|
Social Security Benefits for
your Disabled Child
|
PDF VERSION |
By: Barbara A. Isenhour and Sean R. Bleck
Who is Eligible for Childhood 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 Childhood
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 ($579 for 2005).
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 $830 per month
($1380 if
blind) for 2005. 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 $579 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 $579 (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 . |
