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Medicaid expenditures for the disabled under a work incentive program.

R M Andrews, M Ruther, D K Baugh

    Health Care Financing Review
    |January 4, 1989
    PubMed
    Summary
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    Section 1619 of the Social Security Act allows disabled individuals receiving Supplemental Security Income (SSI) to keep Medicaid benefits while working. This provision offers a vital work incentive, as Medicaid costs for these individuals are significantly lower than average.

    Area of Science:

    • Health Policy
    • Social Welfare
    • Disability Studies

    Background:

    • Congress established Section 1619 of the Social Security Act to support employment for individuals with disabilities.
    • The primary goal was to alleviate concerns about losing essential Medicaid health benefits upon gaining employment.
    • Supplemental Security Income (SSI) recipients are the target demographic for this work incentive program.

    Purpose of the Study:

    • To analyze the impact of Section 1619 on Medicaid expenditures.
    • To evaluate the effectiveness of retaining Medicaid benefits as a work incentive for disabled individuals.
    • To assess the financial implications of Section 1619 for both beneficiaries and the healthcare system.

    Main Methods:

    • Analysis of Medicaid expenditure data from 11 states.

    Related Experiment Videos

  • Comparison of expenditures for Section 1619 enrollees versus the general disabled population.
  • Calculation of Medicaid expenditures as a percentage of earnings for Section 1619 enrollees.
  • Main Results:

    • Medicaid expenditures for Section 1619 enrollees were found to be relatively low.
    • Expenditures for this group were approximately half the average for other disabled individuals.
    • Medicaid benefits represented a significant portion (13%) of Section 1619 enrollees' earnings, highlighting its value.

    Conclusions:

    • Section 1619 effectively enables disabled SSI recipients to pursue employment without jeopardizing health coverage.
    • The program demonstrates cost-effectiveness, with lower Medicaid spending for working disabled individuals compared to non-working counterparts.
    • Retaining Medicaid is a crucial incentive, significantly contributing to the financial stability and work participation of disabled individuals.