I have recently received a settlement amount from a medical injury and my SSI has been stopped as i notified Social Security about the settlement amount.
My question is that for how long will my SSI be stopped to the max? I've heard that SSI can be stopped for max 3 years. Is that true? Would I be eligible for SSI again after 3 years.
The second question is that if your SSI is stopped, both MEDICAID and MEDICARE is also stopped as well?
With the SSI being suspended, Medicaid would have substantially the same resource limits, so that would be suspended as well. Medicare, on the other hand, is not needs-based so the resources would not interfere with your benefits under that program. Depending on the amount at issue, it may be a good idea to look into options for spending down the settlement to regain SSI/Medicaid eligibility or possibly funding a Special Needs Trust. An Elder Law attorney or other lawyer experienced with public benefits eligibility should be consulted to explore the possibilities. The three year rule you reference is for TRANSFERS under SSI (giving money/resources away or selling them for less than "fair market value") and there could be a different and quite possibly much longer transfer penalty period with Medicaid. I want you to understand this distinction because IF you are still over the resource limit in 37 months or more, then you will still not get SSI. Moreover, that 36 months for SSI wouldn't even running until you made a gift. All in all, this can be a complicated situation and you really should consult with an appropriately-experienced lawyer in your local area. You can find one by using the "find a lawyer" tab here on Avvo. I wish you the very best of luck for the future.
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SSI will stop so long as you exceed the income or asset limits allowed. Here is a link you may find helpful: http://www.ssa.gov/ssi/text-income-ussi.htm
answers to questions are for general purposes only and do not establish an attorney-client relationship.
SSDI and Medicare are not impact by receipt of a settlement. SSI and Medcaid are. You remain ineligible as long as your resources (thinks assets) are over $2000 in value if single or $3000 if married. You can spend the settlement money on an excluded asset (home, jewelry, car (if you don't have one already)) and become eligible again immediately. Here is a list of excluded resources:
The information provided here is meant to be general in nature and not intended to establish an attorney-client relationship.
A few points to clarify.
SSI is a poverty-based disability program, with strict income/asset limits, as discussed by the answers of the other lawyers. Under SSI, medical coverage is provided by MediCAID. Your settlement will likely disqualify you as until they are used up.
Social Security Disability Insurance (SSD) is a disbility program based on your work and payment into the system. Under SSD, medical coverage is provided under MediCARE. Your settlement will not disqualify you for Medicare.
You can qualify for both programs. When you do, Medicaid essentially serves as your "gap" insurance for Medicare. Without Medicaid, you will likely need to purchase a private Medicare supplement insurance.
I agree with the other lawyers; you should seek advice on Medicare gap insurance and the possibility of a disability trust from a local attorney.
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