Disabled adult children – do they lose benefits when their parents die or retire?

In many cases, a child receives Medicaid benefits if he/she is disabled before the age of 22. These benefits are normally based on the work record of the parents, who are otherwise disabled, retired or deceased. The amount of the benefit is generally calculated based on the parents’ social security records, as the child will receive a percentage of their social security benefits. This is referred to as the Social Security Disabled Adult Children’s Benefit (DAC.)

If the child is receiving Supplemental Security Income (SSI,) this is generally based on the fact that he or she has nominal assets and also nominal income. But the child may lose these benefits when DAC benefits are approved, since these are usually significantly higher.

It should be noted that if a person has been receiving SSI payments, they probably also are receiving some type of Medicaid benefits, and if they are otherwise disabled, they may also be receiving Medicare benefits that cover a significant portion of their medical expenses. Once SSI is lost, Medicaid benefits may also be lost in some cases, which is significant since in many instances the child needs medical benefits more than cash benefits.

However, many advocates for the disabled pushed Congress to make a change to address this dilemma. As a result, if a person is receiving “too much” DAC benefit and loses SSI benefits, he/she may still be entitled to receive Medicaid benefits if the following requirements are still met:

• The child is unmarried or married to another beneficiary who is receiving DAC benefits
• The child lost benefits for SSI after July 1, 1987 because of the increase in DAC benefits
• The child was disabled before the age of 22
• The child would be currently eligible for SSI benefits except for the DAC benefit that caused the SSI benefits plus subsequent increases to be lost.

With most government programs, a person must qualify for benefits based on need and financial status. The above cites a good example of the interrelation between different governmental programs within a single agency and their exceptions. Attention must always be paid to changes in the programs, and either a review with the official from Social Security or competent counsel should be made frequently to ensure that all benefits of all programs are available to the individual.

By: Hyman G. Darling, Esquire