Social Security and Supplemental Security Income (SSI) will be increased by 8.7% in 2023

Most people with developmental disabilities in Michigan qualify for Supplemental Security Income (SSI) based on their disability and limited income. Social Security Disability Insurance (SSDI) is usually available to people with DD based on a parent qualifying for Social Security retirement benefits or SS disability benefits. Check out the Social Security web page to learn more. Talk to someone who knows about how to qualify to make sure the person with DD is categorized correctly and that they are applying for all the benefits they are entitled to.

As an example, my sons both received SSI benefits from the age of 18 and then received SSA benefits after my husband retired. Their combined SSI and SSA benefit does not exceed what they would receive with only SSI benefits. SSA qualifies them to receive Medicare benefits as well as Medicaid health insurance.

These are excerpts from a press release from the US Social Security Administration:

Thursday, October 13, 2022
For Immediate Release
Mark Hinkle, Press Officer
press.office@ssa.gov

Social Security Announces 8.7 Percent Benefit Increase for 2023


Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023, the Social Security Administration announced today. On average, Social Security benefits will increase by more than $140 per month starting in January.

The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” Acting Commissioner Kilolo Kijakazi said.

...

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. The fastest way to find out their new benefit amount is to access their personal my Social Security account to view the COLA notice online. It’s secure, easy, and people find out before the mail arrives. People can also opt to receive a text or email alert when there is a new message from Social Security--such as their COLA notice--waiting for them, rather than receiving a letter in the mail. People may create or access their my Social Security account online at www.ssa.gov/myaccount.

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See the full press release here.

Medicare: Beware of hidden charges for "observation services"

In Michigan, most adults with developmental disabilities are eligible for Medicaid as long as they meet the eligibility criteria based on the individual’s (not the family’s) income and other financial assets. In addition, when a parent of a “Disabled Adult Child” (or DAC) retires, dies, or is receiving Social Security disability benefits, the DAC is also eligible for social security benefits including Medicare. (This can be complicated, so take the time to find out more about eligibility criteria and how to apply for government disability benefits, starting with the Website for the U.S. Social Security Administration .) 

According to the Social Security Website on Benefits for a Disabled Child , “An adult disabled before age 22 may be eligible for child's benefits if a parent is deceased or starts receiving retirement or disability benefits. We consider this a ‘child’s’ benefit because it is paid on a parent's Social Security earnings record.”

My son Danny has had multiple emergency room visits and hospitalizations over the last 6 months. After one visit to the ER he was placed in a hospital room for observation for two days. This was the first I had heard of this category of care. Because of the severity of Danny’s disabilities and his inability to work or pay for services, he is not billed for hospital or emergency room care - everything so far has been covered by Medicaid and Medicare.

It is possible, however, for people covered by Medicare to be charged for services they did not know they would be responsible for ahead of time.

A class action lawsuit brought by Justice in Aging is proceeding through the courts to determine the appeal rights of patients who have been charged for “observation services”, often without their knowledge, and without the right to appeal the charges.

This is from a recent Justice in Aging email:

Nancy Niemi was hospitalized for 39 days after a visit to an emergency room. She’s 84-years-old and eligible for Medicare. The hospital, however, categorized her as an outpatient receiving “observation services” for her entire stay. Medicare covers hospital care through an inclusive payment under Part A if the stay is classified as inpatient, but patients may incur unexpected cost sharing if the stay is classified as “outpatient” observation covered under Part B. Ms. Niemi was now in debt for thousands of dollars for her entire 39-day stay, and, in addition, Medicare does not permit beneficiaries to appeal when they are classified as receiving observation services when they are in the hospital, so she had no way to challenge the lack of coverage.

Due to a federal court decision issued last week, Nancy Neimi is now a member of a nationwide class of hospital patients who may gain the right to appeal their placement on observation. Hospitals commonly classify patients under observation, and, until March of this year, often without their knowledge. This practice has left many older adults and others with thousands of dollars in surprise bills not just for the hospital stay, but also medicine and other services received while classified as under observation. Class members could number in the hundreds of thousands. One study found that, in 2009 alone, 918,180 Medicare beneficiaries experienced observation stays.

Justice in Aging filed the original lawsuit (now named Alexander v. Price) along with the Center for Medicare Advocacy in 2011. The case was initially dismissed, but plaintiffs appealed to the 2nd Circuit and prevailed. The case is now going forward on the Due Process claim. Specifically, the plaintiffs allege that Medicare must allow beneficiaries to challenge the decision they are only receiving observation services. The class certification order was issued on July 31, 2017 and can be read here.

If you have a client who you think may be a member of the class, you can submit their story here. Otherwise, no action is required at this time. We’ll keep you updated on the case as it moves forward.

U.S. House Bill proposed to help caregivers avoid an impoverished old age

From the New York Times, "Addressing Caregivers’ Loss of Retirement Income" by Paula Span, 7/25/2014:

"Earlier this month Representative Nita M. Lowey, Democrat of New York, introduced what she’s calling the Social Security Caregiver Credit Act, intended to increase retirement income for middle-class citizens who must reduce their work hours or leave the work force because of caregiving duties."

Passage of the bill is a long shot, but it offers one solution to the financial toll that caregivers pay to take care of a dependent family member. According to the article:

"A MetLife study in 2011, ...estimated that men who reduced work hours to provide care for parents received almost $38,000 less in Social Security benefits. If they stopped working, they gave up more than $144,000.

"The damage from cutting back on work was worse for women: they lost more than $64,000 in Social Security benefits. Leaving the work force to care for a parent cost them more than $131,000 in addition to the lost wages (and, sometimes, pension contributions) themselves."
 
Caregiver credits would apply to people who earn no more than the national average wage ($44,320 in 2012).

According to Chris Bigelow, Lowey's legislative director, "someone not working at all would get $22,000 recorded as his or her earnings that year; someone working part-time at an annual $33,000 salary gets an additional $5,500 credited. Caregivers could qualify for the credit for 60 months and wouldn’t have to use them consecutively. You could take care of your mother for a year, get a credit, return to work, then later get credit if you cared for your father."

A "dependent relative" includes adult children who are "chronically dependent" and need assistance with activities of daily living.