Millions of low-income Americans will gain from a big change to the Supplemental Security Income (SSI) program that starts on September 30, 2024. The Social Security Administration (SSA) has announced changes to the standards for getting SSI. These changes could affect the more than 8 million people who depend on their monthly checks to pay for basic needs. Many people would have a hard time paying their bills without these payments, and some would even have trouble staying above the poverty line.
SSI Eligibility
SSI is meant to help low-income adults over 65, disabled people, and kids who are having trouble with money. Applicants must show that they have limited means and income in order to be considered. The current limit on income is $1,971 per month, and the limit on resources is $2,000 for people and $3,000 for couples. These strict rules make sure that help only goes to people who really need it.
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Some people don’t agree with one part of these rules, which is called In-Kind Support and Maintenance (ISM). ISM is money that someone else gives you without you having to work for it. It can come from food, shelter, or both. This can happen inside or outside of your home. Up until now, this help has been taken into account when figuring out who is eligible for benefits and how much they should get. As a result, people who get this help often get smaller SSI checks.
Impact of ISM on SSI Benefits
About 9% of people who get SSI have their payments cut because of ISM. SSA data shows that these cuts are more likely to affect people who get help from outside their homes, especially in the form of housing. What the ISM strategy is based on is the idea that people who get help with basic needs like food and shelter need less money from SSI.
But this method has been criticised for being hard to understand and possibly unfair. Some people say that the ISM rules can accidentally hurt beneficiaries who get help from their families by cutting their SSI benefits by the same amount as the help they get. This can make families afraid to help their low-income cousins because they don’t want to hurt their chances of getting SSI.
New Rule
The SSA will no longer look at ISM when deciding who is eligible for SSI and how much money they will get starting September 30. This change should make it easier to apply for benefits and keep them without having to worry about their benefits being cut because they get help from outside sources.
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The current ISM rules say that applicants must give specific information about who lives in their household, how much they spend, and how much help they get from other people. Some people have said that this process is too complicated and bothersome. The SSA wants to make the process easier and help more people who need it by taking ISM out of the list of requirements.
What This Means
The 7.4 million people who are currently getting SSI benefits should benefit from this rule change. Taking ISM out of the picture will likely mean that many people get bigger monthly checks, which will help them better meet their basic needs. The SSA gives different payment figures based on the type of recipient, but the average monthly payment for individuals is $943 and for eligible couples it is $1,415 right now.
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Keep in mind that these numbers could change when the Cost of Living Adjustment (COLA) comes out. The COLA, which changes SSI payments to reflect changes in prices, is set at 3.2% for 2024. But predictions for 2025 say the COLA could be around 2.63 percent, which would change the exact amounts of benefits going forward.
Planning Ahead
People who get SSI will feel some comfort from these changes, especially those who were hurt by the ISM policy. As always, it’s important for recipients to keep up with any new information from the SSA and plan their funds accordingly.
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If you are thinking about applying for SSI, you need to know about these new standards. Taking ISM out of the process of figuring out who is eligible for benefits makes it easier and may increase your chances of getting benefits.
This update is a big change in how the SSA runs SSI. The goal is to make the program easier for everyone who needs it to get and more fair.
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