What is The Difference Between Social Security Disability Insurance (“SSDI”) and State Disability Insurance (“SDI”)?

People often confuse the term Social Security Disability Insurance (“SSDI”) with State Disability Insurance (“SDI”), when in reality each program is quite distinct.

 SSDI is administered by the Federal government through the Social Security Administration (“SSA”). It provides a cash benefit to disabled workers who have paid into the Federal Insurance Compensation Act. A person’s monthly benefit for 2017 can be as low as a few dollars to as high as $2687.00 depending on one’s contributions to FICA. If you have minor children, the benefit may be increased. SSDI is not meant to be a full income replacement, however, which often surprises some people.

Recipients of SSDI also qualify for Medicare once they are on SSDI benefits for two years. Recipients can remain on SSDI until SSA has determined that a disability has improved or until the recipient is well enough to return to work. At retirement age, a disabled person can still receive his/her SSDI rate if this rate is higher than his/her retirement rate. However, SSA will start referring to these benefits as retirement benefits regardless of what rate you are being paid at.

SDI, on the other hand, is a State disability program unique to California. California has a State-run program due to our high cost of living. It is a temporary program and only lasts for a maximum of one year. You have to have paid enough into the State system to qualify. Benefits cannot be extended past one year even if you remain disabled after those 365 days. The program is administered by the Employment Development Department (“EDD”), a State agency that also administers unemployment. Recipients of SDI do not receive health insurance with this benefit, but recipients may be able to file for Medi-Cal separately if they meet the financial requirements.  SDI recipients receive weekly benefits (normally issued bimonthly) that range from $50.00 to $1173.00 per week, or $200.00 to $4692.00 per month. Thus, SDI may provide a higher monthly income than your SSDI for the first year.

You can apply for SSDI and SSI simultaneously, but please note that there can be an offset of these public benefits.   

Please check out our website at www.westcoastdisability.com  for more information about the SSDI program. For questions about SDI, please visit EDD’s website at: http://www.edd.ca.gov/Disability/Calculating_DI_Benefit_Payment_Amounts.htm .

Got a question about SSDI or SSI that you need us to answer? We try to provide you with helpful information on our website that will allow you to successfully navigate the Social Security Disability process. Also, feel free to email me your questions at megan@westcoastdisability.com or call me at (800) 459-3017 x 103.