The Basics
Benefits programs give you resources that help make your life better. For most young people with disabilities, the benefits that help you the most supply you with health care coverage and money.
In this article, we discuss why benefits matter, what the most common benefits are, and how you can get them. We also explain how, if you get a job and save some money, you can still get good health coverage and may be able to keep getting cash benefits.
The article pays particular attention to how the rules change depending on your age and how that impacts the benefits you are eligible to get. These rules are explained clearly and concisely so you can figure out how to apply for benefits, no matter what your age.
Note: DB101 keeps track of changes to health coverage and related laws. DB101 has been and will continue to be updated to reflect any changes. Visit KFF for news related to health coverage.
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Why Benefits Matter
A lot of young people don’t know much about cash and health care benefits. Sometimes parents take care of applying for benefits and managing money. Some people are embarrassed they get benefits. Others think that benefits are just too confusing to understand. Some don’t get benefits because they don’t know they qualify.
It is very important that you understand benefits, even if your parents do most of your benefits paperwork. You need to know how benefits can help you live independently and pursue your dreams, which can include going to college and getting a job.
Benefits Lead to Independent Living
As a person with a disability, you have more opportunities than you might think. People with disabilities are living in their own homes, graduating from college, working at good jobs, getting married, and having children. Getting jobs, studying, living on your own, making friends, and all of the other activities in life are all part of independent living!
One major reason that people with disabilities can live independently is the support that benefits offer. Benefits are keys that will give you the support you need as you decide what to do in life and get started with adulthood.
The most important disability benefits you will get are money and health care. The money will help you pay your rent, let you have a social life, make affording college possible, and help you buy food and other necessities. The health care benefits will keep you as healthy as possible and prevent health care expenses from putting you into debt. These benefits mean that you can think about your future and explore life, instead of constantly worrying about paying bills.
Benefits Help You Get a Job or Go to School
Benefits are designed to help you get an education and a job. You may be worried that getting a job will cause you to lose your cash benefits, but the reality is that when you get a job, your income will almost always go up.
Depending on the benefits you get, your cash benefits may go down as your work income goes up, though your job income will more than make up for the smaller amount in benefits.
With other benefits programs, and thanks to some work incentives discussed later, you may be able to keep getting the same amount of cash benefits after you get a job! Some of the best work incentives are actually ways for you to save money for an education or make money while you’re in school.
Benefits Give You Access to Health Care
Did you know that the average cost of an emergency room visit is more than $1,000 and that medical expenses are the number one cause of personal bankruptcy in the United States? Make sure you have health care benefits!
When you get a job and your income goes up, you will still be able to get health care coverage. In many cases you will continue getting the exact same coverage as you have now. In other cases you may have to enroll in a different program that will also cover your medical expenses.
Are You Eligible for Benefits?
To get the benefits designed to help people with disabilities, your disability has to “qualify.” This means that it has to meet certain standards. Depending on your age, who offers the benefits, and what the benefits are, these standards vary and your disability may or may not qualify you for benefits.
Even if your disability qualifies, just having a disability doesn’t automatically mean you will get cash benefits or health care coverage. In addition to having a disability, you must also either have low income or have paid into an insurance program. How programs decide if your disability qualifies and whether you have a low enough income or will get insurance coverage are explained in the following pages of this article.
Income-Based Benefits
Income-based benefits help you if your family doesn’t earn a lot of money. Depending on your age and the benefits program, there may also be a limit on your resources.
For most young people with disabilities, the income-based benefits programs that help the most are Supplemental Security Income (SSI), which gives cash income support, and the Arizona Health Care Cost Containment System (AHCCCS), which offers health care coverage.
For more information on both programs, click here.
Insurance
Insurance programs are programs you pay into regularly. If something comes up and you need help, it becomes available.
For example, if you have private health insurance, you, your employer, or your parent pays money each month, and when you need to go to the doctor, the insurance pays most of the expenses.
Private health care coverage is described in greater detail in Key Programs and Private Health Care Coverage for Young People.
When you work, a small part of the money you make is automatically paid into a Federal program called Social Security Disability Insurance (SSDI). If your disability gets worse and you can’t work anymore, SSDI will supply you with income support. To learn more, read DB101’s section on SSDI.
Most young people don’t qualify for SSDI because they haven’t worked long enough. However, Social Security also has a program called Child’s Benefits that helps the children of people with disabilities and children with deceased parents. Another program called Childhood Disability Benefits (CDB) offers benefits for disabled young people over the age of 18 if their parents are retired, disabled, or deceased. To learn more about these programs, click here.
Why You Should Take Charge of Your Benefits
It is important that you understand and manage your benefits, because your money and your health care will be your responsibilities during adulthood.
Managing Your Benefits Gives You More Options
What role does money play in your life? You might think of money as what you need to buy the things that you want, but it is also used to pay bills, buy groceries, and take care of everyday concerns. We need money to carry out our day-to-day lives.
However, money can be more than that. It can also pay for your education, for your own apartment, or for a car that you can drive to work. It can be the key that opens the door to a brighter future – a future in which you feel in control and enjoy your life because of the path you have chosen.
Learning to take control of your money will help you realize your dreams and achieve your goals. Part of this involves learning how to deal with benefits. Cash benefits are a portion of your income that will help you during your transition to adulthood. Health care benefits will save you money that you can use for other purposes and at the same time will keep you healthy!
Managing your benefits will let you be the person who decides what you want to do with your life and help you fulfill your goals and dreams.
You Are Approaching or Have Already Arrived at Adulthood
You are an adult or soon will be an adult. You need to know how to manage your benefits, your health, and your money. Your parents or other family members have probably helped you with benefits in the past, and up to this point in your life, they have made many choices about the direction of your life. As a young adult, it is important for you to set goals for yourself so that you can live an independent life. Your parents and family will still be able to help you, but as an adult, it will be your responsibility to lead your life and make the final decisions on how to live it.
You might feel anxious or scared about taking more control of your life and that’s okay. It’s a lot of work, and handling your benefits is hard, but there is also a lot of information available and many people who can help you make informed decisions. Begin with Key Programs to get a brief introduction to the most important programs that can help you.
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Key Programs
There are many different disability benefits programs. This section explains 3 of the most important ones:
- Supplemental Security Income (SSI)
- The Arizona Health Care Cost Containment System (AHCCCS)
- AHCCCS Freedom to Work
Make sure you understand why these programs are important by reading the introductions to them below. Private health care coverage is also discussed as it is an important health coverage alternative.
Supplemental Security Income (SSI)
SSI benefits are the most important income support for young people. Even if you have never had a job, you may be able to get SSI. Even if you are under 18 and live with your parents, you may be able to get SSI.
Who It Helps
People who are disabled or blind may not be able to work or afford to live on their own. If you have a disability, don’t have enough money for your basic needs, don’t have much income, and have limited resources, you may be able to get SSI. If you have a disability, are under the age of 18, and your parents have low income and limited resources, you may also be eligible for SSI.
What You Get
If you qualify for SSI, you get a monthly check. This money helps you pay your expenses, like food and rent. If you get SSI, you also qualify automatically for the Arizona Health Care Cost Containment System (AHCCCS).
Learn more in SSI Eligibility for Young People.
SSDI benefits are another major income support for people with disabilities. When you work, taxes are taken out of your paycheck. Some of those taxes are automatically paid into the SSDI program. If you have paid enough money into SSDI, you will get SSDI benefits if your disability prevents you from working.
SSDI isn’t a very important program for most young people, because they haven’t worked long enough to get benefits from it. While you probably don’t qualify for SSDI now, if you get a job you will qualify later, and the more you work, the bigger your SSDI check will be if you need it!
To learn more, read DB101’s section on SSDI.
The Arizona Health Care Cost Containment System (AHCCCS)
AHCCCS is the most important public health benefit for young people with disabilities.
Who It Helps
AHCCCS is for people who cannot afford medical expenses, including people who are disabled, young, or pregnant. To get it, you or your family must have low income. If you’re on SSI, you automatically qualify for AHCCCS. KidsCare is a way for children to get AHCCCS coverage until they turn 19.
What You Get
If you qualify, AHCCCS pays for your medical expenses, including visits to the doctor, hospital stays, prescription drugs, medical equipment, and other medical services.
To learn more, read AHCCCS Eligibility for Young People.
AHCCCS Freedom to Work Basics
AHCCCS Freedom to Work lets you get a job, save up some money, and keep your AHCCCS health coverage.
Who It Helps
AHCCCS Freedom to Work is for people with disabilities who have jobs. There is no resource limit. There is an income limit, but it is higher than the income limit for standard AHCCCS. You also have to pay a monthly premium to get it, with the amount of the premium depending on your income. The maximum premium is $35 per month.
What You Get
AHCCCS Freedom to Work pays for the same services that standard AHCCCS covers, including visits to the doctor, hospital stays, medical equipment, and other medical services.
Learn more in AHCCCS Freedom to Work Eligibility for Young People.
There is another way you can keep getting AHCCCS while you work. If you lost your SSI because of earnings from work, you can continue to get AHCCCS through a rule called SSI 1619(b). It is exactly the same AHCCCS coverage that you had before you started working. 1619(b) is explained in more detail in AHCCCS Eligibility for Young People.
Private Health Care Coverage
Private health insurance is the most common way for people to get health coverage.
Who It Helps
People get private health coverage in different ways. Some get it through their jobs, others get it from their parents’ employers, and some sign up for it on their own at HealthCare.gov. If you get an individual health plan, the government may help pay your monthly premium through tax subsidies. Note: There is no income limit for getting subsidies that help pay individual coverage premiums. (Before 2021, the limit was 400% of FPG.) To get subsidies, you still must meet other eligibility rules and the premium amount you pay depends on your income and your plan.
What You Get
Private health care coverage pays for some of your medical costs when you see a doctor or other health care provider, or get prescription medicine at a pharmacy. Depending on your private health care coverage plan, the plan may pay for almost the entire cost of your medical expenses, or it may pay only a portion of those expenses.
Read Private Health Care Coverage for Young People to learn more.
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Eligibility for Key Programs
Now that you’ve read some basic information about Supplemental Security Income (SSI), the Arizona Health Care Cost Containment System (AHCCCS), AHCCCS Freedom to Work, and private health care coverage, we can begin to look at the factors that will impact your eligibility for these key programs.
The rules for eligibility can seem very complicated. They are different for different programs and they can also be different depending on your age. In addition, you may be going through a period in your life during which you’re moving out of your parents’ home, going to college, or getting a job. Each of these changes can impact your benefits too!
The good news is that the DB101 website explains a lot. If you have more questions about these programs, talk to a Work Incentive Consultant.
When you get a job, or go to school, or get older, your eligibility and benefit amounts can change. DB101 includes estimators that can help you predict how your benefits might change. For young people, the School and Work Estimator is especially helpful. After reading about benefits, try it out!
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SSI Eligibility for Young People
SSI pays a monthly check to people who have low income and are disabled or blind. To get SSI, you have to meet certain rules. Some rules are the same, regardless of your age. For example:
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You must be a U.S. citizen or a qualified alien
However, other rules change a lot depending on your age. The biggest changes involve:
- How SSI decides whether you have a disability
- Whose income and resources are counted when SSI decides if your income and resources are low enough for you to get benefits
How to Apply for SSI
You can apply for SSI at your local Social Security office or by telephone at 1-800-772-1213 or 1-800-325-0778 (TTY). Talk to a Work Incentive Consultant to learn more about how to apply.
If you apply for SSI and qualify, you will also automatically qualify for the Arizona Health Care Cost Containment System (AHCCCS).
Eligibility Details
Our description of SSI eligibility below is divided into 4 parts. Click on the appropriate sections you want to read:
- SSI if you are younger than 18
- If you get SSI and are turning 18 soon
- SSI if you are already 18 or older
- Incentives that help you go to school, work, and save money
SSI if You Are Younger than 18
If you are under 18, SSI says you are a child and have a disability if:
- You have a physical or mental impairment or combination of impairments
- Your impairments cause severe limitations in your daily life, and
- Your condition has lasted or is expected to last for at least 12 months.
Not everybody with a disability automatically gets benefits. You must also have no other way to pay for basic expenses like food, rent, and utilities. If you are under 18, SSI decides whether you need help by looking at the money you and your parents earn and the resources you and your parents have, including bank accounts, stocks, real estate, and insurance policies.
Note: You can open an ABLE account and over time save up to $100,000 in resources and not have them counted by SSI. Learn more about ABLE accounts.
SSI counts both your income and resources and your parents’ income and resources when you are under 18 because they expect your parents to pay for your living expenses. This is called parent-to-child deeming.
For example, SSI could look at your parents’ income and decide to lower your benefits by $200 due to parent-to-child deeming. Instead of giving you a check for $967, they would give you a check for $767.
If you or your parents make too much money or have too many resources, you will not get SSI. The exact limits depend on the size of your family. A complete table of income limits for families with a disabled child is listed near the bottom of Social Security’s SSI for Children webpage.
Almost all children under 18 have benefits sent to a parent or guardian. This person is called a representative payee. Occasionally, persons who are 16 or older can be their own payees, but they must meet strict criteria and prove that they are capable of managing their own finances.
If you live with one parent, and get child support from your other parent, SSI counts two-thirds of the child support as income.
Your parent gets $300 each month from child support. SSI counts two-thirds of that and lowers your monthly SSI check by $200.
Sometimes child support comes in the form of shelter, instead of a check. In that case, SSI will figure out how much money that support is worth and count two-thirds of it as income. In the case of shelter, your benefits check could be lowered by a maximum of $322.33.
If You Get SSI and Are Turning 18
If you get SSI and then you turn 18, the biggest change in SSI eligibility rules is that you are considered an adult, not a child. When SSI decides whether you have a disability, SSI will not use their definition of disability for children. Instead, as an adult, SSI looks at your ability to work, not just your physical or mental limitations. That means that some people stop getting SSI benefits after they turn 18.
During the first year after you turn 18, SSI will automatically check to see if they still consider you disabled. This is called the SSI Age-18 Redetermination. They will say you have a disability if:
- You have a physical or mental impairment or combination of impairments
- Your impairments limit your ability to work, and
- Your condition has lasted or is expected to last for at least 12 months.
SSI may also look at your work and school record to see if you are able to work and may even talk to your teachers, counselors, or employers.
If you are going through the SSI Age-18 redetermination, Social Security may consider you to have a disability, even if you are working.
If SSI decides that you are not disabled because you don’t meet the adult definition of disability, you will no longer be able to get SSI benefits. They will keep sending you SSI checks for 2 months, but then your benefits will end. In this situation, if you still want to get SSI you have 2 options:
- You can appeal. When SSI sends you the letter telling you that your benefits are ending, you have 10 days to request an appeal. During the appeal process, you can ask that SSI continue your benefits until they make a decision. Click here for more information or read the section on SSI Appeals in DB101’s SSI article.
- If you are participating in an employment support program, like Vocational Rehabilitation, an Individual Education Program, a PASS plan, or any other program approved by SSI that will help you get a good job in the future, you can apply to continue benefits through a special rule called Section 301.
If SSI says that you meet the adult definition of disability and that you will continue to get benefits after turning 18, these are things that could impact the monthly amount you get:
- Parent-to-child deeming ends. This means that SSI will no longer count your parents’ income and resources when considering your eligibility for benefits. This may help you get higher benefits than before you were 18.
- If you or your family gets child support for your living expenses, SSI will now count the full amount as income. This may cause your benefits to go down.
- Your living situation: If you live alone or pay your fair share of expenses as a roommate with others, your benefit amount may be higher than if you live with others who help pay for your shelter.
- In-kind support and maintenance: If someone else helps to pay your rent, your benefit amount may be lowered by up to one-third ($322.33). This is called a Value of the One-Third Reduction (VTR).
If you have any questions about this, talk to a Work Incentive Consultant.
SSI if You Are Already 18 or Older
If you are 18 or older and did not get SSI before turning 18, SSI says you are an adult and have a disability if:
- You have a physical or mental impairment or combination of impairments
- Your impairments limit your ability to work, preventing you from earning Substantial Gainful Activity ($1,620 per month if you’re not blind), and
- Your condition has lasted or is expected to last for at least 12 months
Note: If you are blind, you could be able to earn more than $1,620 per month.
Some people who get SSI before they are 18 lose it when they turn 18 because they don’t meet the adult definition of disability. Other people who couldn’t get SSI before they were 18 due to parent-to-child deeming may now be able to get it.
Not everybody who meets the adult definition of disability automatically gets benefits. You must also have no other way to pay for basic expenses like food, rent, and utilities. If you are over 18, SSI decides whether you need help by looking at your income and how many resources you have, including bank accounts, stocks, real estate, and insurance policies.
There are certain cases where SSI will not lower your benefits because you have a job or are saving money. Read about these in the section on Incentives that Help You Go to School, Work, and Save.
If you work, you may have to spend money on things, like transportation, medical expenses, or accommodations, to do your job. If you have a disability, SSI may consider some of your expenses to be Impairment Related Work Expenses (IRWEs) and may not count the money you spend on them as income. If you are blind, the rules are a bit different and the expenses are called Blind Work Expenses (BWEs). Be sure to keep all receipts for expenses you think qualify as IRWEs or BWEs.
The bottom line: If you have IRWEs or BWEs, you may qualify for SSI even if you think your income is too high to get it. Or, you might get higher SSI benefits than you otherwise would.
Incentives That Help You Go to School, Work, and Save
SSI and many other government benefits programs have strict limits on how much income and savings you can have. If you go over the limits, you will no longer get benefits. The problem is that sometimes they end up preventing people from working and saving.
When the government realized that these limits were actually stopping people from getting jobs, saving money, and living better, they created work incentives like the Student Earned Income Exclusion (SEIE), Plans to Achieve Self-Support (PASS), Individual Development Accounts (IDAs), and ABLE accounts that help you earn and save money without losing your benefits.
Student Earned Income Exclusion (SEIE)
Usually, if you make too much money, your SSI benefits will either go down or stop altogether. There are some exceptions to this rule, however, which SSI calls exclusions.
One of those exclusions is the Student Earned Income Exclusion (SEIE). This exclusion allows students to earn up to $2,350 per month, and up to $9,460 per year, without having those wages count as part of their countable income.
In order to qualify for the SEIE, you have to be under 22, working, and regularly attending school. That usually means you have to go to school more than:
- 8 hours a week for college students
- 12 hours a week for grades 7 to 12
- 12 to 15 hours a week for employment training
You make $1,050 per month at a summer job. During the school year, you also make $350 each month at a work-study job. Since the money you make doesn’t exceed the monthly and annual limits for the SEIE, your SSI benefits won’t decrease at all.
If you drop out of school, you will no longer get the SEIE, and you will get smaller benefits than you would have gotten if you had stayed in school. Stay in school! You’ll get more money thanks to the SEIE, and when you graduate, you’ll get a higher paying job thanks to your degree!
Plan to Achieve Self-Support (PASS)
Usually, if you have too many resources or too much income, you will no longer qualify for SSI. Setting up a PASS is one way for people getting SSI to save money without having it count against their benefits eligibility.
To set up a PASS, you must qualify for SSI, have a specific work goal, and have expenses that you need to pay to reach your job goal. You must also show that you’ll have enough income to pay for your basic living expenses after you’ve set up your PASS.
There are a couple of big advantages to having a PASS:
- You can use unearned income to save money, which means that you can start saving even if you don’t have a job yet.
- SSI does not count the money that you place in a PASS account as income or resources. So you can earn and save more with a PASS without having your SSI benefits lowered.
The limitation is that the money you save with a PASS must be used for an employment-related expense. However, those expenses can include things like money for school, transportation, books, and services.
For more information, read DB101’s PASS section or contact a PASS Cadre.
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AHCCCS Eligibility for Young People
The Arizona Health Care Cost Containment System (AHCCCS) helps people with low income pay for their visits to the doctor, hospital stays, prescription drugs, medical equipment, and other medical services. If you qualify for Supplemental Security Income (SSI), you also qualify automatically for AHCCCS and don't need to worry about the rules on this page.
To get AHCCCS, you have to meet certain rules. These rules can seem confusing at first, but they are actually pretty simple. First we will present the rules for young people under the age of 19, then we’ll present them for anybody 19 or older. Read the section that is appropriate for you.
If you have any questions, talk to a Work Incentive Consultant.
After you learn about eligibility, you can apply for AHCCCS:
- Online using Health-e-Arizona. Health-e-Arizona lets you apply for other programs, like Nutrition Assistance or TANF Cash Assistance, at the same time.
- Online using HealthCare.gov, an online one-stop shop where you can learn about your public and private coverage options.
- In person at your local DES/Family Assistance Administration office.
- Using a paper application and faxing or mailing in to your local DES/Family Assistance Administration office.
No matter how you apply, it is important to know that if you are not eligible for AHCCCS, you may be able to get private insurance subsidized by the government.
AHCCCS If You Are 18 or Younger
If you are 18 or under, you may qualify for AHCCCS if:
- You get Supplemental Security Income (SSI)
- Your family has low income, regardless of whether you have a disability, or
- Your family has low income and qualifies for AHCCCS KidsCare.
If you get SSI, you will automatically qualify for AHCCCS and will not have to fill out an additional application. You can read more about how to qualify for SSI in the SSI Eligibility page of this article. If you have more questions about how this works, talk to a Work Incentive Consultant.
Income-Based AHCCCS
If you don’t get SSI, you can still qualify for AHCCCS if:
- You live in Arizona
- You are a U.S. citizen or meet specific noncitizen requirements
- You have a Social Security Number or apply for one
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You and your family have low income
- All of your income will be counted
- Part of your parents’ income will be counted
The key here is that you and your family must not exceed the income limit for your family situation. Depending on the number of people in your family and your age, the income limit varies. To see the income limit for your family’s situation, click here.
AHCCCS may not count all of your income, so you should apply even if you think you won’t qualify. It may turn out that you do qualify. Depending on your family situation, your parents may also qualify. To read more about how parents or other guardians may qualify for AHCCCS, click here.
If you don't get SSI and don't qualify for income-based AHCCCS, AHCCCS will check to see if you qualify for KidsCare based on your family's income. If you are 18 or younger and your family’s income is 230% of the Federal Poverty Guidelines (FPG) or less ($73,945 per year or less for a family of four), you may qualify for KidsCare. It doesn't matter how much your family has in resources.
There is a monthly premium for KidsCare coverage. The amount of the premium depends on your family's income. Get more information about the KidsCare premium.
Check whether your family's income is low enough for you to get KidsCare coverage:
| Your family size: | |
Annual income limits for your family: | |
| Income-based AHCCCS (138% FPG) | |
| AHCCCS KidsCare (230% FPG) | |
| Subsidized private plans, reduced fees (250% FPG) | |
| Subsidized private plans (no income limit) | -- |
If your family's income is at or below the limit for a program, you may qualify if you meet other program rules.
Notes:
| |
You may see the children's income limit for KidsCare listed as 225% of the Federal Poverty Guidelines (FPG). However, when AHCCCS counts your income, they’ll knock 5% of FPG off your household income if you make more than 225% of FPG. That's why we say that you can make up to 230% of FPG, because it more accurately shows how much income you could have and still get KidsCare coverage if you are under 19.
If you are 17 or younger and in DES Foster Care, you qualify for AHCCCS no matter how much money you make. If you are 18 to 25 years old and were in DES Foster Care or Tribal Foster Care and on AHCCCS on your 18th birthday, you also may qualify for AHCCCS no matter how much money you make.
AHCCCS if You Are 19 or Older
The rules for AHCCCS when you turn 19 are very similar to the rules before you turned 19. There are two common ways to get AHCCCS. You can qualify:
- If you get Supplemental Security Income (SSI)
- If you have low income, regardless of whether or not you have a disability
If you get SSI, you will automatically qualify for AHCCCS and will not have to fill out an additional application. You can read more about how to qualify for SSI in the SSI Eligibility page of this article. If you have more questions about how this works, talk to a Work Incentive Consultant.
If you’re on SSI, there is a special rule that allows you to keep your AHCCCS coverage even when your earned income is too high to get any SSI cash benefits. This rule is called 1619(b). Thanks to 1619(b), you can make up to $56,455 per year without losing your AHCCCS.
While 1619(b) means that you can get AHCCCS while earning way more than the program’s normal income limit, your resources have to remain below SSI’s $2,000 resource limit. If your resources go above that limit, you should consider AHCCCS Freedom to Work. To learn more about AHCCCS Freedom to Work, click here.
If you don’t get SSI, you can still qualify for AHCCCS if:
- You live in Arizona
- You are a U.S. citizen or are an eligible noncitizen
- You have a Social Security Number or apply for one
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You have low income
Your income will be counted, but your parents’ income will not be counted. The exact income limit will depend on your situation, such as whether you are single or married, whether you have children or are pregnant, and whether you have a disability. To get more information about income limits in different situations, click here.
If you meet the Social Security Administration’s definition of disability, there are 2 ways in which you may be able to get AHCCCS even if your paycheck is higher than the AHCCCS income limit states:
- When AHCCCS calculates your income, it will reduce the amount stated on your paycheck by the amount you spend on any Impairment Related Work Expenses (IRWEs) or Blind Work Expenses (BWEs). That means that if you pay for certain things that you need in order to do your job, such as medications or accommodations, you should tell AHCCCS about them, because it might help you qualify for AHCCCS health coverage. DB101’s SSI and Work page explains IRWEs and BWEs in greater detail.
- If you make more than the AHCCCS income limit even when IRWEs are taken into account, you may still qualify for AHCCCS Freedom to Work, which has higher income limits. AHCCCS Freedom to Work is described in detail here.
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AHCCCS Freedom to Work Eligibility for Young People
AHCCCS Freedom to Work offers health coverage to people with disabilities who get jobs. If you have a disability, get a job and are making too much money to get Arizona Health Care Cost Containment System (AHCCCS) coverage, you might be able to keep your AHCCCS coverage by getting AHCCCS Freedom to Work.
To qualify for AHCCCS Freedom to Work, you must:
- Live in Arizona
- Be a U.S. citizen or meet specific noncitizen requirements
- Have a Social Security Number or apply for one
- Be certified disabled according to Social Security's rules
- Be working, paying Social Security and Medicare taxes
- Be at least 16 years old, but under 65 years old
- Not be eligible for standard AHCCCS coverage, including 1619(b)
- Pay a monthly premium (The premium depends on your income, up to a maximum of $35).
AHCCCS Freedom to Work is a great option if you like your current AHCCCS coverage and get a job. You don’t have to be afraid you will lose your health coverage!
How to Apply for AHCCCS Freedom to Work
Apply for AHCCCS Freedom to Work:
- Online using Health-e-Arizona. Health-e-Arizona lets you apply for other programs, like Nutrition Assistance or TANF Cash Assistance, at the same time.
- Online using HealthCare.gov, an online one-stop shop where you can learn about your public and private coverage options.
- Using a paper application the AHCCCS Freedom to Work office can mail you. To ask for an application, call 1-855-432-7587 or 1-602-417-5010.
If you need help completing an application, talk to a Work Incentive Consultant.
No matter how you apply, it is important to know that if you are not eligible for AHCCCS Freedom to Work, you may be able to get private insurance subsidized by the government through tax credits.
For more information, read DB101’s AHCCCS Freedom to Work article.
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Private Health Care Coverage for Young People
To get private coverage, somebody—you, your employer, your parents, your parents’ employer—must pay for that coverage. In this section, we will introduce you to these basic ways you can get private health care coverage, as well as what sorts of health care expenses you may encounter.
Coverage Through Work
Many, but not all, jobs offer health care benefits. That’s why private health care coverage through work is the most common way that Americans get their health care coverage.
If you get your health coverage through your job, usually your employer pays most of the expenses. This means that the employer pays hundreds of dollars each month so that you have access to health care. Depending on your job, you will also have to pay a monthly amount in addition to what your employer spends. The total monthly expense paid for the private health care coverage is called the premium.
In addition to the premium you and your employer will be paying, you will have to pay various other expenses out of your own pocket. The most common health care expenses are called copayments. A copayment means that every time you have a doctor’s appointment, have a test done, or get a prescription filled, you will have to pay some money. With private coverage, copayments generally range from about $10 to $50.
Depending on your health care plan, you may not have to pay anything for certain types of services (testing and vaccinations, for example). But you may have to pay a lot for other types of services. Some plans, for example, may require you to pay for half of all your hospitalization expenses, which can add up to hundreds or even thousands of dollars each day. Other plans simply do not cover certain medical expenses, such as wheelchairs or other durable medical equipment.
All plans have an annual limit on the total amount you have to pay in addition to your monthly premium. This limit is called the out-of-pocket maximum. So, if you have a plan with a $2,000 out-of-pocket maximum, once you’ve paid a total of $2,000 in copayments and other medical expenses, you won’t have to pay any copayments or other expenses for the the rest of the year. Note: You will still have to pay your monthly premium.
Coverage Through Parents
Generally, when people get private health care coverage through their jobs, they are allowed to pay an additional amount to have their family members added to the coverage, including their children. Federal law says that parents who get health coverage through their jobs are allowed to add any children under the age of 26 to their plans.
Purchasing Coverage
Some people pay a health coverage company directly for their health care coverage instead of getting it through their jobs or parents. This is called individual coverage. With individual coverage, you will usually have to pay a monthly premium, copayments, and a deductible, depending on your plan.
HealthCare.gov is the easiest place to apply for individual coverage. It used to be that health insurance companies could deny your application or charge you more if you had a disability, but starting in 2014, that's no longer true. Now, anybody under the age of 65 can go to HealthCare.gov and sign up for a private insurance plan.
You should think about getting an individual plan through HealthCare.gov if you cannot get health coverage from:
If you cannot get health coverage from any of the above options, the government may help you pay your monthly premium via a tax credit. If your family’s income is at or below 250% of the Federal Poverty Guidelines (FPG), ($37,650 for an individual or $78,000 for a family of four), the government also helps you get a silver plan that has lower copayments and other expenses.
Note: There is no income limit for getting subsidies that help pay individual coverage premiums. (Before 2021, the limit was 400% of FPG.) To get subsidies, you still must meet other eligibility rules and the premium amount you pay depends on your income and your plan.
| Your family size: | |
Annual income limits for your family: | |
| Income-based AHCCCS (138% FPG) | |
| AHCCCS KidsCare (230% FPG) | |
| Subsidized private plans, reduced fees (250% FPG) | |
| Subsidized private plans (no income limit) | -- |
If your family's income is at or below the limit for a program, you may qualify if you meet other program rules.
Notes:
| |
Read more about how to sign up for individual coverage in DB101's Buying Health Coverage on HealthCare.gov article.
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Other Programs
There are many other benefits programs that you may qualify for. If you get Supplemental Security Income (SSI) and are over 18, you probably can also get Nutrition Assistance and if your income and resources are low enough, you may also be able to get income support from the Cash Assistance (CA) program.
Depending on your circumstances, two Social Security programs may give you benefits based on contributions your parents made during their careers: Child’s Benefits and Childhood Disability Benefits (CDB).
A third set of programs, including ABLE Accounts, Individual Development Accounts (IDAs) and the Earned Income Tax Credit (EITC), help you save up money or other resources without losing your other benefits.
Nutrition Assistance and Cash Assistance (CA)
Nutrition Assistance, sometimes called the Supplemental Nutrition Assistance Program (SNAP), helps people with low incomes and low resources pay for food. Nutrition Assistance used to be called Food Stamps, but it changed names and works a little differently now. Instead of using stamps, you get a plastic card called an Electronic Benefits Transfer (EBT) card that looks and works like a debit card. Arizona puts money on the EBT card each month and you use the card to pay for food. For more details, read DB101’s article on Nutrition Assistance.
Cash Assistance (CA) gives money to families who don't have enough to pay for basic needs like food, clothing, and rent. CA defines a family as 1 or 2 parents living with their child or children under 18. The age limit is 19 for children who are in school full-time. A family could include biological children, step-children, adopted children, and children of relatives. For more details, read DB101’s article on Cash Assistance.
In order to get Nutrition Assistance or Cash Assistance, you must have low income and limited resources. There are 3 ways for you to apply for these programs:
- Apply online using Health-e Arizona
- Download an application, fill it out, and submit it to your local DES/Family Assistance Administration office in person, by mail, or by fax
- Get the application at your local DES/Family Assistance Administration office and fill it out there
You can apply for Nutrition Assistance and Cash Assistance at the same time and you can also use the same form to apply for the Arizona Health Care Cost Containment System (AHCCCS). If you need help completing an application, talk to a Work Incentive Consultant.
Child’s Benefits (only if you are under 19)
The most common way for adults to get Social Security benefits like SSDI or retirement benefits is to work and pay into Social Security’s trust fund.
For young people, however, a more common way to get Social Security benefits is to qualify for Child’s Benefits. You do not need to have a disability to qualify for Child’s Benefits. To get them, you must:
- Be under the age of 18 (or 19 if you’re attending high school or other secondary education)
- Not be married, and
- Have a parent who gets Social Security retirement benefits or SSDI. If your parent is deceased, you may also qualify.
Note: You'll get Child's Benefits in any month your parent gets a Social Security disability or retirement benefit. You will also get benefits if your parent is deceased and would have qualified for benefits based on his or her work record. That means that if your parent is in SSDI's Trial Work Period, you'll keep getting Child's Benefits, but during the Extended Period of Eligibility, you'll only get a Child's Benefit in any month your parent gets an SSDI benefit. Make sure to notify Social Security if your family is in this situation.
You can apply for Child’s Benefits at your local Social Security office, or by calling 1-800-772-1213 or 1-800-325-0778 (TTY). If you have questions about this, talk to a Work Incentive Consultant.
Childhood Disability Benefits (CDB) (only if you are 18 or older)
If you have a disability, you may be eligible to get money each month through the Childhood Disability Benefits (CDB) program.
CDB is based on your parent’s work record. You can only get CDB if you are 18 or older. In order to qualify for CDB, you must also:
- Have become disabled before you turned 22
- Not be married, unless your spouse also gets SSDI or CDB
- Meet the adult definition of disability, and
- Have a parent who gets Social Security retirement benefits or SSDI. If your parent is deceased, you may also qualify.
You don’t automatically get CDB when you turn 18. You can apply for it at your local Social Security Office, or by telephone at 1-800-772-1213 or 1-800-325-0778 (TTY).
If you get CDB, you can also get health coverage through Medicare after a 2-year waiting period.
To learn more about CDB, talk to a Work Incentive Consultant.
Asset-Building Programs
Asset-building programs are a different type of benefits designed to help you save money you have earned. Instead of sending you a check or paying for your health care expenses, asset-building programs help you save money so that you can afford to pay for your own expenses, such as education, buying a car, or even retirement.
ABLE Accounts
If your disability began before you turned 26, you can open an ABLE account where over time you can save up to $100,000 in resources and not have them counted by SSI. ABLE accounts mean that if you get a job, you can start saving some money without losing your benefits. Additionally, the money in an ABLE account gets tax advantages similar to the way retirement accounts work.
However, ABLE accounts have restrictions:
- They can only be opened through specific programs or institutions.
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You can only open one ABLE account.
- Arizona's ABLE account program is AZ ABLE, which is only open to Arizona residents.
- You can choose to open an account in another state’s ABLE program.
- You and the other people making contributions on your behalf have a limit on how much you can deposit each year. Combined, you cannot deposit more than $19,000 in 2025.
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You can only use money in an ABLE account for specific things, such as:
- Education
- Housing
- Transportation
- Help getting and keeping work
- Health care
- Assistive technology, and
- Other approved expenses.
Learn more about ABLE accounts.
Individual Development Accounts (IDA)
An IDA helps people save money for a specific goal, such as purchasing a home, starting a small business, or paying for education. The great thing about an IDA is that for every dollar you save, the bank or other financial institution where you have your account will match your money. For example, if you save $50 per month, the financial institution might contribute $100 per month. The amount they’ll contribute depends on the institution, but sometimes they will put more money into your account than you do!
Note: There aren't as many IDA programs as there used to be. Some are still active, but it can take a bit of effort to find one that is accepting applications.
To open an IDA:
- You must have low income, and
- The money you contribute must be money that you earned from work, not from a benefits check, your parents, or any other source.
If you are getting SSI, it is very important that you enroll in an IDA that is federally funded through Temporary Assistance for Needy Families (TANF) or the Assets for Independence Act (AFIA). (You do not need to be getting TANF benefits in order to do a federally funded IDA program.)
SSI does not count money deposited into federally funded IDAs, so the money you save will not cause your SSI benefits to be reduced or eliminated.
If you enroll in a nonfederally funded IDA (for example, one funded by a nonprofit or private company), money deposited and matched in your IDA could affect your benefits.
IDAs are a great money-saving tool, but you need to be sure and enroll in the right type of IDA so that you don’t jeopardize your benefits. To learn more, read DB101’s article on Individual Development Accounts.
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) gives money to low to moderate income workers and families. Even people who don’t make enough money to owe income taxes may be able to get a check from the IRS if they qualify for this tax credit.
To qualify, the only requirement is that you have income from employment, self-employment, or employer-paid disability benefits. If your income is too high, you will no longer qualify for the credit.
To get the Earned Income Tax Credit, you need to file your taxes, even if you owe nothing! Make sure to complete the “Schedule EIC” as well. This is free money, and lots of people don’t get it because they don’t know!
The amount of your EITC depends on your family size and income. The maximum credit for 2025 (filing by April 2026) ranges from $2 to $8,046. Make sure to file your taxes and apply!
For more details, read DB101’s Tax Credit page.
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Next Steps
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Benefits programs may supply you with resources that can help make your life better.
To learn more about the programs discussed in this article, read DB101’s sections on:
Supplemental Security Income (SSI) pays cash benefits to people who can’t work, have no other sources of income, and have limited resources. SSI is the most important income support benefit for young people with disabilities.
Social Security Disability Insurance (SSDI) is financed with Social Security taxes paid by workers, employers, and self-employed persons. SSDI benefits are payable to disabled workers, widows, widowers, and children or adults disabled since childhood who are otherwise eligible.
Arizona Health Care Cost Containment System (AHCCCS) helps pay medical expenses for people with low income.
AHCCCS has more ways to qualify for people with disabilities.
AHCCCS Freedom to Work offers health coverage to people with disabilities who work.
Employer-sponsored health coverage is a benefit for employees and their children and spouses.
HealthCare.gov is the best place to buy individual health coverage.
Nutrition Assistance is a county-run, federal program that helps people with low incomes buy food. The program was formerly known as "Food Stamps."
Cash Assistance is Arizona’s Temporary Assistance for Needy Families (TANF) program. It helps families work their way out of poverty by giving them money to help pay for basic needs like food, clothing, and rent while also giving them a job support and training program.
Building Assets and Wealth discusses programs that can help you build your savings without risking your disability benefits.
ABLE Accounts are accounts that let you save up to $100,000 in resources and not have them count for SSI.
Plan to Achieve Self-Support (PASS) is a program that helps you save money for a work-related goal while you get SSI benefits.
Individual Development Accounts (IDAs) are savings accounts that help people with low incomes build resources. You can use the money you save for a small business, for higher education, or for the purchase of a first home.
Earned Income Tax Credit (EITC) is a federal tax program that lowers the amount of income tax owed by low- to moderate-income workers and families.
Apply for Benefits
You can apply for SSI, SSDI, DAC, and Child’s Benefits at your local Social Security Office or by calling 1-800-772-1213 or 1-800-325-0778 ( TTY).
There are 3 ways to apply for the Arizona Health Care Cost Containment System (AHCCCS), Nutrition Assistance, or Cash Assistance:
- Apply online using Health-e Arizona
- Download an application, fill it out, and submit it to your local DES/Family Assistance Administration office
- Get the application at your local DES/Family Assistance Administration office and fill it out there.
To apply for a PASS, contact your local PASS Cadre.
The Arizona Department of Insurance has several guides about health insurance and your rights when you get it.
HealthCare.gov is the best way to find an individual health insurance plan.
Benefits and Work Incentives Consulting Services
If you're currently on SSI, SSDI, or CDB benefits, and you're looking for a job, you should qualify for free benefits consulting services. Trained Work Incentive Counsultants at Benefits 2 Work Arizona can help you understand Social Security work incentives, disability benefit programs, and how they are impacted by work. Their goal is to help you avoid complications while developing a sustainable financial plan for your future.
You can contact Benefits 2 Work Arizona at 1-866-304-WORK (9675) toll-free to find a Work Incentive Consultant serving your community.
AZ LINKS – Aging and Disability Resource Center
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The AZ Links – Aging and Disability Resource Center (ADRC) helps seniors, people with disabilities, and their family members and caregivers find resources and services that meet their independent living, disability, housing, financial, legal, and health needs. |
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