The impact of work incentives benefits counseling on employment outcomes of transition-age youth receiving Supplemental Security Income (SSI) benefits

1.1Work incentives benefits counseling

Work incentives benefits counseling consists of strategies, supports and services that promote self-sufficiency through work preparation, financial awareness and an understanding of the interplay between earned income and existing benefits (Golden, O’Mara, Ferrell, & Sheldon, 2000). Through the cultivation of this enhanced knowledge and awareness, individuals with disabilities are presented with the opportunity to gain independence from SSI benefits through informed choice, decreasing their reliance on public benefit programs and establishing financial well-being (Golden et al., 2000).

Most individuals who qualify for SSI benefits are also eligible for public Vocational Rehabilitation (VR) services in their state, however these services remain underutilized by this population despite data illustrating a positive correlation between the provision of VR services and employment outcomes. Over 50 percent of individuals with disabilities gained competitive integrated employment after receiving state VR services (Dutta, Gervey, Chan, Chou, & Ditchman, 2008; Leahy et al., 2014). Transition-age youth with autism spectrum disorders and learning disabilities both had higher rates of competitive integrated employment when connecting with vocational rehabilitation services (Kaya et al., 2016). Work incentives benefits counseling provided in conjunction with VR services should be considered a necessary intervention for all people seeking employment who are receiving Social Security Disability Insurance (SSDI), SSI, or public medical benefits such as Medicaid or Medicare (Hartman et al., 2015; Leahy et al., 2014; Lui et al., 2010). Work incentive benefits counseling has been shown to improve employment outcomes for individuals with disabilities by increasing their employment rates and income (Delin et al., 2012; Hartman et al., 2015; Leahy et al., 2014; Tremblay et al., 2004; 2006). Despite the empirical evidence that work incentive benefits counseling leads to improved employment outcomes for people receiving public benefits, many states still have not fully integrated this service into their VR programs.

Previous research on work incentive benefits counseling confirms the effectiveness of this service on positive competitive employment outcomes for individuals receiving social security benefits. Tremblay et al. (2004; 2006) evaluated Vermont’s initiative of providing specialized benefits counseling to SSA beneficiaries. Earned income using Unemployment Insurance (UI) data was examined for three different groups of consumers: 1) those who received benefits counseling in the VR agency; 2) a matched group of consumers currently receiving VR services but not benefits counseling; and 3) a matched group of past VR consumers who had not received benefits counseling. Although all participants received VR services, only the intervention group received additional specialized benefits counseling. Results from this evaluation revealed that all the groups had increased income over time; however, the group that received the specialized benefits counseling had significantly greater increases in mean earnings compared to the other groups even after controlling for previous earnings and other predictors (Tremblay et al., 2004; Tremblay et al., 2006). This study was one of the first to produce empirical data that demonstrated the fact that benefits counseling increased earned income for individuals receiving SSAbenefits.

A more recent investigation showed similar outcomes for beneficiaries of SSDI and SSI who received work incentive benefits counseling (Delin et al., 2012). This study not only explored gains in income but also investigated whether the amount of benefits counseling had an increased impact on participant earnings. The results showed that those receiving the most benefits counseling experienced both the largest increase in income and significantly higher earnings compared to participants who received less (Delin et al., 2012). These findings help confirm evidence that more work incentive benefits counseling can lead to better employment outcomes and increased income.

Further research conducted by Wilhelm and McCormick (2013) investigated the impact of benefits counseling by focusing on the impact a written report had on employment outcomes for consumers written by a vocational rehabilitation specialist. Results found that these written reports led to a better successful closure rate, with more individuals employed after VR services. The study also revealed higher earnings, which is likely attributed to increases in employment.

Along with vocational rehabilitation counselors, benefits specialists have been shown to be an integral part of the VR process in achieving positive employment outcomes for people receiving SSA benefits (Hartman et al., 2015; Lui et al., 2010). Lui et al., (2010) conducted an analysis of the roles and job functions of benefits specialists to further examine their vital role in VR practice. Results reported that benefits specialists execute three main job functions: 1) benefits screening (understanding); 2) benefits advisement (consultation); and 3) benefits management (supporting). The benefits specialists preform these job functions together to give beneficiaries of SSI the best options for employment while working closely with vocational rehabilitation staff to ensure understanding of benefits and how they relate to employment decisions and outcomes. The specialists self-evaluated, reporting themselves as well equipped to execute these crucial job functions despite receiving little to no official preparation.

Hartman and colleagues (2015) performed a similar analysis on benefits specialists’ job functions to gauge their experience helping individuals navigate their benefits with respect to employment and increased earnings. Results indicated that the majority of benefits specialists reported their primary job functions as advising consumers on the use of work incentives and educating consumers on how employment might alter their current benefits. Additionally, half of respondents answered that their main goal was to help individuals obtain financial self-sufficiency, so they no longer need to rely on public benefits.

1.2Financial capability training

In comparison to individuals with a higher income, low income and impoverished individuals are more likely to lack relevant information that would enable them to make informed financial choices and help them gain access to traditional banking institutions to begin accumulating assets (Friedman, 2005). Low-income families lacking in financial skills, such as savings, also become more vulnerable to the unpredictable nature of economic turmoil, such as health emergencies or unanticipated employment loss (Jacob, Hudson, & Bush, 2000). Financial capability training provided in conjunction with benefits counseling can contextualize income, benefits, and assets into a much larger picture, helping to demystify a complex financial system that appears alienating and hostile to many. In order to overcome the barriers that prevent low income individuals from participating in mainstream financial practices, it is important that they are made aware of tools, pertinent information, and supports that enable them to properly utilize the resources available to them. All of these resources can be provided to this population with proper financial capabilities training.

1.3Youth and benefits counseling

These studies provide evidence that work incentive benefits counseling leads to better employment outcomes; specifically, significant increased income for individuals receiving SSA benefits. However, the previous research focused on the impact of benefits counseling on employment for working adults with disabilities. Little research has been conducted on the effect of work incentive benefits counseling for youth with disabilities. Wittenburg and Loprest (2007) found that only 22% of transition-age youth receiving SSI benefits had learned of work incentives benefits or talked to a professional about the work incentives.

1.4Current study

The current study aims to illustrate the significant impact that work incentives benefits counseling can have on employment outcomes for transition-aged youth who receive SSI. Researchers examined employment rates and income levels between youth in a treatment group who received work incentives benefits counseling, compared to youth who did not receive benefits counseling.

2.1Participants

The study was comprised of data collected from Wisconsin youth enrolled in “Promoting the Readiness of Minors in Supplemental Security Income” (PROMISE) grant program. PROMISE is a federally funded demonstration grant performed in a variety of different sites in several states. Youth receiving SSI aged 14–16 were recruited to the program using eligibility and contact information gained from SSA and Medicaid. Over the course of two years, 2,024 youth were enrolled into PROMISE and all enrollees received two $15 gift cards to local stores to serve as both an incentive for enrollment and as compensation for time spent filling out the enrollment packet. All youth who enrolled were randomly assigned to either the control group or treatment group using the Random Assignment System (RAS) designed and maintained by Mathematica, the national evaluator of all the PROMISE grant sites.

Youth assigned to the control group (N = 1,006) had access to services as usual. In the control group, it was the consumer’s responsibility to apply to VR if they chose to do so. Youth assigned to the treatment group (N = 1,018) were automatically enrolled in VR services and had access to extra PROMISE services, including work incentives benefits counseling using an innovative family-centered consultation approach. Upon enrollment, they were assigned a specifically trained PROMISE Division of Vocational Rehabilitation (DVR) counselor in their area. The youth also received a tablet or iPad including a data plan, access to a family advocate in their area, and a resource team. Additionally, family members of the youth who were 15 or older – and were living in the household – could utilize the PROMISE services as well.

The extra PROMISE services consisted of work incentive benefits counseling, financial coaching and matched saving accounts, soft skills training, health literacy training, self-advocacy training, facilitating a resource team, and family advocacy training, in addition to all the employment services VR already offers. Over the course of the program, seven youth dis-enrolled in the research, bringing the total of youth receiving PROMSIE services to 1,011. Of those assigned to treatment group, a little over half of the youth went through work incentive benefits counseling (N = 535).

All youth in PROMISE completed an intake form upon consenting to and enrolling in the program, which asked basic demographic information about them and their family’s household. Table 1 illustrates the detailed demographic information collected at the time of intake, all youth in the treatment group were between ages 14–16, with the majority of youth age 14. The treatment group included 675 (67%) males and 333 (33%) females. These figures were consistent with gender breakdown of all eligible youth.

Most youth identified as African American, followed by White non-Hispanic, and Hispanic (See Table 1). Primary disability at intake for treatment youth was Mental Health or Behavioral, followed by Developmental or Intellectual, and Other. Youth who had multiple disabilities often self-reported “other” because they could not identify which disability was considered their primary disability type (See Table 1). Most (N = 818) reported they had not previously worked for pay but more than half expected to work for pay (N = 633) and live independently (N = 550) in the future.

3.1Procedure

As part of PROMISE Services, youth in the PROMISE treatment group were referred to work incentive benefits counseling. The referrals typically occurred prior to the youth starting employment. A total of 608 PROMISE youth were referred to this service, and 535 youth met with a benefits specialist at least once during the program. Work Incentive Benefits Consultation was a service aimed to be the starting point to assist PROMISE grant participants and their families in understanding the benefits that they receive from the federal and local governments, and how their improving financial progress will impact these benefits. This service may be authorized prior to a full benefit analysis and is not intended to replace a full benefits analysis. A consultation period consisted of at least three significant contacts with the participant, family and/or counselor as needed over a three-month period. Following the consultation period, the participant and/or family may be referred for a full benefit analysis. Services included intake of household information, opportunity for the work incentive benefits specialist to become an authorized representative, obtaining signed releases and verify benefits, sharing information on Student Earned Income Exclusion (SEIE), SSI eligibility and general deeming, impact on benefits based on time points (youth turning 18, family member change in employment, marriage, new siblings, sibling moves, and new benefits), answering questions regarding public benefits (including SSA benefits, Medicaid, FoodShare, Housing, etc.), and providing consultation as needed. Benefits analyses consisted of providing a full report of all the youth’s federal and state benefits, and the impact work could have on these benefits, with information on how the youth can work to increase overall income, while still accessing the services and supports needed for daily living and competitive employment.

Specialists also connected youth to work incentives such as SEIE, Section 301 continuation, Medicaid while working, impairment-related work expenses, and earned income exclusion. Work incentive benefits specialists recorded and tracked the detailed information in a secured data-sharing site. The data was then uploaded and maintained in the Limited Data Set (LDS) system, available to authorized researchers and partners in PROMISE. Counselors recorded all youth and family activities into IRIS, including number of jobs, weekly earning amount, hours worked, work start and end dates, extra PROMISE services, and many other variables.

3.2Data analysis

Reports generated from the LDS were retrieved and loaded into Excel and SPSS. Various employment outcomes and variables were flagged, including: 1) having met with a benefits specialist at least once; 2) number of jobs since employment; 3) number of youth working; 4) active employment; 5) hours worked; 6) weekly earning amount; and 7) number of youth working at SGA. Researchers then analyzed the recorded data collected throughout the WI PROMISE program. Descriptive statistics on the data collected were run using the Statistical Package for Social Sciences (SPSS) Version 25 and Microsoft Excel programs. Chi-square tests for independence and independent samples t-tests were also conducted to see if the differences in employment outcomes were statistically significant between treatment youth who completed benefits counseling compared to treatment youth who did not complete benefits counseling.

5.1Limitations

Youth and families who signed up for PROMISE were more likely to engage in services and employment, as they self-selected into the program, so the generalizability of this study is limited. Despite this limitation, the results are still of value especially given the sample of PROMISE participants were similar to the SSI youth population as a whole, more specifically 25 percent of the eligible population enrolled in PROMSIE and demographics were similar to that of the overall eligible population. Consequently, researchers have confidence these results likely reflect the population of youth receiving SSI, at least those in Wisconsin.

The importance of the monthly SSI payments these families receive cannot be overstated, making it easy to understand why some families are wary of their children working. This may not necessarily be due to a lack of belief in their child’s ability to integrate into a workplace, but rather due to the fear and uncertainty of losing the SSI benefits that help sustain their family. Our analysis, focused on transition aged youth receiving SSI, sought to better understand the association between the push and pull relationship of earned income and public benefits and how the perceived tension created by the need to balance the two could be alleviated by a stronger implementation of work incentives benefits counseling.