Medical costs can be overwhelming, especially when living on Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). Even with Medicare, Medicaid, or private insurance, unexpected expenses can arise, making it difficult to stay financially stable.
This guide will show you how to plan for medical expenses, reduce out-of-pocket costs, and access financial assistance without jeopardizing your disability benefits.
1. Common Unexpected Medical Expenses for People with Disabilities
Even if you have health insurance, many essential services may not be fully covered. Here are common out-of-pocket medical costs:
A. Prescription Drug Costs 💊
Medications not covered by insurance or requiring high copays
Specialty drugs (for chronic conditions) with limited coverage
Over-the-counter medical supplies (pain relievers, allergy meds, etc.)
B. Medical Equipment & Assistive Devices 🦼
Wheelchairs, prosthetics, CPAP machines, hearing aids
Home modifications (ramps, grab bars, stairlifts)
Adaptive technology (screen readers, communication devices)
C. Unexpected Doctor Visits & Hospital Stays 🏥
Emergency room bills & ambulance fees
Out-of-network specialists
Physical therapy, occupational therapy, and other rehabilitation services
D. Transportation for Medical Appointments 🚗
Non-emergency medical transport (NEMT) services
Ride-sharing or gas costs for long-distance medical care
📌 Key Takeaway: Even with Medicaid or Medicare, out-of-pocket medical costs can add up, requiring financial planning.
2. How to Budget for Medical Expenses on SSI & SSDI
To prepare for unexpected healthcare costs, follow these budgeting strategies:
A. Track Your Healthcare Spending 📊
✅ Keep a monthly record of medical bills, copays, and prescription costs.
✅ Use Purple’s budgeting tool to track medical expenses alongside your benefits.
B. Build an Emergency Medical Fund 💰
✅ Set aside a small amount each month for unexpected medical bills.
✅ If you’re on SSI, keep savings below $2,000 ($3,000 for couples) unless using an ABLE account.
✅ Consider a separate medical savings account (MSA) if on Medicare.
C. Use an ABLE Account for Medical Costs 🏦
✅ ABLE accounts let you save up to $18,000 per year (2025 limit) without affecting SSI benefits.
✅ Funds can be used for medical bills, assistive devices, therapy, and more.
✅ Great option if you need to save for future medical expenses without losing benefits.
3. Financial Assistance Programs for Medical Costs
If you’re struggling to afford medical care, there are government and nonprofit programs that can help.
A. Medicaid & Medicare Assistance Programs
✅ Medicaid Spend-Down Programs: If your income is slightly too high for Medicaid, this program lets you deduct medical costs to qualify.
✅ Medicare Savings Programs (MSPs): Helps cover Medicare Part B premiums, deductibles, and copays.
✅ Extra Help for Prescription Drugs: Covers out-of-pocket costs for Medicare Part D medications.
B. Prescription Assistance Programs 💊
✅ NeedyMeds & RxAssist: Find discounts on brand-name & generic drugs.
✅ Manufacturer Patient Assistance Programs: Some pharmaceutical companies offer free or low-cost medications.
✅ GoodRx & SingleCare: Compare drug prices & get discount coupons.
C. Grants & Charities for Medical Expenses
✅ Modest Needs & The Assistance Fund: Helps with unexpected medical bills.
✅ UnitedHealthcare Children’s Foundation: Provides grants for children’s medical care.
✅ National Disability Organizations: Many offer financial aid for medical devices, home modifications, and therapy.
📌 Pro Tip: Contact your state’s Department of Health for local medical assistance programs.
4. How to Negotiate & Reduce Medical Bills
If you receive a large medical bill, don’t panic! Many hospitals and providers offer discounts or payment plans.
✅ Ask for an itemized bill – Check for errors or duplicate charges.
✅ Negotiate a discount – Many hospitals offer financial assistance if you explain your situation.
✅ Set up a payment plan – Instead of paying a lump sum, request monthly installments.
✅ Use Medicaid or hospital charity care – Many nonprofit hospitals forgive medical bills for low-income patients.
✅ Look for hospital-sponsored grants – Some hospitals have funding for unpaid patient bills.
📌 Key Tip: If you’re denied financial assistance, appeal the decision or request a reduced settlement amount.
5. Plan for Medical Costs with Purple
Unexpected medical expenses can be stressful, but smart budgeting and financial assistance can help you stay in control.
💜 Need help managing your medical expenses? Get started with Purple today and take charge of your financial health!