Deep Dive
Why was the Supplemental Security Income (SSI) program created?
SSI was created in 1972 to provide monthly checks to the poorest disabled and elderly Americans, replacing the existing federal welfare system proposed by President Richard Nixon.
What is the current asset limit for SSI beneficiaries?
The asset limit for SSI beneficiaries is $2,000, which has remained unchanged since 1989.
How much would the asset limit be if it had kept up with inflation since 1989?
If the asset limit had kept up with inflation, it would be $10,000 today.
What are some examples of how the asset limit affects SSI beneficiaries?
Examples include a man in Illinois who couldn't move to a better apartment because saving for a down payment put him over the asset limit, and a family who lost benefits for their disabled son after taking a loan from a friend.
Why did Karen Williams face issues with her SSI benefits?
Karen Williams faced issues because the life insurance policy she bought for her funeral had a cash value that put her over the asset limit, resulting in an overpayment demand from Social Security.
What is the marriage penalty in SSI, and how does it affect beneficiaries?
The marriage penalty in SSI means that a married couple's asset limit is only $3,000, making it harder for disabled individuals to get married and still qualify for benefits. This forces some to avoid marriage or live separately to maintain eligibility.
What is the monthly earnings limit for SSI beneficiaries who work?
The monthly earnings limit for SSI beneficiaries who work is $65. Earning more than this amount results in a 50% reduction of their benefit check.
How does Tabby Haley's situation illustrate the challenges of working while on SSI?
Tabby Haley, a software engineer, needs to stay eligible for SSI to maintain her Medicaid coverage, which pays for her medical needs. However, Social Security rejected her application for SSI, suggesting she quit working and take disability benefits instead.
What is the estimated cost of raising the SSI asset limit to $10,000?
Raising the asset limit to $10,000 would cost almost $10 billion over 10 years, according to Social Security's actuaries.
What percentage of the Social Security Administration's budget is used to run the SSI program?
SSI, which accounts for just 4% of all monthly checks sent by the Social Security Administration, takes up 38% of the agency's entire administrative budget.
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