Social Security Disability Fairness Act of 2016

Summary: Social Security Disability Fairness Act of 2016   This bill amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to prescribe formulae for payment of Social Security Disability Insurance benefits over a period of 24 consecutive calendar months for individuals determined to be under a disability upon submission of a diagnosis of a terminal illness.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Disability Fairness 
Act of 2016''.

SEC. 2. PHASED-IN PAYMENT OF SSDI BENEFITS DURING THE WAITING PERIOD 
              FOR THE TERMINALLY ILL.

    (a) In General.--Section 223 of the Social Security Act (42 U.S.C. 
423) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), in the matter following 
                subparagraph (E), by striking ``or (ii)'' and inserting 
                ``(ii) subject to paragraph (2)(B), for each month 
                beginning with the first month during all of which the 
                individual is determined under subparagraph (D) of 
                subsection (d)(2) to be under a disability and in which 
                he becomes so entitled to such insurance benefits, or 
                (iii)'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``or'' 
                        at the end;
                            (ii) by redesignating subparagraph (B) as 
                        subparagraph (C);
                            (iii) in subparagraph (C), as so 
                        redesignated, by striking ``(ii)'' and 
                        inserting ``(iii)''; and
                            (iv) by inserting after subparagraph (A) 
                        the following new subparagraph:
            ``(B) in any case in which clause (ii) of paragraph (1) of 
        this subsection is applicable, the first month for which the 
        individual becomes entitled to such disability insurance 
        benefits, subject to the phase-in percentage period described 
        in paragraph (3)(A), or''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(3)(A) For purposes of paragraph (2)(B), in any case in which 
clause (ii) of paragraph (1) of this subsection is applicable, an 
individual's disability insurance benefit for the earliest period of 
consecutive calendar months throughout which the individual has been 
entitled to such insurance benefits shall be equal to the product of 
the benefit amount determined under paragraph (2)(B) (as determined 
before application of this paragraph) and--
            ``(i) for the first calendar month, 50 percent;
            ``(ii) for the second calendar month, 75 percent; and
            ``(iii) for each subsequent calendar month through the 
        twelfth calendar month, 100 percent.
    ``(B) If an individual who has been determined under subparagraph 
(D) of subsection (d)(2) to be under a disability has been entitled to 
a disability insurance benefit on such basis for 12 consecutive 
calendar months, the individual's disability insurance benefit for any 
month during the subsequent period of 12 consecutive calendar months 
shall be equal to--
            ``(i) the benefit amount determined under paragraph (2)(B) 
        (as determined before application of subparagraph (A)); minus
            ``(ii) the quotient obtained by dividing the total amount 
        of disability insurance benefits provided to the individual 
        during the earliest period of five consecutive calendar months 
        for which the individual was entitled to such benefits on such 
        basis by 12.
    ``(C) If an individual who has been determined under subparagraph 
(D) of subsection (d)(2) to be under a disability has been entitled to 
a disability insurance benefit on such basis for 24 consecutive 
calendar months, the individual's disability insurance benefit for any 
subsequent month shall be equal to 95 percent of the benefit amount 
determined under paragraph (2)(B) (as determined before application of 
subparagraphs (A) and (B)).''; and
            (2) in subsection (d)(2), by adding at the end the 
        following:
            ``(D) For purposes of clause (ii) of paragraph (1) of 
        subsection (a), an individual shall be determined to be under a 
        disability upon submission of a diagnosis of a terminal illness 
        (as defined in section 1861(dd)(3)(A)) that has been certified 
        by not less than 2 physicians (as defined in section 
        1861(r)(1)) who are not related (as defined in section 
        267(c)(4) of the Internal Revenue Code) and are not in the same 
        physician group practice.''.
    (b) Reports to Congress.--
            (1) Report by social security administration.--Not later 
        than 12 months after the date of the enactment of this Act, and 
        each year thereafter, the Commissioner of Social Security, in 
        coordination with the Inspector General of the Social Security 
        Administration, shall submit to the relevant committees of 
        Congress a report that evaluates the provision of disability 
        insurance benefits to terminally ill individuals, including--
                    (A) the total number of individuals who--
                            (i) filed applications for disability 
                        insurance benefits (as determined under section 
                        223(a)(3) of the Social Security Act) based on 
                        a diagnosis of a terminal illness;
                            (ii) receive such benefits;
                            (iii) die within 6 months of first 
                        receiving such benefits;
                            (iv) die within 12 months of first 
                        receiving such benefits;
                            (v) receive such benefits during the period 
                        described in section 223(a)(3)(B) of the Social 
                        Security Act; and
                            (vi) receive such benefits during the 
                        period described in section 223(a)(3)(C) of the 
                        Social Security Act;
                    (B) the total amount expended, including related 
                administrative expenses, for the provision of 
                disability insurance benefits under section 223(a)(3) 
                of the Social Security Act to individuals diagnosed 
                with a terminal illness; and
                    (C) recommendations for such legislation and 
                administrative actions as are determined appropriate 
                for preventing fraud, waste, and abuse related to such 
                benefits.
            (2) Report by government accountability office.--Not later 
        than 4 years after the date of the enactment of this Act, the 
        Comptroller General of the United States shall submit a report 
        to the relevant committees of Congress that evaluates the 
        provision of disability insurance benefits to terminally ill 
        individuals and provides recommendations for such legislation 
        and administrative actions as are determined appropriate to 
        improve the provision of such benefits to such individuals.
    (c) Effective Date; Sunset.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by this section shall apply to benefits payable for months 
        beginning after December 31, 2016.
            (2) Sunset.--The amendments made by subsection (a) shall 
        cease to have effect on January 1, 2022, and upon such date, 
        section 223 of the Social Security Act shall read as if such 
        amendments had not been enacted.