In addition to primary health care services, the Medicaid program also offers a variety of optional services essential to the needs of severely disabled individuals that are both costly and difficult to obtain even if traditional employer-based health care coverage can be secured. In order to address this disincentive, the President's budget proposes to help people with disabilities work without losing their health care coverage. The President's proposal would create a new State option that would allow SSI beneficiaries with disabilities who earn more than those State caps to keep Medicaid by contributing to the cost of their coverage as their income rises. The President's budget also includes a proposal for a 4 year demonstration project to extend Medicare coverage for SSDI recipient who return to work. Federal income policy regarding disability payments may also create disincentives to employment.
SSDI benefits can continue for up to nine months after an individual attempts to return to work.
SSI recipients can continue to receive their SSI checks while they work. As long as they remain disabled, they will continue to receive their SSI check until they reach a certain level of earnings. Our data suggest that many beneficiaries are well aware of the SGA threshold and earnings, and, as they approach them, tend to limit their hours of work or earnings. Ultimately, these barriers must be addressed if we are to achieve successful employment outcomes for many more individuals with disabilities. The programs I administer at the Department of Education have played a significant role in our overall efforts to help individuals to be prepared for and engage in gainful employment and must continue to be part of a comprehensive strategy.