Social Security recently paid more than $1.1 million in payments to 400 people with terminal illnesses, thanks to an underused Supplemental Security Income (SSI) rule. 

SSI is for people who have limited income and resources and have a visual impairment, a disability, or are age 65 or older. These 400 people were approved for SSI because they are unable to work due to a terminal illness. Some of the conditions are chronic heart failure, chronic kidney disease, leukemia, and other cancers. 

We try to identify disability applications involving terminal illness as early as possible and to expedite them at every step of the process.  

What are underpayments?

If a person is approved for SSI, we may owe them money for past months – typically from the date of application to the date of approval. We call this an underpayment. The Social Security Act requires we release large underpayments in up to 3 installments 6 months apart. 

However, there are exceptions to the installment requirement. In some cases – including those involving people with terminal illnesses – we can release underpayments in full, in a lump sum.  

Although we flagged these applications for priority processing, we still held the underpayments for installments. Once we identified the delay, we took action to release more than $1.1 million in back pay.  

The 2024 maximum monthly SSI federal benefit rate for an individual is $943, and a few states pay their own supplement. More than 55% of SSI recipients have no income other than SSI. Timely payments are critical because they help pay for basic needs like food, rent, clothing, and medicine. Waiting for past-due payments may cause additional financial hardship. 

The needs of people with terminal illnesses are even more urgent. We want them to receive their back payments in full rather than waiting up to a year for them. We are reviewing our current policy and procedures to find ways to identify these cases more easily, streamline processing where possible, and pay people faster. It’s the right thing to do.  

Exceptions to the installment process

We’re also trying to increase awareness about other exceptions to the SSI installment process. For example, we can increase the amount of the first and second installments if the person receiving SSI has certain debts and expenses.  

Qualifying debts are related to:

1. Food, clothing, and shelter, including:

• Rent or mortgage payments. 
• Property taxes or insurance. 
• Utilities.  

2. Medically necessary services, supplies or equipment, or medicine, including the purchase of: 

• A car.
• A mobile phone.
• A computer. 

We can also increase the amount of the first and second installment payments for expenses related to: 

• The purchase of a home, or  
• Medically necessary services, supplies, or equipment.  

We recently revised this policy to make it easier for people to receive increased installment payments. The person receiving SSI is no longer required to provide documentation of outstanding debts and expenses. We can accept their allegations. 

Be sure to regularly read our blog to learn about other important changes. For example, in an earlier blog, we announced a policy update that allows us to release first installment payments faster.  

This year, as we celebrate the 50th anniversary of the implementation of the SSI program, we’ll continue to share with you more ways we are expanding access to the program, simplifying the application process, and improving the accuracy and timeliness of underpayments.  

For more information about SSI and to find out if you or someone you know may be eligible, visit our SSI page. 

Tags: Disability, equity, SSI