Work Incentives Act passes
Washington, DC, Nov. 18 -- After weeks of haggling , House and Senate negotiators finally reached agreement on spending for the Work Incentives Improvement Act, and the bill, attached to a bill extending expiring tax breaks, was approved 418 to 2. Activists say there's little doubt Pres. Clinton will sign the measure.
For people now on on Social Security disability insurance who return to work, the law will extend Medicare Part A premium coverage for four and a half years over current law, "which has the net effect of a total of 7.5 years of Medicare Part A free after SSDI cash benefits cease due to work earnings above certain levels," said Byron MacDonald, an activist who worked on the bill.
The measure also allows states to let people buy into Medicaid even when working, and to retain Medicaid coverage even though their condition has improved. It progvies grants to states to support people who return to work with disabilities.
The Work Incentives Improvement Act, and the, attached to a bill extending expiring tax breaks, was approved 418 to 2. by the U.S. House of Representatives Nov. 18.
According to the White House, the Act does the following:
+ Removes limits on the Medicaid buy-in option for workers with disabilities.
This act creates two new options for states that build on a Medicaid buy-in, created by President Clinton in the Balanced Budget Act of 1997. First, it lets states remove the income limit of 250 percent of poverty (about $21,000), allowing them to set higher income, unearned income, and resource limits. This important change allows people to buy into Medicaid when their jobs pay more than low wages but may not have access to private health insurance. Second, it creates the option to allow people with disabilities to retain Medicaid coverage even though their medical condition has improved as a result of medical coverage. This act also provides $150 million over 5 years in health care infrastructure grants to states to support people with disabilities who return to work.
+ Creates a new Medicaid buy-in demonstration to help people who are not yet too disabled to work.
This act provides $250 million to states for a demonstration to assess the effectiveness of providing Medicaid coverage to people whose condition has not yet deteriorated enough to prevent work but who need health care to prevent that level of deterioration. For example, a person with muscular dystrophy, Parkinson's Disease, or diabetes may be able to function and continue to work with appropriate health care, but such health care may only be available once their conditions have become severe enough to qualify them for SSI or SSDI and thus Medicaid or Medicare. This demonstration would provide new information on the cost effectiveness of early health care intervention in keeping people with disabilities from becoming too disabled to work.
+ Extends Medicare coverage for people with disabilities who return to work.
This act extends Medicare Part A premium coverage for people on Social Security disability insurance who return to work for another four and a half years. This means the difference between a monthly premium of nearly $350 (which is about the cost of purchasing Part A and B coverage) and $45.50. Although Medicare does not currently provide prescription drugs which are essential to people with disabilities, this assistance will be available nationwide, even in states that do not take the Medicaid options.
ENHANCES the employment services system by:
+ Creating a "Ticket to Work Program." This new system will enable SSI or SSDI beneficiaries to obtain vocational rehabilitation and employment services from their choice of participating public or private providers. If the beneficiary goes to work and achieves substantial earnings, providers would be paid a portion of the benefits saved.
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