Covering the Bases: Social Security Disability, Medicare and returning to work [Capital (Annapolis, MD)]

I am 48 and was injured in a car accident four years ago. Prior to my accident, I worked in the construction business. Due to my back injury, I had to stop working and was awarded Social Security Disability. I returned to school and just received a certificate in computer repairs. I want to begin my own business but am concerned about returning to work. Specifically, would I lose my Social Security Disability check and would I lose Medicare? What options do I have?

Your career switch does create uncertainty as you transition from a Social Security disability status to a working status.

Social Security previously reviewed your situation and determined that, because of your injury, you were no longer able to engage in substantial gainful activity. Social Security defines substantial gainful activity as earning an income above $1040/month (or above $1740/month for a blind individual).

Now that you have re-trained in a new line of work, you have legitimate concerns about returning to work.

Social Security has incentives for people to return to work. There is a trial work period that allows you test your ability to work and still receive your full Social Security cash benefit. After the trial work period, you enter your extended period of eligibility. During your extended period of eligibility, if you are determined to be engaged in substantial gainful activity, i.e. earning more than $1040/month (more than $1740/month for a blind person), your Social Security cash benefits will cease.

There are safety nets in place for a disabled person returning to work. If, during your extended period of eligibility, you are unable to continue working due to your disability, your Social Security cash benefits will be restated. Your Medicare is also protected. If you are able to engage in substantial gainful activity, your Medicare may continue for an additional 93 months.

You are advised to contact Social Security at 1-800-772-1213 (www.ssa.gov) to learn more about their work incentives.

In Maryland, there are additional incentives for a disabled person to return to work. Specifically, if you are disabled and working for pay, you would want to consider the Employed Individuals with Disabilities (EID) program. This program allows a person to purchase Medical Assistance at a monthly premium ranging from $0/ month to $55/month, depending on your income level. Medical Assistance can help with the out-of-pocket costs of Medicare.

Recall, Medicare Part B (doctors and outpatient services) has a monthly premium of $104.90. Medicare Part B has an annual deductible of $147; after the annual deductible is met, Medicare Part B pays 80 percent of the Medicare allowed amount. If you are admitted into a hospital, Medicare Part A (inpatient services) has a $1,184 deductible. The average Social Security disability check is $1,130

Many people with receiving a Social Security disability check cannot afford Medicare's out-of-pocket costs. Nor can they afford to purchase a supplemental insurance to their Medicare. The EID program pays the $104.90/month Medicare premium. The EID program entitles you to Medical Assistance to covers the out-of-pocket costs for Medicare Parts A and B (deductibles and copayments).

The EID program allows a disabled person to have an income up to $68,052/year ($91,812/year for a couple) while still qualifying for Medical Assistance. To learn more about the EID program visit http:/ /www.mdod.maryland.gov/. You may also contact your local SHIP program for more information.