Keeping Health Care Coverage While You Work
When people start working, they often worry about losing health insurance—whether it’s Medicaid, Medicare, or both. But you can work (even full-time) and keep your coverage. In fact, you might even have more options for health care once you start working!
Keeping Your Medicare
If you get Medicare through your Social Security Disability Insurance (SSDI) benefits, you can keep your coverage even if your SSDI cash payments stop! During your Extended Period of Medicare Coverage, you can keep your Medicare for at least 93 months (7 years, 9 months) after completing your Trial Work Period—even even if you’re not getting SSDI payments.
During the Extended Period, you can keep:
Medicare Part A (hospital coverage), usually at no cost
Medicare Part B (medical coverage) so long as you pay the monthly premium
Prescription drug coverage, if you already have it
How long you can keep Medicare will depend on how much you earn. Because everyone’s situation is different, your exact end date may vary. If your SSDI cash benefits have stopped, you can contact Social Security to find out how long your Medicare Coverage can still continue.
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The Trial Work Period is a time when you can try out working. It lasts for nine months.
During those nine months, you can earn as much as you want and it won’t affect your benefits. No matter how much you make, you’ll still get your full cash and medical benefits—so long as you follow the rules.
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The Extended Period of Medicare Coverage (EPMC) is the time you can still get Medicare coverage after your SSDI benefits stop. It will last for at least 93 months after your Trial Work Period ends.
If you work full-time, you may be able to get health insurance from your job too!
Keeping Your Medicaid
In Indiana, there are two main ways you can keep your Medicaid while working: MEDWorks and 1619(b). Both let you stay on your waiver (if you’re on one).
1619(b)
This protects Medicaid coverage when you earn enough money that your SSI check drops to $0.
There are no premiums or out-of-pocket costs, but your earnings must stay below the state’s annual earnings threshold.
The threshold changes every year. For Indiana in 2026, it is $47,397. You would need to earn less than this amount to qualify for 1619(b).
MEDWorks
MED Works lets people aged 16–64 keep Medicaid coverage while working. It’s an option if you:
Get SSDI
Get SSI but earn more than the earning threshold—and so cannot apply for 1619(b)
The amount you would have to pay for MEDWorks changes every year, but it depends on your total earnings (for example, SSI + wages).
Example: Derek Finds a New Job
Because of his disability, Derek receives SSI each month. Starting in 2024, Derek has been going to computer classes at his local community college. In March 2026, he got his certificate as an IT Support Technician. With his new skills, he found a job earning $50,000 per year.
Derek is excited to work more. But he’s also worried about his Medicaid benefits now that he’s earning more money. In 2026, the earning threshold for 1619(b)Medicaid Coverage is $47,397 each year. Derek makes more than that now, so he isn’t eligible for 1619(b).
Instead, Derek applies for MEDWorks. He’s earning enough money now that he isn’t getting SSI cash benefits. So, how much he has to pay for MEDWorks will depend on his monthly income before taxes ($50,000/12 months = $4,166.67/month).
Have More Questions about Health Care and Working?
These resources can help answer your questions about how working more can affect your specific benefits.
Indiana Works
Indiana Works is part of a federal program that answers questions on benefits and work. They have trained Incentive Coordinators ready to help you with your questions.
Phone: 1-855-641-8382
Indiana Institute on Disability and Community (IIDC)
The IIDC has information about benefits and programs that support young adults, students, and adults interested in working more. Their fact sheets explain some of the Social Security Administration's work incentive programs. They also have links to other resources for housing, health care, and savings.