Evaluation of the Ticket to Work Program Initial Evaluation Report

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if a beneficiary obtains earnings of at least the substantial gainful activity level (currently set
at $810 per month for most beneficiaries) for nine months. Both of the new payment
options give providers a substantially stronger performance incentive because they require a
beneficiary to exit cash benefit status by reason of increased earnings for 60 months before
the provider receives full payment. Of the two new systems, the first option, the “outcome
payment” system, provides higher payments but only when a beneficiary leaves the rolls due
to work or earnings. The other new option, the “milestone-outcome” system, provides
smaller outcome payments, but can also provide up to four larger milestone payments while
a beneficiary is still receiving benefits, if the beneficiary achieves specified earnings targets.
TTW increases the choices given to beneficiaries who voluntarily decide to pursue
employment. It does so by greatly expanding the types of organizations that SSA will pay to
assist beneficiaries’ work efforts. In addition to SVRA’s these organizations include a range
of public and private providers, called employment networks (ENs), that have signed a
contract with SSA. In addition, TTW gives service providers and beneficiaries considerable
flexibility in choosing the services that will be provided. In fact, providers and beneficiaries
must agree on an individualized work plan before a Ticket can be put into use. This plan
could, in theory, include a wide array of services designed to help beneficiaries overcome
barriers related to their knowledge of the service system and the labor market, their need for
new or enhanced job skills, and even employer misperceptions of their abilities.
Service delivery in TTW is constrained, however, by providers’ desire to limit service
expenditures to a level that fits within the payments they expect to receive and by their
assessment of whether the services they can provide are likely to result in a beneficiary
leaving the rolls. In fact, providers can refuse to serve beneficiaries whom they think have a
low probability of leaving the rolls due to work (and therefore not triggering outcome
payments). Beneficiaries who only want to work at an earnings level that would enable them
to retain part or all of their benefits will generally not be attractive clients to providers.
TTW is being implemented in three phases. In Phase 1, which began in February 2002,
the program was rolled out in 13 states across the country. Phase 2 began in November
2002 and extended the program to an additional 20 states plus the District of Columbia.
Phase 3, which began in November 2003, will see TTW implemented in the remaining 17
states and U.S. territories.
MAJOR FINDINGS
This is the first major report from SSA’s TTW evaluation. Drawing on information
collected during just the first five months of the study, it examines early implementation
issues and sets the stage for the more comprehensive reports to follow. In particular, this
report is based on the preliminary process analysis (Livermore et al. 2003) and our interviews
with staff at SSA, the TTW Program Manager, and several ENs and SVRAs. We also
present findings on enrollment and participation patterns from our early analysis of TTW
administrative data.
Executive Summary