Will Medicaid Buy-In Participants Work and Earn More if Social Security Rules Change

Abstract

Jensen and Silverstein (2005) reviewed federal actuarial estimates of potential increased earnings and program savings with a benefit offset and examined current employment and earnings trends among Social Security beneficiaries with disabilities. Preview federal studies projected that only 0.6% of SSDI beneficiaries would have earnings sufficient to reduce their cash benefits with a benefit offset program. Depending on various assumption, Jensen and Silverstein predicted that about 2-4% of current SSDI beneficiaries would increase their earnings to the point of reducing their federal cash benefits with the $1 for $2 federal demonstration model. We surveyed participants in the Kansas Working Healthy Medicaid Buy-In to assess how many people likely increase their employment and earnings under a gradual offset program and the characteristics of those who thought the would do so.