Why It’s More Critical Than Ever to Support Mental Health and How Insurers Can Help
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
Related posts
