As the first Republican senator to co-sponsor the legislation during the 105th Congress, Grassley saidS. 331, the Work Incentives Improvement Act opens the door to increased employment opportunitiesfor disabled Americans who want to work by enabling them to keep their government health benefitsafter they take a job.
According to Grassley, those who qualify for federal disability benefits are discouraged undercurrent law from taking a job because they stand to lose critical health care coverage if they earnmore than $500 a month.
"Providing disabled workers a better opportunity to earn a living is the right thing to do," saidGrassley. "It reinforces basic principles of our national heritage shared by working Americans acrossthe country. Earning one's own way in the world helps foster a strong work ethic, personalresponsibility, independence and self-esteem."
The bipartisan bill would give states the flexibility to change provisions in the federal-state Medicaidprogram to allow disabled individuals, through a phased-in, buy-in program, to continue receivingmedical benefits once their earning exceed the traditional earnings limit for eligibility. Disabledworkers would pay Medicaid premiums on a sliding scale based on income. Once their incomereached $75,000, they would be required to pay the full premium.
In addition, the bill extends Medicare Part A coverage from 39 months to six years before disabledMedicare beneficiaries must pay the full Medicare Part A premium.
"The Work Incentives Improvement Act gives the disabled population the green light to join the workforce," said Grassley. "This is smart public policy that will help alleviate the tight labor market,increase the tax base for the Social Security trust fund and address employer concerns, many ofwhom are wary of adding a high-cost employee to their company's insurance pool."
According to Grassley, more than 40,000 Iowans receive federal disability benefits and many likelyare discouraged from voluntarily seeking employment based on the risk of losing these benefits. Lessthan 20 percent of this population in Iowa currently holds a job.
According to Grassley, thousands of Iowans may benefit with passage of S. 331, including Iowa Cityresident Tim Clancy. An active citizen in the community, Clancy lives with cerebral palsy and doesnot have health coverage through his employer. This bill would allow him to keep working withoutjoining the ranks of the uninsured.
"Government should promote independence and productivity, not stand in the way," said Grassley."If a disabled person is ready, willing and able to take a job, they should be given a fair opportunityto work."
A senior member of the Senate Finance Committee, Grassley was a leading supporter of the reformeffort advanced by Sens. James Jeffords and Edward Kennedy. The House of Representatives isconsidering a companion measure.