Work Choice was one of the demonstration projects made possible by Section 1115 waivers to the rules in effect at the time for the Aid to Families with Dependent Children (AFDC) program. These Section 1115 waivers allowed states to test new approaches to advance the objectives of the AFDC program.
As part of the demonstration, individuals assigned to the Work Choice group were required to participate in an employability assessment to determine job readiness and a vocational counseling session. At the assessment, participants were offered up to 12 months of transitional Medicaid coverage and child care payments if they obtained employment.
The transitional Medicaid coverage was designed to ease the transition from Medicaid to coverage provided through a private employer and to account for the possible loss of health care coverage at an entry-level job. Participants also qualified for reimbursement of child care expenses through Work Choice, up to $160 per child per month for 12 months.
At the time Work Choice was designed, the national AFDC program provided only 4 months of transitional Medicaid and no transitional child care. After the assessment, Work Choice participants could receive employment-related services on a voluntary basis. Participants were sanctioned if they did not fulfill the mandatory work-readiness assessment or vocational counseling requirements. The program operated in Montgomery County, OH.
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