Making
Work
Part of
the Plan
Work Incentives for People with
Disabilities
The Landscape
The unemployment rate for people with
disabilities is approximately 10 times
higher than the national average.
What keeps people with disabilities from
working?
Attitudes…
Fears…
Misconceptions…
• Family, friends, employers, society
“People with disabilities can’t work”
“I’ll lose my benefits if I work.”
What are Work Incentives?
Special rules used to encourage an
individual to work.
• On Supplemental Security Income
(SSI), work incentives increase the
amount of the SSI payment.
• On Social Security Disability Insurance
(SSDI), work incentives let SSDI cash
payment continue when earnings are
above the Substantial Gainful Activity
level.
Substantial Gainful Activity
Level (SGA)
• The amount of monthly earned income
SSA uses to help define disability
• $940 ($1570 if blind) in 2008
Federal Benefit Rate (FBR)
• The maximum monthly SSI payment
• $637 in 2008
“THE SSI FORMULA”
Gross Earnings:
Minus General Exclusion:
Minus Earned Income Exclusion:
Divided by 2:
Countable Earnings
$615
- 20
$595
- 65
$530
÷ 2
$265
2007 Federal Benefit Rate (FBR): $637
Minus countable earnings: - 265
SSI PAYMENT: $372
SSDI Work Incentives
• Work incentives can reduce earned income by
the amount of the deduction for people
earning over SGA.
Example:
$1000 earned income (over SGA)
- 80 IRWE
$920 countable earned income (under SGA)
Work Incentives
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Ticket to Work (Both)
Trial Work Period (SSDI)
Extended Period of Eligibility (SSDI)
Expedited Reinstatement (Both)
Impairment Related Work Expense (IRWE) (Both)
Subsidy (SSDI)
Plan for Achieving Self Support (PASS) (Both)
Earned Income Exclusion (SSI)
Blind Work Expense (SSI)
Student Earned Income Exclusion (SSI)
1619(b) (SSI)
Extended Medicare (SSDI)
MA-EPD
Ticket to Work
• Increases client’s choice in obtaining the
employment support services, vocational
rehabilitation services, and other and
other services needed to get and keep a
job
• www.yourtickettowork.com
Impairment Related Work
Expense (IRWE)
• Allows certain expenses, necessary to go to
work, to be disregarded from individual’s
earned income.
• An IRWE expense must be:
• paid for by the individual;
• related to serious medical condition; &
necessary in order to work
• approved by SSA
Trial Work Period (TWP)
• 9 months when a person can test their
ability to work and not affect their SSDI
 TWP month = earnings over $670 in 2008
 SSDI payment continues during TWP, no
matter how high earnings
 After TWP, if earnings remain under SGA ($940
in 2008) SSDI continues
Plan for Achieving Self-Support
(PASS)
Income or resources set aside for a set
amount of time to achieve a specific
vocational goal
• Examples of possible PASS goals include:
Education
Equipment
Transportation
• Funds set aside are not counted when
calculating the SSI payment
Health Care with SSI
• Medical Assistance
• 1619(b)
 Allows Medical Assistance (MA) coverage to
continue after the individual’s earned
income becomes too high to allow a SSI
cash payment.
1619 (b) continued
• To qualify for 1619(b) the individual must:
 have been eligible for an SSI cash payment
for at least one month;
 still be disabled;
 meet non-disability requirements; &
 need and use MA
• 1619(b) can continue until person reaches
MN’s 1619(b) threshold of $44,799 per
year or assets exceed limit
Healthcare with SSDI
• Medicare – after 24 months on SSDI
 Extended Medicare – people who work their way off
SSDI continue to receive Medicare for at least 93
months after the end of the Trial Work Period
• Medical Assistance for Employed Persons
with Disabilities (MA-EPD)
Medical Assistance for Employed
Persons with Disabilities
MA-EPD
A work incentive/health care program
MA-EPD Eligibility at a glance
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Age 16 to 64
Certified disabled
Employed
Pay taxes
Meet $20,000 asset limit
Pay premium
NO upper income limit
MA-EPD Eligibility
• Individuals must be at least 16 but less
than 65 years old
• Individuals must be certified disabled by
either the Social Security Administration
or the State Medical Review Team
(SMRT)

Continued on next slide
• Individuals who can’t be certified by SSA
due only to earnings over SGA ($940/month
in 2008) may be certified disabled through
SMRT.
• Individuals on extended Medicare continue
to be certified disabled by SSA even though
their cash benefits have ended. Refer to
SMRT prior to Medicare coverage ending.
MA-EPD Eligibility
• Individuals must be employed
• To be considered employed, a person
must have average gross monthly
wages or countable self-employment
earnings of more than ??
$65
Earned Income
• Enrollees must receive earned income each
month, unless:
• They change jobs and receive no pay
check for 1 month because of different
pay periods
• They are on a temporary medical or job
loss leave

Continued on next slide
Safety Nets
• 4-Month Medical Leave:
Enrollees may have an interruption of
employment due to a physician verified medical
condition for up to 4 months.
• 4-Month Job Loss Leave:
Enrollees who lose their job, through no fault of
their own, may remain on MA-EPD for up to 4
months while looking for another job.

Continued on next slide
• There is no limit on the number of leaves a
person can use, as long as they return to
work in between.
• A job loss leave can be used immediately
following a medical leave.
• A medical leave cannot be used
immediately following a job loss leave.
Calculating Earned Income
• For retro months, use actual gross wages or
countable self-employment income received
in that month
 Determine countable self-employment
income by deducting allowable costs of doing
business from gross receipts.
• For current and future months, use the
average anticipated earned income (MAXIS:
fiat EBUD)

Continued on next slide
Earned Income Verification
• Acceptable earned income verifications
include:
• pay stubs
• employer statement (DHS-2146)
• tax forms or business records

Continued on next slide
• Examples of acceptable self-employment
business records include:
• Detailed, hand written or computer
generate records of gross receipts and
expenses
• Business quarterly report
• Signed statement from the business’s
accountant verifying projected business
income or expenses
Taxes
• To be considered employment, Medicare
and Social Security taxes must be paid or
withheld from earnings
• Proof of state or federal income tax being
paid is not required.

Continued on next slide
• Acceptable Medicare and Social Security tax
withholding/payment include:
• Wages
 Pay stubs
 Written Employer Statement (DHS-2146)
• Self-employment:
 Quarterly Schedule ES or Schedule SE
 Annual federal income tax return
 Business records

Continued on next slide
• Generally, quarterly estimated tax
payments are required by the IRS only if
taxes of $1,000 or more are owed.
• If the client does not file quarterly, accept
the annual federal tax return from the
previous year
• If the client hasn’t been in business long
enough to file taxes or has not filed taxes
in the past, accept business records until
the review due following the next filing
deadline
Assets
• Individuals must have assets of less than
$20,000
• Exclude standard MA assets plus retirement
accounts, medical expense accounts set up
through an employer and all spousal assets.
• People on MA-EPD who lose employment for any
reason retain the MA-EPD asset limit and rules
for up to 12 months.
Premiums
• Individuals must pay a premium of $35 or
more, based on their income and household
size
• People with unearned income must pay ½
% of their unearned income.
• Both are calculated on MAXIS/EBUD

Continued on next slide
• Counties bill and collect initial
premiums
• Eligibility cannot be approved until
premium is paid
• Applicants can choose which month(s)
they want eligibility and pay only those
months
• Counties must work the “overdue
premiums” report each month

Continued on next slide
• Clients with overdue premiums will show on
the report until they’ve paid all past due
premiums
• Over due MA-EPD premiums do not affect
eligibility for other programs
• Notify DHS Special Recovery of new, changing
or discontinued premiums via MAXIS email
“MADE”
• Ongoing premiums can be paid by mail, in
person, by auto-withdrawal, or online at
http://payments.dhs.state.mn.us/selectthepaymenttype.asp
• MA-EPD premium estimator online at:
www.dhs.state.mn.us/maepdpremium
Remember…
• Do not switch people eligible for 1619(b)
to MA-EPD
• Counties must reimburse Medicare Part
B premiums for MA-EPD enrollees with
income below 200% FPG who are not
eligible for QMB/SLMB
MA-EPD Contacts
MA-EPD Information Line
651-431-4300
Disability Linkage Line
1-866-333-2466
Beth Grube
651-431-2412
Brian Jorgensen
651-431-4241
Beth.grube@state.mn.us
Brian.jorgensen@state.mn.us
MAXIS email “QS”
MAXIS email “kcm”
Work Incentives Connection
Goal: Assist people with disabilities to return to work; to
increase work effort; or to work off benefits.
Method: Answer, “What will happen to my benefits if I
work?”
1-800-976-6728
651-632-5113
Benefits Analysis (BA)
Comprehensive look at how all benefits
are affected by work.
Includes:
• Benefits verification/information finding
• Identification of work incentives
• Development of examples of different levels of
earnings----individual’s goals
• Exploration of health care options
• Comparison of finances before & after working
• Benefit management help & follow-up
Anne: Not Working
SSDI
SSI
MSA
MA
Medicare
Food Support
Subsidized Housing
Available Income
$575.00
$ 68.00
$ 81.00
Yes
Yes
$ 10.00
-$207.00
$527.00
Anne: Earning $650 per month
vs. not working
Wages:
Minus 15% taxes
SSDI:
SSI:
MSA:
MA:
Medicare:
Food Support:
Subsidized Housing:
Available Income:
Not Working Earning $650/mo.
$650.00
$0.00
-$ 97.50
$0.00
$575.00
$575.00
$ 0.00
$68.00
$ 0.00
$81.00
Yes
Yes
Yes
Yes
$10.00
$10.00
-$373.00
-$207.00
$764.50
$527.00
$237.50 - A 45% increase in available income
Anne: Earning even more!
Wages:
Minus 15% taxes:
SSDI:
SSI:
MSA:
MA:
Medicare:
Food Support:
Subsidized Hsng.:
Available Inc.:
Not
Working
$0.00
$0.00
$575.00
$68.00
$81.00
Yes
Yes
$10.00
- $207.00
$527.00
$650/mo
$650.00
- $97.50
$575.00
$0.00
$0.00
Yes
Yes
$10.00
- $373.00
$764.50
$875/mo
$875.00
- $131.00
$575.00
$0.00
$0.00
Yes
Yes
$10.00
- $446.00
$883.00
$356.00 - A 67.5% increase in available income!
Coming Spring 2009…
An interactive web site designed for
people with disabilities, and those who
help them.
• Information – on disability benefit
programs
• Tools – to show the connection
between work and benefits
• Tailored Plans – for moving forward
• Links – to get the help you need
• If you want more information about
DB101, want to participate in testing, or
have any input or ideas to help DB101
succeed, please contact
Lesli.Kerkhoff@state.mn.us