I

103D CONGRESS

1ST SESSION H. R. 3264

To amend titles XVI and XIX of the Social Security Act to improve work

incentives for people with disabilities.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 12, 1993

Mr. STARK (for himself, Mr. RAMSTAD, and Mr. BEILENSON) introduced the

following bill; which was referred jointly to the Committees on Ways and

Means and Energy and Commerce

A BILL

To amend titles XVI and XIX of the Social Security Act

to improve work incentives for people with disabilities.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Work Incentives

5 Amendments of 1993’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—ACCESS TO SSI WORK INCENTIVES

Sec. 101. Access to work incentives under SSI for SSDI-only recipients who

lose eligibility for SSDI benefits because of working.
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TITLE II—WORK INCENTIVES WAIVER AUTHORITY

Sec. 201. Eligibility of certain individuals with disabilities for coverage under

Medicaid home and community-based care waivers.

Sec. 202. Waiver authority.

TITLE III—AMENDMENTS TO WORK INCENTIVES PROVISIONS

Sec. 301. Disregard deemed income of ineligible spouse when determining continued Medicaid eligibility under section 1619(b).

Sec. 302. Continuation of Medicaid for the aged who lose SSI due to excess

earnings.

Sec. 303. Self-support plans not disapproved within 30 days to be deemed approved.

Sec. 304. Regulations regarding completion of self-support plans.

Sec. 305. Exclusion of income and resources under self-support plans in determining Medicaid eligibility in ‘‘section 209(b)’’ States.

Sec. 306. Expansion of self-support plans to include housing goals.

Sec. 307. Self-support plans for the aged.

Sec. 308. Additional State supplementation requirement.

Sec. 309. Treatment of unemployment compensation, worker’s compensation,

and sick pay as earned income for SSI purposes.

Sec. 310. Treatment of certain grant, scholarship, or fellowship income as

earned income for SSI purposes.

Sec. 311. SSI eligibility for students temporarily abroad.

TITLE IV—EFFECTIVE DATE

Sec. 401. Effective date.

1 TITLE I—ACCESS TO SSI WORK

2 INCENTIVES

3 SEC. 101. ACCESS TO WORK INCENTIVES UNDER SSI FOR

4 SSDI-ONLY RECIPIENTS WHO LOSE ELIGI5 BILITY FOR SSDI BENEFITS BECAUSE OF

6 WORKING.

7 (a) IN GENERAL.—Section 1619 of the Social Secu8 rity Act (42 U.S.C. 1382h) is amended—

9 (1) in subsection (a), by adding at the end the

10 following:

11 ‘‘(3) Notwithstanding paragraph (1) of this sub12 section, a qualified individual shall not be required to have
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1 been eligible to receive benefits under section 1611 (or a

2 State supplementary payment) for a month in order to

3 qualify for a monthly benefit under this subsection.’’;

4 (2) in subsection (b)—

5 (A) in paragraph (1), by inserting ‘‘(or, in

6 the case of a qualified individual, because of his

7 or her resources)’’; and

8 (B) by adding at the end the following:

9 ‘‘(4)(A) The requirement in paragraph (1) of this

10 subsection, that an individual must have been eligible to

11 receive a benefit under section 1611 or any federally ad12 ministered State supplementary payment for a month,

13 shall not apply to any qualified individual.

14 ‘‘(B) In applying paragraph (1) of this subsection to

15 a qualified individual, the Secretary shall, for 12-month

16 period beginning 3 months after the end of the individual’s

17 period of trial work (as defined in section 222(c)), dis18 regard that portion of the resources of the individual, as

19 of the beginning of such 12-month period, that exceeds

20 the amount which would otherwise result in the ineligibil21 ity of the individual for benefits under this title.’’; and

22 (3) by adding at the end the following:

23 ‘‘(e) Benefits paid under subsection (d)(1)(B)(ii),

24 (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), or (f)(1)(B)(ii) of

25 section 202 or under subsection (a)(1) of section 223 dur-
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1 ing the last 33 months of the 36-month period referred

2 to in section 223(e) in the case of a qualified individual

3 shall not be considered in determining whether such indi4 vidual meets the requirements of subsection (b)(1)(B).

5 ‘‘(f) As used in this section, the term ‘qualified indi6 vidual’ means an individual—

7 ‘‘(1) who has been entitled to benefits under

8 subsection (d), (e), or (f) of section 202 based on

9 disability, or disability insurance benefits under sec10 tion 223;

11 ‘‘(2) who is notified by the Secretary that he or

12 she has engaged in substantial gainful activity; and

13 ‘‘(3) who files an application for benefits under

14 this title before the end of the 3-month period begin15 ning with the date of the notification referred to in

16 paragraph (2).’’.

17 (b) EFFECTIVE DATE.—The amendments made by

18 subsection (a) shall take effect on the date of the enact19 ment of this Act, and shall apply with respect to periods

20 of trial work (as defined in 222(c) of the Social Security

21 Act) ending on or after the date that is 3 months before

22 such date of enactment.
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1 TITLE II—WORK INCENTIVES

2 WAIVER AUTHORITY

3 SEC. 201. ELIGIBILITY OF CERTAIN INDIVIDUALS WITH DIS4 ABILITIES FOR COVERAGE UNDER MEDICAID

5 HOME AND COMMUNITY-BASED CARE WAIV6 ERS.

7 (a) IN GENERAL.—Section 1915(c) of the Social Se8 curity Act (42 U.S.C. 1396n(c)) is amended by adding at

9 the end the following new paragraph:

10 ‘‘(11)(A) At the request of a State, the State plan

11 may provide services under a waiver under this subsection

12 to any individual described as follows (but only if such

13 individual would otherwise be entitled to services under the

14 waiver):

15 ‘‘(i) An individual who receives benefits under

16 subsection (d), (e), or (f) of section 202 based on

17 disability, or disability insurance benefits under sec18 tion 223.

19 ‘‘(ii) An individual who would be entitled to

20 benefits under subsection (d), (e), or (f) of section

21 202 based on disability, disability insurance benefits

22 under section 223, or benefits under title XVI on the

23 basis of a disability, if the individual’s earnings did

24 not exceed the applicable criteria used by the Sec25 retary to determine whether an individual has dem-
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1 onstrated an ability to engage in substantial gainful

2 activity.

3 ‘‘(B) In the case of an individual described in sub4 paragraph (A)(ii), a waiver under this subsection may also

5 include a waiver of the provisions of section 1903(f)(4)(C)

6 requiring the Secretary to disregard subsection (b) of sec7 tion 1612 in determining whether the individual’s income

8 exceeds 300 percent of the supplemental security income

9 benefit rate established by section 1611(b)(1).’’.

10 (b) EFFECTIVE DATE.—The amendment made by

11 subsection (a) shall apply to waivers under section 1915(c)

12 of the Social Security Act for quarters beginning 90 or

13 more days after the date of the enactment of this Act.

14 SEC. 202. WAIVER AUTHORITY.

15 Part A of title XVI of the Social Security Act (42

16 U.S.C. 1381–1382j)) is amended by adding at the end the

17 following:

18 ‘‘SEC. 1622. WORK INCENTIVES.

19 ‘‘(a) REQUEST.—For the purpose of enabling individ20 uals who are aged, blind, or disabled individuals to work,

21 any State may request the Secretary to apply subsection

22 (c) with respect to the residents of the State.

23 ‘‘(b) PROVISION OF WORK INCENTIVES.—The Sec24 retary shall apply subsection (c) with respect to the resi25 dents of a State that has submitted a request under sub-
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1 section (a) if the Secretary finds that doing so would be

2 cost-effective and efficient and not inconsistent with the

3 purposes of this title, and would encourage work by indi4 viduals with severe disabilities.

5 ‘‘(c) NATURE OF WORK INCENTIVES.—In determin6 ing whether any resident of the State is eligible for bene7 fits under this title and, if so, the amount of such bene8 fits—

9 ‘‘(1) section 1612(b)(4) shall be applied—

10 ‘‘(A) by substituting ‘not more than

11 $2,400 (as agreed upon by the Secretary and

12 the State in which the individual resides)’ for

13 ‘$780’ each place such term appears; and

14 ‘‘(B) by substituting ‘one-third’ for ‘one15 half’ each place such term appears; and

16 ‘‘(2) earned income shall be excluded under sec17 tion 1612(b) only pursuant to paragraphs (1),

18 (2)(A), and (4) of such section.’’.
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1 TITLE III—AMENDMENTS TO

2 WORK INCENTIVES PROVISIONS

3 SEC. 301. DISREGARD DEEMED INCOME OF INELIGIBLE

4 SPOUSE WHEN DETERMINING CONTINUED

5 MEDICAID ELIGIBILITY UNDER SECTION

6 1619(b).

7 Section 1614(f)(1) of the Social Security Act (42

8 U.S.C. 1382c(f)(1)) is amended by inserting ‘‘(other than

9 under section 1619(b))’’ after ‘‘benefits’’.

10 SEC. 302. CONTINUATION OF MEDICAID FOR THE AGED

11 WHO LOSE SSI DUE TO EXCESS EARNINGS.

12 Section 1619 of the Social Security Act (42 U.S.C.

13 1382h) is amended by adding at the end the following:

14 ‘‘(e) For purposes of title XIX, any individual who

15 was determined to be an eligible individual (or eligible

16 spouse) by reason of age and was eligible to receive bene17 fits under section 1611 (or a federally administered State

18 supplementary payment) for a month, and who becomes

19 ineligible to receive such benefits for a subsequent month

20 solely due to excess income shall, nevertheless, be consid21 ered to be receiving supplemental security income benefits

22 for so long as—

23 ‘‘(1) the individual continues to be otherwise el24 igible for benefits under this title;
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1 ‘‘(2) the income of the individual would not, ex2 cept for his earnings, be equal to or in excess of the

3 amount which would cause the individual to be ineli4 gible for payments under section 1611(b) (if the in5 dividual were otherwise eligible for such payments);

6 and

7 ‘‘(3) the earnings of the individual are as de8 scribed in subsection (b)(1)(D), and determined in

9 accordance with subsection (b)(2).’’.

10 SEC. 303. SELF-SUPPORT PLANS NOT DISAPPROVED WITH11 IN 30 DAYS TO BE DEEMED APPROVED.

12 (a) AMENDMENTS TO INCOME EXCLUSION RULES.—

13 Section 1612(b)(4) of the Social Security Act (42 U.S.C.

14 1382a(b)(4)(A)) is amended in each of subparagraphs (A)

15 and (B) by inserting ‘‘and, for purposes of this clause,

16 a plan for self-support which is not disapproved by the

17 Secretary within 30 days after the date of submission shall

18 be deemed to be approved by the Secretary until subse19 quently disapproved by the Secretary,’’ after ‘‘plan,’’.

20 (b) AMENDMENT TO RESOURCE EXCLUSION

21 RULE.—Section 1613(a)(4) of such Act (42 U.S.C.

22 1382b(a)(4)) is amended by inserting ‘‘and, for purposes

23 of this paragraph, a plan for self-support which is not dis24 approved by the Secretary within 30 days after the date

25 of submission shall be deemed to be approved by the Sec-
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1 retary until 6 months after subsequently disapproved by

2 the Secretary,’’ after ‘‘such plan’’.

3 SEC. 304. REGULATIONS REGARDING COMPLETION OF

4 SELF-SUPPORT PLANS.

5 Section 1633 of the Social Security Act (42 U.S.C.

6 1383b) is amended by adding at the end the following:

7 ‘‘(d) The Secretary shall establish a time limit by

8 which activities under a plan for achieving self-support

9 must be completed, using criteria that take into account

10 the difficulty of achieving self-support based on the needs

11 of the individual and the goals of the plan.’’.

12 SEC. 305. EXCLUSION OF INCOME AND RESOURCES UNDER

13 SELF-SUPPORT PLANS IN DETERMINING

14 MEDICAID ELIGIBILITY IN ‘‘SECTION 209(b)’’

15 STATES.

16 (a) IN GENERAL.—

17 (1) DETERMINATION OF INCOME.—The first

18 sentence of section 1902(f) of the Social Security

19 Act (42 U.S.C. 1396a(f)) is amended—

20 (A) by striking ‘‘and incurred expenses’’

21 and inserting ‘‘incurred expenses’’; and

22 (B) by striking ‘‘thereof)’’ and inserting

23 the following: ‘‘thereof, and any income of an

24 individual with a plan for achieving self-support
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1 approved by the Secretary under section

2 1612(b)(4))’’.

3 (2) DETERMINATION OF RESOURCES.—The

4 first sentence of such section is amended by striking

5 ‘‘is not’’ and inserting the following: ‘‘and the re6 sources of any such individual (excluding any re7 sources excluded under a plan for achieving self-sup8 port approved by the Secretary under section

9 1613(a)(4)) are not’’.

10 (b) EFFECTIVE DATE.—The amendments made by

11 subsection (a) shall apply to quarters beginning on or

12 after the expiration of the 90-day period that begins on

13 the date of the enactment of this Act.

14 SEC. 306. EXPANSION OF SELF-SUPPORT PLANS TO IN15 CLUDE HOUSING GOALS.

16 (a) INCOME DISREGARD RULES.—Section

17 1612(b)(4) of the Social Security Act (42 U.S.C.

18 1382a(b)(4)) is amended in each of subparagraphs (A)(iii)

19 and (B)(iv), by inserting ‘‘, containing a career or housing

20 goal, that has been’’ before ‘‘approved’’.

21 (b) RESOURCE DISREGARD RULES.—Section

22 1613(a)(4) of such Act (42 U.S.C. 1382b(a)(4)) is amend23 ed by inserting ‘‘, containing a career or housing goal, that

24 has been’’ before ‘‘approved’’.
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1 SEC. 307. SELF-SUPPORT PLANS FOR THE AGED.

2 (a) INCOME EXCLUSION.—Section 1612(b)(4) of the

3 Social Security Act (42 U.S.C. 1382a(b)(4) is amended—

4 (1) in subparagraph (A), by striking the comma

5 at the end and inserting ‘‘; or’’;

6 (2) in subparagraph (B)—

7 (A) by striking ‘‘(and has not’’ and all that

8 follows through ‘‘age 65),’’ and inserting ‘‘, or

9 has attained age 65’’;

10 (B) in clause (ii), by inserting ‘‘in the case

11 of such a disabled individual (or spouse),’’ after

12 ‘‘(ii)’’; and

13 (C) in clause (iv), by striking ‘‘, or’’ and

14 inserting a semicolon; and

15 (3) by striking subparagraph (C).

16 (b) RESOURCE EXCLUSION.—Section 1613(a)(4) of

17 such Act (42 U.S.C. 1382b(a)(4)) is amended by striking

18 ‘‘who is blind or disabled and’’.

19 SEC. 308. ADDITIONAL STATE SUPPLEMENTATION RE20 QUIREMENT.

21 Section 1616 of the Social Security Act (42 U.S.C.

22 1382e) is amended—

23 (1) in subsection (b)(1), by inserting ‘‘(or, by

24 reason of section 1619, are considered to be)’’ before

25 ‘‘receiving’’; and

26 (2) in subsection (c), by striking paragraph (3).
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1 SEC. 309. TREATMENT OF UNEMPLOYMENT COMPENSA2 TION, WORKER’S COMPENSATION, AND SICK

3 PAY AS EARNED INCOME FOR SSI PURPOSES.

4 Section 1612(a)(1) of the Social Security Act (42

5 U.S.C. 1382a(a)(1)) is amended—

6 (1) by striking ‘‘and’’ at the end of subpara7 graph (D); and

8 (2) by adding at the end the following:

9 ‘‘(F) unemployment compensation benefits

10 and worker’s compensation benefits paid under

11 any Federal or State law, and benefits paid to

12 an individual as compensation for sick leave not

13 taken by the individual; and’’.

14 SEC. 310. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP,

15 OR FELLOWSHIP INCOME AS EARNED IN16 COME FOR SSI PURPOSES.

17 Section 1612(a)(1) of the Social Security Act (42

18 U.S.C. 1382a(a)(1)), as amended by section 309 of this

19 Act, is amended—

20 (1) by striking ‘‘and’’ at the end of subpara21 graph (E); and

22 (2) by adding at the end the following:

23 ‘‘(G) any grant, scholarship, or fellowship

24 described in section 1612(b)(7) to the extent

25 not excluded from income pursuant to such sec26 tion.’’.
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1 SEC. 311. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY

2 ABROAD.

3 Section 1611(f) of the Social Security Act (42 U.S.C.

4 1382(f)) is amended by adding at the end the following:

5 ‘‘The 1st sentence of this subsection shall not apply to

6 any individual who demonstrates to the satisfaction of the

7 Secretary that the absence of the individual from the

8 United States will be temporary and for the purpose of

9 conducting studies as part of an educational program re10 lated to an educational institution in the United States.’’.

11 TITLE IV—EFFECTIVE DATE

12 SEC. 401. EFFECTIVE DATE.

13 Except as otherwise provided in this Act, the amend14 ments made by this Act shall take effect on the 1st day

15 of the 1st calendar month that begins 90 or more days

16 after the date of the enactment of this Act.

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