What Is the Difference Between SSI and SSDI?

If you can't work due to a disability, you might have heard about two federal benefit programs: Supplemental Security Income, SSI, and Social Security Disability Insurance, SSDI. The Social Security Administration, SSA, administers both programs. They also both provide benefits to people with disability. However, they serve different purposes and have different eligibility criteria.

What is the difference between SSI and SSDI? This is an important to thing to know if you are considering applying for SSI or SSDI benefits. Knowing which program you might qualify for can help you better understand the process and know what to expect. Here is a closer look at SSI and SSDI benefits. Larrimer & Larrimer can also advise what qualifies for short term disability.

What Is SSDI (Social Security Disability Insurance)?

Social Security Disability Insurance, commonly known as SSDI, is a program that is run by the federal government that provides monthly benefits to people who cannot work because of a qualifying disability, and who have earned enough work credits by paying Social Security taxes throughout their life.

It's easier to understand if you think of SSDI as a type of insurance program. When you are well-enough to work, you pay into the Social Security system through your payroll taxes. You may not even realize your employer takes it out. However, if you become disabled and you meet the program's medical and work history eligibility, you may be able to receive monthly benefits.

Unlike other programs the government offers, SSDI is not based on a financial need or a certain monthly income. Instead, it is based primarily on your work history and your disability.

What Is SSI (Supplemental Security Income)?

Supplemental Security Income, often called SSI, is also administered by the Social Security Administration. However, it serves a difference purpose than SSDI.

SSI is based on need. It is designed to provide financial assistance to those who are disabled, blind, or other than the age of 65 who have limited income and resources.

Unlike SSDI, SSI doesn't require a person to have an extensive work history or a specific number of credits. Instead, eligibility is based on financial circumstances PLUS the applicant must meet the SSA's definition of disability.

SSI is meant to help people who have limited income and resources. So, applicants are carefully reviewed before they are approved.

The Biggest Difference: Work History vs. Financial Need

One of the easiest ways to understand the difference between SSDI and SSI is to remember what each of them are based on:

• SSDI is based primarily on your work history and the Social Security taxes you've paid over the years.

• SSI is based primarily on financial need.

A person who has worked for decades before they become disabled may qualify for SSDI. A person who has little or no work history, but who meets the medical and financial requirements, may qualify for SSI.

In some situations, an individual may qualify for both programs at the same time.

How Do Work Credits Affect SSDI?

To qualify for SSDI, you typically must have earned enough work credits through employment covered by Social Security. Work credits are based on your earnings. Most people earn up to four credits each year, though the amount of income that is required to earn a credit can change.

The number of credits that are required depend on a number of factors, including your age when you become disabled.

In most cases, young workers need fewer work credits than those who become disabled later in life because they have had fewer years to build up a work history.

Income and Asset Limits for SSI

Unlike SSDI, SSI has strict financial eligibility requirements. When the Social Security Administration looks at an SSI application, they will consider the following:

• Income

• Bank accounts

• Investments

• Certain property

• Other financial resources

However, not all assets are counted. For instance, some resources, such as a primary residence, are typically excluded under SSA rules.

Because these rules can be complicated, many applicants have questions about what income and assets may affect their eligibility.

Do SSI and SSDI Use the Same Definition of Disability?

Yes. SSDI and SSI disability benefits are defined the same way medically.

To qualify, applicants must generally show that they have a medically determinable physical or mental impairment that prevents them from performing substantial gainful activity and is expected to last for at least 12 months or result in the death of that person.

The Social Security Administration looks at medical records, doctor opinions, diagnostic testing, treatment history, and other evidence when they look at disability claims.

How Does the Social Security Administration Decide if You're Disabled?

It doesn't matter if you are applying for SSI or SSDI, the Social Security Administration follows the same evaluation process to determine if you meet the definition of disability. Just having a medical diagnosis isn't enough to qualify. Instead, the SSA looks at how your condition affects your ability to work. As part of its review, the SSA will generally consider these factors:

• The severity of your medical condition

• Whether you're currently working

• Your treatment history

• Medical records and test results

• Opinions from your treating physicians

• Your age, education, and work experience

The agency will also evaluate whether your condition is expected to last at least 12 months or result in death. Temporary injuries or illnesses that improve within a few months typically do not qualify for Social Security disability benefits.

If your condition prevents you from returning to your previous job, the SSA may also consider whether you could reasonably perform another type of work based on your physical or mental limitations. This part of the evaluation can be complex, particularly for individuals with multiple medical conditions or occupations that require specialized skills.

Because disability determinations involve both medical evidence and vocational factors, two people with similar diagnoses may receive different decisions. Providing complete medical documentation and a clear picture of how your condition affects your daily life and ability to work can play an important role in the outcome of your claim.

What Medical Conditions May Qualify?

There is no specific list of illnesses that automatically qualifies someone for disability benefits.

Instead, the Social Security Administration evaluates how a medical condition affects a person's ability to work.

Conditions that commonly appear in disability claims include:

• Back injuries

• Degenerative disc disease

• Arthritis

• Multiple sclerosis

• Heart disease

• Cancer

• Diabetes complications

• Chronic kidney disease

• Mental health disorders

• Neurological conditions

• Autoimmune diseases

Even if two people have the same diagnosis, one may qualify while the other does not depending on the severity of the condition and its impact on their ability to work.

How Much Do Benefits Pay?

The amount of SSDI benefits varies from person to person.

Because SSDI is based on your earnings history, individuals who paid more into the Social Security system during their working years generally receive higher monthly benefits than those with lower lifetime earnings.

SSI benefits, on the other hand, are generally based on federal benefit rates established each year and may be adjusted depending on an individual's income, living arrangements, or other factors.

Can You Receive Medicare or Medicaid?

Healthcare benefits also differ between the two programs.

Individuals approved for SSDI may become eligible for Medicare after meeting certain eligibility requirements and waiting periods.

Individuals receiving SSI often qualify for Medicaid, although eligibility rules can vary based on state programs.

These healthcare benefits can be an important source of medical coverage for individuals living with long-term disabilities.

Can You Receive Both SSI and SSDI?

Yes, in some cases.

This is sometimes referred to as receiving "concurrent benefits."

For example, someone who qualifies for SSDI based on their work history but receives a relatively low monthly benefit may also qualify for SSI if they meet the program's financial requirements.

Whether someone qualifies for both programs depends on their individual financial circumstances and the amount of their SSDI benefit.

Why Are Disability Claims Denied?

Many applicants are surprised to learn that disability claims are frequently denied during the initial review process.

Some common reasons include:

• Insufficient medical evidence

• Failure to meet the SSA's definition of disability

• Incomplete applications

• Missing documentation

• Income or resource limits in SSI cases

• Insufficient work credits for SSDI

A denial does not necessarily mean you aren't disabled. Many successful claims are approved during the appeals process after additional evidence is submitted.

Which Program Is Right for You?

Determining whether you should apply for SSI, SSDI, or both depends on your work history, financial circumstances, and medical condition.

Some applicants clearly qualify for one program, while others may be eligible for both. Because each situation is unique, understanding the differences can help you make informed decisions before beginning the application process.

If you're unsure which benefits you may qualify for, reviewing your situation with an experienced work injury lawyer in Columbus may help you avoid unnecessary delays and better prepare your claim.

Getting Help With Your Disability Claim

Applying for Social Security disability benefits can be a complicated process, and even well-qualified applicants sometimes face delays or denials. Understanding the differences between SSI and SSDI is an important first step, but successfully obtaining benefits often requires thorough medical documentation and careful attention to the Social Security Administration's requirements.

At Larrimer & Larrimer, we've helped individuals throughout Columbus and across Ohio navigate Social Security disability claims for decades. Whether you're applying for benefits for the first time or appealing a denied claim, our experienced legal team can explain your options and help you pursue the benefits you may be entitled to receive.