This can mean an individual who meets the federal definition of disability, is a recipient of disability benefits, someone with a gambling, drug or alcohol addiction, or just someone who can’t be trusted to prudently invest and manage money. The federal definition of disability means that the person cannot be gainfully employed for one year. This definition is very important for protecting assets for Medicaid purposes, for the parent and for the disabled child.  Generally speaking, a disabled beneficiary is anyone for whom special arrangements must be made for their medical care or the management of their funds and often times the disability is not readily apparent.