Disability Insurance Protection and Fraud Prevention Act of 2014

Summary: Disability Insurance Protection and Fraud Prevention Act of 2014 - Requires the Inspector General of the Social Security Administration to increase the number of cooperative disability investigative (CDI) units to 54 and distribute them equally among the most densely populated areas.  Prohibits the Commissioner of Social Security, in determining whether an individual is under a disability for insurance benefit payment purposes, from considering: (1) an individual as approaching advanced age unless he or she has attained age 58; (2) an individual as having attained advanced age unless he or she has attained age 61; and (3) the individual's inability to communicate in English as a vocational factor. Amends titles II (Old Age, Survivors and Disability Insurance) (OASDI) and XVI (Supplemental Security Income) (SSI) of the Social Security Act (SSA) to eliminate consideration of the combined effect of impairments in disability determinations. Makes appropriations for continuing disability reviews for FY2014-FY2018. Directs the Commissioner to assess for Congress after FY2018 the amount of savings attained as a result of such appropriations in the federal disability program under SSA title II and the SSI program. Requires the Commissioner to describe for Congress the designs of: (1) a disability demonstration program, (2) a state demonstration program to revise specified existing funding streams for specific populations to improve outcomes and reduce participation in SSI or Social Security disability insurance, and (3) a demonstration program that encourages employers to reduce the incidence of disability among their employees by 20% through a voluntary program that provides the employers with a tax credit if their employees do not file for Social Security disability insurance.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disability Insurance Protection and 
Fraud Prevention Act of 2014''.

SEC. 2. EXPANSION OF COOPERATIVE DISABILITY INVESTIGATIONS PROGRAM.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Inspector General of the Social Security 
Administration shall increase the number of cooperative disability 
investigative units to 54.
    (b) Distribution.--The Inspector General shall locate the 
cooperative disability investigative units established pursuant to 
subsection (a) in such manner as to ensure that such units are 
distributed equally among the most densely populated areas of the 
Nation.

SEC. 3. MODIFICATION OF CERTAIN CRITERIA FOR THE DETERMINATION OF 
              DISABILITY.

    (a) In General.--In determining whether an individual is under a 
disability for purposes of section 223 of the Social Security Act (42 
U.S.C. 423), the Commissioner of Social Security--
            (1) may not consider an individual as approaching advanced 
        age (as applicable for purposes of section 404.1563 of title 
        20, Code of Federal Regulations, as in effect on the date of 
        the enactment of this Act), unless the individual has attained 
        the age of 58;
            (2) may not consider an individual as having attained 
        advanced age (as so applicable) unless the individual has 
        attained the age of 61; and
            (3) may not consider the individual's inability to 
        communicate in English as a vocational factor (as applicable 
        for purposes of section 404.1564 of such title).
    (b) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Commissioner of Social Security shall issue 
regulations to implement subsection (a).

SEC. 4. COMBINED EFFECT OF IMPAIRMENTS NOT CONSIDERED IN DISABILITY 
              DETERMINATIONS.

    (a) Title II Determinations.--Section 223(d)(2) of the Social 
Security Act (42 U.S.C. 423(d)(2)) is amended by striking subparagraph 
(B) and redesignating subparagraph (C) as subparagraph (B).
    (b) Title XVI Determinations.--Section 1614(a)(3) of such Act (42 
U.S.C. 1382c(a)(3)) is amended by striking subparagraph (G) and 
redesignating subsequent subparagraphs accordingly.
    (c) Conforming Amendment.--Section 216(i)(1) of such Act (42 U.S.C. 
416(i)(1)) is amended by striking ``paragraphs (2)(A),(2)(B),(3),'' and 
inserting ``paragraphs (2)(A), (3),''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the day that is 90 days after the date of enactment of this 
Act.

SEC. 5. MANDATORY FUNDING FOR CONTINUING DISABILITY REVIEWS.

    (a) In General.--Section 201(g)(1)(A) of the Social Security Act 
(42 U.S.C. 401(g)(1)(A)) is amended by striking ``Of the amounts 
authorized to be made available'' and all that follows through ``for 
fiscal year 2002, $720,000,000.'' and inserting the following: ``There 
is hereby appropriated for continuing disability reviews such sums as 
may be necessary for each of fiscal years 2014 through 2018.''
    (b) Report.--Not later than 60 days after the end of fiscal year 
2018, the Commissioner of Social Security shall submit a report to 
Congress that includes an assessment of the amount of savings attained 
as a result of the amendment made by subsection (a) in the Federal 
disability insurance program under title II of the Social Security Act 
and the Supplemental Security Income program under title XVI of such 
Act.

SEC. 6. DISABILITY DEMONSTRATION PROGRAM DESIGN REPORT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Commissioner of Social Security shall submit to 
Congress a report describing the design of a demonstration program that 
would meet the specifications in subsection (b), including 
recommendations for any legislative changes necessary to implement such 
a program.
    (b) Goals.--In order to improve the well-being of certain social 
security disability insurance applicants while also achieving near-term 
program cost neutrality and long-term cost savings, the Commissioner 
shall screen such applicants and target those who appear likely to be 
determined eligible for benefits but who also have the potential for 
significant work activity if provided with a range of services to be 
determined by the Commissioner. In exchange for suspending their social 
security disability insurance program application, these applicants 
would be offered a package of benefits, including targeted vocational 
and health interventions, wage subsidies based on how much the 
applicants can work and earn, and, if appropriate, an emergency cash 
diversion grant.

SEC. 7. STATE DISABILITY REFORM DEMONSTRATION PROGRAM REPORT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Commissioner of Social Security shall submit to 
Congress a report describing the design of a demonstration program that 
would meet the specifications in subsection (b), including 
recommendations for any legislative changes necessary to implement such 
a program.
    (b) Goals.--
            (1) In general.--The Commissioner of Social Security shall 
        work with the States to determine whether, if appropriate 
        changes were made in the law, the existing funding streams for 
        specific populations, such as vocational rehabilitation 
        funding, Medicaid, Temporary Assistance for Needy Families, and 
        workers' compensation, could be modified to be delivered in a 
        more coordinated manner to improve outcomes and reduce 
        participation in supplemental security income or social 
        security disability insurance.
            (2) Incentive funding.--States who successfully implemented 
        such a program shall receive incentive funding to be determined 
        by the Commissioner and subject to appropriations.
    (c) Definition.--For the purposes of this section, the term 
``specific populations'' means populations identified by the 
Commissioner of Social Security as likely to receive a lifetime of 
supplemental security income or social security disability insurance.

SEC. 8. EMPLOYERS DEMONSTRATION PROGRAM REPORT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Commissioner of Social Security shall submit to 
Congress a report describing the design of a demonstration program that 
would meet the specifications in subsection (b), including 
recommendations for any legislative changes necessary to implement such 
a program.
    (b) Goals.--
            (1) In general.--In order to encourage employers to reduce 
        the incidence of disability among their employees by 20 
        percent, the Commissioner of Social Security shall create a 
        voluntary program for employers that would provide such 
        employers with a tax credit with respect to social security 
        disability insurance taxes if the employees of such employer do 
        not file for social security disability insurance.
            (2) Baseline.--For each employer who volunteers to 
        participate in the program, the Commission of Social Security 
        shall determine a baseline predicted rate of social security 
        disability insurance enrollment.
            (3) Employees tracked for program.--Employees employed on 
        the date the employer enrolled in the program shall be tracked 
        for a period of 3 years beginning on the date of enrollment in 
        the program, whether or not they remain employed by such 
        employer. If any such employee becomes eligible for social 
        security disability insurance during such period, the 
        employer's disability insurance participation rate shall be 
        affected.
            (4) Incentive.--At the end of the period, the employer's 
        disability insurance participation rate shall be compared to 
        the baseline, and if the participation rate has fallen by at 
        least 20 percent, the employer shall receive a social security 
        disability insurance tax credit of 75 percent of the disability 
        insurance cost savings during the period.