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For a general discussion of social security Disability insurance benefits (SSDI) and supplemental security income (SSI) please see questions 1 through 7 in the “Frequently Asked Questions” section.

1. Is Social Security Disability Insurance an Insurance Policy with SSA? SSDI, also referred to as Disability insurance benefits, is the program that covers wage earners who have worked a minimum of five (5) out of the prior ten (10) years before they became disabled. If you have worked most of your life, you are most likely covered for SSDI.

It is critical to understand that SSDI is in fact Disability insurance coverage and not a government handout! Think of SSDI as a Disability insurance policy you have with the Social Security Administration. You may not know it but SSA made a promise to you when you were required to pay in all those federal withholding and self-employment taxes. SSA promised that if you paid those taxes it would provide Disability insurance. Notice I did not say you would automatically receive Disability benefits…only that you would have insurance and be eligible for benefits. You must still file a claim and have it approved by SSA before you receive any Disability benefits.

Many wage earners mistakenly assume their withholding and/or self-employment taxes go only to pay for retirement benefits. However, as you now know, those taxes also go to pay for Disability insurance coverage. Certainly you would file a claim if your house burned down and was a total loss… think of SSDI as exactly the same type of insurance. To not file a Disability claim when you have paid for the insurance all those years would be foolish.

2. How do I become Insured for SSDI?

In order to obtain coverage for SSDI, wage-earners over the age of 31 must have worked five (5) out of ten (10) years in the period before they became disabled. For example, if you were to file a claim alleging Disability as of March 2000, SSA would look at your work history only for the past ten (10) years (back to March 1990) before you became disabled. The five years of work do not have to be consecutive as long as you have 5 out of 10…you don’t have to work full time, part time work will suffice as long as your income is sufficient.

It is important to note that only the ten (10) year period prior to your Disability is relevant. Thus, it is possible for a wage-earner to work most of their adult life but not be covered for SSDI if they did not meet the 5 of 10 year requirement. This tragic scenario happened to a 60 year old woman who called me last week to discuss her case…she had worked her entire life but not much in the past ten years…SSA told her she was not insured…don’t let this happen to you!

This unfortunate situation happens frequently to working women who become homemakers and stop working. The best advice is to file a claim for Disability benefits once you believe you will be unable to work for a minimum of twelve months (12).

3. How Much Income Must I have per Year to obtain SSDI Coverage?

Fortunately, you do not need to make much. For the year 2000, your gross income only needs to be $780.00 per calendar quarter or $3,120.00 per year to obtain coverage. The minimum amount increases each year.

4. How is my monthly SSDI benefit Calculated?

The monthly payment is based solely on the amount of withholding and/or self-employment taxes you have paid in to SSA. SSA uses a very complicated formula that only a mathematician could understand…simply put, the more you have paid in, the more your monthly SSDI payment will be.

5. Are my Dependents Entitled to Benefits based on my Earnings Record?

In general, your spouse and children are eligible for SSDI benefits based on your earnings record. The amount of their monthly benefit is usually 50% of your monthly benefit. For example, if you are married, have children and your monthly benefit is $800.00, your dependents will receive an additional $400.00 for a total family benefit of $1,200.00 per month. SSA sets a maximum benefit your family can be paid regardless of the number of dependents.

6. Am I eligible for Medicare if I am approved for SSDI?

Yes. You will be eligible for Medicare twenty-four (24) months after you have been receiving SSDI benefits. Medicare is a real bargain, the monthly premium is only $45.50. Even if you are a recently minted Internet multimillionaire and don’t need the monthly benefit payment, you should file for SSDI to obtain the Medicare coverage. 7. How do I learn if I am insured for SSDI and the amount of my Monthly Benefit?

The easiest way is to call SSA toll free at (800) 772-1213. This information is also contained on your personal earnings and benefit statement; obtain one by visiting SSA on line at www.ssa.gov or stop by a local office.

8. How do I qualify for Supplemental Security Income?

In general, people who are not insured for SSDI may still qualify for Disability benefits thanks to SSI. SSI is a federal program to provide Disability benefits for individuals who are not insured for SSDI because they have not met the five of ten-year earnings requirement discussed above. The monthly benefit amount is not based on either your personal earnings or having dependents and is instead set annually by federal law. Although the monthly benefit may vary state to state, the federal amount for the year 2000 is $512.00.

Best of luck in your pursuit of Disability benefits and remember never to quit!

Scott E. Davis and Scott M. Harris are social security and long-term Disability insurance attorneys in Scottsdale, Arizona. They are the founding partners of Harris Davis, PLC. Although they have experience representing clients with a broad spectrum of physical and/or psychological disorders, the majority of their Disability practice is devoted to representing individuals with FMS and/or CFIDS. Mr. Davis and Mr. Harris represent clients throughout the United States. In most cases a fee is charged only if their client obtains benefits. They invite your questions and inquiries regarding representation via email: harris.davis@azbar.org or facsimile (602)367-1609