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Ticket to Work Evaluation (January 2006) |
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|
Characteristic |
Eligible Beneficiaries |
||
Needs Ongoing Support (AOI Group 1) |
Need High-Cost Accommodations (AOI Group 2) |
All Others |
|
Disability Program | |||
DI Only | 55 |
64 |
59 |
Concurrent | 14 |
12 |
13 |
SSI Only | 31 |
24 |
29 |
Sex | |||
Female | 52 |
43 |
48 |
Male | 48 |
57 |
52 |
Age | |||
18-24 | 7 |
8 |
3 |
25-29 | 5 |
5 |
3 |
30-34 | 7 |
7 |
5 |
35-39 | 9 |
9 |
8 |
40-44 | 12 |
11 |
12 |
45-49 | 14 |
13 |
14 |
50-54 | 15 |
15 |
17 |
55-59 | 17 |
17 |
21 |
60-64 | 13 |
14 |
17 |
Language Requested for SSA Communications | |||
English | 96 |
96 |
96 |
Spanish | 4 |
3 |
3 |
Other | 0 |
1 |
0 |
Number of Beneficiaries in the Analysis | 3,345,395 |
367,665 |
3,156,916 |
Source: Ticket Research File data on beneficiaries eligible as of March 2004.
Note: These data are not directly comparable to a similar table in the initial evaluation report, as more precise data on beneficiary eligibility were available by March 2004.
Table IX.2. TTW Participation Rates for Beneficiaries Who Need Ongoing Support and Who Need High-Cost Accommodations (Percent)
Overall Ticket Assignment Rates |
Eligible Beneficiaries |
||
Needs Ongoing Support (AOI Group 1) |
Need High-Cost Accommodations (AOI Group 2) |
All Others |
|
Total | 0.63 |
1.46 |
0.54 |
Phase 1 States | 1.01 |
2.35 |
0.84 |
Phase 2 States | 0.44 |
1.01 |
0.38 |
Phase 3 Statesa | 0.31 |
0.80 |
0.27 |
Source: Ticket Research File data on beneficiaries eligible as of March 2004.
Note: These data are not directly comparable to a similar table in the Initial Evaluation Report, as more precise data on beneficiary eligibility were available by March 2004.
aNot all beneficiaries in Phase 3 states had received a Ticket by March 2004.
Table IX.3. Ticket Assignments to Different Provider Types and Payment Systems for Beneficiaries Who Need Ongoing Support and Who Need High-Cost Accommodations (Percent)
Assigned Tickets |
|||
Needs Ongoing Support (AOI Group 1) |
Need High-Cost Accommodations (AOI Group 2) |
All Others |
|
Provider Type | |||
SVRA | 91 |
96 |
88 |
EN | 9 |
4 |
12 |
Payment System | |||
Tradtional payment system | 85 |
91 |
83 |
Outcome-only | 3 |
2 |
4 |
Milestone-outcome | 12 |
8 |
13 |
Source: Ticket Research File data on beneficiaries eligible as of March 2004.
B. INDIVIDUALS WHO EARN A SUBMINIMUM WAGE OR WHO WORK AND RECEIVE PARTIAL CASH BENEFITS (AOI GROUPS 3 AND 4)
As with groups 1 and 2, beneficiaries in group 3, those who work at subminimum wage, cannot be identified accurately in the SSA administrative data used for this report. We can, however, identify beneficiaries who work at very low levels and who may therefore be seen by ENs as having a low attachment to the labor force and a correspondingly low chance of leaving the rolls and generating outcome payments. We can identify beneficiaries in group 4 more accurately because the administrative data for SSI beneficiaries clearly indicate those who receive partial benefits because of earnings. We find that both of these groups tend to assign their Tickets at higher rates than other beneficiaries. In essence, it seems that working, even at very low levels, is associated with Ticket assignment, or stated another way, not working appears to be associated with not assigning a Ticket.
1. Individuals with Very Low Earnings
The Ticket Act identified beneficiaries who work at subminimum wages as a group that might have a hard time assigning their Tickets. This appears to reflect a sense that ENs would view such beneficiaries as being unlikely to move into the regular labor market and earn enough to leave the rolls and generate TTW payments. Beneficiaries with subminimum wages are likely to be working in sheltered employment and a high proportion of them are likely to have cognitive disabilities. The administrative data available at this point in the evaluation cannot identify beneficiaries who work at subminimum wages, but those data can be used to identify beneficiaries with very low earnings. While most subminimum-wage individuals will be among our group with very low earnings, some of the very low earners will not pose the same challenge to ENs as those in sheltered employment, especially those with cognitive disabilities. Still, analyzing the experiences of very low wage earners is the best we can do at this point to roughly approximate the experiences of subminimum wage earners.
Specifically, we use data from SSA’s Master Earnings Record, which includes annual earnings information for all workers who pay FICA taxes. These data let us identify beneficiaries with very low earnings in the year prior to getting their Ticket among those beneficiaries who were mailed Tickets by August 2003.3 For this group, we selected beneficiaries with earnings in the bottom quartile of all beneficiaries who had any annual earnings at all in the year before they received Tickets (2001 or 2002).4 Among beneficiaries who received Tickets in 2002, only 24 percent had any earnings in the previous year, and the bottom quartile of this subset earned just $995 or less (as shown by the estimates for 2001 in Figure IX.3). Among beneficiaries mailed Tickets by August 2003, only 19 percent had any prior year earnings, and the bottom quartile of this subset included those who earned $727.50 or less per year. Many among the very low earners in these bottom quartiles probably earn a subminimum wage, but some may have worked for brief periods at higher wages. Nevertheless, all exhibit a weak attachment to the competitive labor market and would be seen by many ENs as difficult to serve.
Click for Figure IX.3. Earnings of Beneficiaries with Any Earnings in the Year Prior to Ticket Eligibility (Opens in new window)
Table IX.4 compares selected demographic characteristics of individuals in the low annual earnings group with those of beneficiaries who had higher earnings and with those who had no earnings in the year before they received a Ticket.5 None of the differences are dramatic. Beneficiaries with low annual earnings are slightly less likely than are beneficiaries with no earnings to receive only DI benefits, and they are much less likely than beneficiaries with higher annual earnings to receive only DI benefits. Furthermore, beneficiaries with low annual earnings are, on average, somewhat younger than both other beneficiaries who earn more and those who had no earnings.
Beneficiaries with earnings are much more likely than those without earnings in the prior year to assign their Tickets (Table IX.5). For both those with low earnings and those with higher earnings, assignment rates in all phases are approximately three times as high as for those without earnings. The presence or absence of earnings in the previous year does not appear to make a substantial difference in whether beneficiaries assign their Tickets to an EN or SVRA (Table IX.6). Overall, it appears that having low earnings in the year prior to receiving a Ticket does not seem to be a barrier to Ticket assignment.
2. Individuals Who Work and Receive Partial Cash Benefits
In contrast to the other AOI groups, we can use administrative data to identify SSI and concurrent beneficiaries who work and receive partial benefits (AOI group 4). We did so by including all beneficiaries who received SSI benefits in the month they were mailed their Tickets and who also had positive countable earnings—that is, earnings that exceeded any disregard or exemption for which they were eligible—in that month or in either of the two months prior to that. We focused on beneficiaries who were eligible for SSI benefits in August 2003 or earlier and who were mailed their Tickets by the end of October 2003 and were still eligible for TTW in March 2004. When considering our findings, readers should bear in mind that, by definition, AOI group 4 contains no DI-only beneficiaries.
Table IX.4 Characteristics of Beneficiaries by Annual Earnings Level (Percent)
Characteristic |
Eligible Beneficiaries |
||
Low Annual Earnings |
Others with Earningsa |
Others without Earningsa |
|
Disability Program | |||
DI Only | 52 |
70 |
55 |
Concurrent | 17 |
15 |
13 |
SSI Only | 30 |
15 |
32 |
Sex | |||
Female | 46 |
46 |
50 |
Male | 54 |
54 |
50 |
Age | |||
18-24 | 13 |
7 |
4 |
25-29 | 8 |
7 |
4 |
30-34 | 9 |
8 |
5 |
35-39 | 11 |
10 |
8 |
40-44 | 12 |
13 |
12 |
45-49 | 12 |
13 |
14 |
50-54 | 12 |
14 |
17 |
55-59 | 13 |
17 |
20 |
60-64 | 9 |
11 |
15 |
Language Requested for SSA Communications | |||
English | 98 |
98 |
94 |
Spanish | 2 |
2 |
6 |
Other | 0 |
0 |
1 |
Number of Beneficiaries in the Analysis | 319,008 |
856,594 |
4,504,979 |
Source: Ticket Research File data through the end of March 2004 for beneficiaries eligible in March 2003 who had entered DI or SSI in or before August 2003 who had also been mailed a Ticket by the end of 2003, and SSA Summary Earnings Record.
aThe two “other” categories include all beneficiaries not in the low earnings group, including those who may fall into AOI groups 1, 2, or 4.
Compared with other beneficiaries, those in AOI group 4 beneficiaries are, on average, more likely than others to be male and younger; they are also more likely to request SSA communications in English (Table IX.7).
Table IX.5. TTW Participation Rates for Beneficiaries by Annual Earnings Level (Percent)
Overall Ticket Assignment Rates | Eligible Beneficiaries |
||
Low Annual Earnings |
Others with Earnings |
Others without Earnings |
|
Total | 1.54 |
1.61 |
0.51 |
Phase 1 States | 2.04 |
2.03 |
0.72 |
Phase 2 States | 0.94 |
1.10 |
0.31 |
Phase 3 Statesa | 1.78 |
1.86 |
0.52 |
Source: Ticket Research File data through the end of March 2004 for beneficiaries eligible in March 2003 who had entered DI or SSI in or before August 2003 who had also been mailed a Ticket by the end of 2003, and SSA Summary Earnings Record. Note: The two “other” categories include all beneficiaries not in the low earnings group, including those who may fall into AOI groups 1, 2, or 4.
aNot all beneficiaries in Phase 3 states had received a Ticket by March 2004.
Table IX.6 Ticket Assignments to Different Provider Types and Payment Systems by Annual Earnings Level (Percent)
Assigned Tickets |
|||
Low Annual Earnings |
Others with Earnings |
Others without Earnings |
|
Provider Type | |||
SVRA | 92 |
90 |
90 |
EN | 8 |
10 |
10 |
Payment System | |||
Tradtional payment system | 87 |
84 |
85 |
Outcome-only | 3 |
4 |
3 |
Milestone-outcome | 11 |
12 |
12 |
Source: Ticket Research File data through the end of March 2004 for beneficiaries eligible in March 2003 who had entered DI or SSI in or before August 2003 who had also been mailed a Ticket by the end of 2003, and SSA Summary Earnings Record.
aNote that the two “other” categories include all beneficiaries not in the low earnings group, including those who may fall into AOI groups 1, 2, or 4.
Beneficiaries in AOI group 4 are far more likely than other beneficiaries to have assigned their Tickets. In all three rollout phases, the Ticket assignment rate of AOI group 4 individuals was at least three times that of other beneficiaries, and in Phase 3 states, the assignment rate for group 4 was nearly five times the rate for other beneficiaries (Table IX.8). Thus, as we saw in the analysis of low- and high-earners, it appears that working is highly correlated with assigning a Ticket. This high participation rate among beneficiaries in AOI group 4 is also consistent with the finding in Chapter 2 of this report that beneficiaries in 1619a (a work incentives program that allows certain SSI beneficiaries to continue receiving cash benefits after they are earning at the SGA level) have higher participation rates than those not participating in the 1619 work incentives programs.
Table IX.7 Characteristics of AOI Group 4 Beneficiaries (Percent)
Eligible Beneficiaries |
||
AOI Group 4 |
Others b |
|
Disability Program | ||
DI Onlya | 0 |
0 |
Concurrent | 43 |
31 |
SSI Only | 57 |
69 |
Sex | ||
Female | 50 |
58 |
Male | 50 |
42 |
Age | ||
18-24 | 21 |
10 |
25-29 | 15 |
8 |
30-34 | 14 |
9 |
35-39 | 13 |
11 |
40-44 | 12 |
13 |
45-49 | 10 |
14 |
50-54 | 7 |
13 |
55-59 | 5 |
13 |
60-64 | 3 |
9 |
Language Requested for SSA Communications | ||
English | 98 |
91 |
Spanish | 2 |
8 |
Other | 0 |
1 |
Number of Beneficiaries in the Analysis | 12,583 |
2,096,951 |
Source: Ticket Research File data through March 2004 for beneficiaries eligible in March 2004 who had entered DI or SSI in or before August 2003 and who had been mailed a Ticket by October 2003.
aTitle II-only beneficiaries were ineligible for the AOI Group 4 classification.
bNote that the “Others” category includes all beneficiaries not in AOI group 4, including those that may fall into groups 1, 2, or 3.
Like all other beneficiaries who have assigned their Tickets, the vast majority of those in AOI group 4 did so with an SVRA and correspondingly are being served under the traditional payment system (Table IX.9).
Table IX.8. TTW Participation Rates for Group 4 and Other Beneficiaries (Percent)
Overall Ticket Assignment Rates |
Eligible Beneficiaries |
|
Work and Receive Partial Cash Benefits (AOI Group 4) |
Other Beneficiaries |
|
Total | 2.62 |
0.74 |
Phase 1 States | 3.34 |
1.01 |
Phase 2 States | 1.62 |
0.48 |
Phase 3 Statesa | 1.76 |
0.37 |
Source: Ticket Research File data through March 2004 for beneficiaries eligible in March 2004 who had entered DI or SSI in or before August 2003 and who had been mailed a Ticket by October 2003.
aNot all beneficiaries in Phase 3 states had received a Ticket by March 2004.
Table IX.9 Ticket Assignments to Different Provider Types and Payment Systems for AOI Group 4 and Other Beneficiaries (Percent)
Assigned Tickets |
||
Work and Receive Partial Cash Benefits (AOI Group 4) |
Other Beneficiaries |
|
Provider Type | ||
SVRA | 93 |
91 |
EN | 7 |
9 |
Payment System | ||
Tradtional payment system | 88 |
85 |
Outcome-only | 2 |
2 |
Milestone-outcome | 9 |
12 |
Source: Ticket Research File data through March 2004 for beneficiaries eligible in March 2004 who had entered DI or SSI in or before August 2003 and who had been mailed a Ticket by October 2003.
C. PLANS FOR FUTURE ANALYSES
The next evaluation report will document findings from additional analyses conducted as part of the Adequacy of Incentives study. First, we will describe our methodology for creating AOI groups using the National Beneficiary Survey data to more precisely identify beneficiaries who may be in one of the four groups. Then, we will present a similar analysis with these newly created groups, producing a clearer picture of the size, characteristics, and Ticket assignment rates for each group than was possible using administrative data alone.
1 The statute also requires SSA to identify and implement a payment system that would encourage providers to offer services under TTW to this population. The commissioner is mandated to report to Congress on recommendations for a method or methods of adjusting payment rates to ENs to ensure equitable participation. Return to Text.
2 Our updated data have a more precise way of identifying the phase in which a beneficiary received a Ticket. This new method affects our estimates related to the AOI groups, but does not change our overall conclusions. Return to Text.
3 In order to be included in our analysis of very low earners, these eligible beneficiaries must have been mailed their first Tickets before the end of December 2003. We applied this restriction because annual earnings data were only available through 2002 so we do not have earnings data for the pre-enrolled year for those beneficiaries who received their Tickets in 2004. Return to Text.
4 For this analysis, SSA indicated whether each beneficiary was in the bottom quartile of earnings, and produced a table of the percentage of beneficiaries with annual earnings in categories of $1,000 (for Figure IX.3). Consistent with SSA and IRS policy, MPR did not access individual-level earnings data. Return to Text.
5 Because the data used to select the low earnings group come from a different time period than the data used to select AOI groups 1 and 2, we cannot compare the former group with the latter two. Return to Text.
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