Medicare and Disabled Adult Child
When a parent of a disabled person retires or dies, a child whose disability existed prior to age 22, may be able to apply for certain income payments known as Disabled Adult Child benefits (also known as CDB). The amount of the benefit paid is based on the parent’s work history. Following the payment of the benefit, within a matter of months, the disabled child will also receive Medicare coverage.
Unfortunately, often the disabled child is a recipient of SSI and SSI-related Medicaid. When the DAC benefit is greater than the SSI maximum benefit, then SSI will be lost and the SSI-related Medicaid benefit will be lost with it. However, Medicaid can be maintained if proper legal planning measures are undertaken quickly.