Exploring the potential for an RSC Employment Network

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This fact sheet provides background on the Social Security Administration’s Ticket to Work program, and is a tool to educate and promote discussion about a proposed RSC Employment Network.  It was developed with input from members of the Ohio Rehabilitation Services Commission (RSC) Employment Network (EN) Design Group 1 ,consisting of staff from RSC and community rehabilitation providers, and representatives from RSC’s Consumer Advisory Council.  For more information, contact Vickie Van Der Kar, RSC program specialist for Social Security,(614)438-1284,or Kim Linkinhoker, assistant director of RSC ’s Bureau of Vocational Rehabilitation,(614)438-1247.

Background

The Ticket to Work and Self-Sufficiency Program, administered by the Social Security Administration (SSA),was created by the passage of the Ticket to Work and Work Incentives Improvement Act of 1999.This act also includes several provisions, independent of the Ticket program to improve or facilitate access to Medicare and Medicaid health insurance, and to Social Security benefits, for working SSDI 2 and SSI 3 beneficiaries.  One of these provisions relates to Medicaid buy-in, which is a state option to change or eliminate rules for determining financial eligibility of workers with disabilities.

During 2001,SSA will begin implementing Ticket to Work in 13 states:

Arizona, Colorado, Delaware, Florida, Illinois, Iowa, Massachusetts, New York, Oklahoma, Oregon, South Carolina, Vermont, and Wisconsin.

The program will be fully implemented nationwide by early 2004.  The goal of the Ticket to Work program is to increase employment among SSDI and SSI beneficiaries. This will be done by increasing the number of vocational rehabilitation (VR) providers and by giving the beneficiary (the ticket holder) his or her choice of provider.  Currently, the primary providers of VR services for people with disabilities are state VR agencies.  Providers operating under the Ticket to Work program are called Employment Networks (ENs).  ENs supply VR, employment, and support services via a contractual relationship with SSA.  ENs can be single entities or an association of entities, and must meet SSA qualifications.  Participation in the program is voluntary for both beneficiaries and ENs.  Ticket holders are not obligated to use their tickets, nor are ENs obligated to serve anyone under the Ticket to Work program.

A ticket holder can obtain information about ENs from Maximus, the program manager, and shop around for the EN that best meets his or her needs.  Conversely, ENs can obtain information about ticket holders and market their EN services to ticket holders. A ticket holder assigns his or her ticket to an EN when the ticket holder and the EN have developed and signed an Individual Work Plan (IWP) for the ticket holder.  This reserves the EN ’s right to payment from SSA for employment outcomes achieved by the consumer using the ticket.

SSA does not provide up-front or advance funding to ENs for services provided under the Ticket to Work program.  No payment will occur when a ticket user’s earnings are low or if the ticket user chooses not to participate. ENs cannot refer their ticket users to the state VR agency without an agreement stating the conditions under which such referrals may be made.  ENs must choose between two payment systems: outcome and outcome-milestone.  

Outcome payment is payment for a month in which the ticket user does not receive a cash benefit due to earnings.  Outcome payments can be received for a maximum of 60 months, which do not have to be consecutive.  The monthly payment is 40 percent of the national average monthly benefit for the previous year (SSDI or SSI, depending on the ticket user’s entitlement).

The outcome-milestone payment system consists of the outcome payment system plus two milestone payments.  These are paid when the ticket user’s gross earnings are at or above the Substantial Gainful Activity 4 level for three and seven months. Outcome-milestone pays out less than outcome over the long run.  The total payment range for outcome-milestone to outcome for SSDI ticket users is $14,000-$16,000;for SSI ticket users, it is $9,000-$10,000.  State VR agencies must enroll as ENs, but do not have to function as ENs.  State VR agencies can choose, on a case-by-case basis, the type of payment to be received:  traditional reimbursement or ticket payment.

 

RSC Employment Network

The schedule for implementing the Ticket to Work program, beyond the first 13 states, is not known yet. Until it is, Ohio has the opportunity to learn from the experience of those states.  The Ohio Rehabilitation Services

Commission ’s Employment Network Design Group has been meeting to discuss issues related to forming an RSC Employment Network.  This work group consists of staff from RSC and community rehabilitation providers, and representatives from RSC ’s Consumer Advisory Council.

Currently, there are more questions than answers.  Who should be included in the EN?  How does RSC outreach to potential network partners and ticket users? What should the referral process and service delivery look like?  Who is responsible for what?  What kind of tracking and record keeping is needed?  What kind of payment system should be used?  What is a provider ’s incentive to join an RSC EN?

 

Assumptions

Following are the assumptions underlying the proposed RSC Employment Network, as driven by the legislation and by RSC ’s EN Design Group:

1.The Social Security Administration will proceed with implementation of the Ticket to Work program.

2.The federal/state service delivery system -which includes community rehabilitation programs (CRPs) and is focused on competitive, community employment -is a tested successful model for providing quality services to people with significant disabilities.

3.Because of the financial risk, individual CRPs might not choose to become independent ENs.

4.Private for-profit companies may see Ohio as a lucrative market.

5.RSC will continue to purchase VR services from private-sector CRPs.  

6.RSC will continue to collaborate with private-sector CRPs to ensure Ohio’s effective implementation of Ticket to Work.

7.Ticket to Work will create an increased demand for services over current levels.

8.Consumer choice of providers, goods and services must be addressed and respected in any network sponsored by RSC.

9.An RSC EN offers a wide range of services and providers, and therefore provides greater consumer choice.

10.Greater consumer choice within an RSC EN could result in greater demand for services

11.Membership in an RSC EN will be comprised of accredited CRPs.

12.Membership of accredited CRPs in an RSC EN is a strong marketing tool.

 

 

Benefits of membership in an RSC EN

The following lists the benefits of joining an RSC EN:

1.Payment to an RSC EN member is based on fee-for-service rather than on the Ticket to Work payment options.  CRPs minimize financial risk and maintain normal cash flow for services provided.

2.Capitalization requirements will be minimized or eliminated for participating CRPs.

3.RSC EN members may have the opportunity for financial incentives over and above regular fee-for-service payment.

4.Maintaining or increasing RSC ’s Social Security reimbursement dollars supports RSC ’s ability to purchase services from CRPs.

 5.New services may be developed for which RSC EN members may charge a fee.

6.RSC EN members have first opportunity at marketing their individual services and performance to ticket holders.

7.CRPs will continue to maintain a solid network, which will strengthen existing business relationships and protect market share.

8.A strong RSC EN will position Ohio to successfully compete with other ENs in the provision of quality services.

9.Membership strengthens and improves the currently successful federal/state VR system.

 

 

 

 

1 Members of the RSC Employment Network

Design Group:

Ohio Rehabilitation Services Commission

John Connelly, administrator

Carrie Johnson, VR supervisor, Independence Bureau of Vocational Rehabilitation office

Kim Linkinhoker, assistant director, Bureau of Vocational Rehabilitation

Connie O ’Brien, manager, Employer Services

Michael Ream, Southeast Area manager, Bureau of Services for the Visually Impaired

Bill Sykes, program specialist for Facilities/Windmills

Vickie Van Der Kar, program specialist for Social Security

RSC State Consumer Advisory Council

Debbie Dase

Marilyn Donehey

Rehabilitation Services of North Central Ohio

David V.Daugherty, president

Ohio Valley Goodwill

Jo Ann Decker, vice president of Rehabilitation

Ohio Association of Rehabilitation Facilities

Jody River, chair, Vocational Division

Goodwill Columbus

Marcy B. Samuel, Sr.vice president

 

2 SSDI =Social Security Disability Insurance

 

3 SSI =Supplemental Security Income

 

4 Substantial Gainful Activity, or SGA, is the level of pay at which the Social Security Administration considers a person to be gainfully employed.  During 2001,SGA is $740/month for people with disabilities other than blindness and $1,240/month for individuals who are blind.

 

The Ohio Rehabilitation Services Commission

                               400 E.Campus View Blvd.

                               Columbus,OH 43235-4604

                               1-800-282-4536 voice/TTY

                               (614)438-1200 voice/TTY

                               www.state.oh.us/rsc

The Ohio Rehabilitation Services Commission does not discriminate on the basis of age, color, creed,national origin, race, sex or type of disability. 8/10/01

The Ohio Rehabilitation Services Commission