Denied SSI but Approved SSDI: Understanding the Difference and What It Means for You

If you find navigating the complexities of government benefit programs challenging, you’re not alone. In fact, only 34 percent of initial Social Security benefits are approved without assistance from a benefits advocate. Therefore, when you’re over 50 and facing financial uncertainties, it is extremely important to understand how the Social Security Administration’s (SSA) approval system works. If you’ve recently experienced the disappointment of being denied Supplemental Security Income (SSI) but approved for Social Security Disability Insurance (SSDI), you may be wondering why and what it means for your financial situation.

Here we shed light on being denied SSI but approved for SSDI to help you understand the differences between these programs and how they impact your benefits.

Can I Be Denied SSI But Approved SSDI?

Yes. Because the SSA applies different criteria to each benefit program, it is possible to be denied SSI, but approved for SSDI. This is why it is so important to understand the SSA benefits available and what benefits you should apply for when you are over 50 with a disability.

Denied SSI But Approved SSDI: Understanding SSI and SSDI

First, let’s look at the differences between SSDI and SSI:

• SSI: Supplemental Security Income is available to provide financial assistance to individuals who are disabled, blind, or over 65 with limited income and resources.
• SSDI: Social Security Disability Insurance, on the other hand, is an insurance program that provides benefits to working individuals who have paid into the Social Security system via taxes to accumulate work credits required to receive SSDI.

Why Can You Be Denied SSI But Approved For SSDI? Different Eligibility Criteria

You can be approved for SSDI but denied SSI because of the different eligibility criteria. For SSI, you need to qualify based on financial criteria, while with SSDI, you need to qualify based on work criteria. Here’s what the SSA considers for each:

Income and Resources Criteria

SSI considers your income and resources when determining eligibility. If they exceed the program’s limits, you will likely be denied SSI benefits. SSDI, on the other hand, does not have income or resource limits. You can apply for SSI regardless of your age, previous employment history, and social security contributions. Also, SSI is based on income level, and the requirements are adjusted each year. For example, in 2023, income could not exceed $914 for one person or $1,371 per couple and includes:

• Any social security benefits you receive
• Pensions
• Supplements for shelter and food
• Part-time work, etc.

Your assets are also considered, which can’t exceed $2,000 for one person or $3,000 for a couple. Also, keep in mind that when applying for SSI, the SSA requires you to apply for any other Social Security benefits available to determine your eligibility to receive further funding.

Work Credits Criteria

To qualify for SSDI, you must accumulate enough work credits based on your age and work history. Your assets are not considered in the process, but your income, work history and skills are. You earn credits by paying Social Security taxes over your years working. However, SSI does not require work credits.

Disability Criteria

You can apply for SSDI benefits if you have a condition keeping you from working that is expected to last at least one year or result in death. However, to qualify, you must prove to the SSA that your condition limits your ability to work and perform tasks such as lifting, standing, walking, sitting, logic, decision-making, etc.

Implications for Your Benefits: Denied For SSI But Approved For SSDI

Once you are approved for SSDI, it can have other implications for your benefits, including:

Monetary Benefits

While both SSI and SSDI provide financial assistance, your benefit payments can vary. SSI benefits are often lower than SSDI benefits as they are provided on a needs basis, so they are not adjusted based on your income and resources. SSDI benefits, on the other hand, are calculated based on your work history and earnings, which means you can see a greater variance in the minimum and maximum you can receive.

Medicaid and Medicare

If you are approved for SSDI, you are also likely eligible for Medicare sooner than you think. This is the federal health insurance program for individuals with disabilities. Also, even if you were denied SSI but approved for SSDI, you may still be eligible for Medicaid, the state-run health insurance program that can help cover your medical expenses. So, it is very important to seek advice on what you are entitled to receive so you have all the benefits at your disposal to help support your medical and monthly expenses.

Collecting Both SSI and SSDI

Many people don’t realize you can collect concurrent benefits if you have limited income/resources and a work history. That is another reason it is important to determine whether your SSI denial is correct. You can collect both, although Social Security considers both state and federal benefits you receive and exempts $20 a month from your total monthly payments. However, when your retirement benefits and SSI benefits exceed the SSI maximum disability monthly amount, you can’t receive both.

Got Denied SSI But Approved SSDI? Appeal Process

The SSA sets strict criteria and has a very complicated evaluation process that makes it difficult to be approved for SSI and SSDI at the initial stage. Therefore, if you were denied SSI benefits but approved for SSDI, it’s important to understand the appeal process. You have the right to appeal the decision in writing within 60 days of the date you receive your notice.

Consulting with a knowledgeable advocate specializing in disability law as soon as you receive your notice is key to ensuring you don’t miss the deadline. They will guide you through the appeals process and significantly increase your chances of a successful outcome.

SSI Denied But SSDI Approved? Speak to a Disability Advocate

Using an advocacy service like Princeton Disability can be extremely helpful in the initial or appeals process. There’s no need to wonder about filing an appeal for disability. You can reach out to Princeton Disability for a free consultation. We specialize in SSI and SSDI appeals and will help you get the maximum payout for the SSDI benefits you deserve.