Certified Rehabilitation Counselor Practice

What benefit is reduced by $1 for every $2 earned after a $65 disregard?

1. Medicaid

2. Social Security Disability Insurance

3. Supplemental Security Income

4. Veteran’s Pension

The correct answer is: Supplemental Security Income

Supplemental Security Income (SSI) is a needs-based program that provides financial assistance to individuals who are elderly, blind, or disabled, and who have limited income and resources. The program has specific rules regarding income disregard, which are designed to incentivize work while still providing support to those in need. In the case of SSI, recipients can disregard the first $65 of earned income per month; after this disregard, their benefits are reduced by $1 for every $2 earned above that amount. This means that working and earning money may still allow individuals to receive some benefits while they transition into the workforce, rather than creating a scenario where they have to choose between working and receiving necessary benefits. This method of income calculation helps to encourage recipients to seek employment without the immediate risk of losing their financial assistance entirely, which is crucial for maintaining stability during the transition to self-sufficiency. The other options, such as Medicaid and Social Security Disability Insurance, have different rules and calculations regarding income which do not include this specific disregard mechanism.