What is 1619(b)?
Section
1619(b) of the Social Security Act provides one of the most powerful
work incentive currently available for SSI recipients: continued
Medicaid eligibility for working individuals whose earned income
is too high to qualify for SSI cash payments, but not high enough
to offset the loss of Medicaid
Section
1619 was added to the Social Security Act in 1987. Part (a) of
this section permits eligible SSI recipients to receive a reduced
cash payment when earnings exceed the Substantial Gainful Activity
amount (SGA). Prior to the passage of this important provision,
SSI operated like the other Social Security disability benefit
programs in that earnings over SGA caused termination of benefits.
Part
(b) of Section 1619 extended these protections, allowing eligible
individuals to continue to be considered receiving SSI for the
purposes of Title 19 or Medicaid eligibility, even though cash
benefits actually ceased due to earned income. Individuals who
are utilizing the Section 1619(b) work incentive provision do
not receive SSI payments because their income is over the Break-Even
Point (BEP) after all exclusions and deductions have been
applied. In order to continue Medicaid eligibility, Section 1619(b)
participants are legally considered to be receiving an SSI payment
for Medicaid purposes, although no actual payment is received.
Why
is it Important?
As
a work incentive, Section 1619(b) is best known for it’s
ability to preserve Medicaid coverage for SSI recipients whose
earnings cause total income go over the break-even point. This
is an exceptional benefit, but 1619(b) offers more than this since
1619(b) keeps the individual on the SSA computer rolls as SSI
eligible, simply not cash benefits status. In addition 1619(b):