Benefits Counseling: The Most Important Service in the World

1. Benefits Counseling: The Most Important Service in the World Michael Dalto Maryland Dept. of Disabilities mdalto@mdod.state.md.us December 5, 2013

2. Why People Grow Attached to Social Security Benefits • It often takes over a year after applying to start receiving disability benefits from Social Security. • People who have to appeal denials often wait over two years. • Applicants often have little or no income while waiting for benefits. • Even if an individual isn’t concerned about her benefits, someone else in her life probably is – family, advocates, residential program staff.

3. Why People Grow Attached to Social Security Benefits • When you apply, it’s common for Social Security and others to tell you that you have to be too disabled to work in order to qualify for benefits, although that is NOT TRUE. • Cash benefits become a person’s “livelihood”, covering basic expenses. • Medical benefits are a person’s lifeline, covering medical needs and often the services they need to live in the community.

4. Go to work while getting benefits? Are you kidding?

5. Go to work while getting benefits? Are you kidding?

6. Benefits Counselors to the Rescue!

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8. What Do Benefits Counselors Do? • Persuade people to work by overcoming fears of benefit loss – show people they’re better off financially if they work than if they don’t • Encourage people to earn more than they thought they could • Help people use “work incentives” – rules that provide some protection for benefits while working. Navigate Social Security system to be sure work incentives are used effectively.

9. Benefits Counseling Works! • DORS started paying for short-term benefits counseling in 2011. • Their data show that people who receive benefits counseling: • Are 76% more likely to go to work than those who don’t • Earn 25% more than those who don’t

10. What Are These Magical “Work Incentives” Of Which You Speak?

11. What Are These Magical “Work Incentives” Of Which You Speak? • Work incentives are safety nets that provide layers of protection for benefits • Work incentives: • Let people keep cash benefits longer – sometimes indefinitely – and/or at higher levels while working • Protect medical benefits even if people work their way off cash benefits

12. What Are These Magical “Work Incentives” Of Which You Speak? • Work incentives: • Let people get cash benefits back quickly and easily if they stop working • Offer additional benefits (Medical Assistance; bigger tax refunds) to people who work

13. Supplemental Security Income (SSI) • SSI is a need-based benefit • It provides a monthly check to people with significant disabilities who have very low income and assets • Maximum monthly check for an individual = $710 (in 2013); $721 (in 2014) • Makes a person automatically eligible for Medicaid (Medical Assistance)

14. SSI Work Incentives • SSI checks are reduced when you go to work, but by less than half your gross wages • You’re always better off working than not working if you get SSI • Some special rules let you keep more SSI while working – especially if you’re a student under age 22, or if you pay for certain work-related expenses

15. SSI Work Incentives • If you earn enough to reduce your SSI checks to $0, you can still: • Keep your Medical Assistance • Get your SSI checks back easily if you later stop working. You just need to call your local Social Security office, and don’t have to reapply. • Protection lasts until your earnings are over $40,000/year – and often much higher

16. Social Security Disability Insurance (SSDI) • SSDI is an insurance benefit. You qualify by having a significant disability, and by having worked and paid Social Security taxes on your earnings. • Some people qualify for Social Security Disability through the work record of a parent who is retired, disabled or deceased. • SSDI makes you eligible for Medicare after a 2-year wait.

17. SSDI Work Incentives • You can work at least 12 months and keep full benefits, no matter how much you earn. • After that, earnings over a certain amount ($1,040/month for non-blind people in 2013; $1,070/month in 2014) can stop your checks, BUT… • You’re allowed deductions from earnings to keep the difference under $1,040/month or $1,070/month

18. SSDI Work Incentives • You can use deductions for: • Expenses you pay for related to your disability that are needed for work • Reduced productivity • Extra help you get to do the job (e.g., job coaching)

19. SSDI Work Incentives • If you earn enough to stop your checks, you can get checks back again just by calling Social Security if you later lose your job (time limited) • You can keep Medicare for years longer, and often even indefinitely, if you lose SSDI due to work • You can use the Employed Individuals with Disabilities (EID) Program to qualify for Medical Assistance if you’re working and don’t qualify for Medical Assistance another way.

20. So how do you get benefits counseling?

21. Maryland Work Incentives Network http://www.md-win.org/ 1-888-838-1776 • Free benefits counseling project funded by Social Security – “Work Incentives Planning and Assistance (WIPA)” • Started operation in August of this year, replacing Benefits InfoSource, which ended June of 2012 • Serves all of Maryland • Provides excellent service, but not adequately funded to meet statewide needs

22. DORS-Funded Benefits Planning • DORS can pay for short-term benefits counseling if you: • Have a case open with DORS • Get public benefits • Plan to work at least 10 hours a week • DORS pays: • $235 for a benefits consultation • $665 for a benefits analysis • $42/hour for related services

23. Do-It-Yourself Benefits Counseling

24. Do-It-Yourself Benefits Counseling • The most effective way to deliver benefits counseling is in-house. • You can have a staff member trained and certified as a benefits counselor. • For information about training, certification and technical assistance, contact: • Michael Dalto • mdalto@mdod.state.md.us

25. Funding for Benefits Counseling • Best of all, benefits counseling can generate revenue to pay for itself.

26. Funding Sources for Benefits Counseling • DORS • Ticket to Work

27. Funding Sources for Benefits Counseling • Ticket to Work • The Ticket to Work can supplement other funding for services. • Provides payments based on work outcomes to “Employment Networks” – agencies that have signed up to serve people through the Ticket to Work. • An Employment Network (EN) can receive Ticket payments if a person reaches certain earnings levels – EVEN IF THE AGENCY IS FULLY FUNDED TO SERVE THE PERSON THROUGH ANOTHER SOURCE (E.G., DORS, DDA)

28. Funding Sources for Benefits Counseling • Ticket to Work • An Employment Network (EN) can receive Ticket payments if a person reaches certain earnings levels – EVEN IF THE AGENCY IS FULLY FUNDED TO SERVE THE PERSON THROUGH ANOTHER SOURCE (E.G., DORS, DDA)

29. Funding Sources for Benefits Counseling • Ticket to Work – Phase 1 • If the person has not had a case with DORS closed due to successful work (or has never received DORS services), the EN can get payments if the person earns at least $750/month (in 2013) ($770/month in 2014). • If the person earns $750/month or more for 12 months, the Ticket pays $5,340 (in 2013)

30. Funding Sources for Benefits Counseling • Ticket to Work – Phase 2 • After Phase 1 payments end (or if the case with DORS was closed due to successful work), Ticket pays if the person earns over $1,040/month (if not blind).

31. Funding Sources for Benefits Counseling • Ticket to Work – Phase 2 • Pays EN’s: • $230/month (for people on SSI) • $401/month (for people on SSDI) • Maximum payments in this phase: • $4,140 (for people on SSI) • $4,411 (for people on SSDI)

32. Funding Sources for Benefits Counseling • Ticket to Work – Phase 3 • After Phase 2 payments end, can get more payments if the person earns enough to lose cash benefits. • Pays EN’s: • $230/month (for people on SSI) • $401/month (for people on SSDI) • Maximum payments in this phase: • $13,800 (for people on SSI) • $14,436 (for people on SSDI)

33. Funding Sources for Benefits Counseling • Ticket to Work – Phase 3 • Total possible payments for all three phases • $23,280 (for people on SSI) • $24,187 (for people on SSDI)

34. Funding Sources for Benefits Counseling • Ticket to Work • An EN can choose to serve only people: • Whose earnings are high enough to qualify the EN for Ticket payments. • Who the EN also receives other funding to serve. • Benefits counseling can be one of the primary services an EN provides.

35. Funding Sources for Benefits Counseling 3. DDA • In the future, the Community Pathways and New Directions Waivers will cover benefits counseling

36. In Summary • Benefits counseling: • Encourages people to work and earn more, and helps them use work incentives • Can be secured, to some extent, through sources outside your agency, but… • Is best provided in house • Can generate revenue to pay for itself through DORS, Ticket to Work, and (in the future) DDA