Article appearing in Rehabilitation Education, 2001, Vo. 15, No. 1, pp. 89-93, which is the official Journal of the National Council on Rehabilitation Education.
The Political Implications of TTW-WIIA
Abstract. It is generally acknowledged that the high unemployment rate among individuals with disabilities in America today is unacceptable. However, finding a solution to this problem will not be simple. The Ticket to Work-Work Incentives Improvement Act (TTW-WIIA) represents a small step in the right direction because it addresses two major obstacles to solving this problem: (a) the absence of government-supported healthcare to individuals who are not unemployed, and (b) the failure to use the private sector more fully in the provision of rehabilitation services. But, the politics of change are never easy, especially when competing political philosophies regarding the role of government are involved.
The politics of change are never easy. In the case of developing new legislation in Social Security, entitled the “Ticket to Work-Work Incentives Improvement Act” (TTW-WIIA), this statement is especially true. The passage of TTW-WIIA was a compilation of negotiation and compromise, which is not unusual in producing legislation. However, TTW-WIIA is unique in that it embodies two major paradigm shifts: (a) the creation of a national healthcare system, and (b) the privatization of public services (Growick, 2000). It is somewhat ironic that these two major issues of national interest, one from the political left and the other from the political right, should meet in the development and passage of TTW-WIIA.
During the long process of congressional hearings, government reports, and bill rewrites, these major issues were often sidestepped or circumscribed. For example, as long ago as the 1980s, when the Social Security Administration (SSA) commissioned studies to explore the feasibility and effectiveness of the private sector in delivering rehabilitation services, the issue of complementing the services of public agencies was downplayed (Weaver, 1986). Indeed, the results of those studies that demonstrated the positive impact of private services were not disseminated widely, In fact, other than a few perfunctory government reports, the issue of private sector rehabilitation complementing the public sector has been largely ignored (Weaver, 1994). Similarly, the extension of government-supported healthcare to individuals who are not indigent and “on welfare” has been clearly problematic. A major political issue of the 1990s was national healthcare reform in which affordable universal healthcare was proclaimed a necessity. However, for a variety of reasons, the Clinton-Gore Administration failed to convince the Congress and the public of the superiority of national healthcare over the current medical delivery system.
With the passage of TTW-WIIA, national healthcare and the privatization of public rehabilitation services have come again to the forefront. For the first time, government-supported healthcare, namely Medicare and Medicaid, has been extended to individuals who are not unemployed. Although the issue of disability and employment has concerned society for many years, it was the fiscal crisis of the Social Security Administration (SSA) that forced the government to look at the way in which it was supporting return-to-work efforts of individuals with disabilities and how rehabilitation services can be best delivered. Both the government and disability advocates now have the opportunity to demonstrate that the extension of healthcare, and the deregulation of rehabilitation services can decrease the unemployment rate of individuals with disabilities. It will not be easy, however. Political and bureaucratic changes never are, especially when legitimate questions could be raised about the appropriateness of establishing a national healthcare system, and many Americans are instinctively skeptical of the motives of the profit-making individuals and organizations who would benefit from deregulation.
Healthcare
The challenge of providing healthcare to Supplemental Security Income (SSI) recipients who return to work is a difficult one. Recipients of SSI receive Medicaid as part of their benefits. Medicaid is administered by the states where the recipients reside, not by the federal government. As such, it will require a change in state law to allow SSI beneficiaries, who take advantage of the new RTW services of TTW-WIIA, to receive an extension of healthcare benefits. Obviously, some states will embrace this opportunity to extend healthcare to those citizens who want to go to work. However, some states might see this new law as an intrusion into one of the basic principles of our society: personal responsibility for healthcare coverage. If the federal government forces the states to provide healthcare coverage to those who are working, regardless of their level of pay, then it might be able to do so for everyone. The politics of state sovereignty and states’ rights will be tested by TTW-WIIA. It will be interesting to see who prevails.
Privatization
The deregulation of an industry is also never easy, especially when it is a governmental entity. In the case of rehabilitation services, the state-federal rehabilitation system has had a monopoly on the delivery of rehabilitation services for SSA beneficiaries, ever since the 1960s when SSA extended its coverage to persons with disabilities as well as to retired people (Berkowitz & Dean, 1996). At that time, an exclusive agreement between SSA and the state-federal rehabilitation system was developed in order to ensure that SSA would not be required to create its own system of rehabilitation delivery. Mary Switzer, who was director of the state-federal rehabilitation system at that time, initially engineered this Asweet-heart deal.@ It was envisioned that the existing national system of vocational rehabilitation could help SSA beneficiaries return to work. However, the agreement has been fraught with difficulties as has been reported by the United States General Accounting Office (GAO, 1987, 1997).
One of the most troublesome aspects of the agreement is the fact that reimbursement for services provided to SSA beneficiaries is made to the Rehabilitation Services Administration (RSA) regardless of outcome. That is, it does not matter whether the SSA beneficiary has returned to work as a result of the services rendered. Provided that a beneficiary received RTW services from a state-federal rehabilitation office, RSA obtained reimbursement for those services. Another troubling aspect of the arrangement, which has developed over the years, is RSA’s “order of selection.” In the late 1970s, RSA developed regulations stipulating that persons with severe disabilities would receive priority in receiving services. This order of selection for services was detrimental to the relationship between RSA and SSA in that not all SSA beneficiaries were considered to have severe disabilities as defined by RSA rules. Due to this order of selection, some SSA beneficiaries had to wait an inordinate amount of time to receive services, further delaying the rehabilitation process. These delays were particularly troublesome because one of the most important factors in successful rehabilitation is early intervention, or case velocity (the speed at which a client is served). By 1990s, the GAO (1996) had determined that less than one-half of one percent of SSA individuals eligible for services by RSA were indeed rehabilitated and returned to work. The combined effects of a delivery mechanism predicated on service rather than outcome, coupled with rules and regulations that were not friendly to SSA beneficiaries, promoted the need for the passage of TTW-WIIA.
The TTW-WIIA is the largest piece of federal disability legislation since the passage of the Americans with Disabilities Act (ADA). The creators of TTW-WIIA hope that implementation of the bill will lower the unemployment rate of individuals with disabilities, in much the same way as ADA has removed many of the physical barriers and other obstacles to employment, generally, in our society (Bunning, 1996). However, in order for this goal to be realized, further political concessions and agreements will need to be negotiated. Most notably, there is the question of whether the states will agree to extend healthcare coverage to Americans with disabilities who are working. The cost to the states of extending such care is enormous and, as stated previously, there are issues of local rule and precedent involved. Another important question is whether the federal government will end the sole reliance of rehabilitation services delivery to SSA beneficiaries by the public sector (Tenney & McCray, 1997). Bureaucracies do not easily relinquish power, nor do they readily give up a reliable and generous source of income. They are also not noted for their readiness to engage in competition (Forgiel & Growick, 1997).
Work Incentives
In its simplest form, TTW-WIIA represents a bifurcated law in which both political parties made significant concessions. The ticket portion of the law represents the opportunity to infuse REAL choice into the delivery of rehabilitation services by providing an opportunity for clients to choose between public and private providers. The work incentives segment portrays individuals with disabilities as people who want to work if given the opportunity to retain adequate healthcare coverage. In a very real sense, it is the work-incentive part of the law that embodies what has always been at the core of rehabilitation philosophyBa faith in the basic goodness of the individual, an emphasis on the individual’s assets rather than on deficiencies, and a desire to treat the individual as the master of his or her own fate rather than as the helpless victim of circumstance. The work-incentive part of the law also draws heavily on the basic psychological principle that people will repeat activities for which they are rewarded. That is, people will work if they get more out of working than they do out of not working (Thomas & Strauser, 1995).
Conclusion
It is hoped that the concessions in political and philosophical ideology that led to the passage of TTW-WIIA will lead to real life achievements for individuals with disabilities. There are still many political barriers to overcome, but the rewards of overcoming these barriers could be extraordinary, not only for people with disabilities, but also for their families. There is also a potential gain for the rehabilitation profession because competition breeds excellence. The challenge of implementing TTW-WIIA will be accepting change in a world where change is never easy but always necessary.
References
Berkowitz, E., & Dean, D. (1996). Lessons from the vocational rehabilitation/social security administration experience. In J. Mashaw, V. Reno, R. Burkhauser, & M. Berkowitz (Eds.), Disability, work and cash benefits (pp.223-244). Kalamazoo, MI: Upjohn Institute for Employment Research.
Bunning, J. (1996). Rehabilitation and return to work opportunities Act of 1996. Paper presented as a Floor Statement to the United States House of Representatives, Washington, DC.
Forgiel, K., & Growick, B. (1997). Inspiring a partnership between private-sector rehab and SSA. NARPPS Journal, 12(4), 153-158.
Growick, B. (2000). The Ticket to Work-Work Incentives Improvement Act of 1999. NARPPS Newsletter, 8(1), 17-19.
Tenney, F., & McCray, D. (1997). Project network: Successful linkages between social security and private sector rehab. NARPPS Journal, 12(4), 137-152.
Thomas, K., & Strauser, D. (1995). Rehabilitating the rehabilitation delivery system: A commentary on the voucher system. Journal of Rehabilitation, 61(1), 18-22.
United States General Accounting Office. (1987). Social security: Little success achieved in rehabilitating beneficiaries. (GAO/HRD-88-11). Gaithersburg, MD: U.S. Government Printing Office.
United States General Accounting Office. (1996). Social security: Disability programs lag in promoting return to work. (GAO/HEHS-96-62). Gaithersburg, MD: U.S. Government Printing Office.
United States General Accounting Office. (1997). SSA disability: Program redesign necessary to encourage return to work. (GAO/HEHS 97-46). Gaithersburg, MD: U.S. Government Printing Office.
Weaver, C. (1986). Social security disability policy in the 1980s and beyond. In M. Berkowitz & M. A. Hill (Eds.), Disability and the labor market: Economic problems, policies, and programs (pp. 29-63). Ithaca, NY: Cornell University, Industrial Labor Relations Press.
Weaver, C. (1994). Privatizing vocational rehabilitation: Options for increasing individual choice and enhancing competition. Journal of Disability Policy Studies, 5(1), 6-28.
Author Note
The author would like to acknowledge the assistance of Ken Thomas in preparing this commentary.
Bruce Growick, Ph.D.
Rehabilitation Services
The Ohio State University
growick.1@osu.edu
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