Supplemental Security Income (SSI), an essential disability program administered by the Social Security Administration, has been around since 1972, when it was created to assist disadvantaged older adults or those who were disabled and unable to work. However, for all its critically needed benefits, the program has its problems. It has been difficult to qualify for benefits for many years because criteria are woefully outdated. And because of its restrictions, it penalizes saving and often traps recipients in a cycle of poverty. Fortunately, lawmakers have recently pushed to overhaul parts of the program, updating it and removing barriers for those who desperately need financial assistance. The Cherry Hill SSD lawyers at Silver & Silver are here to unpack the pros and cons of this Social Security disability program and how anticipated changes may be on the horizon.

What is the Purpose of SSI?

As of March 2024, over seven million people received critical monthly checks through the Supplemental Security Income program, including nearly a million recipients under the age of 18. The SSI program has helped our most vulnerable older adults and disabled individuals and their families with monthly benefit checks to offset their costs of daily living. However, it has struggled to keep up with the financial realities of inflation and the average income required to live in today’s world. 

Who Qualifies for SSI?

SSI is only available to those with very limited income and assets who are disabled or 65 years of age or older. Today, most beneficiaries of SSI (84 percent) collect benefits because of a serious disability. 

Because SSI was developed to assist only the most financially vulnerable, financial qualification for benefits was designed to be stringent. To qualify for SSI today, an applicant may have no more than $2,000 in assets ($3,000 for couples) and must make less than $1,971 ($2,915 for couples) in income. 

Furthermore, if a beneficiary or applicant has other sources of income or is assisted with housing or living expenses by others, SSA can reduce the amount of their monthly benefits. That means if an applicant or recipient receives other benefits, child support, or financial or housing assistance from an organization or family member, it is considered unearned income and can push them over the income limit. 

For those who do qualify, the basic monthly SSI benefit in 2024 is $943 for an individual and $1,415 for a couple. However, according to the U.S. Census, the poverty threshold for an individual in 2023 was $14,891. Even with access to full SSI benefits, this still leaves a recipient more than $3,000 under the poverty threshold. 

Why Are So Many SSI Applicants Denied Benefits?

Because SSI is a needs-based program, eligibility requirements for Supplemental Security Income were designed to be stringent. 

All applicants must meet these strict financial guidelines for assets and income. In addition, those applying based on disability must also meet the same rigorous criteria used to qualify for Social Security Disability Insurance.

However, most applicants for SSI are rejected due to the program’s income and asset limits. Because the financial eligibility criteria for SSI haven’t been updated in decades, it is even more difficult for applicants to qualify financially. Consequently, forty percent of all applicants for SSI benefits were denied between 2019 and 2021. 

Why is it So Expensive for Social Security to Administer the SSI Program?

In addition, because of its complex and cumbersome rules, administering the SSI program is extremely costly for Social Security.

Recipients must report any changes to their wages, other income, resources, or living arrangements to Social Security every month, leaving staff to spend time monitoring each recipient continually. While these benefits only comprise five percent of the outgoing payments managed by Social Security each month, the SSI program consumes 35 percent of its budget just to administer it.

Is SSI Still an Effective Program?

The income and asset limits to qualify for SSI don’t realistically reflect today’s current living standards, making it nearly impossible for applicants to qualify. 

Furthermore, even when an individual qualifies, SSI’s maximum benefits only provide benefits equivalent to about three-fourths of the federal poverty line. This means that the Supplemental Security Income program still leaves nearly half of all recipients below the poverty line. As an added conflict, income limits often discourage recipients from working since they know they may lose their benefits. 

Fortunately, legislators are now working to strengthen and improve the program so it can effectively and meaningfully keep recipients out of property. 

How Can SSI Be Improved?

Can the Supplemental Security Income program become the effective program it was once meant to be? The Center on Budget and Public Policy Priorities has reported that to make the program relevant in today’s world, changes could be made by:

• Updating asset limits – When Congress set asset limits in 1972, they allowed enough financial resources to help cover potential emergency costs. However, current limits leave SSI recipients vulnerable in the face of any economic emergency or hardship. Fortunately, most states have supplemental resources and offer additional assistance through programs like SNAP, Temporary Assistance for Needy Families, and the Low-Income Home Energy Assistance Program.
• Updating income requirements – Because of inflation, income limits have lost relevance significantly over the years. 
• Raising benefits above the federal poverty line – Unfortunately, SSI benefits have never been enough to raise a recipient’s income above the federal poverty line or to effectively meet their basic needs.  
• Changing in-kind support rules – SSI has an in-kind support and maintenance policy. This policy requires any recipient to report any assistance they receive from others, whether it is help with groceries or a place to sleep at night. Unfortunately, the value of such assistance is considered unearned income and  benefits are reduced accordingly.

What Are Some Changes on the Horizon That Will Improve SSI?

Change can come very slowly to federal government programs. However, significant legislation has been proposed regarding Social Security and the programs it administers over the last few years. One such immediate change is that food assistance will be eliminated from in-kind support and maintenance calculations beginning in September, reducing one barrier to getting needed benefits. 

Navigating the qualification and appeal process for government programs like Supplemental Security Income or Social Security Disability Insurance can be overwhelming for most people. Let the experienced Cherry Hill SSD lawyers at Silver & Silver help you get the benefits you deserve. Contact us at (610) 638-7255 or through our online contact form.

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