Sunday, January 22, 2006

Federal Gov't. Muscles Into State Temporary Disability Payments

The Federal Government usually provides the majority of the funding to State vocational rehabilitation services [Voc Rehab]. It is an eligibility program and not an entitlement program. All SSA DIB beneficiaries are automatically eligible for the program. The Government is now moving aggressively to expand their involvement to get disabled people back to work and targeting the work related injured.

The initiative provides vocational rehabilitation with an easily identifiable cohort; An opportunity for the Feds to seek reimbursement from the employer/insurance carrier for contracted services; Allows reduction in Federal SSA payments; and Entangles the Feds into the State WC programs and may further delay adjudication of claims. Questions:1. Does your State require continuation of temporary disability payments during the period before acceptance into the Voc Rehab program?2. Does your State require continuation of temporary disability payments while participating in the Voc Rehab program?

The Ticket to Work Program
The goal of the Ticket Program is to increase opportunities and choices for Social Security disability beneficiaries to obtain employment, vocational rehabilitation (VR), and other support services from public and private providers, employers, and other organizations. http://www.yourtickettowork.com/program_info US Department of Education
RSA's major Title I formula grant program provides funds to state vocational rehabilitation (VR) agencies to provide employment-related services for individuals with disabilities, giving priority to individuals who are significantly disabled. http://www.ed.gov/about/offices/list/osers/rsa/index.html

The client should be cautioned as to the specific interpretations and consequences of what constitutes work under his/her state's specific statute. The rush of industry to enact fraud prevention statutes has created a conflict with the TICKET TO WORK legislation. On the one hand, the Federal government is encouraging a return to work in most states through the continuation of the payment of benefits, and on the other hand, the states provide no such latitude. The state fraud acts make it a criminal offense to make a false or misleading statement. The fraud acts also establish civil penalties if any person wrongfully obtains benefits, which could result in immediate forfeiture of present and future benefits and require reimbursement of past benefits with interest. See NJSA 34:15-74.

Workers’ compensation lawyers should discuss these issues with their clients in advance of the injured worker’s attempt to return to work. The client should be cautioned as to the specific interpretations and consequences of what constitutes work under his/her state’s specific statute. Failure to do so may subject the injured worker to severe civil and criminal penalties.