Helping a Client Get Disability Benefits so He Can Live on a Balanced Budget

Several years ago, we began working with a new client, who wanted a daily money manager to help him monitor and manage his spending. It quickly became clear that he needed much more assistance, some which was outside of our usual service offerings.

The client, who we’ll call David, had some savings, but they were being depleted rapidly because his budget showed a $700 deficit each month.

David was a senior with a disability, which meant that his social security disability income (SSDI) had been converted to regular social security income. His income would soon be further reduced by the loss of a significant monthly gift from his church.

All this created a challenge: to manage his finances so that he didn't run out of money before he could qualify for additional government programs - and then to obtain enough benefits to achieve a balanced budget. 

Protecting Assets

Our first goal was to "protect" some of David's money from being considered a countable asset so we could preserve it for his future needs. 

We did this by setting up an ABLE account, a tax-advantaged savings account that can fund disability expenses. By depositing the maximum amount allowable in both 2022 and 2023, we reduced his countable assets to position him for additional government benefits in 2024.

Utilizing Government Benefits

As his diminishing assets were approaching $2500, the upper limit for many government programs, we reached out to CASH of MD, a non-profit organization that promotes economic advancement for low-to-moderate income individuals and families in Maryland. 

They assisted in applying for the Qualified Medicare Beneficiary (QMB) program for David. With the approval of this benefit, the state of Maryland now pays for David’s Medicare Part B premium ($174/month).

It also qualified David for the Low-Income Subsidy (LIS)/Extra Help for his Part D premium which covers prescription drugs. This reduced his Part D premium by an additional $50 per month.

We also discovered that his medical plan included an over-the-counter benefit – it provides an allowance of $60 every three-months for over-the-counter items such as:

• vitamins

• supplements

• toothpaste

• and other personal care products

Since every bit matters to many seniors, this was a boon!

Our most recent accomplishment was to enroll David in the Rental Supplement Program (RSP). Beginning in June, he began receiving a supplement of $486/month on his rent.

Small Saving Yield Big Benefits

While $50 per month here and $60 there may seem inconsequential, all these reductions are significant in enabling David to finally break even on his monthly budget!

This is a big change from 2023 when he had a shortage of $700/month. This could not have happened at a better time since he had just begun having to dip into his ABLE account. Hopefully, now those funds can be preserved for his future needs.

We still have a few programs to investigate to create more of a buffer in his budget, but we feel a sense of accomplishment in finally enabling David to have a balanced budget. 

David feels great about it, too, and has shown his appreciation and thankfulness for our support at every step.

While David was not our typical client, once we understood the challenge, we rose to it.

If you need help with finances, please reach out to us to discuss your own challenges.  If we cannot help you, we will provide you with resources that may be able to help.