I
106TH CONGRESS
1ST SESSION
H. R. 1180
To amend the Social Security Act to expand the availability of health care
coverage for working individuals with disabilities, to establish a Ticket
to Work and Self-Sufficiency Program in the Social Security Administra-
tion to provide such individuals with meaningful opportunities to work,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 18, 1999
Mr. LAZIO (for himself, Mr. WAXMAN, Mr. BLILEY, Mr. DINGELL, Mrs.
JOHNSON of Connecticut, Mr. MATSUI, Mr. BILIRAKIS, Mr. BROWN of
Ohio, Mr. RAMSTAD, Mr. CARDIN, Mr. GREENWOOD, Ms. BALDWIN, Mr.
CAMP, Mr. STARK, Mr. PICKERING, Mr. PALLONE, Mr. FOLEY, Mr.
LEVIN, Mr. BILBRAY, Mr. TANNER, Mrs. MORELLA, Mr. DOGGETT, Mr.
HORN, Mr. MURTHA, Mr. UPTON, Mr. STRICKLAND, Mrs. KELLY, Mr.
HOEFFEL, Mr. BOEHLERT, Mr. BOUCHER, Mr. KOLBE, Ms. MCCARTHY
of Missouri, Mr. FRELINGHUYSEN, Mr. MARKEY, Mr. BARRETT of Wis-
consin, Mr. GORDON, Mr. RUSH, Mr. WYNN, Mr. MEEHAN, Mr.
DELAHUNT, Mr. BARCIA, Mr. GREEN of Texas, Mr. KLINK, and Mr.
JEFFERSON) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Commerce, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
To amend the Social Security Act to expand the availability
of health care coverage for working individuals with dis-
abilities, to establish a Ticket to Work and Self-Suffi-
ciency Program in the Social Security Administration
Sec. 303. Studies and reports.
TITLE IV—TECHNICAL AMENDMENTS
Sec. 401. Technical amendments relating to drug addicts and alcoholics.
Sec. 402. Treatment of prisoners.
Sec. 403. Revocation by members of the clergy of exemption from Social Secu-
rity coverage.
Sec. 404. Additional technical amendment relating to cooperative research or
demonstration projects under titles II and XVI.
Sec. 405. Authorization for State to permit annual wage reports.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Health care is important to all Americans.
(2) Health care is particularly important to in-
dividuals with disabilities and special health care
needs who often cannot afford the insurance avail-
able to them through the private market, are unin-
surable by the plans available in the private sector,
and are at great risk of incurring very high and eco-
nomically devastating health care costs.
(3) Americans with significant disabilities often
are unable to obtain health care insurance that pro-
vides coverage of the services and supports that en-
able them to live independently and enter or rejoin
the workforce. Personal assistance services (such as
attendant services, personal assistance with trans-
portation to and from work, reader services, job
coaches, and related assistance) remove many of the
barriers between significant disability and work.
Coverage for such services, as well as for prescrip-
tion drugs, durable medical equipment, and basic
health care are powerful and proven tools for indi-
viduals with significant disabilities to obtain and re-
tain employment.
(4) For individuals with disabilities, the fear of
losing health care and related services is one of the
greatest barriers keeping the individuals from maxi-
mizing their employment, earning potential, and
independence.
(5) Individuals with disabilities who are bene-
ficiaries under title II or XVI of the Social Security
Act (42 U.S.C. 401 et seq., 1381 et seq.) risk losing
medicare or medicaid coverage that is linked to their
cash benefits, a risk that is an equal, or greater,
work disincentive than the loss of cash benefits asso-
ciated with working.
(6) Currently, less than 1⁄2 of 1 percent of so-
cial security disability insurance and supplemental
security income beneficiaries cease to receive benefits
as a result of employment.
(7) Beneficiaries have cited the lack of adequate
employment training and placement services as an
additional barrier to employment.
(8) If an additional 1⁄2 of 1 percent of the cur-
rent social security disability insurance (DI) and
supplemental security income (SSI) recipients were
to cease receiving benefits as a result of employ-
ment, the savings to the Social Security Trust
Funds 
in 
cash 
assistance 
would 
total
$3,500,000,000 over the worklife of the individuals.
(b) PURPOSES.—The purposes of this Act are as fol-
lows:
(1) To provide health care and employment
preparation and placement services to individuals
with disabilities that will enable those individuals to
reduce their dependency on cash benefit programs.
(2) To encourage States to adopt the option of
allowing individuals with disabilities to purchase
medicaid coverage that is necessary to enable such
individuals to maintain employment.
(3) To provide individuals with disabilities the
option of maintaining medicare coverage while work-
ing.
(4) To establish a return to work ticket pro-
gram that will allow individuals with disabilities to
seek the services necessary to obtain and retain em-
ployment and reduce their dependency on cash ben-
efit programs.
TITLE 
I—EXPANDED 
AVAIL-
ABILITY OF HEALTH CARE
SERVICES
SEC. 101. EXPANDING STATE OPTIONS UNDER THE MED-
ICAID PROGRAM FOR WORKERS WITH DIS-
ABILITIES.
(a) IN GENERAL.—
(1) STATE OPTION TO ELIMINATE INCOME, AS-
SETS, AND RESOURCE LIMITATIONS FOR WORKERS
WITH DISABILITIES BUYING INTO MEDICAID.—Sec-
tion 1902(a)(10)(A)(ii) of the Social Security Act
(42 U.S.C. 1396a(a)(10)(A)(ii)) is amended—
(A) in subclause (XIII), by striking ‘‘or’’
at the end;
(B) in subclause (XIV), by adding ‘‘or’’ at
the end; and
(C) by adding at the end the following:
‘‘(XV) who, but for earnings in
excess of the limit established under
section 1905(q)(2)(B), would be con-
sidered to be receiving supplemental
security income and whose assets, re-
sources, and earned or unearned in-
come (or both) do not exceed such
limitations (if any) as the State may
establish;’’.
(2) STATE OPTION TO PROVIDE OPPORTUNITY
FOR EMPLOYED INDIVIDUALS WITH A MEDICALLY
IMPROVED DISABILITY TO BUY INTO MEDICAID.—
(A) 
ELIGIBILITY.—Section
1902(a)(10)(A)(ii) of the Social Security Act
(42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by
paragraph (1), is amended—
(i) in subclause (XIV), by striking
‘‘or’’ at the end;
(ii) in subclause (XV), by adding ‘‘or’’
at the end; and
(iii) by adding at the end the fol-
lowing:
‘‘(XVI) who are employed indi-
viduals with a medically improved dis-
ability described in section 1905(v)(1)
and whose assets, resources, and
earned or unearned income (or both)
do not exceed such limitations (if any)
as the State may establish, but only if
the State provides medical assistance
to individuals described in subclause
(XV);’’.
(B) DEFINITION OF EMPLOYED INDIVID-
UALS
WITH
A
MEDICALLY
IMPROVED
DIS-
ABILITY.—Section 1905 of the Social Security
Act (42 U.S.C. 1396d) is amended by adding at
the end the following:
‘‘(v)(1) The term ‘employed individual with a medi-
cally improved disability’ means an individual who—
‘‘(A) is at least 16, but less than 65, years of
age;
‘‘(B) is employed (as defined in paragraph (2));
‘‘(C) ceases to be eligible for medical assistance
under section 1902(a)(10)(A)(ii)(XV) because the
individual, by reason of medical improvement, is de-
termined at the time of a regularly scheduled con-
tinuing disability review to no longer be eligible for
benefits under section 223(d) or 1614(a)(3); and
‘‘(D) continues to have a severe medically deter-
minable impairment, as determined under regula-
tions of the Secretary.
‘‘(2) For purposes of paragraph (1), an individual is
considered to be ‘employed’ if the individual—
‘‘(A) is earning at least the applicable minimum
wage requirement under section 6 of the Fair Labor
Standards Act (29 U.S.C. 206) and working at least
40 hours per month; or
‘‘(B) is engaged in a work effort that meets
substantial and reasonable threshold criteria for
hours of work, wages, or other measures, as defined
by the State and approved by the Secretary.’’.
(C) CONFORMING
AMENDMENT.—Section
1905(a) of such Act (42 U.S.C. 1396d(a)) is
amended in the matter preceding paragraph
(1)—
(i) in clause (x), by striking ‘‘or’’ at
the end;
(ii) in clause (xi), by adding ‘‘or’’ at
the end; and
(iii) by inserting after clause (xi), the
following:
‘‘(xii) employed individuals with a medically im-
proved disability (as defined in subsection (v)),’’.
(3) STATE AUTHORITY TO IMPOSE INCOME-RE-
LATED
PREMIUMS
AND
COST-SHARING.—Section
1916 of such Act (42 U.S.C. 1396o) is amended—
(A) in subsection (a), by striking ‘‘The
State plan’’ and inserting ‘‘Subject to sub-
section (g), the State plan’’; and
(B) by adding at the end the following:
‘‘(g) With respect to individuals provided medical as-
sistance only under subclause (XV) or (XVI) of section
1902(a)(10)(A)(ii), a State may (in a uniform manner for
individuals described in either such subclause)—
‘‘(1) require such individuals to pay premiums
or other cost-sharing charges set on a sliding scale
based on income that the State may determine; and
‘‘(2) require payment of 100 percent of such
premiums in the case of such an individual who has
income that exceeds 250 percent of the income offi-
cial poverty line (referred to in subsection (c)(1)) ap-
plicable to a family of the size involved.’’.
(4) PROHIBITION AGAINST SUPPLANTATION OF
STATE FUNDS AND STATE FAILURE TO MAINTAIN
EFFORT.—Section 1903(i) of such Act (42 U.S.C.
1396b(i)) is amended—
(A) by striking the period at the end of
paragraph (18) and inserting ‘‘; or’’; and
(B) by inserting after such paragraph the
following:
‘‘(19) with respect to amounts expended for
medical assistance provided to an individual de-
scribed in subclause (XV) or (XVI) of section
1902(a)(10)(A)(ii) for a fiscal year unless the State
demonstrates to the satisfaction of the Secretary
that the level of State funds expended for such fiscal
year for programs to enable working individuals with
disabilities to work (other than for such medical as-
sistance) is not less than the level expended for such
programs during the most recent State fiscal year
ending before the date of enactment of this para-
graph.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1903(f)(4) of the Social Security
Act (42 U.S.C. 1396b(f)(4)) is amended in the mat-
ter 
preceding 
subparagraph 
(A) 
by 
inserting
‘‘1902(a)(10)(A)(ii)(XV), 1902(a)(10)(A)(ii)(XVI)’’
after ‘‘1902(a)(10)(A)(ii)(X),’’.
(2) Section 1903(f)(4) of such Act, as amended
by 
paragraph 
(1), 
is 
amended 
by 
inserting
‘‘1902(a)(10)(A)(ii)(XIII),’’ 
before
‘‘1902(a)(10)(A)(ii)(XV)’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
apply to medical assistance for items and services
furnished on or after October 1, 1999.
(2) RETROACTIVITY OF CONFORMING AMEND-
MENT.—The amendment made by subsection (b)(2)
takes effect as if included in the enactment of the
Balanced Budget Act of 1997.
SEC. 102. CONTINUATION OF MEDICARE COVERAGE FOR
WORKING INDIVIDUALS WITH DISABILITIES.
(a) CONTINUATION OF COVERAGE.—
(1) IN GENERAL.—Section 226 of the Social
Security Act (42 U.S.C. 426) is amended—
(A) in the third sentence of subsection (b),
by inserting ‘‘, except as provided in subsection
(j)’’ after ‘‘but not in excess of 24 such
months’’; and
(B) by adding at the end the following:
‘‘(j) The 24-month limitation on deemed entitlement
under the third sentence of subsection (b) shall not
apply—
‘‘(1) for months occurring during the 10-year
period beginning with the first month that begins
after the date of enactment of this subsection; and
‘‘(2) for subsequent months, in the case of an
individual who was entitled to benefits under sub-
section (b) as of the last month of such 10-year pe-
riod and would continue (but for such 24-month lim-
itation) to be so entitled.’’.
(2) 
CONFORMING
AMENDMENT.—Section
1818A(a)(2)(C) of the Social Security Act (42
U.S.C. 1395i–2a(a)(2)(C)) is amended—
(A) by striking ‘‘solely’’; and
(B) by inserting ‘‘or the expiration of the
last month of the 10-year period described in
section 226(j)’’ before the semicolon.
(b) GAO REPORT.—Not later than 8 years after the
date of the enactment of this Act, the Comptroller General
of the United States shall submit a report to Congress
that—
(1) examines the effectiveness and cost of sub-
section (j) of section 226 of the Social Security Act
(42 U.S.C. 426); and
(2) recommends whether that subsection should
continue to be applied beyond the 10-year period de-
scribed in the subsection.
(c) EFFECTIVE DATE.—The amendments made by
subsection (a) apply to months beginning with the first
month that begins after the date of the enactment of this
Act.
(d) TREATMENT OF CERTAIN INDIVIDUALS.—An in-
dividual enrolled under section 1818A of the Social Secu-
rity Act (42 U.S.C. 1395i–2a) shall be treated with re-
spect to premium payment obligations under such section
as though the individual had continued to be entitled to
benefits under section 226(b) of such Act for—
(1) months described in section 226(j)(1) of
such Act (42 U.S.C. 426(j)(1)) (as added by sub-
section (a)); and
(2) subsequent months, in the case of an indi-
vidual who was so enrolled as of the last month de-
scribed in section 226(j)(2) of such Act (42 U.S.C.
426(j)(2)) (as so added).
SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE IN-
FRASTRUCTURES TO SUPPORT WORKING IN-
DIVIDUALS WITH DISABILITIES.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary of Health and
Human Services (in this section referred to as the
‘‘Secretary’’) shall award grants described in sub-
section (b) to States to support the design, establish-
ment, and operation of State infrastructures that
provide items and services to support working indi-
viduals with disabilities.
(2) APPLICATION.—In order to be eligible for
an award of a grant under this section, a State shall
submit an application to the Secretary at such time,
in such manner, and containing such information as
the Secretary shall require.
(3) DEFINITION
OF
STATE.—In this section,
the term ‘‘State’’ means each of the 50 States, the
District of Columbia, Puerto Rico, Guam, the
United States Virgin Islands, American Samoa, and
the Commonwealth of the Northern Mariana Is-
lands.
(b) GRANTS
FOR
INFRASTRUCTURE
AND
OUT-
REACH.—
(1) IN
GENERAL.—Out of the funds appro-
priated under subsection (e), the Secretary shall
award grants to States to—
(A) support the establishment, implemen-
tation, and operation of the State infrastruc-
tures described in subsection (a); and
(B) conduct outreach campaigns regarding
the existence of such infrastructures.
(2) ELIGIBILITY FOR GRANTS.—
(A) IN GENERAL.—No State may receive a
grant under this subsection unless the State—
(i) has an approved amendment to the
State plan under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) that
provides medical assistance under such
plan to individuals described in section
1902(a)(10)(A)(ii)(XV) of the Social Secu-
rity 
Act 
(42 
U.S.C.
1396a(a)(10)(A)(ii)(XV)); and
(ii) demonstrates to the satisfaction of
the Secretary that the State makes per-
sonal assistance services available under
the State plan under title XIX of the So-
cial Security Act (42 U.S.C. 1396 et seq.)
to the extent necessary to enable individ-
uals described in clause (i) to remain em-
ployed 
(as 
determined 
under 
section
1905(v)(2) of the Social Security Act (42
U.S.C. 1396d(v)(2))).
(B) DEFINITION
OF
PERSONAL
ASSIST-
ANCE SERVICES.—In this paragraph, the term
‘‘personal assistance services’’ means a range of
services, provided by 1 or more persons, de-
signed to assist an individual with a disability
to perform daily activities on and off the job
that the individual would typically perform if
the individual did not have a disability. Such
services shall be designed to increase the indi-
vidual’s control in life and ability to perform ev-
eryday activities on or off the job.
(3) DETERMINATION OF AWARDS.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall determine a for-
mula for awarding grants to States under this
section that provides special consideration to
States that provide medical assistance under
title XIX of the Social Security Act to individ-
uals 
described 
in 
section
1902(a)(10)(A)(ii)(XVI) of that Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XVI)).
(B) AWARD LIMITS.—
(i) MINIMUM AWARDS.—
(I) IN
GENERAL.—Subject to
subclause (II), no State with an ap-
proved application under this section
shall receive a grant for a fiscal year
that is less than $500,000.
(II) PRO RATA REDUCTIONS.—If
the funds appropriated under sub-
section (e) for a fiscal year are not
sufficient to pay each State with an
application approved under this sec-
tion the minimum amount described
in subclause (I), the Secretary shall
pay each such State an amount equal
to the pro rata share of the amount
made available.
(ii) MAXIMUM
AWARDS.—No State
with an application that has been approved
under this section shall receive a grant for
a fiscal year that exceeds 15 percent of the
total expenditures by the State (including
the reimbursed Federal share of such ex-
penditures) for medical assistance for indi-
viduals eligible under subclause (XV) and
(XVI) of section 1902(a)(10)(A)(ii) of the
Social 
Security 
Act 
(42 
U.S.C.
1396a(a)(10)(A)(ii)), as estimated by the
State and approved by the Secretary.
(c) AVAILABILITY OF FUNDS.—
(1) FUNDS
AWARDED
TO
STATES.—Funds
awarded to a State under a grant made under this
section for a fiscal year shall remain available until
expended.
(2) FUNDS NOT AWARDED TO STATES.—Funds
not awarded to States in the fiscal year for which
they are appropriated shall remain available in suc-
ceeding fiscal years for awarding by the Secretary.
(d) ANNUAL REPORT.—A State that is awarded a
grant under this section shall submit an annual report to
the Secretary on the use of funds provided under the
grant. Each report shall include the percentage increase
in the number of title II disability beneficiaries, as defined
in section 1148(k)(3) of the Social Security Act (as
amended by section 201) in the State, and title XVI dis-
ability beneficiaries, as defined in section 1148(k)(4) of
the Social Security Act (as so amended) in the State who
return to work.
(e) APPROPRIATION.—
(1) IN
GENERAL.—Out of any funds in the
Treasury not otherwise appropriated, there is appro-
priated to make grants under this section—
(A) for fiscal year 2000, $20,000,000;
(B) for fiscal year 2001, $25,000,000;
(C) for fiscal year 2002, $30,000,000;
(D) for fiscal year 2003, $35,000,000;
(E) for fiscal year 2004, $40,000,000; and
(F) for each of fiscal years 2005 through
2010, the amount appropriated for the pre-
ceding fiscal year increased by the percentage
increase (if any) in the Consumer Price Index
for All Urban Consumers (United States city
average) for the preceding fiscal year.
(2) BUDGET AUTHORITY.—This subsection con-
stitutes budget authority in advance of appropria-
tions Acts and represents the obligation of the Fed-
eral Government to provide for the payment of the
amounts appropriated under paragraph (1).
(f) RECOMMENDATION.—Not later than October 1,
2009, the Secretary, in consultation with the Work Incen-
tives Advisory Panel established under section 201(f),
shall submit a recommendation to the Committee on Com-
merce of the House of Representatives and the Committee
on Finance of the Senate regarding whether the grant pro-
gram established under this section should be continued
after fiscal year 2010.
SEC. 104. DEMONSTRATION OF COVERAGE UNDER THE
MEDICAID PROGRAM OF WORKERS WITH PO-
TENTIALLY SEVERE DISABILITIES.
(a) STATE APPLICATION.—A State may apply to the
Secretary of Health and Human Services (in this section
referred to as the ‘‘Secretary’’) for approval of a dem-
onstration project (in this section referred to as a ‘‘dem-
onstration project’’) under which up to a specified max-
imum number of individuals who are workers with a po-
tentially severe disability (as defined in subsection (b)(1))
are provided medical assistance equal to that provided
under section 1905(a) of the Social Security Act (42
U.S.C. 1396d(a)) to individuals described in section
1902(a)(10)(A)(ii)(XV) 
of 
that 
Act 
(42 
U.S.C.
1396a(a)(10)(A)(ii)(XV)).
(b) WORKER WITH A POTENTIALLY SEVERE DIS-
ABILITY DEFINED.—For purposes of this section—
(1) IN GENERAL.—The term ‘‘worker with a
potentially severe disability’’ means, with respect to
a demonstration project, an individual who—
(A) is at least 16, but less than 65, years
of age;
(B) has a specific physical or mental im-
pairment that, as defined by the State under
the demonstration project, is reasonably ex-
pected, but for the receipt of items and services
described in section 1905(a) of the Social Secu-
rity Act (42 U.S.C. 1396d(a)), to become blind
or disabled (as defined under section 1614(a) of
the Social Security Act (42 U.S.C. 1382c(a)));
and
(C) is employed (as defined in paragraph
(2)).
(2) DEFINITION OF EMPLOYED.—An individual
is considered to be ‘‘employed’’ if the individual—
(A) is earning at least the applicable min-
imum wage requirement under section 6 of the
Fair Labor Standards Act (29 U.S.C. 206) and
working at least 40 hours per month; or
(B) is engaged in a work effort that meets
substantial and reasonable threshold criteria for
hours of work, wages, or other measures, as de-
fined under the demonstration project and ap-
proved by the Secretary.
(c) APPROVAL OF DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—Subject to paragraph (3),
the Secretary shall approve applications under sub-
section (a) that meet the requirements of paragraph
(2) and such additional terms and conditions as the
Secretary may require. The Secretary may waive the
requirement of section 1902(a)(1) of the Social Se-
curity Act (42 U.S.C. 1396a(a)(1)) to allow for sub-
State demonstrations.
(2) TERMS AND CONDITIONS OF DEMONSTRA-
TION PROJECTS.—The Secretary may not approve a
demonstration project under this section unless the
State provides assurances satisfactory to the Sec-
retary that the following conditions are or will be
met:
(A) ELECTION OF OPTIONAL CATEGORY.—
The State has elected to provide coverage under
its plan under title XIX of the Social Security
Act 
of 
individuals 
described 
in 
section
1902(a)(10)(A)(ii)(XV) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XV)).
(B) MAINTENANCE OF STATE EFFORT.—
Federal funds paid to a State pursuant to this
section must be used to supplement, but not
supplant, the level of State funds expended for
workers with potentially severe disabilities
under programs in effect for such individuals
at the time the demonstration project is ap-
proved under this section.
(C) 
INDEPENDENT
EVALUATION.—The
State provides for an independent evaluation of
the project.
(3) LIMITATIONS ON FEDERAL FUNDING.—
(A) APPROPRIATION.—
(i) IN GENERAL.—Out of any funds in
the Treasury not otherwise appropriated,
there is appropriated to carry out this
section—
(I) 
for 
fiscal 
year 
2000,
$70,000,000;
(II) 
for 
fiscal 
year 
2001,
$73,000,000;
(III) 
for 
fiscal 
year 
2002,
$77,000,000; and
(IV) 
for 
fiscal 
year 
2003,
$80,000,000.
(ii) BUDGET AUTHORITY.—Clause (i)
constitutes budget authority in advance of
appropriations Acts and represents the ob-
ligation of the Federal Government to pro-
vide for the payment of the amounts ap-
propriated under clause (i).
(B) LIMITATION
ON
PAYMENTS.—In no
case may—
(i) the aggregate amount of payments
made by the Secretary to States under this
section exceed $300,000,000; or
(ii) payments be provided by the Sec-
retary for a fiscal year after fiscal year
2005.
(C) FUNDS ALLOCATED TO STATES.—The
Secretary shall allocate funds to States based
on their applications and the availability of
funds. Funds allocated to a State under a grant
made under this section for a fiscal year shall
remain available until expended.
(D) FUNDS NOT ALLOCATED TO STATES.—
Funds not allocated to States in the fiscal year
for which they are appropriated shall remain
available in succeeding fiscal years for alloca-
tion by the Secretary using the allocation for-
mula established under this section.
(E) PAYMENTS
TO
STATES.—The Sec-
retary shall pay to each State with a dem-
onstration project approved under this section,
from its allocation under subparagraph (C), an
amount for each quarter equal to the Federal
medical assistance percentage (as defined in
section 1905(b) of the Social Security Act (42
U.S.C. 1395d(b)) of expenditures in the quarter
for medical assistance provided to workers with
a potentially severe disability.
(d) RECOMMENDATION.—Not later than October 1,
2002, the Secretary shall submit a recommendation to the
Committee on Commerce of the House of Representatives
and the Committee on Finance of the Senate regarding
whether the demonstration project established under this
section should be continued after fiscal year 2003.
(e) STATE DEFINED.—In this section, the term
‘‘State’’ has the meaning given such term for purposes of
title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.).
qualifications (where applicable)) and specific
selection criteria (such as substantial expertise
and experience in providing relevant employ-
ment services and supports).
‘‘(D) SINGLE OR ASSOCIATED PROVIDERS
ALLOWED.—An employment network shall con-
sist of either a single provider of such services
or of an association of such providers organized
so as to combine their resources into a single
entity. An employment network may meet the
requirements of subsection (e)(4) by providing
services directly, or by entering into agreements
with other individuals or entities providing ap-
propriate employment services, vocational reha-
bilitation services, or other support services.
‘‘(2) REQUIREMENTS RELATING TO PROVISION
OF
SERVICES.—Each employment network serving
under the Program shall be required under the
terms of its agreement with the Commissioner to—
‘‘(A) serve prescribed service areas; and
‘‘(B) take such measures as are necessary
to ensure that employment services, vocational
rehabilitation services, and other support serv-
ices provided under the Program by, or under
agreements entered into with, the employment
network are provided under appropriate indi-
vidual work plans meeting the requirements of
subsection (g).
‘‘(3) ANNUAL
FINANCIAL
REPORTING.—Each
employment network shall meet financial reporting
requirements as prescribed by the Commissioner.
‘‘(4) PERIODIC OUTCOMES REPORTING.—Each
employment network shall prepare periodic reports,
on at least an annual basis, itemizing for the covered
period specific outcomes achieved with respect to
specific services provided by the employment net-
work. Such reports shall conform to a national
model prescribed under this section. Each employ-
ment network shall provide a copy of the latest re-
port issued by the employment network pursuant to
this paragraph to each beneficiary upon enrollment
under the Program for services to be received
through such employment network. Upon issuance of
each report to each beneficiary, a copy of the report
shall be maintained in the files of the employment
network. The program manager shall ensure that
copies of all such reports issued under this para-
graph are made available to the public under reason-
able terms.
‘‘(g) INDIVIDUAL WORK PLANS.—
and management information systems, and
advise the Commissioner whether such
measures are being taken to the extent
necessary to ensure the success of the Pro-
gram;
(ii) advise the Commissioner regard-
ing the most effective designs for research
and demonstration projects associated with
the Program or conducted pursuant to sec-
tion 302;
(iii) advise the Commissioner on the
development of performance measurements
relating to quality assurance under section
1148(d)(6) of the Social Security Act; and
(iv) furnish progress reports on the
Program to the Commissioner and each
House of Congress.
(3) MEMBERSHIP.—
(A) NUMBER
AND
APPOINTMENT.—The
Panel shall be composed of 12 members ap-
pointed by the Commissioner of Social Security
in consultation with the Speaker of the House
of Representatives, the Minority Leader of the
House of Representatives, the Majority Leader