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Richard Burkhauser of Cornell and Mary Daly of the Federal Reserve Bank of San Francisco, coauthors of The Declining Work and Welfare of People with Disabilities (AEI Press, September 2011), offer a "work first" approach that has the potential to shrink caseloads, curb costs, and improve the economic outlook for people with disabilities.
While difficult to achieve, fundamental disability reform is possible.
The U.S. disability system is failing--growing at an unsustainable pace for taxpayers and delivering relatively poor outcomes to those with disabilities.
I learned to appreciate the American free enterprise system by quitting a job in Spain.At age 19, I dropped out of school to pursue a career as a French horn player. After a few twists and turns, I wound up in the Barcelona Symphony, which was a Spanish...
The costs of disability programs are rising at an unsustainable pace. In all likelihood this will produce calls for program reforms. More systematic solutions should be considered, like experience rating SSDI payroll taxes.
Changes in Social Security policy have reduced the willingness of employers to provide accommodations and rehabilitation and their workers to seek them by making access to DI benefits much easier for workers and failing to make their employers more directly pay for their movement onto the rolls.
The Financial Alignment Initiative has set ambitious time frames for making sweeping changes in the care offered to dual eligibles. Will dual eligibles be able to obtain the services they need once they are shifted into these new health plans? Will savings come at the expense of patient care, or will this approach lead to real efficiencies in delivering care?
Using fair-market valuation, Nevada PERS’ unfunded liabilities would rise from about $10 billion to almost $41 billion. Shifting PERS to a defined-contribution, 401(k)-type structure would ensure that benefit obligations are fully funded going forward and that everyone is clear regarding the pensions promises the government has made and its ability to fulfill them.
