Stage 4 Cancer Patient Asks: Can I Reject SSDI to Keep Health Coverage?

Understanding the Challenges of Social Security Disability Insurance and Health Coverage

For many individuals, Social Security Disability Insurance (SSDI) serves as a crucial financial support system. However, in certain situations, these benefits can create unexpected complications—particularly when they interfere with access to other forms of assistance. This is precisely what one individual with stage 4 cancer in Minnesota is currently experiencing.

The person reached out to the r/SocialSecurity subreddit with a pressing question: Is it possible to decline part of her SSDI benefits to remain eligible for state-subsidized health insurance? This inquiry highlights a complex situation where financial support from Social Security may conflict with access to essential healthcare coverage.

Two Checks, Two Problems?

In her post, the woman explained that she receives two monthly payments from Social Security: one based on her own work history, approximately $1,100, and another based on her late husband’s, around $1,600. The second payment caused her total income to exceed the eligibility threshold for MinnesotaCare, the state's public health insurance program.

Initially, when she applied for MinnesotaCare, she only reported the $1,100 payment because that was the amount she had been approved for at the time. However, once the second benefit started, she was informed that she no longer qualified for subsidized coverage. This left her facing the high costs of private insurance during a critical medical period.

She asked whether it was possible to decline part of her Social Security benefits or adjust her payments to afford health insurance again. She also questioned if such actions could be considered fraud.

Can You Refuse SSDI or Survivor Benefits?

According to comments from users familiar with Social Security rules, the answer is no—beneficiaries cannot selectively decline parts of their SSDI payments. Once approved, individuals receive the full amount calculated based on their earnings or a spouse’s.

One commenter noted that receiving both her own disability benefits and her late husband’s survivor benefits might actually be an error. They suggested that beneficiaries typically receive either their own earnings-based benefits or a spouse’s, but not both. Another user added that if there is an overpayment, the Social Security Administration (SSA) may later request repayment.

The SSA confirms that individuals cannot receive both disability and retirement benefits simultaneously. Typically, disability payments transition to retirement benefits once a beneficiary reaches full retirement age. However, according to USAGov, some beneficiaries may qualify for Supplemental Security Income (SSI) alongside retirement benefits. This makes it crucial to verify the type of benefits being received and whether both should be.

Minnesota Resources Might Help

While adjusting SSDI benefits may not be an option, the Reddit community provided practical suggestions. Several users recommended reaching out to Disability Hub MN, a state-supported resource center that assists Minnesotans with disabilities in understanding their options.

“This is exactly the kind of situation they exist for,” one user said. “They are very knowledgeable and patient, and they do a great job explaining the complicated healthcare system in a way that’s easy to understand.”

Another suggestion was to explore buy-in programs for Medicaid or similar coverage for people with disabilities who earn too much for standard programs. In some states, including Minnesota, individuals can pay a monthly premium to access Medicaid benefits, which could provide a more affordable alternative to private insurance.

Bottom Line

Social Security benefits, once approved, generally cannot be partially declined or reduced by request. If you are receiving SSDI or survivor benefits and find that your income disqualifies you from other forms of assistance, it is important to explore state-level programs that may offer more affordable alternatives.

If you live in Minnesota, contacting Disability Hub MN could be a valuable first step. Additionally, if you are unsure about the accuracy of your benefit payments, reaching out to the SSA directly can help clarify what you are receiving and whether any corrections need to be made.

Additional Tips for Financial Planning

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