Supplemental Security Income (SSI)

Supplemental Security Income (SSI) is a federal program run by the Social Security Administration that provides monthly cash payments to people who are elderly (65+), blind, or disabled and have very limited income and resources. Unlike Social Security retirement or disability benefits, SSI is not based on your work history. It's a needs-based program.

The connection to health insurance is direct: in most states, receiving SSI automatically qualifies you for Medicaid. You don't need to apply separately. In a handful of states, you may need to submit a separate Medicaid application, but SSI eligibility makes approval straightforward.

SSI is different from Social Security Disability Insurance (SSDI). SSDI is based on your work history and the payroll taxes you've paid. SSI is based on financial need (limited income and assets) regardless of work history. Some people qualify for both simultaneously.

For Marketplace purposes, SSI payments are not counted as income for MAGI calculations. However, if you qualify for SSI, your income is almost certainly low enough to qualify for Medicaid rather than Marketplace coverage. In most states, you'd go directly to Medicaid, which provides comprehensive coverage with little to no cost-sharing.

If you're a family member or caregiver helping someone apply for SSI, understanding the Medicaid link is important. The SSI application process is handled through your local Social Security office, and Medicaid enrollment typically follows automatically once SSI is approved.