Disability Benefit Coverage and Program Interactions in the Working-Age Population

Over three-fourths of the working-age population in the United States is insured for Disability Insurance, which protects against the decline in earnings associated with severe disability. However, little is known about the various ways the Supplemental Security Income (SSI) program provides additional protection. Using data from the Survey of Income and Program Participation, we find that over one-third of the working-age population is covered by SSI in the event of a severe disability. Three important implications follow: (1) SSI increases the coverage of the working-age population; (2) SSI enhances the bundle of benefits available to disabled individuals; and (3) SSI enhances the safety net by interacting with other programs, most notably by increasing health insurance coverage because it provides an important path to Medicaid coverage. Ignoring these implications could lead to inaccurate inferences about disability program coverage, health insurance coverage, and the well-being of working-aged individuals with disabilities