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Evaluation of the Ticket to Work Program Initial Evaluation Report

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Ano<strong>the</strong>r change requiring consideration would be <strong>to</strong> modify <strong>Ticket</strong> payments so that<br />

providers were rewarded for increasing beneficiary productivity and reducing SSI payment<br />

for beneficiaries who work and receive partial benefits. Currently, outcome payments are<br />

not triggered unless beneficiaries s<strong>to</strong>p receiving payments from both programs, but <strong>the</strong>re are<br />

SSI recipients, including some who also receive DI, whose benefits are reduced but not<br />

eliminated when <strong>the</strong>ir earnings increase. The miles<strong>to</strong>nes payments give ENs some reward<br />

for helping beneficiaries reduce <strong>the</strong>ir benefits. Similarly, <strong>the</strong> traditional payment system<br />

rewards SVRAs that help beneficiaries earn above <strong>the</strong> substantial gainful activity level for at<br />

least nine months even if those beneficiaries remain on <strong>the</strong> rolls. A partial payment system<br />

for use by providers might be appropriate for SVRAs, perhaps even as a replacement for <strong>the</strong><br />

traditional payment system. Partial payments that exceed benefit savings should perhaps also<br />

be considered on <strong>the</strong> grounds that increased beneficiary earnings have some value <strong>to</strong> society<br />

even if <strong>the</strong>y are not fully <strong>of</strong>fset by benefit savings.<br />

It is clear that <strong>the</strong> work incentive provisions <strong>of</strong> both <strong>the</strong> SSI and DI programs directly<br />

conflict with providers’ desires <strong>to</strong> generate <strong>Ticket</strong> payments. Many <strong>of</strong> <strong>the</strong> incentives allow<br />

beneficiaries <strong>to</strong> stay on <strong>the</strong> rolls while testing <strong>the</strong> employment waters (indefinitely for SSI),<br />

but TTW providers generally receive payment only when a beneficiary no longer receives<br />

benefit payments. ENs that help beneficiaries use <strong>the</strong> work incentives run <strong>the</strong> risk <strong>of</strong> not<br />

receiving payment for <strong>the</strong>ir efforts. Many providers we have talked <strong>to</strong> are acutely aware <strong>of</strong><br />

this problem. It is also clear from evidence we have collected that <strong>the</strong> differences between<br />

<strong>the</strong> work incentive provisions <strong>of</strong> <strong>the</strong> two programs have added substantial complexity <strong>to</strong><br />

TTW implementation. These differences make it difficult for SSA <strong>to</strong> integrate processes and<br />

data systems across <strong>the</strong> two programs and are a significant source <strong>of</strong> confusion <strong>to</strong><br />

beneficiaries and providers alike. Depending how TTW plays out, SSA may eventually need<br />

<strong>to</strong> give serious consideration <strong>to</strong> redesigning <strong>the</strong> work incentive programs or <strong>the</strong> TTW<br />

program <strong>to</strong> resolve this conflict. This issue could be addressed in SSA’s forthcoming Benefit<br />

Offset Demonstration for DI that would introduce a $1 for $2 benefit <strong>of</strong>fset similar <strong>to</strong> that<br />

in <strong>the</strong> SSI program and could include special provisions for making TTW payments <strong>to</strong><br />

providers that work with demonstration participants that use this new <strong>of</strong>fset.<br />

In considering any changes <strong>to</strong> <strong>the</strong> TTW program, it is important <strong>to</strong> be realistic about<br />

what TTW can achieve, even if payments were increased and work incentive provisions<br />

restructured. TTW is a program intended <strong>to</strong> improve employment outcomes for people who<br />

have passed a rigorous test <strong>to</strong> show that <strong>the</strong>y cannot engage in substantial gainful activity.<br />

The severity <strong>of</strong> <strong>the</strong>ir impairments, combined with o<strong>the</strong>r personal characteristics, might make<br />

work an unrealistic option for some beneficiaries under any circumstances. O<strong>the</strong>r individuals<br />

face environmental barriers and disincentives <strong>to</strong> work that would not be addressed by <strong>the</strong><br />

work incentive programs, even under <strong>the</strong> best imaginable program configuration. Barriers<br />

and disincentives include possible reduction or loss <strong>of</strong> both income and in-kind benefits, <strong>the</strong><br />

existence <strong>of</strong> a highly fragmented support system, lack <strong>of</strong> marketable skills, and employers’<br />

concerns about hiring or retaining those deemed unfit for gainful activity, regardless <strong>of</strong><br />

whe<strong>the</strong>r such concerns are legitimate. The NASI panel that proposed <strong>the</strong> <strong>Ticket</strong> concept saw<br />

it as a way <strong>to</strong> help a small share <strong>of</strong> beneficiaries attain self-sufficiency through employment,<br />

with net savings <strong>to</strong> <strong>the</strong> disability programs—a small step forward. It seems likely that many<br />

135<br />

VII: Conclusions and Implications

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