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Will Expanding Health Care Coverage for People with Disabilities Increase their Employment and Earnings? Evidence from an Analysis of the SSI Work Incentive Program

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Abstract

Reports findings from study that examines the effect that increases in the income threshold under the Supplemental Security Income (SSI) work incentive program have on the employment, earnings, and program participation patterns of SSI recipients. Under Section 1619 of the Social Security Act, SSI recipients may maintain Medicaid eligibility, even if their income is above the level that makes them ineligible for SSI payments. If earnings increase beyond the threshold, however, the person loses their SSI and Medicaid eligibility. Findings indicate that many SSI recipients restrain their earnings to stay below the threshold, supporting the hypothesis that lack of access to health insurance is an important work disincentive for people with disabilities.

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2002-01-01

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benefits; charts; data; dependence; developmental disabled; disabilities; disability; disability policy; Disability Programs; disability statistics; disable; disabled; disablement; disabling; earnings; economic; economics; economy; employ; employing; employment; estimates; Federal Insurance Contributions Act; FICA; figures; graphs; Guiding Principles; handicap; handicapped; impairment; income; information; Insurance; Labor Market; lack of income; learning disability; limitation; long term disability; maternity leave; mental handicap; mental retardation; need; numbers; OASDI; Old Age; Survivors and Disability; Old Age; Survivors; and Disability Insurance; paternity leave; physical disability; policies; policy; poor; poverty; procedures; public policy; public programs; regulation; retirement; rules; self-employment; short term disability; social security; Social Security; Social Security Disability Insurance; special need; SSDI; SSDI; SSI; statistic; statistics; stats; statute; Supplemental Security Income; welfare; work; Medicaid; health insurance

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