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If you’re no longer able to work because of an injury, illness, or need for medical care, you may qualify for government disability insurance benefits. In California, residents may access state and federal disability insurance programs for financial assistance. Understanding the difference between state and federal insurance laws in California helps you determine which programs you qualify for.
Understanding Federal Disability Insurance Laws
Federal law operates two disability insurance programs – Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) – administered by the Social Security Administration. Each program serves different groups of individuals with disabilities, based on the eligibility criteria for each program.
SSDI provides benefits to workers who become disabled. Qualifying for SSDI requires an applicant to have a sufficient number of total work credits and recent work credits, depending on the applicant’s age at the onset of disability, that represent the applicant’s contribution to the Social Security system.
SSI provides benefits to low-income individuals. As a result, applicants must fall under asset and monthly income thresholds to qualify for SSI.
Both programs require applicants to have long-term disabilities. Social Security regulations define a “disability” as a condition that has lasted at least 12 months or will likely last for at least 12 months or result in the person’s death, which prevents the applicant from performing substantial gainful activity. The Social Security Administration defines “substantial gainful activity” as earning more than a specific threshold of monthly income set by the Administration.
California State Disability Insurance
In California, the state government operates a State Disability Insurance program. This program offers short-term disability insurance benefits to workers who must take time off work for illness, injuries, surgery, pregnancy/childbirth, or alcohol/drug rehabilitation. Disability insurance benefits can last for up to 12 months, with an individual’s weekly benefit based on the wages or salary they earned in the five to 18 months before their claim.
A California worker may become eligible for State Disability Insurance if:
- They cannot work in their regular job for at least eight days
- Have lost wages due to illness, injuries, surgery, pregnancy/childbirth, or alcohol/drug rehabilitation
- Had a job or actively looked for a job when their disability began
- Earned at least $300 in wages subject to State Disability Insurance taxes during the base period
Applicants for SDI must have a medical practitioner certify their disability to receive benefits.
Key Differences in Application
Federal and state disability insurance laws have several key differences:
- Duration of Benefits – California SDI only provides benefits for up to 12 months, whereas federal disability insurance can provide long-term or permanent insurance (although SSDI benefits convert to regular Social Security retirement benefits upon reaching retirement age).
- Eligibility Requirements – SDI has easier work history requirements than SSDI; SSI has strict asset and income eligibility limits.
- Approval Process – SDI usually has a faster approval process for benefits than federal disability insurance, which can take several months or more than a year to approve a Social Security disability benefits claim.
- Benefit Amounts – Both SDI and SSDI base benefits on the wages or income an individual earned before becoming disabled. SSI pays a set monthly benefit, offset by countable income that a recipient earns.
- Medical Requirements – SDI only requires a temporary inability to work, whereas federal disability insurance requires an applicant to have a long-term disability or a terminal medical condition.
In certain circumstances, a California resident may become eligible for both federal and state disability insurance. However, offset rules under federal regulations may apply to preclude receiving full benefits from both state and federal programs.
Contact a Disability Insurance Lawyer Today
If you become unable to work due to a medical condition or prolonged disability, you may qualify for state or federal disability insurance programs. Contact Disability Advocates Group today for a free, no-obligation consultation with a disability benefits attorney to learn more about the differences between federal and California disability insurance laws.
