Social Security Fairness Act Georgia: What DAC Families Need to Know

What the Social Security Fairness Act Changed

The Social Security Fairness Act (H.R. 82), signed into law on January 5, 2025, completely repealed two provisions that had reduced Social Security benefits for millions of Americans: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). Both provisions are eliminated for benefits payable January 2024 onward; SSA paid retroactive adjustments starting in February 2025, and implementation is complete.

For Georgia families navigating the adult disability transition, this repeal matters because of its direct impact on Disabled Adult Child (DAC) benefits — and the Medicaid trap it can trigger.

How the Repeal Affects Georgia Public-Sector Families

Georgia has a large public workforce — teachers, firefighters, police officers, state employees — many of whom work in positions not covered by Social Security. Before the repeal, WEP reduced the Social Security retirement or disability benefits of these workers, and GPO reduced or eliminated spousal and survivor benefits.

Because DAC benefits are calculated directly from the parent's Primary Insurance Amount (PIA), any WEP reduction in the parent's PIA automatically reduced the adult disabled child's benefit. A parent whose PIA was reduced by $300 per month under WEP meant their adult disabled child's DAC benefit was also reduced — sometimes by $150 or more per month.

With both provisions repealed:

• Parents receive their full, unreduced Social Security benefits. Workers who delayed retirement because of WEP can now file for their full benefit.
• DAC benefits increase proportionally. An adult disabled child receives up to 50% of a living parent's PIA or 75% of a deceased parent's PIA — now calculated without any WEP reduction.
• Retroactive payments cover benefits back to January 2024. SSA paid these adjustments starting in February 2025; affected families should verify that their records and payments were updated.

For some Georgia families, this means DAC payments increasing by hundreds of dollars per month. That is significant additional income — but it creates a specific administrative problem.

The Medicaid Trap: When Higher DAC Kills SSI

Georgia is a Section 1634 state, which means SSI approval automatically activates Medicaid. The reverse is also true: when SSI cash payments terminate, Medicaid terminates automatically.

DAC benefits are unearned income that reduces the SSI payment dollar-for-dollar after the $20 general income exclusion. Before the repeal, a WEP-reduced DAC benefit might have been low enough to leave some SSI in place. After the repeal, the restored full DAC benefit often exceeds the 2026 Federal Benefit Rate of $994 per month — which means the SSI cash payment drops to zero. And with it, automatic Medicaid coverage ends.

This is not hypothetical. Families across Georgia are receiving DAC increases now, and their adult children are losing SSI and Medicaid as a result.

How to Protect Medicaid After DAC Increases

Federal law (42 U.S.C. § 1383c(c)) requires Georgia DFCS to disregard DAC benefits when calculating Medicaid eligibility, provided the individual meets the other applicable eligibility requirements, including the $2,000 resource limit. This protection exists specifically for this situation — but it is not automatic. You must apply for it.

Step 1: File for DAC Medicaid Protection with DFCS. Contact your local Division of Family and Children Services office and request a DAC Medicaid Protection application. The Georgia Gateway portal (gateway.ga.gov) handles general Medicaid applications, but DAC protection typically requires a paper application with supporting documentation.

Step 2: Bring documentation. You need:

• SSA award letters showing both the SSI and DAC benefit amounts
• A benefits verification letter from SSA (request at ssa.gov or 1-800-772-1213)
• Payment history showing when SSI was reduced or terminated due to the DAC increase
• If applicable, documentation of the retroactive lump-sum payment

Step 3: Request a coverage review. If Medicaid already lapsed, ask DFCS to review the DAC protection from the date the DAC increase caused the SSI termination and explain whether retroactive coverage is available.

Step 4: Document everything. DFCS caseworkers are often unfamiliar with the DAC Medicaid protection rule. Bring a written explanation citing 42 U.S.C. § 1383c(c) and the DFCS Medicaid Policy Manual. Keep copies of everything you submit and log every phone call and in-person visit.

The Pickle Amendment May Also Apply

If your adult child's SSI was terminated because of cumulative cost-of-living adjustments (COLAs) to the DAC benefit — not just the WEP/GPO repeal — the Pickle Amendment provides an additional Medicaid protection pathway. The Pickle calculation removes all COLA increases that occurred since the person was last simultaneously eligible for both SSI and a Title II benefit. If the person would still qualify for SSI without those COLAs, Medicaid is preserved.

Both DAC protection and Pickle protection are filed with DFCS. They can apply simultaneously if both conditions are met.

What Georgia Families Should Do Now

If a parent in your family received a Social Security increase due to the WEP/GPO repeal, check whether the adult disabled child's DAC benefit also increased. If it did — and if SSI cash payments decreased or terminated as a result — file for DAC Medicaid Protection with DFCS immediately. Do not wait for a Medicaid termination notice; filing proactively prevents any gap in coverage.

The Georgia SSI at 18 & Adult Disability Benefits Guide includes worked examples of the DAC Medicaid protection calculation, a DFCS communication log, and the complete list of documents needed to file — designed for exactly this situation.

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