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from: KELLY PIERCE
date: 1998-03-21 10:05:00
subject: 03:ticket to work proposal introduced

From: Kelly Pierce 
Subject: ticket to work proposal introduced
 
                  "(ii) such fixed percentage is set at a percentage which 
does
              not exceed 40 percent.
 
          "(3) Outcome-milestone payment system.--
 
              "(A) In general.--The outcome-milestone payment system shall
          consist of a payment structure governing employment networks 
electing
          such system under paragraph (1)(A) which meets the requirements of
          this paragraph.
 
              "(B) Early payments upon attainment of milestones in advance of
          outcome payment periods.--The outcome-milestone payment system 
hall
          provide for one or more milestones, with respect to beneficiaries
          receiving services from an employment network under the Program,
          which are directed toward the goal of permanent employment. Such
          milestones shall form a part of a payment structure which provides,
          in addition to payments made during outcome payment periods, 
payments
          made prior to outcome payment periods in amounts based on the
          attainment of such milestones.
 
              "(C) Limitation on total payments to employment network.--The
          payment schedule of the outcome milestone payment system shall be
          designed so that the total of the payments to the employment 
etwork
          with respect to each beneficiary is less than, on a net present 
value
          basis (using an interest rate determined by the Commissioner that
          appropriately reflects the cost of funds faced by providers), the
          total amount to which payments to the employment network with 
respect
          to the beneficiary would be limited if the employment network were
          paid under the outcome payment system.
 
          "(4) Definitions.--For purposes of this subsection--
 
              "(A) Payment calculation base.--The term 'payment calculation
          base' means, for any calendar year--
 
                  "(i) in connection with a title II disability beneficiary,
              the average disability insurance benefit payable under section
              223 for all beneficiaries for months during the preceding
              calendar year, and
 
                  "(ii) in connection with a title XVI disability beneficiary
              (who is not concurrently a title II disability beneficiary), 
he
              average payment of supplemental security income benefits based 
on
              disability payable under title XVI (excluding State
              supplementation) to all beneficiaries having attained 18 years 
of
              age for months during the preceding calendar year.
 
              "(B) Outcome payment period.--The term 'outcome payment period'
          means, in connection with an individual who is a disabled
          beneficiary, a period--
 
                  "(i) beginning with the first month--
 
                      "(I) for which benefits are not payable to such
                  individual by reason of engagement in substantial gainful
                  activity, and
 
                      "(II) which ends after such beneficiary has assigned a
                  ticket to work and self-sufficiency to an employment 
network,
                  and
 
                  "(ii) ending with the 60th month (consecutive or otherwise)
              following the first month for which benefits are not payable to
              such individual by reason of engagement in work activity.
 
          "(5) Periodic review and alterations of prescribed schedules.--
 
              "(A) Percentages and periods.--The Commissioner of Social
          Security shall periodically review the percentages specified in
          paragraphs (2)(C) and (3)(C) and the period of time specified in
          paragraph (4)(B) to determine whether such percentages and such
          period provide an adequate incentive for employment networks to
          assist beneficiaries to enter the workforce, while providing for
          appropriate economies. The Commissioner may alter any of such
          percentages or such period of time to the extent that the
          Commissioner determines, on the basis of the Commissioner's review
          under this paragraph, that such an alteration would better provide
          the incentive and economies described in the preceding sentence.
 
              "(B) Number and amount of milestone payments.--The Commissioner
          shall periodically review the number and amounts of milestone
          payments initially established by the Commissioner pursuant to this
          section to determine whether to allow an adequate incentive for
          employment networks to assist beneficiaries to enter the workforce,
          taking into account information provided to the Commissioner by
          program managers, the Ticket to Work and Self-Sufficiency Advisory
          Panel, and other reliable sources. The Commissioner may from time 
o
          time alter the number and amounts of milestone payments initially
          established by the Commissioner pursuant to this section to the
          extent that the Commissioner determines that such an alteration 
would
          allow an adequate incentive for employment networks to assist
          beneficiaries to enter the workforce. Such alteration shall be 
ased
          on information provided to the Commissioner by program managers, 
he
          Ticket to Work and Self-Sufficiency Advisory Panel, or other 
reliable
          sources.
 
      "(i) Authorizations.--
 
          "(1) Title ii disability beneficiaries.--There are authorized to be
      transferred from the Federal Old-Age and Survivors Insurance Trust Fund
      and the Federal Disability Insurance Trust Fund each fiscal year such
      sums as may be necessary to carry out the provisions of this section 
with
      respect to title II disability beneficiaries. Money paid from the Trust
      Funds under this section with respect to title II disability
      beneficiaries who are entitled to benefits under section 223 or who are
      entitled to benefits under section 202(d) on the basis of the wages and
      self-employment income of such beneficiaries, shall be charged to the
      Federal Disability Insurance Trust Fund, and all other money paid from
      the Trust Funds under this section shall be charged to the Federal Old-
      Age and Survivors Insurance Trust Fund. The Commissioner of Social
      Security shall determine according to such methods and procedures as
      shall be prescribed under this section--
 
              "(A) the total amount to be paid to program managers and
          employment networks under this section, and
 
              "(B) subject to the provisions of the preceding sentence, the
          amount which should be charged to each of the Trust Funds.
 
          "(2) Title xvi disability beneficiaries.--Amounts authorized to be
      appropriated to the Social Security Administration under section 1601 
(as
      in effect pursuant to the amendments made by section 301 of the Social
      Security Amendments of 1972) shall include amounts necessary to carry 
out
      the provisions of this section with respect to title XVI disability
      beneficiaries.
 
      "(j) Definitions.--For purposes of this section--
 
          "(1) Disabled beneficiary.--The term 'disabled beneficiary' means a
      title II disability beneficiary or a title XVI disability beneficiary.
 
          "(2) Title ii disability beneficiary.--The term 'title II 
isability
      beneficiary' means an individual entitled to disability insurance
      benefits under section 223 or to monthly insurance benefits under 
section
      202 based on such individual's disability (as defined in section 
223(d)).
      An individual is a title II disability beneficiary for each month for
      which such individual is entitled to such benefits.
 
          "(3) Title xvi disability beneficiary.--The term 'title XVI
      disability beneficiary' means an individual eligible for supplemental
      security income benefits under title XVI on the basis of blindness
      (within the meaning of section 1614(a)(2)) or disability (within the
      meaning of section 1614(a)(3)). An individual is a title XVI disability
      beneficiary for each month for which such individual is eligible for 
such
      benefits.
 
      "(k) Regulations.--The Commissioner of Social Security shall prescribe
  such regulations as are necessary to carry out the provisions of this
  section.".
 
      (b) Conforming Amendments.--
 
          (1) Amendments to title ii.--
 
              (A) Section 222(a) of such Act (42 U.S.C. 422(a)) is repealed.
 
              (B) Section 222(b) of such Act is repealed.
 
              (C) Section 225(b)(1) of such Act (42 U.S.C. 425(b)(1)) is
          amended by striking "a program of vocational rehabilitation 
services"
          and inserting "a program consisting of the Ticket to Work and Self-
          Sufficiency Program under section 1147 or another program of
          vocational rehabilitation services, employment services, or other
          support services".
 
          (2) Amendments to title xvi.--
 
              (A) Section 1615(a) of such Act (42 U.S.C. 1382d(a)) is amended
          to read as follows:
 
      "Sec. 1615. (a) In the case of any blind or disabled individual who--
 
          "(1) has not attained age 16, and
 
          "(2) with respect to whom benefits are paid under this title,
 
  the Commissioner of Social Security shall make provision for referral of 
such
  individual to the appropriate State agency administering the State program
  under title V.".
 
              (B) Section 1615(c) of such Act is repealed.
 
      (c) Effective Date.--Subject to subsection (d), the amendments made by
  subsections (a) and (b) shall take effect with the first month following 
ne
  year after the date of the enactment of this Act.
 
      (d) Graduated Implementation of Program.--
 
          (1) In general.--Not later than 360 days after the date of the
      enactment of this Act, the Commissioner of Social Security shall 
commence
      implementation of the amendments made by this section (other than
      paragraphs (1)(B) and (2)(B) of subsection (b)) in graduated phases at
      phase-in sites selected by the Commissioner. Such phase-in sites shall 
be
      selected so as to ensure, prior to full implementation of the Ticket to
      Work and Self-Sufficiency Program, the development and refinement of
      referral processes, payment systems, computer linkages, management
      information systems, and administrative processes necessary to provide
      for full implementation of such amendments.
 
          (2) Requirements.--Implementation of the Program at each phase-in
      site shall be carried out on a wide enough scale to permit a thorough
      evaluation of the alternative methods under consideration, so as to
      ensure that the most efficacious methods are determined and in place 
or
      full implementation of the Program on a timely basis.
 
          (3) Full implementation.--The Commissioner shall ensure that the
      Program is fully implemented as soon as practicable on or after the
      effective date specified in subsection (c) but not later than six years
      after such date.
 
          (4) Ongoing evaluation of program.--
 
              (A) In general.--The Commissioner shall design and conduct a
          series of evaluations to assess the cost-effectiveness of 
ctivities
          carried out under this section and the amendments made thereby, as
          well as the effects of this section and the amendments made thereby
          on work outcomes for beneficiaries receiving tickets to work and
          self-sufficiency under the Program.
 
              (B) Methodology.--
 
                  (i) Design and implementation.--The Commissioner shall 
design
              the series of evaluations after receiving relevant advice from
              experts in the fields of disability, vocational rehabilitation,
              and program evaluation. In designing and carrying out such
              evaluations, the Commissioner shall consult with the 
omptroller
              General of the United States and other agencies of the Federal
              Government and with private organizations with appropriate
              expertise. Before provision of services begins under any phase 
of
              Program implementation, the Commissioner shall ensure that 
lans
              for such evaluations and data collection methods are in place 
and
              ready for implementation.
 
                  (ii) Specific matters to be addressed.--Each such 
valuation
              shall address (but is not limited to):
 
                      (I) the annual cost (including net cost) of the Program
                  and the annual cost (including net cost) that would have 
been
                  incurred in the absence of the Program;
 
                      (II) the determinants of return to work, including the
                  characteristics of beneficiaries in receipt of tickets 
nder
                  the Program;
 
                      (III) the types of employment services, vocational
                  rehabilitation services, and other support services 
furnished
                  to beneficiaries in receipt of tickets under the Program 
ho
                  return to work and to those who do not return to work;
 
                      (IV) the duration of employment services, vocational
                  rehabilitation services, and other support services 
furnished
                  to beneficiaries in receipt of tickets under the Program 
ho
                  return to work and the duration of such services furnished 
to
                  those who do not return to work and the cost to employment
                  networks of furnishing such services;
 
                      (V) the employment outcomes, including wages,
                  occupations, benefits, and hours worked, of beneficiaries 
who
                  return to work after receiving tickets under the Program 
nd
                  those who return to work without receiving such tickets;
 
                      (VI) the characteristics of providers whose services 
re
                  provided within an employment network under the Program;
 
                      (VII) the extent (if any) to which employment networks
                  display a greater willingness to provide services to 
disabled
                  beneficiaries;
 
                      (VIII) the characteristics (including employment
                  outcomes) of those beneficiaries who receive services under
                  the outcome payment system and of those beneficiaries who
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