That is only for the SSI program. Most Americans who cannot work for medical reasons qualify for the SSDI program, which has no limit on assets.
Also, the SSDI payment is not always $1,200 per month. It can go as high as about $2,000. It can also be a lot lower than $1,200 per month, including $0 (for those that have never worked). But if it is lower than $894 per month, then the SSI program kicks in and makes your total income from both programs $914 per month unless your SSDI payment is $0 because you've never worked, in which case your monthly income is $894 per month.
The $894 figure is the lowest one would get. Some states decide to increase it, so actually a California resident would get at least 1114.21 -- plus food stamps adds about $100 per month. (Social Security ignores income from food stamps when deciding how much to pay you.)
Also, roughly half of recipients also get subsidized housing, where they pay only 30% of their income (minus medical expense) for rent even if they live in an expensive area like SF or NYC.
Someone on a different branch of this comment tree, i.e., a "cousin" of this comment, implies that as soon as Social Security decides you are no longer disabled, you lose the health insurance aspect of Social Security, but that is not true: you continue to receive Medicare for another 3 years or so. If you want to know the exact length, query a search engine for "grace period". (But if you've never worked at all, you don't get Medicare, so you have to rely on Medicaid, which might not continue for 3 years after you are determined to be able to work.)
Also, the SSDI payment is not always $1,200 per month. It can go as high as about $2,000. It can also be a lot lower than $1,200 per month, including $0 (for those that have never worked). But if it is lower than $894 per month, then the SSI program kicks in and makes your total income from both programs $914 per month unless your SSDI payment is $0 because you've never worked, in which case your monthly income is $894 per month.
The $894 figure is the lowest one would get. Some states decide to increase it, so actually a California resident would get at least 1114.21 -- plus food stamps adds about $100 per month. (Social Security ignores income from food stamps when deciding how much to pay you.)
Also, roughly half of recipients also get subsidized housing, where they pay only 30% of their income (minus medical expense) for rent even if they live in an expensive area like SF or NYC.
Someone on a different branch of this comment tree, i.e., a "cousin" of this comment, implies that as soon as Social Security decides you are no longer disabled, you lose the health insurance aspect of Social Security, but that is not true: you continue to receive Medicare for another 3 years or so. If you want to know the exact length, query a search engine for "grace period". (But if you've never worked at all, you don't get Medicare, so you have to rely on Medicaid, which might not continue for 3 years after you are determined to be able to work.)