What Is PL 106-117: The Ticket to Work Act?

In 1999, Public Law 106-117, the Ticket to Work and Work Incentives Improvement Act, was signed into law. This act addresses the challenge faced by Social Security disability beneficiaries who want to work but fear losing their cash payments and healthcare coverage. The legislation’s purpose is to provide beneficiaries with more choices and support to achieve self-sufficiency. It provides tools and safety nets to make the transition to work less financially precarious.

The Ticket to Work Program

The Ticket to Work and Self-Sufficiency Program is available to most individuals aged 18 through 64 who receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits. The Social Security Administration (SSA) provides a “ticket,” which is a voucher used to obtain free employment services from an authorized provider.

Beneficiaries can assign their ticket to one of two types of service providers: Employment Networks (ENs) or state Vocational Rehabilitation (VR) agencies. ENs are private or public organizations, such as staffing agencies or non-profits, that have an agreement with the SSA to provide employment services. State VR agencies are public institutions that function as a specialized type of EN, allowing beneficiaries to select a provider that best matches their employment goals.

Providers offer services like career counseling, vocational training, and job placement assistance. They may also offer ongoing support to help with job retention and career advancement. The program is an outcome-based model, meaning providers are compensated by the SSA as the beneficiary achieves specific work and earnings milestones.

Key Work Incentives and Protections

The Act created several safety nets to protect beneficiaries as they explore employment. These provisions reduce the risks associated with returning to work, providing assurance that a temporary setback will not result in a sudden loss of benefits.

Expedited Reinstatement (EXR)

Expedited Reinstatement (EXR) is for former beneficiaries whose cash payments ended due to earnings over the Substantial Gainful Activity (SGA) level. If they must stop or reduce work within five years due to the same or a related disability, EXR allows them to have benefits reinstated without a new application, a process that is much faster than a new claim. To be eligible, the prior entitlement must have ended due to work activity.

While the SSA processes the request, the individual can receive up to six months of provisional cash benefits. This ensures a person who is no longer able to work does not face a prolonged period without income during the review.

Continuation of Medicare Coverage

The law extends Medicare coverage for SSDI beneficiaries who return to work. After an individual completes their nine-month Trial Work Period, they enter an Extended Period of Eligibility.

Premium-free Medicare Part A continues for at least 93 months—or more than seven and a half years—after the Trial Work Period ends, even if earnings are high enough to stop SSDI cash payments. This extended coverage provides long-term health security. After this period, individuals still disabled but working may have the option to purchase Medicare coverage.

Medicaid Buy-In Program

The Act introduced a state-level option for working individuals with disabilities to maintain health coverage through the Medicaid Buy-In program. This allows states to create a special eligibility group for people whose earnings would otherwise make them ineligible for traditional Medicaid. These individuals can “buy into” the program, often by paying a premium based on their income.

Because this is a state option, specific income and resource limits vary. The program is designed to eliminate the choice between working and keeping necessary medical care, particularly for those who rely on Medicaid for services not covered by other insurance.

Tax-Related Provisions

The Act introduced or modified several tax provisions to encourage the employment of individuals with disabilities. These incentives help offset costs associated with workplace accommodations and reward businesses for hiring from this talent pool.

An incentive for employers is the Work Opportunity Tax Credit (WOTC), a federal credit for businesses that hire individuals from certain targeted groups, including those with disabilities. Key details of the WOTC include:

• It is currently authorized for employers who hire eligible individuals who begin work on or before December 31, 2025.
• Eligible hires include individuals referred from a vocational rehabilitation agency or who are recipients of SSI.
• The maximum credit amount can range from $2,400 to $9,600 per eligible employee.
• To claim the credit, employers must pre-screen the applicant and submit IRS Form 8850 to their state workforce agency within 28 days of the employee’s start date.

Employees can deduct impairment-related work expenses (IRWE) from their taxable income. These are costs for items or services an individual needs to work, such as attendant care, specialized software, or extra transportation costs. These expenses are reported on Form 2106 and deducted on Schedule A of Form 1040 and are not subject to the 2% of adjusted gross income limit.

The Disabled Access Credit helps small businesses cover costs for providing access to individuals with disabilities. An eligible small business, one with gross receipts of $1 million or less or no more than 30 full-time employees, can claim a credit for 50% of eligible expenditures between $250 and $10,250. This results in a maximum credit of $5,000 and can be used for costs like removing architectural barriers or purchasing adaptive equipment.

How to Participate in the Ticket to Work Program

The participation process is user-driven. It begins with confirming eligibility, as individuals aged 18 through 64 who receive SSDI or SSI benefits are generally eligible. The system is now electronic, and eligibility can be confirmed by calling the Ticket to Work Help Line or through an authorized service provider.

The next step is choosing a service provider, either an Employment Network (EN) or a state Vocational Rehabilitation (VR) agency. The official Ticket to Work website has a “Find Help” tool with an online directory of providers. A beneficiary can interview multiple providers to find one that is a good fit for their career goals and support needs.

Once a provider is chosen, the beneficiary assigns their ticket to them. This is formalized when the beneficiary and provider mutually agree upon and sign a detailed plan. This document is called an Individual Work Plan (IWP) with an EN or an Individual Plan for Employment (IPE) with a VR agency.

This plan outlines the beneficiary’s employment goal and the steps both parties will take to achieve it. It details the services the provider will offer and the responsibilities of the beneficiary. Once the plan is signed, the ticket is considered “in use,” which provides protection from medical Continuing Disability Reviews.

With the plan in place, the beneficiary works with their provider toward employment. To keep the ticket active and maintain protection from medical reviews, the beneficiary must make “Timely Progress” toward their work goals. The SSA has specific guidelines for Timely Progress, which involve achieving educational or employment milestones within set timeframes.