Covering The Gap Due To A Medical Absence

Covering The Gap Due To A Medical Absence:

Disability Benefits And Ticket To Work Are The Most Significant Forms of Employment Protection For American Workers

By Steve Perrigo, Vice President, Allsup

In today’s work environment, where one in four 20-year-olds will become disabled during their working years¹ and long COVID brings uncertainty, it makes good sense to know how to protect your income in case a severe medical condition halts your ability to work—not only for your benefit but for your family’s as well. The combined protections of Social Security Disability Insurance (SSDI) and Ticket to Work (TTW) benefits are the most significantly overlooked federal protection for over 158 million U.S. workers.

The Social Security Administration oversees a combination of important benefits for American workers, who, along with their employers, have paid for and insured themselves through FICA taxes for federal disability insurance: SSDI.

SSDI provides monthly disability income when workers must stop working due to a severe health condition. In addition, SSDI provides U.S. workers with vital protections and free assistance with returning to work through the Ticket to Work Program. However, very few U.S. workers understand the incredible value of the financial backstop they’ve paid for through the combined SSDI-and-TTW benefit.

What Is The Combined SSDI-And-TTW Benefit? 

Social Security Disability Insurance – More than 159 million U.S. workers are insured for disability coverage. These employees can apply for disability benefits with Social Security when they must stop working due to a severe medical condition. SSDI provides a monthly income along with other benefits, including eligibility for Medicare after 24 months.

Ticket to Work – After SSDI approval, former workers can receive assistance with returning to work and protecting their SSDI benefits. TTW is a free program for U.S. workers with disabilities that offers a safe path to try working again after their medical condition stabilizes. They can access more than 7 years of protection and restart SSDI without an application if their health worsens again.

Facts About Ticket To Work 

• • • • • • It’s included. When you’re on SSDI, you’re automatically eligible for Ticket to Work.
          • It’s valuable. Ticket to Work protects SSDI benefits while you attempt working again.
          • It’s complex. To maximize the benefits of Ticket to Work, you should use an Employment Network (EN) to provide you with good support.
          • It’s free. The Social Security Administration oversees this program and pays the ENs directly.

U.S. Workers’ Participation in SSD and TTW

If more workers were informed about the SSDI-TTW program, it could make a significant impact on their lives and the lives of their families. Consider that only about 5% of Social Security beneficiaries use the TTW program² while 20-22% of former workers are interested in returning to work. If 20% of current SSDI beneficiaries – those who want to work – received education and assistance through the SSA’s TTW program, the U.S. would see 1,520,819 people joining Ticket to Work and reentering the workforce, and potentially leaving the SSDI program. This would mean much higher earnings for SSDI recipients, whose average benefit is only $17,796 per year³, and improved solvency for the Disability Insurance (DI) Trust Fund, with an estimated program savings of $216.5 billion.

Growing Knowledge Of SSDI-TTW For U.S. Workers

There are a number of economic, workforce, and community benefits from the combined SSDI-TTW program. However, many employers and community organizations simply aren’t aware or informed about the scope and resources available through this federal insurance program.

Broader education about the Ticket to Work Program for U.S. workers could improve economic opportunity and diversity for America’s workforce through several avenues, including:

• • • • • • Increased education and expansion of the SSDI-and-TTW benefit would mean more U.S. workers reentering work and employers benefiting from a larger, diverse talent pool in our evolving economy and tight job market.
          • Easier access to the valuable TTW program, which many workers don’t understand, would mean higher earnings for American workers with disabilities and improved financial stability for their families.
          • The U.S. workforce and economy benefits from greater inclusion and diversity in the workforce.
          • Federal government and taxpayers benefit from improved Social Security solvency because more motivated individuals are leaving SSDI benefits for the greater economic value of earning from work, while reducing burdens on the DI Trust Fund.

With the uncertainty of long COVID and other potential issues as workers proceed through their careers, it’s vital that we do more to increase the knowledge of the combined SSDI-TTW benefit already funded by workers and their employers. SSDI-TTW offers significant protections for U.S. workers that they can count on when they are sidelined by a severe medical issue. The impact extends even further, beyond income, to a strongly supported pathway back into the workforce when they’re ready.

¹What is Social Security Disability Benefits: https://www.benefits.gov/benefit/4382

²This participation rate is based on combined SSDI and SSI participation: https://www.gao.gov/products/gao-22-104031

³Disabled worker benefit amount for 2023: https://www.ssa.gov/news/press/factsheets/colafacts2023.pdf

About Steve Perrigo

Steve Perrigo has written 9 posts in this blog.

Steve Perrigo, J.D., is Vice President & Head of Sales and Account Management. He joined Allsup in 2010 following 17 years with the Social Security Administration (SSA) in various roles of increasing responsibility, including Claims Representative, Technical Expert, Operations Supervisor, and Assistant District Manager. Steve leads Allsup’s national account sales activities and provides consultative guidance to client companies by analyzing complex data sets that compare performance against historical measures, Allsup’s business results, and industry benchmarks. His consultation includes leveraging his prior experience with the SSA to identify and analyze macro-level trends with the Social Security Disability Insurance program, and providing timely insights and client updates through channels such as Allsup’s commercial blog. Steve’s educational background includes a law degree from the Nashville School of Law, where he graduated in the top 10 of his class, and a bachelor’s degree from The State University of New York. He currently is an adjunct professor of Social Security Disability Law at the Nashville School of Law.

• View all posts by Steve Perrigo →
• Blog

The Science of Aging Well: How Your Beliefs Affect Your Health
November 19, 2024

The Loneliness Epidemic is Making Us Sicker
November 14, 2024

The Power of Storytelling and Its Connection to Disability Insurance
November 12, 2024