DHHS, Office of the Assistant Secretaryfor Planning and Evaluation (ASPE)

This report examines the relationships among health insurance, employment, and program participation of people with disabilities. An empirical analysis is conducted of the expansions in the income threshold for the Supplemental Security Income (SSI) work incentive program established by Section 1619 of the Social Security Act. This act allows many working SSI recipients to maintain Medicaid eligibility even after their incomes rise above the level that makes them ineligible for SSI payments. The empirical results indicate that some SSI recipients who work don't earn as much as they could in order to limit their Social Security earnings and stay below the 1619(b) threshold. The numbers and types of disabled people who adjust their earnings vary depending on their age, sex, medical condition, and the income threshold of each state. A separate analysis is also performed using data from the Survey of Income and Program Participation and National Health Interview Survey to generate estimates of the relationships between employment, health insurance, and program participation for a broader population of persons with disabilities. The findings show a large difference in the program participation and employment patterns of persons with less severe disabilities compared to those with severe disabilities.

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