On October 15, 2009, the Social Security Administration officially announced that there will be no Cost-of-Living Adjustment (COLA) for Social Security Disability and Supplemental Security Income recipients for 2010. This is the first time since the Cost-of-Living Adjustment was codified by Congress in 1975 that there will not be an increase in benefits for recipients. The maximum Supplemental Security Income Benefit will remain at $674 per month in 2010.
President Barack Obama called for Congress to quickly pass an Economic Recovery Provision for 2010 that would extend a onetime payment of $250 to all individuals receiving Social Security Retirement, Disability and Supplemental Security Income Payments. Social Security Administration Commissioner Michael Astrue echoed support for this provision.
Although there will be no COLA for 2009, increases were announced for Substantial Gainful Activity and Quarters of Coverage. Substantial Gainful Activity (SGA) for 2010 will be defined as earned income of $1,000 per month or more. Individuals that earn less than $1,000 per month can still potentially qualify for Disability Benefits despite working. Individuals that are already receiving Social Security Disability Insurance are able to work on a part-time basis as long as earned income does not exceed SGA.
In 2010, individuals must earn at least $1,120 to earn one Quarter of Coverage for Social Security purposes. To earn the maximum of 4 Quarters of Coverage for the year, an individual would need to make at least $4,480 of earned income in 2010. (Individuals must establish that they have at least 20 Quarters of Coverage in the last 10 years before becoming disabled to potentially qualify for Social Security Disability Insurance).
For individuals that are enrolled in Medicare in November 2009 and December 2009, Federal Law has a “hold harmless provision” that prevents an increase to Medicare Premiums if COLA is not large enough to cover increase of Part B Premium. This means that for most individuals currently receiving Social Security Disability Insurance benefits there will be no increase in Medicare premiums as long as Medicare eligibility and enrollment began no later than November 2009. Additional information about the “hold harmless provision” of the Social Security Act can be found at the Center for Medicare Advocacy Website. (For a detailed description of the 2010 Medicare Premium and Deductible increases, please see “CMS Announces 2010 Medicare Fact Sheet and Part B Premium Increase.”)
What you can do.
If you are currently receiving Social Security benefits, it is important that you contact your United States Senators and United States Representative to encourage them to support President Obama’s Economic Recovery Payment for 2010 so that you can qualify for a onetime payment of $250 in 2010. Delaware Residents should contact Senator Thomas Carper, Senator Edward Kaufman, and Representative Michael Castle and encourage each Congressman to support the Economic Recovery Payment for 2010.
If you are currently a client of Linarducci & Butler, PA, please contact our office with additional questions.
This article was written by Steven Butler. Steven is a partner at Linarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims to residents of Delaware, Maryland, New Jersey and Pennsylvania. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.
Relevant Links:
- Social Security October 15, 2009 Press Release
- Social Security 2010 Fact Sheet
- President Barack Obama’s Statement in Support of Extending Economic Recovery Payment to Social Security Recipients
- Center for Medicare Advocacy Description of Hold Harmless Clause of US Code
- CMS Announces 2010 Medicare Fact Sheet and Part B Premium Increase
- Contact Senator Tom Carper
- Contact Senator Edward Kaufman
- Contact Representative Michael Castle