	Introduction

This report presents information on two federal entitlement programs administered by the Social Security Administration (SSA) that provide income support to individuals with severe, long-term disabilities: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). SSDI is a social insurance program that provides monthly cash benefits to nonelderly disabled workers who paid Social Security taxes for a sufficient number of years in jobs covered by Social Security and to their eligible dependents. In contrast, SSI is a public assistance program that provides monthly cash benefits to aged, blind, or disabled individuals (including children) who often have little or no work experience in covered employment and whose assets and other income are below certain limits. Eligibility Requirements

		Definition of Disability

Under both SSDI and SSI, disability is defined as the inability to engage in substantial gainful activity (SGA) by reason of a medically determinable physical or mental impairment that is expected to last for at least 12 months or to result in death. In general, individuals must be unable to do any kind of substantial work that exists in the national economy, taking into account their age, education, and work experience. Children under the age of 18 are required to demonstrate that their impairment results in marked and severe functional limitations . To receive SSI disability benefits , an individual must meet the same definition of disability that applies under the SSDI program. SSA's Initial Disability Determination Process

The application process for SSDI and SSI disability benefits is similar. Although SSDI and SSI are federal programs, both federal and state offices are used to determine eligibility for benefits. SSA's Disability Appeals Process

If a claimant's application for benefits is denied at any point during the disability determination process, the claimant has the right to appeal the decision. During the appeals process, claimants may present additional evidence or arguments to support their case, as well as appoint a representative to act on their behalf (either an attorney or non-attorney). Reconsideration. Administrative Hearing. Appeals Council. Step 4. U.S. District Court. Medical Continuing Disability Reviews

After SSA finds that a claimant is disabled, the agency must evaluate his or her impairment(s) from time to time to determine if the individual is still medically eligible for payments. Program Financing Information

The SSDI program is funded primarily through the Social Security payroll tax, a portion of which is credited to a Disability Insurance trust fund. By contrast, the SSI program is funded through annual appropriations from general revenues. The resources in the DI trust fund are used to pay for SSDI benefits and the cost of administering the program.
The Social Security Administration (SSA) is responsible for administering two federal entitlement programs that provide income support to individuals with severe, long-term disabilities: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). SSDI is a social insurance program that provides monthly cash benefits to nonelderly disabled workers who paid Social Security taxes for a sufficient number of years in jobs covered by Social Security and to their eligible dependents. In contrast, SSI is a public assistance program that provides monthly cash benefits to aged, blind, or disabled individuals (including children) who often have little or no work experience in covered employment and whose assets and other income are below certain limits.
To qualify for disability benefits under either program, claimants must meet the definition of disability prescribed in the Social Security Act. For both SSDI and SSI disability benefits, disability is defined as the inability to engage in substantial gainful activity (SGA) by reason of a medically determinable physical or mental impairment that is expected to last for at least one year or to result in death. In general, the individual must be unable to do any kind of substantial work that exists in the national economy, taking into account age, education, and work experience. Special rules apply to statutorily blind individuals and to children under the age of 18 applying for or receiving SSI.
Both programs are administered by SSA and therefore have similar application and disability determination processes. Although SSDI and SSI are federal programs, both federal and state offices are used to determine eligibility for disability benefits. SSA determines whether someone is disabled according to a five-step sequential evaluation process where SSA is required to look at all of the pertinent facts of a particular case. Current work activity, severity of impairment, and vocational factors are assessed in that order. If SSA finds that a claimant is disabled, the agency must periodically reevaluate his or her impairment(s) to ensure that the individual continues to meet the program's respective eligibility criteria.
If a claimant's application for benefits is denied at any point during the disability determination process, the claimant has the right to appeal the decision. During the appeals process, claimants may present additional evidence or arguments to support their case, as well as appoint a representative to act on their behalf. In most states, the appeals process is composed of four stages: (1) reconsideration by a different disability examiner; (2) a hearing before an administrative law judge (ALJ); (3) a review before the Appeals Council; and (4) filing suit against SSA in U.S. district court.
The SSDI program is funded primarily through Social Security payroll tax revenues, portions of which are credited to the Disability Insurance (DI) trust fund. In contrast, the SSI program is financed by annual appropriations from general revenues.