Introducing BOND (the Benefit Offset National Demonstration)

1. Introducing BOND (the Benefit Offset National Demonstration)

2. Overview of BOND What is BOND? • BOND stands for Benefit Offset National Demonstration, a program of the Social Security Administration (SSA). • BOND is a new approach to the Social Security Disability Insurance (SSDI) program that is being tested in 10 sites, covering roughly 20 percent of the country. • BOND is a field test and evaluation of policy and service changes to SSDI. Arizona/Southeast California – 1/11/2011

3. Why are we introducing BOND to you? • Your organization serves people with disabilities, including SSDI beneficiaries. • BOND will provide significant opportunities for thousands of these beneficiaries around the country. • We want you to understand how BOND will work and how it will affect those you serve. • We want to establish BOND’s credibility with you and ask your assistance in making it known and understood. Arizona/Southeast California – 1/11/2011

4. Background of the BOND Project • There is a very low rate of return to work among SSDI beneficiaries. • Because of the monthly amount of SSDI benefits (an average of $1,066 in August 2010), beneficiaries and their families often struggle financially. • Low levels of work and high levels of reliance on SSDI have contributed to the growth in SSDI program costs. Arizona/Southeast California – 1/11/2011

5. Background of the BOND Project • Many factors potentially explain why relatively few SSDI beneficiaries who return to work eventually leave the benefit rolls, even temporarily: • Medical and functional status • Cash cliff • Need for work-related services • Concern over effect of increased earnings on other benefits • Distrust of government agencies. Arizona/Southeast California – 1/11/2011

6. BOND: Testing Potential Solutions to the Problem • BOND will test innovations to SSDI that are designed to address the financial disincentives and other obstacles to increasing the incomes and reducing the dependence on benefits of SSDI beneficiaries. • These innovations include: • Removing the Cash Cliff • Administrative Program Changes • Increased Counseling Services for Beneficiaries. Arizona/Southeast California – 1/11/2011

7. BOND: Testing Potential Solutions to the Problem • Under current policy, there is an incentive for beneficiaries to work only as much as will keep their earnings below the Substantial Gainful Activity (SGA) threshold. • BOND allows them to work and earn much more and still keep some of their cash benefits and all of their Medicare coverage. • BOND also allows them to work enough hours to (a) qualify for fringe benefits from many employers, (b) take full advantage of the EITC and other tax breaks, and (c) have more involvement in the workplace. Arizona/Southeast California – 1/11/2011

8. Arizona/Southeast California – 1/11/2011

9. SSDI Beneficiary Eligibility for BOND • To be eligible to participate in BOND, a beneficiary must be: • At least age 20 and under age 60 • Entitled to Title II benefits based on disability • Not have benefits in terminated status • Residing in one of the 10 BOND sites • Not currently or previously participating in another SSA demonstration. Arizona/Southeast California – 1/11/2011

10. SSDI Beneficiary Eligibility for BOND BOND Sites: • 10 SSA Area jurisdictions around the country were randomly selected for this test (some small areas of these states may be excluded): • Alabama • Arizona/Southeast California • Colorado/Wyoming • DC Metro • Greater Detroit • Greater Houston • Northern New England • South Florida • Western New York • Wisconsin. Arizona/Southeast California – 1/11/2011

11. BOND – Arizona/Southeast California Arizona/Southeast California – 1/11/2011

12. BOND’s Design • BOND is a research project as well as a demonstration. • Congress asked for this research to learn the effects of putting a benefit offset in the SSDI program. • The best way to answer—and the only way to be sure the research results stem from the program changes and not from other factors—is to use random assignment and compare the groups’ outcomes. Arizona/Southeast California – 1/11/2011

13. Overview of Random Assignment Process Arizona/Southeast California – 1/11/2011

14. BOND Treatment and Control Groups • Stage 1 random assignment will generate three groups: • A group of that receives the benefit offset (some 80,000 people in the 10 sites) • A current law control group • A group that is invited to volunteer for Stage 2 (the solicitation pool, over 300,000 people). • Stage 2 random assignment of volunteers will generate three groups: • An offset-only treatment group (4,800 people) • A treatment group offered both the offset and EWIC (3,000 people) • Another current law control group (4,800 people). Arizona/Southeast California – 1/11/2011

15. Purpose of Stage 1 and 2 Two different questions to answer Two Stages of outreach and recruitment Stage 1 • Allows assessment of the effect of the benefit offset on the entire population that SSA serves • Includes SSDI only and concurrent beneficiaries • Information with limited outreach. Stage 2 • Designed to measure the impacts on beneficiaries for whom benefit offset could be most effective • Excludes concurrent beneficiaries • Information and intensive outreach. Arizona/Southeast California – 1/11/2011

16. Outreach and Recruitment Overview: Stage 1 Key Points of Communication • Treatment group (T1) • “Good news” letter: T1 group will be notified of its eligibility for the benefit offset between April and June 2011 • Outreach calls: Part of the group (those with evidence of work) will be called a year after letter. • Potential Volunteers • Communication during Stage 2: Will be recruited between January 2011 and September 2012. Arizona/Southeast California – 1/11/2011

17. Outreach and Recruitment Overview: Stage 2 Stage 2 volunteers will be randomly assigned to one of two treatment groups and one control group: • T21group: Members will be eligible for the benefit offset and regular work incentives counseling (same treatment received by T1 group) • T22 group: Members will be eligible for the benefit offset and enhanced work incentives counseling • C2 group: These beneficiaries will not be eligible for the benefit offset and will continue with current SSDI rules. Arizona/Southeast California – 1/11/2011

18. Successfully Attracting Stage 2 Volunteers The goals of Stage 2 outreach and recruitment: • Inform members of the solicitation pool about the benefit offset and the potential opportunity that BOND affords • Generate a willingness to volunteer among a sufficient number of eligible beneficiaries in solicitation pool • Randomly assign and enroll those who potentially stand to benefit from the opportunity. Arizona/Southeast California – 1/11/2011

19. Successfully Attracting Stage 2 Volunteers The activities that comprise the Stage 2 outreach and recruitment strategy include: • Introducing BOND to a wide range of community agencies and organizations in this site. • Sending outreach letters to members of the solicitation pool • Responding to inquiries generated by the letters • Conducting outreach phone calls to those not responding to the letters • Creating and informing an informal network of community stakeholders who can generate additional interest in and support for the demonstration. Arizona/Southeast California – 1/11/2011

20. Outreach and the Community Successfully attracting Stage 2 volunteers will be extremely challenging due to: • Numerous points of resistance and obstacles perceived by beneficiaries • Anticipated portions of the beneficiary population who may not be able or willing to work • Anxiety among some beneficiaries about altering the status quo • Skepticism and even mistrust of SSA’s intentions and motives in sponsoring BOND. Arizona/Southeast California – 1/11/2011

21. Outreach and the Community How can you help? Does your organization… Have members who receive SSDI benefits? Provide services to persons with disabilities, including SSDI beneficiaries? Provide information to audiences that include persons with disabilities? Have geographical reach to some or all of the BOND sites? Then you can help reach out and inform beneficiaries about this opportunity. Arizona/Southeast California – 1/11/2011

22. Outreach and the Community BOND must become integrated into the fabric of the disability communities in each site, because it will “take a village” to: • Establish awareness and familiarity with BOND • Answer questions and vouch for the credibility and importance of BOND • Help beneficiaries become familiar with the BOND opportunity and fully explore its potential benefits • Provide convenient and comfortable locations for enrollment. Arizona/Southeast California – 1/11/2011

23. Outreach and the Community We are asking that state and local groups and disability communities in each site: Become familiar with the basic information about BOND and the benefit offset opportunity; Provide beneficiaries who are randomly selected for BOND and receive a letter from the project with a blend of information and encouragement to promote their full consideration of BOND; Distribute brochures/posters to help market BOND; and Help identify temporary venues for conducting enrollment sessions away from the site office. Arizona/Southeast California – 1/11/2011

24. What’s happening now on BOND? • Site offices are open in the 10 BOND sites, each located for best geographical access by the beneficiary population. • The offices are staffed and are undertaking the initial steps, especially community outreach. • Random assignment has begun, and we are preparing the first outreach to the Stage 2 volunteer pool. • Work incentives counseling services—whether regular or enhanced—are being put in place now. Arizona/Southeast California – 1/11/2011

25. What happens next? The first three months of BOND operations will be a pilot period. Timing: Late January to March/April 2011 Features: Limited scale of operations (smaller numbers for outreach, narrower geographical reach in biggest sites) Purpose: Implement, examine, and refine the various procedures that support outreach, recruitment, enrollment, and site operations. This will be done by trying and comparing alternative strategies. Arizona/Southeast California – 1/11/2011

26. BOND Project Implementation Timeline • Site office opening—November 2010 • Stage 1 random assignment—January 2011 • Stage 2 pilot recruitment—begins January 2011 • Stage 1 outreach—begins April/May 2011 • Stage 2 full recruitment—begins April/May 2011 • Stage 2 random assignment—ends September 2012 • Site operations end—September 30, 2012. Arizona/Southeast California – 1/11/2011

27. BOND Project Timeline (continued) • Beneficiaries assigned to one of the benefit offset groups can begin using the offset as soon as they have used their Trial Work and Grace Period months. • Beneficiaries have until September 2017 to reach that point and take advantage of the offset. • The offset is available to each individual for up to 60 months. • Work incentives counseling services—whether regular or enhanced—will continue to be available through September 2017. • The demonstration’s research results will be final in 2018. Arizona/Southeast California – 1/11/2011

28. Questions? Arizona/Southeast California – 1/11/2011