of 22 because of his short term employment from age 18 to 20.
Where to Apply
You apply for CDB benefits
through the Social Security Administration. You can call them at
1-800-772-1213. You can also get more information on the CDB program from the
Social Security Administration’s web site at
www.ssa.gov. |
