The Ticket to Work program is a program administered by the Social Security Administration (SSA) that aims to help Social Security disability beneficiaries return to work. Individuals who receive Social Security disability benefits can participate in the Ticket to Work program to obtain vocational rehabilitation services, training, job referrals, and other employment support services to help them find and maintain employment. While the goal of the program is laudable, there are some potential disadvantages that disability beneficiaries should be aware of before choosing to participate. In this article, we will explore some of the key downsides and risks associated with the Ticket to Work program.
Loss of cash benefits
One of the most significant potential disadvantages of the Ticket to Work program is the risk of losing cash disability benefits from Social Security. Social Security disability beneficiaries receive monthly cash benefits to help replace some of the income they lose due to their disability. However, participating in the Ticket to Work program and earning above the Substantial Gainful Activity (SGA) level ($1,470 per month for non-blind individuals in 2023) can cause a suspension or termination of cash benefit payments.
For some beneficiaries, the prospect of losing the Social Security disability payments they rely on is too risky, even if the program is intended to help them return to self-supporting employment. If their attempt to return to work under the Ticket program fails or their earnings drop below SGA again, re-establishing eligibility and payment of benefits can take months. During this time without benefits, individuals may struggle financially which can lead to accumulating debt, tapping retirement savings, or losing independent housing.
Limits to continued healthcare coverage
In addition to cash payments, Social Security disability beneficiaries also receive Medicare and/or Medicaid health insurance coverage which is extremely valuable. Under the Ticket to Work program, Medicare coverage can continue for at least 93 months (about 7 years) after a beneficiary returns to work and earns above the SGA level.
While continued Medicare coverage is a significant work incentive, 93 months still represents a limit. After this period ends, beneficiaries who cannot afford or obtain health insurance through an employer may struggle to pay for individual health insurance or medications out of pocket. Gaps in health coverage can lead beneficiaries to delay or go without needed care.
For beneficiaries who receive Medicaid instead of or in addition to Medicare, coverage typically ends after earnings surpass a low monthly threshold. In 2023, average state Medicaid income limits for adults with disabilities are between $10,800 to $27,180 per year. Losing Medicaid can mean much more immediate gaps in health coverage and access to care.
Difficulty navigating the system
The Social Security Administration’s disability programs and work incentive systems can be extremely complex. The Ticket to Work program and its implications for benefits add yet another layer of complexity. Many beneficiaries report finding the system difficult or intimidating to navigate.
Beneficiaries are often unsure how participation in the Ticket program will impact their benefits situation or if they are utilizing the program correctly and optimally. Quality assistance in navigating and understanding the nuances of the system is key, but not always readily available. Beneficiaries may avoid participating or under-utilize the Ticket program due to the challenges of navigating the bureaucracy and complex regulations around disability benefits and work.
No guarantee of employment success
While the Ticket to Work program aims to provide vocational support and services to help beneficiaries return to employment, it does not guarantee success in finding or maintaining a job. The job placement rates specifically under the Ticket program are relatively low.
According to a 2018 report from the Social Security Advisory Board, only about 13% of Ticket users worked above the SGA earning level. Many beneficiaries do attempt or prepare to attempt work, but still struggle to find and maintain suitable employment.
If a return-to-work effort is not successful, beneficiaries may find themselves in a worse position than before, having lost benefits or spent time and effortattempting vocational services to no avail. The lack of guaranteed positive employment outcomes can make joining the Ticket program seem risky.
Employment may still equal loss of benefits
Importantly, even successfully returning to part-time or full-time work does not necessarily mean a beneficiary can remain eligible for some type of disability benefits. Certain Social Security disability beneficiaries utilize SSDI (Social Security Disability Insurance) which allows for a 9-month Trial Work Period where they can test their ability to work without benefit suspensions.
However, after completing 9 months of employment above the SGA earnings threshold, SSDI recipients see their monthly payments terminated. Even earning above SGA for one month can make benefits difficult to reinstate. So utilizing Ticket to Work vocational support to return successfully to substantial earnings still equates to a loss of financial benefits and income security for SSDI recipients.
Better options may exist outside Ticket
The employment services, vocational rehabilitation programs, and workforce development programs offered through the general workforce development system outside of Social Security may offer beneficiaries better results than the Ticket program in some cases. Services through the workforce system are available in all states and free to use for those with disabilities or other barriers to employment.
Since Ticket program service providers are limited and may not be the best fit for an individual’s needs, beneficiaries could look to vocational programs outside Ticket that are often still Social Security approved. This allows maintaining access to other work incentives that protect benefits to some degree during a return to work attempt.
Other key disadvantages
Some other notable potential disadvantages or risks associated with participating in the Ticket to Work program include:
– Time limit on using Ticket – Tickets are usually only good for 5 years maximum. Unemployed beneficiaries must use their Ticket and return to substantial work within this timeframe or lose access.
– Social Security overpayments – Due to misreporting of income or being unaware earnings crossed the SGA threshold, beneficiaries may incur overpayment debts to Social Security that must be repaid.
– Progress reviews – SSA conducts reviews to ensure progress is being made on vocational goals, which can feel threatening.
– Annual earnings limit – Working Social Security disability beneficiaries have an annual limit to the total earnings that can be made, beyond which no further disability benefits are paid. In 2023 this limit is $22,260 for non-blind individuals.
– Loss of other government benefits – Earnings from work under Ticket could lead to loss of needs-based assistance such as SNAP/food stamps, subsidized housing, or TANF.
– Impacts on family – Lost disability income and healthcare coverage affects the whole household. Stress of transition may impact family relationships.
– Employer discrimination – Some employers still discriminate against hiring people with disabilities or chronic conditions.
– Physical/mental demands of work – Health conditions may deteriorate with demands of a job leading to job loss.
– Fewer Social Security/Medicare credits – Years spent out of disability status accrue fewer work credits toward future benefits.
Conclusion
The Ticket to Work program certainly offers valuable vocational rehabilitation services and work incentives that _can_ assist Social Security disability beneficiaries in returning successfully to employment. However, participation does come with significant risks and downsides. Beneficiaries could potentially lose needed cash benefits and healthcare coverage, face challenges navigating the complex system, or expend time and effort without guaranteed job placement success. Understanding the potential disadvantages allows making an informed choice about whether utilizing the Ticket program is the right move at a given point in one’s situation and career. Thorough consideration of alternatives like general workforce development services is wise as well. Overall the risks highlight areas where the Social Security Administration could consider improvements to strengthen protections and support for disabled workers attempting to join or re-join the workforce.