What a person can have as income varies depending on what type of disability they are falling under, so it is possible and legal to have a certain amount of income under certain types of disability. (I can never remember which is which.) As far as the insurance thing goes, that may also be tied into the type of disability she is working under which may be why she has to work under out-of-pocket now in order to be much more careful about what income is coming in.

Hopefully when you talk to her you will get more information about what the possibilities are for you. I know this is stressful for you and for her both. Having gone through helping my sister get onto disability and all the paperwork and rules surrounding it, it can be a bit stressful to go from full income to disability in a short amount of time. Definitely requires rethinking everything you thought you had figured out about your future.