Social Security Disability Insurance (SSDI) For year 2008 What is SSDI Social Security Disability Insurance (SSDI) is one of the two programs we will be talking about in this guide. It is directed by the Social Security Administration. Its purpose is to provide persons who are eligible, as a result of disability, an income based on previous work experience. It may continue for as long as a person is medically disabled and unable to work at a Substantial Gainful Activity level or until they reach retirement age at which time SSDI becomes Social Security Retirement Benefits. Who Is Eligible For SSDI?  A person is eligible for SSDI if: * They have worked and paid Federal Insurance Corporation Act (F.I.C.A.) taxes. * They are considered medically disabled. * They are not working. * They are working but they are earning less than the amount considered to be the substantial gainful activity level ($940 in 2008).Other members of your family may also be eligible for benefits under SSDI. For example, any unmarried children under 18 (19 if they are in school full time). Unmarried children 18 or older may qualify if they have a disability that started before the age of 22, Social Security Child Disabled Beneficiary (CDB). If your spouse is age 62 or older he/she may receive benefits on your record. Your spouse (at any age) who is caring for your child under the age of 16 or disabled and also receiving checks is also eligible to receive benefits on your record. How Are Payments Determined A person who qualifies for SSDI payments, according to the criteria listed above, will have payments figured according to the average earnings over the lifetime of their work history (up to 10 years). The amount one receives may be reduced by certain other benefits, such as, workers compensation (including black lung payments) or other state or local benefits. However, one may have other sources of income such as dividends from stocks or interest from savings, etc. that do not reduce the amount of SSDI payments. If a person receives a substantial income from other sources it is possible that he/she may have to pay income taxes on the SSDI he/she received during the year. When Do Payments Begin A person must wait five (5) full months after being approved by the SSA to receive the first SSDI payment. The first check is not retroactive to the date of approval. All checks thereafter are paid on a monthly basis. MEDICARE What Is Medicare Medicare is a two (2) part health insurance program made available to people with disabilities and people who are retired. It is made up of the following two parts. 1. Hospital Insurance under Medicare (HI Part A). 2. Supplementary Medical Insurance under Medicare (SMI Part B). 3.  Prescription Drug Coverage (Medicare Part D). Part A is provided premium free to SSDI beneficiaries but it does carry a deductible and co-payments if the beneficiary is hospitalized. Part B carries with it a monthly premium paid for by the beneficiary. Some people may qualify for assistance in paying the deductible and co-payments under Part A, and the monthly premiums under Part B. The states administer a program called Qualifies Medicare Beneficiaries (QMB) to help people with limited resources make the payments. In January, 1993, the government expanded the QMB program by adding a new program called Specified Low-Income Medicare Beneficiary (SLMB).To find out if you qualify for these assistance plans contact your local SSA field office.  Medicare Part D pays for prescription drugs. How Does A Person Qualify For Medicare After a person who is qualified for SSDI has received payment for twenty-four (24) months, they are eligible for Medicare coverage. For example, Joe was approved for SSDI payments on January 1, 1998. He received his first payment in June 1996 (after 5 full months). After receiving benefits for 24 full months he will be eligible for Medicare in February, 2000.