Using Supplemental Security Income to Pay for Senior Housing & Long Term Care

Definition	Qualifications	Costs
Pros & Cons	Benefit Types & Limits	How to Apply
Overview of Supplemental Security Income

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Definition:

Supplemental Security Income is a federal program, funded by the Government’s General Fund not by the Social Security, which provides income to financially needy seniors as a supplement to Social Security.

 

Pros & Cons:

Supplemental Security Income is provided to financially needy seniors that have extremely limited income and assets. Generally, monthly income of less than $1,500 ($2,100 for a couple) and total “resources” of less than $2,000 ($3,000 for a couple) are required.
As seniors receive payments directly from the government, they or their loved ones are free to apply those dollars toward home care, adult day care or residential care.

The average SSI check for seniors is $400 / month, even combined the Social Security this is well under the cost of most long term care. However, SSI does not have time limits and considering that the elderly may require long term care for many years, this is an option that should not be ignored.  In addition, most states offer a supplement to the federal SSI payments.  The amounts and eligibility requirements differ in each state.  These are referred to as State Supplementary Payments (SSP) or Optional State Supplements (OSS).

 Unlike Social Security benefits, SSI benefits are not based on an individual or their family member's prior work.

 

Be Aware That:

It can take 4-6 months to start receiving checks following a completed application.

 

Supplemental Security Income is Also Known As:

-SSI
-Supplemental Social Security Income
-Title XVI

Qualifications for of Supplemental Security Income

Age Requirements

The minimum age to collect SSI is 65 unless the individual is blind or disabled.

 

Disabilities / Health Requirements

There are no disability or health requirements to qualify for Supplemental Security Income. However being blind or disabled supersedes the age requirement.

 

Family Status

There is no marital status or other family requirements. Note that the benefits amounts are different for married vs. single seniors.

 

Financial Status Requirements

Supplemental Security Income financial qualifications are based on a combination of income (both earned and unearned) and net worth (“resources” or "assets").  The amounts vary somewhat with circumstances but typically the senior’s “resources” cannot exceed $2000 ($3,000 for couples) and their monthly income cannot exceed $1,500 ($2,100 for couples).  Resources” are defined as:

-Cash, stocks and saving bonds.
-Other personal property.
-Land on which the owner doesn’t reside.
-Life insurance.
-Vehicles.
-Anything else that can be exchanged for cash.

There are the following “Resources” exceptions:

-Home and land, if currently lived in.
-One vehicle, if used regularly.
-Personal effects with sentimental value such as wedding rings.
-Burial spaces and funds for the immediate family.

 

Veteran Status Requirements

Veteran status does not affect Supplemental Security Income eligibility.

 

Geographic Requirements

SSI recipients cannot be absent from the country for more than 30 consecutive days.
Note some states offer additional SSI assistance beyond what is available at a federal level.

Benefits of of Supplemental Security Income

Types of Benefit Payout

Supplemental Security Income is a cash payment made monthly directly to the individual.

 

Restrictions on How Payout Can be Used

There are no restrictions on how the Supplemental Security Income payments can be spent.

 

Benefits Amounts & Limits

The average SSI check for the elderly is $400 / month. For 2010, the maximum amount is $674 / month for singles and $1,011 for couples.

 

Time to Receive Benefits

4-6 months. It can take the Social Security Administration 3-4 months following the date of a complete application to make a decision for Supplemental Security Income. Since the application process is extensive, it can take some time to accurately compile the information required.

 

This Source Can Help For

-In-home care
-Adult day care
-Assisted living / senior living
-Skilled nursing home care
-Alzheimer's / dementia care

Costs of of Supplemental Security Income

There are no costs to receive Supplemental Security Income benefits.

How to Apply for of Supplemental Security Income

The SSA provides a questionnaire takes approximately 5 minutes to complete and screens for a variety of benefits. One can take the federal government’s benefits eligibility test here.