In the United States, up to 27% of adults have a disability—that's about one in four individuals.1 People with disabilities often need support services tailored to their specific needs, regular doctor appointments and possibly medical equipment like wheelchairs or walkers.
While these are expenses that can significantly improve an individual's quality of life, the costs can add up. In fact, research shows that a household with an adult who has a work disability needs about 29% more income to maintain the same standard of living as similar homes without a family member with a disability.2 Moreover, people with disabilities are more than twice as likely to have difficulty paying their medical bills.3
Here, we discuss key tips people with disabilities can use to help cover these crucial expenses.
1. Apply for Health Insurance
Health insurance can go a long way in covering costs, but you need to understand what's covered—and what isn't. For example, even if a service or piece of equipment is 90% covered, a 10% copay can add up to a significant amount of money for an item that costs thousands of dollars.
The best way to know the ins and outs of your personal insurance plan is to contact a health insurance representative and ask questions such as:
- • Which doctors are in-network versus out-of-network?
- • Are some therapy services covered and others not?
- • Is the cost for equipment covered at 100%, or is there a limit based on the model, the frequency you get a new version or any add-on accessories?
Once you get answers to these important questions, you'll have a better understanding of your additional financial needs.
2. Tap Into Government-Sponsored Programs
If health insurance doesn't cover enough—or if it isn't an option—several programs are available to further support people with disabilities.
Medicaid
A good first place to find support is your state department of human resources. Many states provide Medicaid, a supplemental insurance program.4 Medicaid programs in each state function differently; some have more resources readily available than others. Individual income limitations determine eligibility, so if your income is too high, you might not qualify.
Supplemental Security Income
Supplemental Security Income (SSI) is a federal program provided by the Social Security Administration.5 SSI can provide monthly payments to people with limited income and resources. Similar to Medicaid, to qualify for SSI, an individual cannot make more than a certain amount each month.6 These amounts are reduced if the individual gets married (sometimes referred to as a “marriage penalty").7
3. Review Your Routine Expenses
Creating a realistic, livable budget is a great way to get a handle on your money. By reviewing past payments, you can determine what expenses will be needed in the future.
Most people have one-off costs that happen quarterly or yearly, but people with disabilities may have more given their additional medical expenses. Large, unexpected bills can catch you off guard and significantly impact your savings. Do your best to avoid unknown expenses, but also be prepared by creating an emergency savings plan. For example, by streamlining your spending and cutting extraneous expenses, you may be able to save a small amount of money each month—money that can be used in a pinch.
4. Create a Savings Account
Even when we plan, life happens. Unexpected damage to a wheelchair or an unplanned surgery may cost a lot of money. An emergency fund can allow you to focus on your health rather than your finances when unexpected costs arise. An automatic savings plan can make it easy to set necessary money aside every time you get paid, without having to think about it. At Synchrony Bank, we offer a high yield savings account with no minimum deposit, no minimum balance and no fees.
5. Don't Forget to Plan for Retirement
Saving money for retirement is something everyone should begin thinking about at an early age. Unfortunately, for people with disabilities, assets greater than $2,000 for an individual (or $3,000 for a couple) will take away SSI benefits.8 However, an Achieving a Better Life Experience (ABLE) account can allow you to set money aside for now and for the future without impacting SSI.
6. Get an ABLE Account
ABLE accounts were developed in 2014 to help people with disabilities. These accounts are available to individuals who acquired a disability before the age of 26 and meet the severity of disability requirement.9 In 2026, more people will qualify for an ABLE account because Congress is raising the maximum age when the disability was acquired, from 26 to 46 years old.10
Individuals who qualify for SSI are automatically eligible for an ABLE account, but those who do not receive SSI can still open an account if they have a qualifying disability, as certified by a doctor.11 An ABLE account can be opened by a person with a disability or by the parent or legal guardian of that individual.9
In 2023, up to $17,000 a year can be contributed to an ABLE account, with the annual amount subject to change each year.9 This amount includes contributions by family, friends or an employer, or money from a 529 rollover.9 Beyond the annual limit, people who are employed but do not have a retirement plan can contribute an additional amount.9 Money in an ABLE account grows tax-free, and withdrawals are also tax-free if they're used for qualifying disability expenses such as health, education and housing.12
Contributions to an ABLE account do not affect SSI amounts if the total savings is under $100,000.13 Medicaid can be retained no matter how much is in the ABLE account.14
7. Explore Additional Resources
Even when all of the above are utilized, there are still more resources available for people with disabilities. For example, charities and government assistance programs provide training, direct disability modifications or rehabilitation, and information is easily accessible online. Here are a few resources to get you started:
8. Claim Tax Benefits
Keep in mind that tax deductions and other exemptions are available for medical expenses for people with disabilities.15 For example, many medical costs—including durable medical equipment, certain home improvements and even costs to buy, train and maintain a guide dog—are potentially deductible as an itemized deduction on your tax return.
The Bottom Line: Get the Right Support
There are many things people with disabilities must consider to prepare for medical support costs. Understanding the options available to you, and how they impact one another, is key for each unique individual to receive proper care.
Jaclyn Greenberg writes about accessibility, inclusion, parenting and personal finance. You can find her writing in The New York Times, CNN, Wired, HuffPost, Parents, Fodor's, Good Housekeeping and other places. You can connect with Jaclyn on LinkedIn.
READ MORE: Financial Planning for Those Who Don't Like Finances
Sources/references
1. https://www.cdc.gov/ncbddd/disabilityandhealth/infographic-disability-impacts-all.html
2. https://journals.sagepub.com/doi/abs/10.1177/10442073211043521?journalCode=dpsa#:~:text=With%20the%20SOL%20approach%2C%20the,a%20member%20with%20a%20disability.
3. https://www.nationaldisabilityinstitute.org/wp-content/uploads/2019/02/disability-race-poverty-in-america.pdf
4. https://www.medicaid.gov/
5. https://www.ssa.gov/ssi/?gclid=CjwKCAjw44mlBhAQEiwAqP3eVlLRTsdMCtq75cBUBKm4BjIFGgyqUuq2-tcphSYDtgflFPNzwZI6mhoC3Y8QAvD_BwE
6. https://www.ssa.gov/pubs/EN-05-10003.pdf
7. https://thearc.org/blog/for-tyson-marriage-changed-everything-including-his-ssi/
8. https://www.ssa.gov/ssi/spotlights/spot-resources.htm
9. https://www.ablenrc.org/frequently-asked-questions/#contributions
10. https://www.nytimes.com/2023/01/20/your-money/able-disability-savings-accounts.html
11. https://www.ablenrc.org/service-providers/debunking-able-myths/
12. https://www.ableunited.com/learn/qualified-disability-expenses/
13. https://www.ablenrc.org/get-started/what-is-able/#:~:text=An%20ABLE%20account%20allows%20eligible,for%20these%20types%20of%20programs
11. https://www.disabilityscoop.com/2023/01/09/irs-increases-limit-for-able-accounts/30188/#:~:text=Created%20under%20a%202014%20federal,much%20is%20in%20the%20accounts.
12. https://www.irs.gov/individuals/more-information-for-people-with-disabilities
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