Financial Help for Parents of Children With Special Needs

If you are planning to be a parent or are thinking of having more children, the scenario of having a child with a disability has probably crossed your mind. Disabilities can form before birth or after birth as a result of accidents or illnesses. According to the U.S. Census Bureau, there were over 3 million children with disabilities in the U.S. in 2019. That translates to 4.3 percent of the under-18 population.

Parents of children with disabilities often face extra financial challenges, including the need for specialized medical care, therapy, and educational support. Understanding the available government benefits and private insurance options is crucial in ensuring that their children receive the necessary care without undue financial burden.

Government Programs

Various state and federal programs offer financial help for families with children with disabilities:

• Medicaid: Medicaid is a federal and state program that provides health coverage to low-income families, including those with children who have disabilities. Medicaid offers a broad range of services, including long-term care, home health services, and various therapies.
• Children’s Health Insurance Program: The Children’s Health Insurance Program (CHIP) provides health coverage to children in families with incomes too high to qualify for Medicaid but too low to afford private insurance. CHIP benefits often mirror those of Medicaid and include essential services for children with disabilities.
• Supplemental Security Income: Supplemental Security Income (SSI) is a federal needs-based program that provides monthly payments to children with disabilities from low-income families. In assessing whether a child is eligible, the Social Security Administration will consider the child's disability and family income. These funds can go toward medical expenses, educational needs, and other essential supports.
• Social Security Disability Insurance: Social Security Disability Insurance (SSDI) is another federal assistance program that primarily benefits disabled adults who have worked and paid into the Social Security system. Children with disabilities can also receive SSDI benefits if they have a parent who is disabled, retired, or deceased.
• Individualized Education Program: Under the Individuals with Disabilities Education Act (IDEA), public schools must provide free and appropriate education to students with disabilities. This may include developing an Individualized Education Program (IEP) tailored to each child’s unique needs, ensuring access to necessary educational resources and support services.
• State-Specific Programs: Many states offer additional programs and benefits for families with children who have disabilities, including respite care, financial assistance, and specialized health services. These programs vary widely, so it is necessary for parents to research and connect with local agencies to understand the full range of available resources. Your special needs planner can assist you in locating these services.

Private Insurers

For families who don’t qualify for government assistance, they may be able to get help through their employers’ benefits programs.

• Employer-Sponsored Insurance: Many parents rely on employer-sponsored health insurance plans. These often include coverage for various medical services, therapies, and sometimes even specialized equipment for children with disabilities.
• Individual Health Insurance Plans: For those who do not have access to employer-sponsored insurance, individual health insurance plans purchased through the Health Insurance Marketplace can be a viable option. These plans must cover essential health benefits, which include services particularly important for children with disabilities, such as prescription drugs, mental health services, and rehabilitative services.
• Disability Insurance: Though primarily designed for adults, some disability insurance plans can offer benefits that indirectly support families. For example, these plans may be able to replace lost income when a parent needs to take time off to care for a child with a disability.
• Long-Term Care Insurance: This type of insurance can provide additional support for children with severe disabilities who require long-term care. Long-term care insurance covers services that might not be part of standard health insurance plans.
• Juno Insurance Services, LLC: Juno Insurance Services is one company that offers tailored insurance solutions for families with children with disabilities. They provide a range of products designed to cover specific needs, such as therapies, special education, and assistive devices. Juno stands out by offering personalized plans that address the unique circumstances of each family, ensuring comprehensive coverage and financial support.

Learn More About Getting Help With the Costs of Caring for a Child With Disabilities

Whether you have a child with a disability or want to be prepared in the event you have a child with a disability, there are resources available to you. Contact your special needs planning attorney today to discuss your specific situation, options, and rights. A special needs planner can also assist you in exploring various estate planning tools that you can put into place to secure your child’s future well-being and financial security.