Policy Proposals for Improving SSDI, SSI and Medicaid
Work
Incentives Prepared By Jensen and Silverstein
Allen Jensen and Robert "Bobby" Silverstein recently proposed
policies for improving SSDI work incentives (e.g., addressing
the cash cliff). Policies for updating and improving SSI and
Medicaid work incentives are also proposed. These proposals are
the product of a research project funded by the Social Security
Administration (SSA) through a sub-award from the Disability
Research Institute (DRI) at the
Urbana-Champaign. Additional funding was provided by the Robert
Wood Johnson Foundation.
The policy proposals developed by the project team (referred to
as the Gradual Reduction Choice Option and Related Policy
Proposals) recognize the heterogeneous nature of the SSDI
disability population and the many variables impacting the
ability of persons with severe disabilities to sustain a
substantial level of earnings over a significant period of
time. The policy proposals are designed to enhance the quality
of life and financial independence of SSDI and SSI
beneficiaries and at the same time facilitate net long-range
cost savings (or at least not result in additional costs) to
the Social Security Trust Fund, the U.S. Treasury, and the
states.
In a nutshell, the proposals provide SSDI beneficiaries with an
informed choice (which entails tradeoffs) between current SSDI
policy (which includes the cash cliff) and an alternative,
which includes a $1 for $2 gradual reduction in benefits after
an initial earned income disregard of one-half of the dollar
value of the monthly Substantial Gainful Activity (SGA) level
and continued attachment to the SSDI program when benefits are
reduced to zero as long as the individual's severe impairments
continue. The proposals also encourage work for both the SSDI
and SSI populations by making the programs' work incentives
similar and thus easier to understand and utilize. In addition,
the project team suggests related policies for enhancing SSI,
Section 1619, and Medicaid work incentives. Finally, the
project team developed a framework for conducting cost
estimates of an SSDI policy which entails a $1 for $2 gradual
reduction of benefits as earnings increase.
Links to the papers prepared by the project staff are as
follows:
* SSDI Gradual Reduction Choice Proposal and Related Policy
Proposals - www.dri.uiuc.edu/research/p05-12h/default.htm
* A Framework for Preparing Cost Estimates for SSDI $1 for $2
Gradual Reduction Demonstration Proposals
www.dri.uiuc.edu/research/p05-12h/default.htm
Contact Information
-------------------
Allen Jensen
Robert Silverstein
Director,
Director,
Work Incentives Project Center for the Study and
Center for Health Services Advancement of Disability Policy
Research and Policy 1660 L Street, NW,
Suite 701
George Washington University Washington, D.C. 20036
2021 K Street, N.W. Suite 800
Washington, DC 20006
Phone: (202)530-2319 (202) 783-5111
Fax: (202)530-2336 (202)
783-8250
Email: ihoacj@gwumc.edu Bobby@CSADP.org
Web: www.medicaidbuyin.org
www.disabilitypolicycenter.org