What are the Differences Between SSDI and Private Health Insurance?

What is SSDI?

SSDI is Social Security Disability Insurance. This is a type of insurance that receives funding through taxes. If you are covered by SSDI, this is usually because you have worked for some time making contributions to the Social Security through FICA Social Security taxes.

In order to be an eligible candidate for this insurance, you need to be less than 65 years and more than 18 years of age and have accumulated the required minimum of “work credits.” Once qualifying for SSDI, you will be eligible to receive Medicare after two years of being on SSDI.

If you are disabled and receiving Social Security Disability Insurance, your family (spouse and children) will be able to receive partial coverage as well. These benefits are known as auxiliary benefits.

For SSDI benefits, there is a waiting time of five months. What does this mean? If you become disabled, there will be a waiting period of five months until you will be able to receive any benefits.

How much money will you receive on SSDI?

This will largely depend on your own earnings record and works similarly to the Social Security retirement benefit.

What are the approval rates for SSDI like?

Generally, SSDI approval rates appear to be higher on average than the Social Security Insurance. This is due to a number of reasons. On average, SSDI patients would usually have been to see a doctor more often than other insurance applicators.

Additionally, SSDI patients usually have a longer work history than. SSI applicants and therefore judges and examiners could award more credibility to those applicants with a longer work history.

In order to receive SSDI, you will be required to show the following:

–      You are no longer able to work in a previous job or occupation

–      You are not able to adjust to any new occupation

–      The disability affecting you renders you unable to return to any occupation for at least one year

–      You have individual long term disability that makes working in your current or in any new occupation impossible.

If you are still able to do some work or if the disability will render you unable to work for less than one year then your disability is classified as ‘partial’ and you will not be eligible for SSDI.

Private Health Insurance

This is a type of insurance that offers further coverage should you (the prospective policyholder) require more coverage than SSDI. Additionally, Private Health Insurance will not have such strict eligibility requirements.

The main difference between Private health insurance and SSDI is that Private policies will offer coverage for those that have a partial disability. Another significant difference is that private insurance will require that you pay a premium.

SSDI is a federal program, and will be provided only if all the criteria are met; i.e. the applicant has worked long enough and if the applicant is considered fully disabled as per the program’s definition.

Private insurance is a contract that, while subject to regulations stipulated by the government, are private and administered by large companies. For a monthly premium, private insurance offers you the safety net of coverage for illness, injury, and other partial forms of disability.

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