suplmental social security?

SSI (Supplemental Security Income) is the federal WELFARE program. She would become ineligible the month following the receipt and she won't become re-entitled until she has spent the settlement down to under $2000 ($3000 if married). She must provide social security with proof that it has been spent down and the money must be used for necessities - trips to Disneyland, etc will be counted against her.

If she was getting social security disability instead (SSI isn't social security) then the settlement would have no impact on her entitlement (although worker's comp settlements reduce social security disability benefits).

NOTE: If she doesn't report it social security will eventually find out about it from the IRS. That would not only terminate her entitlement but she would be fined AND she would be stuck with an overpayment. And, trust me, social security will get the monies owed them either by getting any future federal income tax refunds she will ever be due or if she ever becomes re-entitled to monthly benefits.

SSI does take into consideration one’s income AND resources, which means that you cannot have more than $2,000 available liquid reserve assets. If your friend received a sizable settlement as a result of the car crash, then it will likely be reported to the IRS. It may make your friend no longer eligible to receive SSI, however with the way this government continues to hand out other people’s money, I wouldn’t be surprised if your friend was allowed to continue collecting.

the portion that pays her medical bills has no effect on SSI. however, any further portion has to be reported to the agency and will probably reduce her SSI monthly.

how long and how much -- I do not know