Expert: Kyla Kelim - 10/29/2008

Question
I am 61 years old. I have received SSD since 1996, and have not worked during that time. I would like to seek part time employment after January 2009, when I will be 62 years of age. What are the possible repercussions of that? Can the Soc Sec Admin deem me no longer eligible for SSD, since I have elected to try working in spite of physical limitations, and thereby reduce my monthly benefit (i.e. switch me from SSD to SS Retirement)? And most importantly, do they have the power to cut out my Medicare benefit, and force me to wait two years for Medicare benefits? I do not have any supplemental insurance, nor do have part D medication benefit. I cannot afford to pay for those benefits. Thank you very much for your time and assistance.

Answer
You have asked several different questions.  

First, if you work while on disability, and earn more than $ 940 per month (gross, before taxes and deductions) then social security will deem it a successful work attempt and discontinue your benefits.  Your benefits will otherwise continue until age 66, when they will remain the same, but will be called retirement benefits and then you will have no restriction on work.

If you are deemed not disabled, your medicare will stop and you will not be eligible again until you are 65.

Why don't you have supplemental and/or prescription drug benefits.  First, since you did not sign up for the prescription drug benefits, now when you do, you will have a penalty to pay each month forever.

Second, there are a number of plans, like HMO's or something like that (a PPO or PFFS) that would not require any kind of premium and sometimes have benefits like no premium on the prescription drug cards that would give you additional insurance at no cost.  You should immediately call your SHIP counselor (free counseling service through the government for Medicare recipients).

If your income is below 125% of poverty, you may qualify for a Medicare savings program, which would pay for the Medicare premium ($ 96.40) that's coming out of your check as well as any prescription drug premiums, depending on the program for which you qualify.

At an even higher level, you could qualify for a partial subsidy for the prescription drug plan, through a low income subsidy (LIS) through social security.

Ask your SHIP counselor to assist you with selecting a plan immediately.  The prescription drug open enrollment is 11/15 through 12/31 and the HMO open enrollment is 1/1 - 3/31.  Call a counselor today.    http://www.shiptalk.org/About/CounselLocSearchForm.aspx?mf=Display .

Good luck,

Kyla Kelim