SSA’s DI demonstration authority has always been granted on a temporary  basis and therefore has been subject to periodic review and renewal by the  Congress. SSA Has Not Used Its Demonstration Authority to Evaluate a Wide Range of DI Return-to-Work Policy Issues

SSA has not used its demonstration authority to extensively evaluate a  wide range of DI policy areas dealing with return to work. Until very  recently, SSA has focused its demonstration efforts primarily on a  relatively narrow set of policy issues dealing with the provision of  vocational rehabilitation and employment services, despite being given the  authority to assess a much broader range of policy alternatives. SSA’s recently initiated  or proposed demonstrations have begun to address a broader range of  policy issues. However, the agency has no systematic processes or  mechanisms for ensuring that it is adequately identifying and prioritizing  those issues that could best be addressed through use of its demonstration  authority. SSA Lacks a Formal Process for Establishing a Demonstration Research Agenda

Despite SSA’s recent broadening of the scope of its projects, the agency  does not have in place any systematic processes for identifying and  assessing potential issues that could be well suited for study under SSA’s  demonstration project authority. SSA’s Demonstration Projects Have Had Little Influence on Consideration of DI Policy Changes

SSA’s demonstration projects have had little influence on the agency’s and  the Congress’ consideration of DI policy issues. This is due, in part, to  methodological limitations that have prevented SSA from producing  project results that are useful for reliably assessing DI policy alternatives. In addition, SSA lacks a formal process for fully considering the potential  policy implications of its demonstration results. Furthermore, SSA’s  reports on demonstration projects have not fully apprised the Congress of  project results and their policy implications. According to these officials, such a record would constitute a body of  knowledge that the agency should be building to improve DI return-to­ work policies. Because SSA’s use of its DI demonstration authority has yet to achieve the  Congress’ intended results—and because SSA is permitted to draw on  increasingly limited Trust Funds to conduct these demonstrations—we  believe it is important for the Congress to maintain close oversight of  SSA’s use of this authority.
Why GAO Did This Study

Since 1980, the Congress has required the Social Security Administration (SSA) to conduct demonstration projects to test the effectiveness of possible program changes that could encourage individuals to return to work and decrease their dependence on Disability Insurance (DI) benefits. To conduct these demonstrations, the Congress authorized SSA, on a temporary basis, to waive certain DI and Medicare program rules and to use Social Security Trust Funds. The Congress required GAO to review SSA's use of its DI demonstration authority and to make a recommendation as to whether this authority should be made permanent.

What GAO Found

SSA has not used its demonstration authority to extensively evaluate a wide range of DI policy areas dealing with return to work. Despite being given the authority to assess a broad range of policy alternatives, SSA has, until very recently, focused its demonstration efforts mostly on a relatively narrow set of policy issues--those dealing with the provision of vocational rehabilitation and employment services. SSA's recently proposed or initiated demonstrations have begun to address a broader range of policy issues, such as provisions to reduce, rather than terminate, benefits based on earnings above a certain level. However, the agency has no systematic processes or mechanisms for ensuring that it is adequately identifying and prioritizing those issues that could best be addressed through use of its demonstration authority. For example, the agency has not developed a formal demonstration research agenda explicitly identifying its broad vision for using its DI demonstration authority and explaining how ongoing or proposed demonstration projects support achievement of the agency's goals and objectives. SSA's demonstration projects have had little impact on the agency's and the Congress' consideration of DI policy issues. This is due, in part, to methodological limitations that have prevented SSA from producing project results that are useful for reliably assessing DI policy alternatives. In addition, SSA has not established a formal process for ensuring that its demonstration results are fully considered for potential policy implications. For example, SSA does not maintain a comprehensive record of its demonstration results that could be used to build a body of knowledge for informing policy decisions and planning future research. Furthermore, SSA's reporting of demonstration project results has been insufficient in ensuring that the Congress is fully apprised of these results and their policy implications.