Social Security and Supplemental Security Income Work Incentives for People with Disabilities

This law:

• Creates a consumer-majority Work Incentives Advisory Panel to advise the President, Congress, and the Commissioner of Social Security on work incentives issues concerning individuals with disabilities;

• Eliminates work disincentives by prohibiting use of work activity as the basis for reviewing individuals entitled to receive disability insurance benefits under Section 233 of the Act or monthly insurance benefits under Section 202 of the Act (based upon disability for individuals who have received benefits for at least 24 months);

• Expedites reinstatement of benefits without filing a new application;

• Provides funds for protection and advocacy systems established in each state;

• Expands for individuals (16-65 years old) states' options and funding for the Medicaid buy-in for workers with disabilities by permitting states to (1) liberalize limits on resources and income, and (2) allow employed individuals with disabilities to buy in to Medicaid even when they are not longer eligible for SSDI or SSI disability benefits due to medical improvement. The state can require individuals to pay premiums, or other cost-sharing changes, set on a sliding scale based upon income;

• Continues Medicare coverage; extends premium-free Medicare Part A coverage for persons with disabilities who return to work for an additional 4 1/3 years provided under the current law for SSDI beneficiaries;

• Provides funds for other demonstration projects at the state level; and

• Allows beneficiaries with disabilities to suspend Medigap insurance if they have employer-sponsored coverage.

Other Social Security Work Incentives include the Individualized Work-Related Expenses (IWRE) and the Plan for Achieving Self-Support (PASS). These two work incentives continue to provide a means for beneficiaries to set aside income and/or resources (also called assets) to achieve specific work goals.

Information is available in the Red Book on Employment Support. The Red Book is a summary guide to employment support available to people with disabilities under the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs. You can view the Red Book online at http://www.ssa.gov/work/ResourcesToolkit/redbook.html.