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SECTION 3. SUPPLEMENTAL SECURITY

INCOME (SSI)

CONTENTS

Background

Trends

Basic Eligibility

Categorical Requirements

Citizenship and Residency Requirements

Prohibition of Payment to Felons and Fugitives

Income and Resource Requirements

Presumptive SSI Eligibility for Persons with AIDS and

HIV

Public Institution Requirement

Application to Other Programs Requirement

Eligibility for Social Security

Eligibility for Medicaid

Eligibility for Food Stamps

Self-Sufficiency and SSI

SSI Benefits

Federal SSI Benefit Standard

Benefits for Persons Living in the Household of Another

Benefits for Persons Living in a Medicaid Institution

Benefits of Former Recipients of State Assistance

Overpayments

Faster Initial SSI (and Social Security) Payments

State Supplementation

Maximum SSI and Food Stamp Benefits for Individuals

Living Independently

Comparison of SSI Payment Levels to Poverty Thresholds

Trends in the SSI Caseload

Number of Recipients

Characteristics of Adult Disabled and Blind Recipients

Characteristics of Recipients Receiving Benefits on the

Basis of Age

Characteristics of Children Receiving Benefits

Overview of Caseload Developments

Eligibility of Drug Addicts and Alcoholics

Eligibility of Noncitizens for SSI

Eligibility of the Homeless

Special SSI Provisions for the Working Disabled

Earned Income Disregards

Eliminating Work Disincentives

Special Benefits for Certain World War II Veterans

Measures of SSI Participation and Growth

SSI Participation Rates

Changes in Number of Recipients, 1970–99

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SSI Program Costs

Legislative History

104th Congress

105th Congress

106th Congress

References

BACKGROUND

The Supplemental Security Income (SSI) Program is a meanstested, federally administered, income assistance program authorized by title XVI of the Social Security Act. Established in 1972

(Public Law 92–603) and begun in 1974, SSI provides monthly cash

payments in accordance with uniform, nationwide eligibility requirements to needy aged, blind and disabled persons.

The SSI Program replaced the Federal-State Programs of OldAge Assistance and Aid to the Blind established by the original Social Security Act of 1935 as well as the Program of Aid to the Permanently and Totally Disabled established by the Social Security

Amendments of 1950. Under the former programs, Federal matching funds were offered to the States to enable them to give cash

relief, ‘‘as far as practicable’’ in each State, to eligible persons

whom the States deemed needy. The States set benefit levels and

administered these programs. The Federal-State adult assistance

programs continue to operate in Guam, Puerto Rico, and the Virgin

Islands. Under the Covenant to Establish a Commonwealth of the

Northern Mariana Islands, enacted as Public Law 94–241 on

March 24, 1976, the Northern Mariana Islands became the only

U.S. jurisdiction outside the 50 States and the District of Columbia

authorized to operate an SSI Program.

The Congress intended the new SSI Program to be more than

just a Federal version of the former State adult assistance programs which it replaced. In describing the new program, the report

of the Committee on Finance stated: ‘‘The Committee bill would

make a major departure from the traditional concept of public assistance as it now applies to the aged, the blind and the disabled.

Building on the present Social Security Program, it would create a

new Federal program administered by the Social Security Administration (SSA), designed to provide a positive assurance that the Nation’s aged, blind, and disabled people would no longer have to subsist on below poverty-level incomes’’ (U.S. Senate, 1972, p. 384).

The SSI Program was envisioned as a basic national income

maintenance system for the aged, blind, and disabled which would

differ from the State programs it replaced in a number of ways. It

would be administered by SSA in a manner as comparable as

possible to the way in which benefits were administered under the

Social Security Program. While it was understood that modifications would be necessary to make SSA’s systems work for the new

program, SSI was seen as an add-on rather than a new system.

SSA had a longstanding reputation for dealing with the public on

a fair and humane basis, but with scrupulous regard for the requirements of law. Thus, it was expected that both recipients and

taxpayers would be pleased with the outcome.

Under the former adult assistance programs the amount of assistance could vary from person to person according to an evaluaVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00212 Fmt 6601 Sfmt 6601 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
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tion of the individual’s needs. The SSI Program, by contrast, represented a ‘‘flat grant’’ approach in which there would be a uniform

Federal income support level.

In contrast to the former State programs with their provisions

for liens against property and relative support requirements, the

SSI Program was intended to have minimal barriers to eligibility

other than a lack of income. Even here, the new SSI Program incorporated more generous provisions for disregarding income—particularly earned income—than was provided under the Old-Age Assistance Program. The report of the House Committee on Ways and

Means stated that the SSI Program was designed to provide incentives and opportunities for those able to work or to be rehabilitated

that would enable them to escape dependency (U.S. House, 1971,

p. 147).

For the most part, the nature of the SSI Program is expressed

by its title. It was conceived as a guaranteed minimum income for

the aged, blind, and disabled which would supplement the Social

Security Program and act as an income-related program to provide

for those who were not covered or minimally covered under Social

Security or who had earned only a minimal entitlement under the

program.

It should be noted that even though SSA administers the SSI

Program, SSI is not the same as Social Security. The SSI Program

is funded by general revenues of the U.S. Treasury—personal income taxes, corporation taxes, and other taxes. Social Security benefits are funded by the Social Security taxes paid by workers, employers, and self-employed persons. The programs also differ in

other ways such as the conditions of eligibility and the method of

determining payments. In addition, States have the option of

supplementing the basic Federal SSI payment. In some cases, State

supplementary payments are administered by the State instead of

SSA.

TRENDS

Table 3–1 summarizes the trends in the SSI Program since its

inception in 1974:

1. The number of recipients on SSI has risen from nearly 4 million in 1974 to nearly 6.6 million in December 1999. The number of SSI recipients declined early in the program as the number of aged individuals on SSI declined, but that trend reversed in the mideighties as rapid growth in disabled recipients outstripped the minimal change in the elderly and blind

SSI populations. However, since 1996, there has been a slight

decrease in the total number of SSI recipients.

2. Total annual benefits paid under the SSI Program rose from

about $5.2 billion in 1974 to $31.3 billion in 1999.

3. The monthly Federal benefit rates for individuals and couples

rose from $140 and $210 in 1974 to $512 and $769 in 2000

(2000 figures are not in table), respectively. Nearly all of these

changes resulted from the statutory indexation of the Federal

benefit rates to the Consumer Price Index (CPI).

TABLE 3–1.—SUPPLEMENTAL SECURITY INCOME SUMMARY, SELECTED YEARS 1974–99

Item

Year

1974 1978 1980 1984 1986 1988 1990 1992 1994 1996 1998 

Recipients: 1

Aged ................................ 2,285,909 1,967,900 1,807,776 1,530,289 1,473,428 1,433,420 1,454,041 1,471,022 1,465,905 1,412,632 1,331,782 Blind ............................... 74,616 77,135 78,401 80,524 83,115 82,864 83,686 85,400 84,911 82,137 80,243 Disabled .......................... 1,635,539 2,171,890 2,255,840 2,418,522 2,712,641 2,947,585 3,279,400 4,009,767 4,744,470 5,118,949 5,154,044 

Total ........................... 3,996,064 4,216,925 4,142,017 4,029,333 4,269,184 4,463,869 4,817,127 5,566,189 6,295,786 6,613,718 6,566,069 

Number with section 1619(a) NA NA NA 406 (8/84) 992 (1/86) 19,920 2 13,994 17,603 24,315 31,085 37,271 

Number with section 1619(b) NA NA NA 6,804 8,106 15,625 23,517 31,649 40,683 51,905 59,542 Annual payments (in millions):

Federal benefits .............. $3,833 $4,881 $5,866 $8,281 $9,498 $10,734 $12,894 $18,247 $22,175 $25,265 26,405 Federally administered

State supplementation 1,264 1,491 1,848 1,792 2,243 2,671 3,239 3,435 3,116 2,988 3,003 

State administered State

supplementation ........ 149 180 226 299 340 381 466 3 556 579 539 808 

Total ........................... $5,246 $6,552 $7,940 $10,372 $12,081 $13,786 $16,599 $22,238 $25,870 $28,252 30,216 

Annual payments (in millions

of 1999 dollars) .................. $18,630 $16,969 $16,427 $16,682 $18,293 $19,501 $23,821 $26,414 $29,074 $30,824 $30,793 

Monthly Federal benefits:

Individuals ...................... $140.00 $177.80 $208.20 $314.00 $336.00 $354.00 $386.00 $422.00 $446.00 $470.00 $494.00 Couples ........................... 210.00 266.70 357.00 472.00 504.00 532.00 579.00 633.00 687.00 705.00 741.00 

Average Federal SSI payments: 1

All recipients .................. $95.11 $111.98 $143.35 $196.16 $215.40 $227.49 $261.47 $329.74 $325.26 $339.24 359.45 Aged individuals ............. 78.48 91.22 112.45 143.24 151.38 159.36 175.29 195.86 211.55 227.42 271.66 Aged couples .................. 93.02 120.48 157.56 221.98 246.07 273.18 322.82 448.61 505.64 563.39 611.00 

Average federally administered: 1

State supplementation ... $70.92 $75.00 $99.15 $97.61 $115.41 $122.68 $139.79 $118.08 $101.46 $104.58 102.33 

Percent of recipients with

other income: 1

Social Security benefits .. 52.7 51.7 51.0 49.6 48.9 47.8 45.9 41.3 39.1 37.0 36.5 Other unearned income .. 10.5 11.5 11.0 11.2 12.1 12.4 13.0 14.5 13.1 12.4 11.7 Earnings ......................... 2.8 3.1 3.2 3.5 3.9 4.4 4.7 4.4 4.2 4.4 4.5 

Average amount of: 1

Social Security benefits .. $130.01 $156.50 $196.94 $250.61 $263.29 $286.49 $318.57 $335.72 $345.20 $382.56 374.60 Other unearned income .. 61.10 66.93 74.35 84.56 86.40 85.92 98.13 91.96 101.13 112.46 129.90 Earnings ......................... 80.00 99.32 106.95 126.47 142.17 173.09 195.64 207.55 225.01 258.42 282.52 

Poverty thresholds (age 65

and over):

Individual ........................ $2,364 $3,127 $3,949 $4,979 $5,255 $5,674 $6,268 $6,729 $7,108 $7,525 $7,818 Couple ............................. 2,982 3,944 4,983 6,282 6,630 7,158 7,905 8,489 8,967 9,491 9,862 

Federal benefit as a percent

of poverty:

Individual ........................ 74.1 72.7 72.3 75.6 76.7 74.9 73.9 75.3 75.3 75.0 75.8 Couple ............................. 88.1 86.4 86.0 90.2 91.2 89.2 87.9 89.5 89.5 89.1 90.2 

1 December data. Includes Federal SSI and federally administered State supplements.2 The decrease in 1619(a) participants in 1990 was caused by the increase in the substantial gainful activity level to $500 monthly. 3 Fiscal year 1992 data.4 Estimated.

NA—Not available.Source: Social Security Administration (1999 and various years) and unpublished data.

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4. The proportion of SSI recipients receiving Social Security benefits declined from nearly 53 percent in 1974 to 36 percent in

1999. The fraction of SSI recipients receiving some other type

of unearned income rose slightly from about 11 percent in 1974

to nearly 12 percent in 1999, and the fraction with earnings increased slightly from less than 3 percent in 1974 to more than

4 percent in December 1999.

5. The Federal benefit rate as a percent of the appropriate poverty level for individuals has ranged from 72 to 77 percent and

was 75 percent in 1999; for couples it has ranged from 86 to

91 percent and was 89 percent in 1999. Most States supplement the Federal benefit for at least some participants.

6. The SSI Program pays benefits to children who are blind or

have other disabilities. Some of the increases in participation

since 1991 reflect the revised definition of disability for children as a result of the Supreme Court’s decision in the Sullivan v. Zebley case. Public Law 104–193 (enacted August 22,

1996) established a more restrictive disability definition for

children which is expected to result in a slower rate of growth

in the number of children receiving SSI benefits.

BASIC ELIGIBILITY

CATEGORICAL REQUIREMENTS

To qualify for SSI payments, a person must satisfy the program

criteria for age, blindness or disability. The aged are defined as

persons 65 years and older. The blind are individuals with 20/200

vision or less with the use of a correcting lens in the person’s better

eye, or those with tunnel vision of 20 degrees or less. Disabled individuals are those unable to engage in any substantial gainful activity by reason of a medically determined physical or mental impairment expected to result in death or that has lasted, or can be expected to last, for a continuous period of at least 12 months. The

test of ‘‘substantial gainful activity’’ is to earn $700 monthly in

counted income, with impairment-related expenses subtracted from

earnings. Generally, the individual must be unable to do any kind

of work that exists in the national economy, taking into account

age, education, and work experience.

Children may qualify for SSI if they are under age 18 (or under

age 22 if a full-time student), unmarried, and meet the applicable

SSI disability or blindness, income, and resource requirements.

Public Law 104–193, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, established a new

disability definition for children under age 18 which requires a

child to have ‘‘a medically determinable physical or mental impairment which results in marked and severe functional limitations,

and which can be expected to result in death or which has lasted

or can be expected to last for a continuous period of not less than

12 months.’’

Under pre-1996 law, low-income children could qualify for SSI

benefits in two ways: their disability could match one of the impairments in the medical ‘‘listing of impairments’’ or they could be evaluated under an individualized functional assessment disability determination procedure (generally considered a less stringent procVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00216 Fmt 6601 Sfmt 6601 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
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ess) that determined whether an unlisted impairment seriously

limited a child’s ability to perform activities normal for his age.

Both methods were stipulated in Federal regulations. Until the Supreme Court’s 1990 ruling in Sullivan v. Zebley, the medical listings were the only way to determine a child’s eligibility for SSI

benefits. Adults, in contrast, could receive an assessment of their

functional and vocational capacities even if they did not meet one

of the listings. The Court ruled that sole reliance on the listings did

not satisfy the law’s requirement to gauge whether children’s disorders were of comparable severity to impairments that would disable adults.

The 1996 welfare reform law discontinued the individualized

functional assessment and the ‘‘comparable severity’’ standard

upon which it was based. Many children on the rolls as a result

of an individualized functional assessment will have their benefits

terminated, and future awards based on individualized functional

assessments will be barred. Thus, the SSI Program for Children

will be restricted to those who have impairments that meet or

equal at least one of the listings. Pursuant to the 1996 law, the

listing of impairments has been changed to reflect the new disability definition for children.

CITIZENSHIP AND RESIDENCY REQUIREMENTS

To qualify for SSI a person must be a citizen of the United States

or, if not a citizen, be a refugee or asylee who has been in the country for less than 7 years, or be a ‘‘qualified alien’’ who was receiving SSI as of August 22, 1996 or who was living in the United

States on August 22, 1996 and subsequently became disabled. (For

more detailed information on eligibility requirements for noncitizens, see appendix J.)

In addition to the citizenship requirement, a person must be a

resident of the United States or the Northern Mariana Islands, or

a child of a person in the military stationed outside the United

States, or a student temporarily abroad; must apply for all other

benefits to which she is entitled; and must, if she is disabled, accept vocational rehabilitation services if they are offered.

PROHIBITION OF PAYMENT TO FELONS AND FUGITIVES

The 1996 welfare reform law provides that, as of August 22,

1996, SSI benefits may not be paid to individuals who are fleeing

to avoid prosecution for a felony crime, or fleeing to avoid custody

or confinement after conviction for a felony crime, or violating a

condition of probation or parole imposed under Federal or State

law.

INCOME AND RESOURCE REQUIREMENTS

Income

Individuals and couples are eligible for SSI if their incomes fall

below the Federal maximum monthly SSI benefit, currently $512

for an individual and $769 for a couple (calendar year 2000 standards). If only one member of a couple qualifies for SSI, part of the

ineligible spouse’s income is considered to be that of the eligible

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spouse (this procedure is called ‘‘deeming’’). If a couple separates,

each person is treated as an individual in the month following the

month of separation. If an unmarried child living at home is under

age 18, some of the parent’s income is deemed to that child. If an

immigrant is sponsored into the United States, some of the sponsor’s and the sponsor’s spouse’s income may be deemed to that immigrant.

Income includes cash, checks, and items received ‘‘in kind’’ such

as food and shelter. Wages, net earnings from self-employment,

and income from sheltered workshops are considered earned income. Social Security benefits, workers’ or veterans compensation

annuities, rent, and interest are counted as unearned income.

An individual does not have to be totally without income to be

eligible for SSI benefits. Maximum SSI benefits are paid, assuming

the other conditions of eligibility are met, if the individual or couple has no ‘‘countable’’ income in that particular month. If the individual or couple has ‘‘countable’’ income, a dollar-for-dollar reduction is made against the maximum payment. Not all income is

counted for SSI purposes. Since 1972, the major exclusions have included the first $20 of monthly income from virtually any source

(such as Social Security benefits), and the first $65 of monthly

earned income plus one-half of remaining earnings.

Income received in sheltered workshops and work activity centers is considered earned income and qualifies for the earned income exclusion. Table 3–2 shows the maximum income that an individual and couple can have, taking into account these income exclusions, and still remain eligible for Federal SSI benefits.

TABLE 3–2.—MAXIMUM INCOME FOR ELIGIBILITY FOR FEDERAL SSI BENEFITS, 2000

Receiving only Social Security Receiving only wage income

Monthly Annually Monthly Annually

Individual .................................. $532 $6,384 $1,109 $13,308

Couple ....................................... 789 9,468 1,623 19,476

Source: Office of Research, Evaluation and Statistics, Social Security Administration.

Work-related expenses are disregarded (i.e., subtracted from income) in the case of blind applicants or recipients and impairmentrelated work expenses are disregarded in the case of disabled applicants or recipients.

The SSI Program also does not count income and resources that

are set aside as part of an approved plan for achieving self-support

(PASS). A PASS is an income and resource exclusion that allows

an SSI recipient who is blind or disabled to set aside income and

resources for a work goal. The money set aside can be used to pay

for such items or services as education, vocational training, or

starting a business.

The value of any in-kind assistance is counted as income unless

such in-kind assistance is specifically excluded by statute. Generally, in-kind assistance provided by or under the auspices of a

federally assisted program, or by a State or local government (for

example, nutrition, food stamps, housing or social services), will not

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be counted as income. As described later, if an SSI applicant or recipient is living in the household of another and receiving in-kind

support and maintenance from him, the SSI benefit standard for

such an individual is reduced by one-third. By regulation, SSA has

also ruled that the value of any in-kind support and maintenance

received (other than in-kind assistance received by reason of living

in another’s household) is presumed to equal one-third of the Federal SSI benefit standard plus $20. The individual can rebut this

presumption. If it is determined that the actual value is less than

the one-third amount, the lower actual value will be counted as unearned income.

In-kind support and maintenance provided by a private nonprofit

organization to aged, blind, or disabled individuals is excluded

under the SSI Program if the State determines that the assistance

is provided on the basis of need. Certain types of assistance provided to help meet home energy needs are also excluded from income. Assistance provided to an aged, blind, or disabled individual

for the purpose of meeting home energy costs either in cash or in

kind and which is furnished by a home heating oil or gas supplier

or by a utility company is also excluded. Assistance for home energy costs provided in kind by a private nonprofit organization is

also excluded.

As countable income increases, a recipient’s SSI benefit amount

decreases. Ineligibility for SSI occurs when countable income

equals the Federal benefit standard plus the amount of State

supplementation, if any.

Resources

SSI eligibility is restricted to qualified persons who have resources of not more than $2,000, or $3,000 in the case of a couple.

The resource limit for a couple applies even if only one member of

a couple is eligible. If the couple has been separated or living independently for over 6 months, each person is treated as an individual. If an unmarried child living at home is under age 18, the parent’s assets are considered to be the child’s (i.e., deemed to the

child).

In determining countable resources, a number of items are not

included, such as the individual’s home; and, within reasonable

limits set by SSA: household goods, personal effects, an automobile,

and a burial space for the individual, spouse, and members of the

immediate family. Regulations place a limit of $2,000 in equity

value on excluded household goods and personal effects and exclude

the first $4,500 in current market value of an auto (100 percent of

the auto’s value is excluded if it is used to obtain medical treatment or for employment or has been modified for use by or transportation of a handicapped person or is necessary to perform essential daily activities because of distance, climate or terrain). The

value of property which is used in a person’s trade, or business, or

by the person as an employee is also excluded. The value of certain

other property that produces income, goods, or services essential to

a person’s self-support may be excluded within limits set by SSA

in regulations. SSI and Social Security retroactive benefit payments may not be considered as a resource for a period of 6 months

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after the month in which the retroactive benefit is received. Resources set aside under a PASS are also excluded.

The cash surrender value of life insurance policies if the total face value of all policies is $1,500 or less are not counted toward

the $2,000 or $3,000 countable resources limit. The entire cash surrender value of life insurance policies if the total face value of all

policies on an individual’s life is greater than $1,500 counts toward

the resources limit, but may be excludable under one of the other

resource provisions. An individual and spouse may have excluded up to $1,500 each of burial funds. However, the $1,500 maximum amount is reduced

by the face value of any excluded life insurance policies and the

value of any irrevocable burial contracts, trusts, or arrangements.

If left to accumulate, interest earned on excluded burial funds and

burial spaces is not countable as either income or resources for SSI

purposes.

Individuals who give away or sell any nonexcludable resource for

less than fair market value are subject to penalty. However, such

a transfer may make the individual ineligible for certain Medicaid

covered nursing services. SSA must notify individuals of the penalty and provide information upon request to the States regarding

transfers of resources.

The Deficit Reduction Act of 1984 (Public Law 98–369) requires

the Internal Revenue Service (IRS) to furnish SSA with certain

nonwage information about SSI recipients. The IRS information

consists primarily of reports of interest payments submitted to IRS

by financial institutions but also includes income from dividends,

unemployment compensation, and other sources. In fiscal year

1987, computer matches between IRS tax files and SSI records resulted in 239,000 matches. Only cases involving IRS reports of interest income of $51 or more were examined. The resulting savings

to the SSI Program were $64 million. As a result of SSA’s evaluation of these cases, the tolerance level was lowered to $41 beginning with fiscal year 1988 and 398,000 matches were identified. In

fiscal year 1989, there were 508,000 matches. SSA has evaluated

and adjusted the tolerance levels several times over the years. Effective October 1993, the tolerance level for income from resources—e.g., interest and dividends—is $60. The tolerance level

for other nonwage income not from resources—e.g., unemployment

compensation and pensions—is $1,000. Also, a special tolerance

was developed for cases that had been matched before; if the current year’s resources are less than $10 more than the prior year’s

resource indicators, the IRS report is not examined. All match information is sent to Social Security offices for verification of the information. For fiscal year 1999 there were 76,000 matches.

Based on a study of the 1993 matches, SSA decided to apply a

statistical profiling technique to the IRS matches. Statistical

profiling increases the cost effectiveness of the IRS process by targeting the more error-prone matches and eliminating the less productive matches. The resulting savings to the SSI Program were

$45 million.

Prior to the 1984 Deficit Reduction Act, if in any month a recipient’s assets exceeded the asset limit, the individual was ineligible

for benefits in that month and the entire amount of the benefit

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paid for that month was considered an overpayment subject to recovery. Effective October 1, 1984, SSI law provides that in cases

where there is an overpayment based solely on an excess of assets

of $50 or less, the recipient is deemed to be without fault for purposes of waiving the overpayment and the overpayment is not recovered unless the Secretary finds that the failure to accurately

and timely report the excess was knowing and willful on the part

of the recipient.

An individual may receive SSI benefits for a limited time even

though he has certain nonliquid property that, if counted, would

make him ineligible. These benefits are conditioned upon the disposal of the property, and are subject to recovery as overpayments

when the property is sold. The 1987 Budget Reconciliation Act provides, in addition, for the exclusion of real property if it cannot be

sold because it is jointly owned and sale would cause undue hardship to the joint owner due to loss of housing, because there are

legal impediments to its sale, or because reasonable efforts to sell

it have been unsuccessful.

Deeming of income and resources

The income of an ineligible spouse who lives with an adult SSI

applicant or recipient is considered in determining the eligibility

and amount of payment to the individual. The income of the parents of a child under the age of 18 who is blind or disabled is also

considered in determining the eligibility and payment for the child.

However, since 1990, children with disabilities who are eligible for

Medicaid at home under State home care plans, who previously received SSI personal needs allowances (PNAs) while in medical institutions, and who otherwise would be ineligible for SSI because

of their parents’ income or resources, have been eligible for the $30

monthly PNA that would be payable if they were institutionalized,

without regard to their parents’ income and resources. Effective October 1, 1993, an ineligible parent or spouse who is absent from a

household due solely to a duty assignment as a member of the

Armed Forces is considered, absent evidence to the contrary, to be

living in the same household as the SSI applicant or recipient for

deeming purposes.

By regulation, the Commissioner of Social Security has provided

that in determining the amount of the income of an ineligible

spouse or parent to be deemed to the SSI applicant or recipient, the

needs of the spouse or parent and other children in the household

are taken into account. In addition, the SSI earned and unearned

income exclusions are applied in determining the amount of income

to be deemed to the SSI applicant or recipient. If the combined

countable income of an SSI applicant and an ineligible spouse does

not exceed the SSI benefit standard for an eligible couple in that

State (including any federally administered State supplementary

payment), the SSI applicant would be eligible to receive an SSI

and/or State supplementary benefit.

For example, in 2000 in a State with no supplementation, here

is how the deeming procedure would work in the case of an ineligible spouse earning $600 per month living with an eligible individual with $200 of Social Security benefits:

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Unearned income of eligible individual ........................................................ $200.00

Less $20 exclusion ........................................................................................ ¥20.00

Countable unearned income ............................................................ 180.00

Earned income of ineligible individual ......................................................... 600.00

Less $65 earned income disregard .............................................................. ¥65.00

Less one-half of remaining earnings ($535) ............................................... ¥267.50

Countable earned income ................................................................ 267.50

Plus countable unearned income .................................................................. 180.00

Couple’s total countable income ..................................................... 447.50

SSI payment standard for couples ............................................................... 769.00

Less countable income .................................................................................. ¥447.50

Benefit payable to eligible individual ............................................. 321.50

Thus, the benefit for the eligible individual will be $321 (SSI law

requires that benefits be rounded down to the next lower dollar).

Without deeming and as an individual, the recipient would have received $332 [$512 ¥ ($200 less $20 exclusion)]. The $20 exclusion

can only be used once and is first applied to unearned income,

which in this example is the $200 of Social Security income.

An individual’s resources are deemed to include those of the ineligible spouse (or in the case of a child under the age of 18, those

of the parents) with whom the individual is living. Under SSI regulations, in determining the amount of the spouse’s or parents’ resources that can be deemed, all applicable exclusions are applied.

In the case of a child, only the value of the parents’ resources that

exceeds the applicable limits ($2,000 for a single parent, and

$3,000 for two parents) is deemed to the child. Also, under regulations, pension funds of an ineligible spouse or parent are excluded

from deeming.

In December 1999, there were about 130,500 children’s cases in

which deeming reduced benefits. This figure does not take into account, however, the number of children who were not eligible because of the deeming provision. (For a discussion of deeming rules

for noncitizens, see appendix J.)

PRESUMPTIVE SSI ELIGIBILITY FOR PERSONS WITH AIDS AND HIV

Section 1631(a)(4)(B) of the Social Security Act provides that the

Commissioner of Social Security may pay up to 6 months of Supplemental Security Income (SSI) benefits to a person applying for

SSI based on disability or blindness prior to the determination of

the individual’s disability or blindness if the individual is presumptively disabled or blind and otherwise eligible. A finding of presumptive disability or blindness may be made at the Social Security field offices only for specified impairment categories because

the field office employees generally are not trained disability adjudicators; however, at the State agencies where there are disability

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adjudicators a finding of presumptive eligibility may be made for

any impairment category.

On February 11, 1985, acquired immune deficiency syndrome

(AIDS), as defined by the Centers for Disease Control, was added

(pursuant to interim Federal regulations) to the impairment categories, thus allowing field offices to find presumptive disability for

persons claiming they had AIDS. These regulations were scheduled

to expire February 11, 1988, but were extended until December 31,

1989; and in 1989 they were extended until December 31, 1991. In

December 1991, a new more liberal regulation was implemented.

Under the new procedures, the Social Security field offices may

make a finding of presumptive disability for any individual with

the human immunodeficiency virus (HIV) whose disease manifestations are of listing-level severity, rather than only for those who

have been diagnosed with AIDS.

The Social Security Administration (SSA) standards governing

presumptive SSI eligibility for persons with HIV disease have been

challenged in court in at least one State on the grounds that they

discriminate against women. The contention is that the listing of

impairments reflects the course of HIV disease in men, while

women tend to have different symptoms and are therefore excluded. Others have argued that the Centers for Disease Control

definition and the somewhat broader SSA listing have failed to

keep pace with changing manifestations of HIV disease.

PUBLIC INSTITUTION REQUIREMENT

Public institutions are prisons, hospitals, nursing homes, or any

institution that is operated or administered by a governmental

unit. The governmental unit could be the Federal, State, city, or

county government, or another political subdivision of the State.

Residents of public institutions for a full calendar month are ineligible for SSI unless one of the following exceptions applies:

1. The public institution is a medical treatment facility and Medicaid pays more than 50 percent of the cost of care.

2. The individual is residing in a publicly operated community

residence which serves no more than 16 residents. Such a facility must provide an alternative living arrangement to a large

institution and be residential (i.e., not a correctional, educational or medical facility).

3. The public institution is a public emergency shelter for the

homeless. Such a facility provides food, a place to sleep, and

some services to homeless individuals on a temporary basis.

Payments to a resident of a public emergency shelter for the

homeless are limited to no more than 6 months in any 9-month

period.

4. The individual is in a public institution primarily to receive

educational or vocational training. To qualify, the training

must be an approved program and must be designed to prepare

an individual for gainful employment.

5. The individual was eligible for SSI under one of the special

provisions of section 1619 of the Social Security Act (see section on ‘‘Special SSI Provisions for the Working Disabled’’) in

the month preceding the first full month of residency in a medical or psychiatric institution which agrees to permit the indiVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00223 Fmt 6601 Sfmt 6602 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
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vidual to retain benefit payments. Payment may be made for

the first full month of institutionalization and the subsequent

month.

6. A physician certifies that the recipient’s stay in a medical facility is likely not to exceed 3 months and the recipient needs to

continue to maintain and provide for the expenses of the home

to which she may return. Payments may be made for up to the

first 3 full months of institutionalization.

To help institutionalized individuals return to community living,

the SSI Program includes a prerelease procedure for institutionalized individuals. Some individuals are medically ready to be released from an institution but are financially unable to support

themselves. The prerelease procedure allows such individuals to

apply for SSI payments and food stamps several months in advance

of their anticipated release so benefits can commence quickly after

release. A formal prerelease agreement can be developed between

an institution and the local Social Security office. However, an individual can file an application for SSI under prerelease without the

existence of such an agreement.

Under Federal law, residents of public institutions for a full calendar month generally are ineligible for SSI benefits. Prisons are

considered public institutions. The bar against SSI benefits to prisoners has been enforced through an exchange of computerized data

between the Social Security Administration and the Federal Bureau of Prisons, State prisons, and some county prisons. According

to the SSA’s Office of the Inspector General, these computerized arrangements generally covered about three-quarters of inmates—all

Federal and State prisoners but only about 15 percent of county

prisoners. The agreements were voluntary and until recently involved no payments to the institutions. However, the 1996 welfare

reform law (Public Law 104–193), required the Commissioner of

Social Security to enter into a contract with any interested State

or local institution (such as a prison, jail, or mental hospital) under

which the institution must provide to the Commissioner on a

monthly basis the names, Social Security numbers, dates of birth,

and such other identifying information concerning the inmates or

residents of the institution to help the Commissioner enforce the

‘‘prohibition of payments to residents of public institutions’’ rule.

The Commissioner must pay the institution up to $400 for each

resident if the information is provided to the Commissioner within

30 days after such individual becomes a resident or up to $200 for

each inmate if the information is provided after 30 days but within

90 days of the person becoming a resident.

Between March 1, 1997 and August 2, 1999, SSA paid $19.2 million for 53,900 incentive payments.

In 1999, Congress acted to further tighten restrictions on the

payment of Federal benefits to prisoners. Public Law 106–169,

signed into law on December 14, 1999, expands the SSI Program’s

benefit suspension rules and incentive payments regarding State

and local prisoners to include individuals receiving Old-Age, Survivors, and Disability Insurance (OASDI) benefits. (Payments to

prisons will be reduced by 50 percent for multiple reports on individuals who receive both SSI and OASDI benefits.)

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Public Law 106–169 also requires State prisons to provide inmate information to Federal and federally assisted benefit programs, including SSA. To help reduce fraudulent benefit payments

of food stamps, veterans benefits, unemployment benefits, and educational aid, Public Law 106–169 directs SSA to share its prisoner

database with other Federal agencies and departments.

APPLICATION TO OTHER PROGRAMS REQUIREMENT

Since SSI payments are reduced by other income, applicants and

recipients must apply for any other money benefits due them. SSA

works with recipients and helps them get any other benefits for

which they are eligible.

ELIGIBILITY FOR SOCIAL SECURITY

Since its inception SSI has been viewed as the ‘‘program of last

resort.’’ That is, after evaluating all other income, SSI pays what

is necessary to bring an individual to the statutorily prescribed income ‘‘floor.’’ As of December 1999, 36.3 percent of all SSI recipients also received Social Security benefits (60 percent of the aged,

30 percent of the disabled, and 35 percent of the blind). Social Security benefits are the single highest source of income for SSI recipients. The SSI Program considers Social Security benefits unearned income and thus counts all but $20 monthly in determining

the SSI benefit amount.

ELIGIBILITY FOR MEDICAID

States have three options as to how they treat SSI recipients in

relation to Medicaid eligibility. Section 1634 of SSI law allows SSA

to enter into agreements with States to cover all SSI recipients

with Medicaid eligibility. SSI recipients are not required to make

a separate application for Medicaid under this arrangement. As of

January 1, 2000, 32 States and the District of Columbia chose this

option, and SSI recipients in these States account for approximately 79 percent of all SSI recipients nationwide.

Under the second option, States elect to provide Medicaid eligibility for all SSI recipients, but only if the recipient completes a

separate application with the State agency which administers the

Medicaid Program. Alaska, Idaho, Kansas, Nebraska, Nevada, Oregon, and Utah and the Commonwealth of the Northern Mariana

Islands, affecting about 5 percent of SSI recipients nationwide,

have elected this option.

The third and most restrictive option is known as the ‘‘209(b)’’

option, under which States may impose Medicaid eligibility criteria

which are more restrictive than SSI criteria, so long as the criteria

chosen are not more restrictive than the State’s approved Medicaid

State plan in January 1972. The 209(b) States may be more restrictive in defining blindness or disability, and/or more restrictive in

their financial requirements for eligibility, and/or require a Medicaid application with the State. However, aged, blind, and disabled

SSI recipients who are Medicaid applicants must be allowed to

spend down in 209(b) States, regardless of whether the State has

a medically needy program. Currently 11 States use the 209(b) option for Medicaid coverage of aged, blind, and disabled SSI recipiVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00225 Fmt 6601 Sfmt 6602 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
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ents. About 16 percent of the SSI recipient population nationwide

lives in these 209(b) States. The 11 States that use this option are

Connecticut, Hawaii, Illinois, Indiana, Minnesota, Missouri, New

Hampshire, North Dakota, Ohio, Oklahoma, and Virginia.

An amendment included in the 1986 SSI Disability Amendments

(Public Law 99–643) required, effective July 1, 1987, that 209(b)

States continue Medicaid coverage for individuals in section 1619

status if they had been eligible for Medicaid for the month preceding their becoming eligible under section 1619 (see section below on

‘‘Special SSI Provisions for the Working Disabled’’).

The same legislation required States to provide continued Medicaid coverage for those individuals who lose eligibility for SSI on or

after July 1, 1987 when their income increases because they become newly eligible for Social Security benefits as an adult who

was disabled as a child (disabled adult child) or because of an increase in their benefits as an adult who was disabled as a child.

‘‘Disabled adult children’’ who otherwise would be eligible for SSI

continue to be considered SSI recipients for Medicaid purposes.

Protection against loss of Medicaid also is provided for certain

blind or disabled individuals who lose their SSI benefits when they

qualify for Social Security disabled widow or widower’s benefits beginning as early as age 50. The Omnibus Budget Reconciliation Act

of 1990 provides that such individuals, who otherwise would continue to qualify for SSI on the basis of blindness or disability, will

be deemed to be SSI recipients for purposes of Medicaid eligibility

until they become eligible for Medicare.

ELIGIBILITY FOR FOOD STAMPS

Except in California, which has converted food stamp benefits to

cash that is included in the State supplementary payments, SSI recipients may be eligible to receive food stamps. SSI beneficiaries

living alone or in a household where all other members of the

household receive or are applying for SSI benefits can file for food

stamps at an SSA office. If all household members receive SSI,

they do not need to meet the Food Stamp Program financial eligibility standards to participate in the program because they are categorically eligible. However, SSI beneficiaries living in households

where other household members do not receive or are not applying

for SSI benefits are referred to the local food stamp office to file

for food stamps. These households must meet the net income eligibility standard of the Food Stamp Program to be eligible for food

stamp benefits.

The interaction with the Food Stamp Program has important financial implications for a State which desires to increase the income of its SSI recipients by $1. Because food stamps are reduced

by $0.30 for each additional $1 of SSI income including State supplements, the State must expend $1.43 to obtain an effective $1 increase in SSI recipients’ total income.

SELF-SUFFICIENCY AND SSI

Section 1615(d) of the Social Security Act requires SSA to reimburse State vocational rehabilitation agencies for reasonable and

necessary costs of services which resulted in disabled SSI recipients

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being successfully rehabilitated. The objective of vocational rehabilitation for SSI recipients is to help disabled individuals achieve

and sustain productive, self-supporting work activity. SSA provides

funds to reimburse vocational rehabilitation agencies for costs incurred in successfully rehabilitating SSI recipients. A successful rehabilitation is defined by law as one in which vocational rehabilitation services result in performance of substantial gainful activity

for a continuous period of 9 months.

In 1999, Congress expanded the Vocational Rehabilitation Program. Public Law 106–170, signed into law on December 17, 1999,

creates a Ticket to Work and Self-Sufficiency Program. The purpose of the program is to help recipients leave the SSI rolls

through greater accessibility to a broader pool of vocational rehabilitation providers than is currently available to them.

Under the new law, the Commissioner of Social Security will provide tickets to work to disabled SSI beneficiaries that they can use

as vouchers to obtain employment services, case management, vocational rehabilitation, and support services from providers of their

choice, including State vocational rehabilitation agencies. The program will be implemented on a graduated basis beginning within

1 year of enactment at sites selected by the Commissioner and

within 4 years of enactment in every State. The program is permanently authorized.

The elements of the ticket system include program managers,

employment networks, individual work plans, program evaluations,

and a Ticket to Work and Work Incentives Advisory Panel composed of 12 members. The Commissioner is required to contract

with program managers (one or more public or private organizations with expertise and experience in the field of vocational rehabilitation or employment services) through a competitive bidding

process to help SSA administer the program. Program managers

will have to recruit and recommend employment networks to the

Commissioner, ensure that adequate choices of services are available to beneficiaries, ensure beneficiary access to services, and provide assurances to SSA that employment networks are complying

with agreement terms.

The ticket to work law requires employment networks to consist

of a single public or private provider or an association of providers

combined into a single entity which assumes responsibility for the

coordination and delivery of services. Employment networks are required to have experience providing relevant employment services

and support for individuals with disabilities and will have to provide an array of such services under the program. Employment networks and beneficiaries will have to develop an individual employment plan so that the beneficiary can exercise informed choice in

selecting an employment goal and specific services needed to

achieve that goal. Employment networks will prepare and provide

periodic performance reports to beneficiaries holding a ticket and

will have to provide periodic quality assurance reviews of employment networks. The Commissioner is required to establish a method for resolving disputes between beneficiaries and employment

networks. The ticket to work law also requires that State vocational rehabilitation agencies and employment networks enter into

agreements regarding the conditions under which services will be

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provided when an individual is referred by an employment network

to State vocational rehabilitation agencies. The Commissioner is required to establish a timeframe for these agreements and a dispute

resolution method.

Payment to employment networks are based on outcomes and

long-term results by providing one of two payment systems: an outcome payment system or an outcome-milestone payment system.

Under the outcome payment system, employment networks are

provided with up to 40 percent of the average monthly disability

benefit for each month benefits are not payable to the beneficiary

due to work (but not for more than 60 months). Under the

outcome-milestone payment system, the employment networks receive early payments based on the achievement of one or more

milestones toward permanent employment. The total amount payable under the outcome-milestone payment system must be less

than the total amount that otherwise would have been payable for

an individual under the outcome payment system. Regardless of

which payment system is used, SSI beneficiaries forgo SSI payments to participate in the ticket to work system, and instead receive earnings from work. Providers use the ticket, or voucher, to

claim payment from SSA for services they provide to beneficiaries.

Providers are paid for each month in which an SSI beneficiary is

not receiving benefits because the individual is working or has

earnings. The Commissioner is required to design and conduct a series of evaluations of the payment system to assess the cost effectiveness and effects of the program, in consultation with the Advisory Panel, and report the findings to Congress.

SSI BENEFITS

FEDERAL SSI BENEFIT STANDARD

The Federal SSI benefit standard for 2000 is $512 a month for

an individual and $769 for a couple. As is discussed later, most

States supplement the Federal SSI benefit. The result is a combined Federal SSI/State supplemental benefit standard against

which countable income is compared in determining eligibility and

benefit amount. However, many States limit their supplementation

to certain categories of individuals based on specific indicators of

need—especially special housing needs.

Like Social Security benefits, Federal SSI benefits are indexed to

the Consumer Price Index (CPI). Indexing occurs through a reference in the SSI law to the Social Security cost-of-living adjustment (COLA) provision. Prior to the Social Security Amendments

of 1983 (Public Law 98–21), the SSI and Social Security cost-ofliving increases occurred in benefits paid in July. Public law 98–

21 delayed the Social Security and SSI COLAs from July 1983 to

January 1984. However, in lieu of a COLA increase in the SSI benefit standard, the Federal SSI benefit was increased in July 1983

by $20 a month for an individual and $30 a month for a couple.

Table 3–3 shows the Federal SSI benefit from the beginning of the

SSI Program until the present time.

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TABLE 3–3.—FEDERAL SSI BENEFIT LEVELS, 1974–2000

Year

Eligibility status

Medicaid

institution

Own household Household of another

Single Couple Essential

person Single Couple Essentialperson

Initial ....... $25.00 $130.00 $195.00 $65.00 $86.67 $130.00 $43.34

Jan. 1974 25.00 140.00 210.00 70.00 93.34 140.00 46.67

July 1974 25.00 146.00 219.00 73.00 97.34 146.00 48.67

July 1975 25.00 157.70 236.60 78.90 105.14 157.74 52.60

July 1976 25.00 167.80 251.80 84.00 111.87 167.87 56.00

July 1977 25.00 177.80 266.70 89.00 118.54 177.80 59.34

July 1978 25.00 189.40 284.10 94.80 126.27 189.40 63.20

July 1979 25.00 208.20 312.30 104.20 138.80 208.20 69.47

July 1980 25.00 238.00 357.00 119.20 158.67 238.00 79.47

July 1981 25.00 264.70 397.00 132.60 176.47 264.67 88.40

July 1982 25.00 284.30 426.40 142.50 189.54 284.27 95.00

July 1983 25.00 304.30 456.40 152.50 202.87 304.27 101.67

Jan.

1984 1 25.00 314.00 472.00 157.00 209.34 314.67 104.67

Jan. 1985 25.00 325.00 488.00 163.00 216.67 325.34 108.67

Jan. 1986 25.00 336.00 504.00 168.00 224.00 336.00 112.00

Jan. 1987 25.00 340.00 510.00 170.00 226.67 340.00 113.34

Jan. 1988 25.00 354.00 532.00 177.00 236.00 354.67 118.00

Jan. 1989 30.00 368.00 553.00 184.00 245.34 368.67 122.67

Jan. 1990 30.00 386.00 579.00 193.00 257.34 386.00 128.67

Jan. 1991 30.00 407.00 610.00 204.00 271.34 406.67 136.00

Jan. 1992 30.00 422.00 633.00 211.00 281.34 422.00 140.67

Jan. 1993 30.00 434.00 652.00 217.00 289.34 434.67 144.67

Jan. 1994 30.00 446.00 669.00 223.00 297.34 446.00 148.67

Jan. 1995 30.00 458.00 687.00 229.00 305.34 458.00 152.66

Jan. 1996 30.00 470.00 705.00 235.00 313.34 470.00 152.57

Jan. 1997 30.00 484.00 726.00 242.00 322.67 484.00 161.33

Jan. 1998 30.00 494.00 741.00 247.00 329.34 494.00 164.67

Jan. 1999 30.00 500.00 751.00 250.00 333.34 500.67 166.67

Jan. 2000 30.00 512.00 769.00 256.00 341.34 512.67 170.67

1 Cost-of-living adjustments to Federal SSI benefit levels are rounded to the next lower whole dollar

beginning with the increase effective January 1984.

Source: Office of Research, Evaluation and Statistics, Social Security Administration.

In calendar year 1999, about 757,580 applicants were awarded

SSI benefits. Under previous law, new recipients received a prorated SSI benefit for the month in which they applied. For example, a person who applied on the 15th of the month could receive

2 weeks of benefits for that month. (The typical applicant did not

get that money immediately because SSA might take several

months to process the application.) The 1996 welfare reform law

changes the effective date of an SSI application to the later of the

first day of the month following the date the application is filed or

the date the individual first becomes eligible for SSI benefits.

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BENEFITS FOR PERSONS LIVING IN THE HOUSEHOLD OF ANOTHER

SSI law provides that if an applicant or recipient is ‘‘living in another person’s household and receiving support and maintenance in

kind from such person,’’ the Federal SSI benefit applicable to such

individual or couple is two-thirds of the regular Federal SSI benefit. As shown in table 3–3, the Federal SSI benefit in 2000 for those

determined to be living in the household of another is $341 for an

individual and $513 for a couple.

Regulations specify the criteria for determining when this reduced benefit applies. It does not apply to an individual who owns

or rents, buys food separately, eats meals out rather than eating

with the household, or pays a pro rata share of the household’s food

and shelter expenses.

In December 1999 4.1 percent, or about 268,800 SSI recipients,

had their benefits determined on the basis of this ‘‘one-third reduction’’ benefit standard. Sixty-five percent of those recipients were

receiving benefits on the basis of disability (see table 3–4).

TABLE 3–4.—PERCENTAGE AND NUMBER OF PERSONS RECEIVING FEDERALLY

ADMINISTERED PAYMENTS, BY LIVING ARRANGEMENT AND CATEGORY, DECEMBER 1999

Living arrangement 1 Total

Reason for eligibility

Aged Blind Disabled

Own household .............................. 93.7 91.0 92.3 94.4

Another’s household ...................... 4.1 7.0 5.1 3.4

Institutional care covered by Medicaid .......................................... 2.2 2.0 2.6 2.2

Total percent ........................ 100.0 100.0 100.0 100.0

Total number ........................ 6,556,634 1,308,062 2 79,291 3 5,169,281

1 As defined for determination of Federal SSI payment standards.

2 Includes approximately 19,200 persons aged 65 or older.

3 Includes approximately 690,400 persons aged 65 or older.

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI

Statistics and Analysis.

BENEFITS FOR PERSONS LIVING IN A MEDICAID INSTITUTION

When individuals enter a hospital or other medical institution in

which more than half of the bill is paid by the Medicaid Program,

their monthly SSI benefit standard is reduced to $30, beginning

with the first full calendar month of residence. This benefit, called

a personal needs allowance (PNA), is intended to take care of small

personal expenses, with the cost of maintenance and medical care

being provided through Medicaid. The 1996 welfare reform law requires that children (under age 18) residing in medical institutions

who have private medical insurance be eligible only for the $30 SSI

PNA, just like those with Medicaid coverage. The Federal PNA

benefit of $25 was increased to $30 a month on July 1, 1988—the

first increase since the SSI Program began in 1974. The annual

cost-of-living increase for SSI does not apply to the PNA. However,

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the 1987 Budget Reconciliation Act provides that if a physician certifies that the recipient’s stay in such a medical institution is not

likely to exceed 3 months and they need to continue to maintain

a home to which they may return, SSI benefits will not be reduced

and recipients will continue to receive full SSI benefits for up to

the first 3 months of institutionalization.

Approximately 142,813 or 2.2 percent of SSI recipients received

benefits as of December 1999 on the basis of this personal needs

allowance. The average benefit was $21.80. For those individuals

whose income from non-SSI sources exceeds the $30 benefit standard (including those who were receiving both Social Security and

SSI before entering an institution), Medicaid regulations require

States to allow SSI recipients (and other non-SSI Medicaid eligibles) to retain no less than $30 a month of their income as a ‘‘personal needs allowance’’ when their income is applied, along with

Medicaid reimbursement, to pay for their institutional medical

care. These regulations are applicable to individuals whose income

from non-SSI sources exceeds the $30 benefit standard (including

those who were receiving both Social Security and SSI before entering an institution).

Eighteen State programs have exercised their option to supplement the PNA. Prior to the 1985 Budget Reconciliation Act, SSI

regulations would not allow for Federal administration of State

PNA supplements. An amendment included in that legislation now

requires SSA, at the request of a State, to administer such State

supplementary payments. As of December 1999, California, the

District of Columbia, Massachusetts, Michigan, New Jersey, New

York, Rhode Island, and Vermont had opted for Federal administration. Approximately 30 States allow some or all of those individuals affected by the Medicaid PNA regulations to retain more than

$30 a month.

BENEFITS OF FORMER RECIPIENTS OF STATE ASSISTANCE

The essential person payment is a Federal benefit for an individual who was transferred to SSI from a former State Program of Aid

to the Aged, Blind, or Disabled. As shown in table 3–3, the Federal

benefits of these persons are increased by up to $250 monthly in

1999 to take into account an ‘‘essential person’’ living in the household.

Essential persons are persons (generally an ineligible spouse or

relative) who live with the eligible individual and who are considered necessary to provide essential care and services for the eligible

individual and whose needs were taken into account in December

1973 in determining the need of the individual. Essential persons

do not themselves receive SSI payments; rather, the standard of

payment to which an eligible individual or couple is entitled is increased, and any income and resources of the essential persons are

combined with those of the eligible individual or couple in calculating the amount for which the individual or couple is eligible.

Eligibility for such increased payments apply only to a person included as an essential person in December 1973 and ends when the

person no longer lives with the eligible individual, becomes eligible

for SSI in his own right, or becomes the eligible spouse of an eligible individual.

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Some States have categories of State supplementation similar to

the ‘‘essential persons’’ category for individuals transferred from

the pre-SSI Program.

OVERPAYMENTS

A provision in the 1984 Deficit Reduction Act established limits

on recovery by the Social Security Administration (SSA) of overpayments made to SSI recipients. The amount of recovery in any

month is now limited to the lesser of: (1) the amount of the benefit

for that month; or (2) an amount equal to 10 percent of the countable income (plus the SSI payment) of the individual (or couple) for

that month. This limitation does not apply if there is fraud, willful

misrepresentation, or concealment of information in connection

with the overpayment. The recipient may request a higher or lower

rate at which benefits may be withheld to recover the overpayment.

FASTER INITIAL SSI (AND SOCIAL SECURITY) PAYMENTS

Making initial payments faster for those who are presumptively

or proven eligible is a goal of the Supplemental Security Income

(SSI) Program. The provisions for a one-time emergency advance

payment continues to permit a faster response to presumptive or

proven eligibility in new claims with critical needs. Pursuant to the

1996 welfare reform legislation, these emergency advance payments must be repaid through proportionate reductions in SSI benefits over a period of not more than 6 months. In fiscal year 1999,

Social Security offices made 6,510 emergency advance payments

using their third-party drafts in these new claims situations totaling $3,137,417 with an average payment amount of $474.

Beginning in October 1985, local Social Security offices were

given the authority to make ‘‘immediate payments’’ for Social Security and SSI cases at management’s discretion when the local offices found that benefits were due but unpaid and an expedited

Treasury payment would be too slow. ‘‘Immediate’’ usually means

while the beneficiary waits or the next day at the latest. Payments

are made using third-party drafts issued by the local field office.

Payments are limited to the maximum per beneficiary of $400 or

the amount due, whichever is less, once in a 30-day period. The

payment must be approved by office management. During fiscal

year 1999, 61,563 Social Security and 71,778 SSI immediate payments were issued under this procedure. The total amount of these

payments equalled $49,269,896 for an average of $369 per payment.

STATE SUPPLEMENTATION

Mandatory State supplementation

State supplementary payments are required by law to maintain

income levels of former State adult assistance recipients transferred to the Federal SSI Program. The purpose of these mandatory State supplements is to assure that no person suffers a reduction in income as a result of the transfer to the SSI Program.

Under mandatory supplementation rules, States are to maintain

recipients of the Programs of Old-Age Assistance, Aid to the Blind,

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and Aid to the Permanently and Totally Disabled at their December 1973 income level. That level is the amount an individual received in December 1973 under the terms and conditions of the

State plan in effect for the month of June 1973, plus her other income. Thus, States must provide a supplementary payment to any

individual who, because of special needs or other reasons, had a

December 1973 payment higher than the amount she received

under the basic Federal SSI Program.

To remain eligible for Medicaid Federal matching funds, States

were required to adopt a mandatory State supplementation program. In December 1999, approximately 1,800 recipients or less

than 0.02 percent of all recipients were receiving payments based

in part or solely on the mandatory supplementation rule.

Optional State supplementation

In addition to any mandatory supplementation States must provide, a State (or political subdivision) may choose to provide an optional supplement to Federal SSI payments. This optional supplement also is intended to help individuals meet needs which are not

fully met by the Federal payment. The State determines whether

it will make such a payment, to whom, and in what amount. States

have the option of covering recipients of mandatory supplementation under their program of optional supplementation.

At the present time, all but seven States and jurisdictions provide some form of optional State supplementation. States that provide no supplement are: Arkansas, Georgia, Kansas, Mississippi,

Commonwealth of the Northern Mariana Islands, Tennessee, and

West Virginia. States (or local jurisdictions) may elect to administer their supplementary payments themselves or may contract

with SSA for Federal administration. Fifteen States and the District of Columbia have contracted with SSA to administer the State

optional supplementation program. Since the SSI Program began

in 1974, seven States have shifted from Federal to State administration of their optional State supplementation program.

Section 1618 of the Social Security Act requires States that have

chosen to supplement the Federal SSI benefit to continue to provide supplementation and to maintain the supplementary payments (or spending for supplements) at specified levels. The purpose of section 1618 is to require States to pass along to SSI recipients the amount of any Federal benefit increase. Some States had

not done this before the enactment of section 1618 on October 21,

1976 (Public Law 94–585). Instead, when Congress enacted cost-ofliving increases in the Federal SSI benefit amount, some States

would reduce the levels of the State supplementary payments by

the amount of the Federal benefit increase. Congress responded by

enacting the section 1618 pass-along/maintenance-of-effort provision for State supplementary payments.

Section 1618 allows States to comply with the pass along requirement by either (1) maintaining their State supplementary payment

levels for specified types of living arrangements at or above March

1983 levels (sometimes referred to as the payment level method) or

(2) maintaining their supplementary payment spending so that

total annual Federal and State expenditures will be at least equal

to what they were in the prior 12-month period plus any Federal

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cost-of-living increase, provided the State was in compliance for

that period (sometimes referred to as the total expenditures method). In effect, section 1618 requires that once a State elects to provide supplementary payments, it must continue to do so.

Under section 1618, a State that is found to be out of compliance

under the maintenance-of-effort rules is subject to loss of its Federal Medicaid reimbursement. In California’s case, a further ‘‘penalty’’ would be levied for failure to meet the pass along/

maintenance-of-effort mandate. It would lose permission to ‘‘cash

out’’ food stamp benefits for SSI recipients, and regular food stamp

allotments would have to be offered to them.

Variation in payment amount

In addition to categorical variations which may apply (i.e., aged,

blind, disabled), a State may elect a number of variations in optional supplementary payments to account for specific differences

in living costs to a recipient. The type and amount of the variations

selected must be specified in the Federal-State agreement. A State

may make variations in its payments to account for both geographic and living arrangement cost differences.

A significant number of the aged, disabled, and blind receiving

SSI cannot live alone because of mental or physical limitations and

have a need for housing which includes services beyond room and

board. These services often include supervision for daily living and

protective services for the mentally retarded, chronically mentally

ill, or the frail or confused elderly. Such nonmedical supervised

and/or group living arrangements generally cost more than the

Federal SSI benefit needs standard of $512 a month in 2000, and

often more than the combined Federal and SSI State supplementation for those classified as living independently. Thus, all but 10 of

the 50 States and the District of Columbia have Federal- or Stateadministered State supplementation which is specifically directed

at covering the additional cost of providing housing in a protective,

supervised, or group living arrangement.

These living arrangements are identified by a variety of terms including: adult foster care homes; domiciliary care homes; congregate care; group homes for the mentally retarded, and other

terms. The amount of supplementation by the State also varies a

great deal. For example, in the State of Maryland under a Stateadministered supplementation program, a ‘‘specialized and intensive supervision’’ group living facility has a State supplementation

of $666 a month in addition to the Federal benefit of $512. Thus

the maximum total Federal and State SSI payment in a month in

Maryland is $1,178. In one State, the State supplementation is less

than $2 a month for those who need little supervision and care.

However, in some States the cost of supervised group living care

is also partially met by direct State funding of the staff. Some

States make payments for nonmedical group care directly to private residential facilities based on a rate negotiated by the State

with each facility. In such cases, there is often a PNA payment

made directly to or on behalf of the residents of the facility.

235

Administrative fees

The Omnibus Budget Reconciliation Act of 1993 amended the

State supplementation provision to provide for State payment for

Federal administration of State supplementary payments. For fiscal year 1994, the administration fee was $1.67 per payment. The

rate per payment rose to $3.33 for fiscal year 1995, and $5.00 for

fiscal year 1996 and each succeeding year, or a different rate

deemed appropriate for the State by the Commissioner.

The Balanced Budget Act of 1997 (Public Law 105–33) increased

the fee charged by the SSA to administer a State’s supplementary

SSI payments. The current fee is $7.80 per check. It will be increased to $8.10 in fiscal year 2001, and $8.50 in fiscal year 2002.

Each succeeding year, fees would be indexed to increases in the

Consumer Price Index or set at a different rate as determined by

the Commissioner of Social Security. Amounts of fees collected in

excess of $5 per check would be credited to a special Treasury fund

available for Social Security Administration administrative purposes. Such amounts would be credited as a discretionary offset to

discretionary spending to the extent that they are made available

for expenditures in appropriation acts.

Public Law 106–170 authorizes SSA to penalize States that are

late in paying their administrative fees. Specifically, SSA may

charge a State for whom it administers supplementary payments

a penalty equal to 5 percent of the supplementary payment and administrative fees due if that State has not paid SSA the administrative fees it owes. States must pay SSA on the business day preceding the date that SSA pays monthly benefits, or for the last

month in a State’s fiscal year, the fifth business day following the

date that SSA pays monthly benefits.

State SSI supplement levels over time

Throughout the period from July 1975 to January 2000, 23

States have continuously provided supplemental SSI payments to

aged individuals living independently.

During the period from July 1975 to January 2000, no State increased supplements faster than inflation for aged individuals living independently or aged couples living independently (see tables

3–5 and 3–6).

As of December 1999, there were 2,441,482 beneficiaries (37 percent) receiving a State supplement. For those SSI recipients, other

than those receiving a State supplement because they are living in

some type of group living arrangement, the amount of State supplement ranges from $1.70 a month to $362 a month for an individual. At present, 25 States supplement the Federal standard for individuals living independently.

TABLE 3–5.—STATE SSI SUPPLEMENTS FOR AGED INDIVIDUALS WITHOUT COUNTABLE INCOME LIVING INDEPENDENTLY, SELECTED YEARS 19

State July 1975 July 1980 Jan. 1985 Jan. 1988 Jan. 1990 Jan. 1992 Jan. 1994 Jan. 1996 Jan. 1997 Jan. 1998 Jan. 1999 Percen

197

Alaska 2 ......................................................... $142 $235 $261 $305 $331 $362 $362 $362 $362 $362 $362

California ....................................................... 101 182 179 221 244 223 157 156 156 156 176Colorado ........................................................ 27 55 58 58 54 56 56 56 62 39 36Connecticut 3 ................................................. NA 102 141 403 366 325 301 3 NA 243 253 247 

District of Columbia ...................................... 0 15 15 15 15 15 15 5 0 0 0 Hawaii ........................................................... 17 155555555 5 5Idaho .............................................................. 63 74 78 73 73 70 45 37 48 48 48Illinois 3 ......................................................... NA NA NA NA NA NA NA NA NA 0 0 

Maine ............................................................. 10 10 10 10 10 10 10 10 10 10 10

Massachusetts .............................................. 111 137 129 129 129 129 129 126 126 129 129Michigan ........................................................ 12 24 27 30 30 14 14 14 14 14 14Minnesota 4 .................................................... 31 34 35 35 75 81 81 81 81 81 81

Nebraska ....................................................... 67 75 69 43 38 30 21 12 8 8 27Nevada .......................................................... 55 47 36 36 36 36 36 36 36 36 36New Hampshire ............................................. 12 46 27 27 27 27 27 27 27 27 27New Jersey ..................................................... 24 23 31 31 31 31 31 31 31 31 31New York ....................................................... 61 63 61 72 86 86 86 86 86 86 87Oklahoma ...................................................... 27 79 60 64 64 64 57 54 53 53 53Oregon ........................................................... 17 122222222 2 2Pennsylvania ................................................. 20 32 32 32 32 32 32 27 27 27 27Rhode Island ................................................. 31 42 54 58 64 67 64 64 64 64 64South Dakota ................................................. 0 15 15 15 15 15 15 15 15 15 15 Utah ............................................................... 0 10 10 9 6 5 1 0 0 0 0 Vermont ......................................................... 29 41 53 59 63 65 55 47 55 55 55Washington 5 ................................................. 36 43 38 28 28 28 28 25 28 7 27

Wisconsin ...................................................... 70 100 100 103 103 93 85 84 84 84 84Wyoming ........................................................ 0 20 20 20 20 20 10 10 10 10 10 

Median ...................................................... 31 43 36 36 37 32 31 31 36 31.25 31.25

1 The percentage change in constant dollars was computed by inflating July 1975 to January 1999 by the Consumer Price Index for All Urban Consumers (CPI–U). The 

index value is 51.8 and the January 1999 value is 165.5. 2 Through 1982 the State supplement was less if shelter costs were below $35 monthly.

3 State decides benefit on a case-by-case basis.4 State has two geographic payment levels—Hennepin County and the remainder of Minnesota. Level shown is for Hennepin County, the area with the largest number 

cipients. 5 State has two geographic payment levels—highest levels are shown in table. Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.

NA—Not available.Source: Office of Supplemental Security Income, Social Security Administration and Congressional Research Service calculations.

TABLE 3–6.—STATE SSI SUPPLEMENTS FOR AGED COUPLES WITHOUT COUNTABLE INCOME LIVING INDEPENDENTLY, SELECTED YEARS 1975

State July 1975 July 1980 Jan. 1985 Jan. 1988 Jan. 1990 Jan. 1992 Jan. 1994 Jan. 1996 Jan. 1997 Jan. 1998 Jan. 1999 Percen

197

Alabama ............................................................ $90000000000

Alaska 2 ............................................................. 43 $338 $371 $444 $484 $528 $528 $528 $528 $528 $528

California ........................................................... 251 389 448 534 588 557 440 396 396 415 450Colorado ............................................................ 133 229 278 292 309 323 323 323 346 345 321Connecticut 3 ..................................................... NA NA 86 602 525 461 425 3 NA 368 353 343 

District of Columbia .......................................... 0 30 30 30 30 30 30 15000

Hawaii ............................................................... 28 24 9 9 9 9 9 9 9 8.8 8.8Idaho .................................................................. 49 80 46 44 45 45 21 9 16 17 17 Illinois 3 ............................................................. NA NA NA NA NA NA NA NA NA 0 0

Maine ................................................................. 15 15 15 15 15 15 15 15 15 15 15Massachusetts .................................................. 173 214 202 202 202 202 202 197 197 202 202 Michigan ............................................................ 18 36 40 45 45 21 21 28 28 28 28Minnesota 4 ........................................................ 38 44 66 66 88 129 126 111 111 111 111

Nebraska ........................................................... 67 114 100 66 65 48 40 14 3 98 13Nevada .............................................................. 106 90 74 74 74 74 74 74 74 74 74 New Hampshire ................................................. 0 42 21 21 21 21 21 22 21 21 21New Jersey ......................................................... 13 12 25 25 25 25 25 25 25 25 25New York ........................................................... 76 79 76 93 102 103 102 103 103 103 104Oklahoma .......................................................... 54 158 120 128 128 128 114 108 106 106 106 Oregon ............................................................... 17 10000000000

Pennsylvania ..................................................... 30 49 49 49 49 49 49 44 44 44 44Rhode Island ..................................................... 59 79 102 111 120 127 120 121 121 121 121 South Dakota ..................................................... 0 15 15 15 15 15 15 15 15 15 15 Utah ................................................................... 0 20 20 18 12 11 5 5 5 5 5 Vermont ............................................................. 61 76 96 106 115 118 103 92 103 103 103

Washington 5 ..................................................... 40 44 37 22 22 22 22 20 22 0 21Wisconsin .......................................................... 105 161 161 166 166 146 134 132 132 132 132Wyoming ............................................................ 0 40 40 40 40 40 19 25 25 25 25 

Median .......................................................... 57 63 66 66 65 49 39 28 44 43.7 28

1 The percentage change in constant dollars was computed by inflating July 1975 to January 1999 by the CPI–U price index. The July 1975 index value is 51.8 and th

1999 value is 165.5. 2 Through 1982 the State supplement was less if shelter costs were below $35 monthly.

3 State decides benefit on a case-by-case basis.4 State has various geographic payment levels. Level shown is for Hennepin County, the area with the largest number of SSI recipients. State supplemental SSI payme

dividual whose entitlement began January 1, 1994. State supplement for individuals whose entitlement began before January 1, 1994 is an additional $15 per month. 5 State has two geographic payment levels—highest levels are shown in table. Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.

NA—Not available.Source: Office of Supplemental Security Income, Social Security Administration and Congressional Research Service calculations.

240

MAXIMUM SSI AND FOOD STAMP BENEFITS FOR INDIVIDUALS LIVING

INDEPENDENTLY

Table 3–7 for individuals and table 3–8 for couples illustrate by

State the maximum potential payment from Federal SSI, State

supplements, and food stamps for persons with no income. Approximately 65 percent of SSI households in the Food Stamp Program

claim a shelter deduction for shelter expenses exceeding roughly

one-third of their monthly income. About 3 percent of SSI households claim a medical cost deduction for out-of-pocket expenses

over $35 per month.

TABLE 3–7.—MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED

INDIVIDUALS LIVING INDEPENDENTLY, JANUARY 2000 1

State Maximum SSI

benefit

Food

stamp

benefit 2

Combined benefits

Monthly Annual

Alabama .............................................. $512 $89 $600 $7,200

Alaska .................................................. 874 120 993 11,916

Arizona 3 .............................................. 512 89 600 7,200

Arkansas .............................................. 512 89 600 7,200

California ............................................. 692 4 0 726 8,712

Colorado .............................................. 548 78 625 7,500

Connecticut ......................................... 747 18 5 765 9,180

Delaware .............................................. 512 89 600 7,200

District of Columbia ............................ 512 89 600 7,200

Florida ................................................. 512 89 600 7,200

Georgia ................................................ 512 89 600 7,200

Hawaii ................................................. 517 159 676 8,112

Idaho ................................................... 6 565 73 637 7,644

Illinois .................................................. 7 512 89 600 7,200

Indiana ................................................ 512 89 600 7,200

Iowa ..................................................... 534 82 616 7,392

Kansas ................................................. 512 89 600 7,200

Kentucky .............................................. 512 89 600 7,200

Louisiana ............................................. 512 89 600 7,200

Maine ................................................... 522 86 607 7,284

Maryland .............................................. 512 89 600 7,200

Massachusetts .................................... 641 50 690 8,280

Michigan .............................................. 526 84 610 7,320

Minnesota ............................................ 8 593 64 657 7,884

Mississippi .......................................... 512 89 600 7,200

Missouri ............................................... 512 89 600 7,200

Montana .............................................. 512 89 600 7,200

Nebraska ............................................. 519 87 605 7,260

Nevada ................................................ 548 78 626 7,512

New Hampshire ................................... 539 81 619 7,428

New Jersey ........................................... 543 79 622 7,464

New Mexico .......................................... 512 89 600 7,200

New York ............................................. 599 63 661 7,932

North Carolina ..................................... 512 89 600 7,200

North Dakota ....................................... 512 89 600 7,200

Ohio ..................................................... 512 89 600 7,200

241

TABLE 3–7.—MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED

INDIVIDUALS LIVING INDEPENDENTLY, JANUARY 2000 1—Continued

State Maximum SSI

benefit

Food

stamp

benefit 2

Combined benefits

Monthly Annual

Oklahoma ............................................ 565 73 637 7,644

Oregon ................................................. 514 88 601 7,212

Pennsylvania ....................................... 539 80 619 7,428

Rhode Island ....................................... 576 69 645 7,740

South Carolina .................................... 512 89 600 7,200

South Dakota 3 .................................... 527 84 611 7,332

Tennessee ............................................ 512 89 600 7,200

Texas ................................................... 512 89 600 7,200

Utah ..................................................... 512 89 600 7,200

Vermont ............................................... 9 570 71 640 7,680

Virginia ................................................ 512 89 600 7,200

Washington .......................................... 10 539 81 619 7,428

West Virginia ....................................... 512 89 600 7,200

Wisconsin ............................................ 596 63 659 7,908

Wyoming .............................................. 522 86 607 7,284

1 In most States these maximums apply also to blind or disabled SSI recipients who are living in their

own households; but some States provide different benefit schedules for each category. 2 For one-person households, maximum food stamp benefits from October 1999 through September

2000 are $127 in the 48 contiguous States and the District of Columbia, $158 in Alaska, and $199 in

Hawaii.

For the 48 contiguous States and the District of Columbia, the calculation of benefits assumes: (1) a

‘‘standard’’ deduction of $134 per month; (2) an excess deduction of $250 per month (the 1998 average

deduction based on all claimed values for elderly individuals living alone). For Alaska and Hawaii, higher

deduction levels were used, as provided by law ($663 and $546, respectively, for combined standard and

excess shelter allowance). 3 January 2000 State supplemental payments unavailable. Calculations based on January 1999 payment

rates. 4 SSI recipients in California are ineligible for food stamps. California provides increased cash aid in

lieu of stamps. 5 Individual budget process.

6 State disregards $20 of SSI payment in determining the State supplementary payment.

7 State decides benefits on case-by-case basis.

8 Payment level for Hennepin County. State has two geographic payment levels—one for Hennepin

County and the other for the remainder of the State. 9 State has two geographic payment levels—highest are shown in table.

10 Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.

Source: Table prepared by the Congressional Research Service based on data from the Social Security

Administration.

COMPARISON OF SSI PAYMENT LEVELS TO POVERTY THRESHOLDS

Table 3–9 compares the Federal SSI benefit for a single individual to the Bureau of the Census poverty threshold. Both the poverty threshold and the benefit level are indexed to the Consumer

Price Index. (The percentage increase for the poverty threshold and

the SSI benefit increase varies slightly because of a difference in

the method of calculation.) As a result of Public Law 98–21, SSI

benefit levels were increased by $20 per month for individuals and

$30 per month for couples in July 1983. They were further increased by 3.5 percent in January 1984. This explains why SSI

benefits, in relation to the poverty level, increased to approximately

242

75 percent in 1984 and 1985 compared to 71 percent in the 1975

to 1982 period. In 1999, benefit levels were 76.8 percent of the poverty level.

TABLE 3–8.—MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED

COUPLES LIVING INDEPENDENTLY, JANUARY 2000 1

State Maximum SSI

benefit

Food

stamp

benefit 2

Combined benefits

Monthly Annual

Alabama .............................................. $769 $126 $894 $10,728

Alaska .................................................. 1,297 23 1,320 15,840

Arizona 3 .............................................. 769 126 894 10,728

Arkansas .............................................. 769 126 894 10,728

California ............................................. 1,229 4 0 1,216 14,592

Colorado .............................................. 1,096 28 1,123 13,476

Connecticut ......................................... 5 1,094 28 1,122 13,464

Delaware .............................................. 769 126 894 10,728

District of Columbia ............................ 769 126 894 10,728

Florida ................................................. 769 126 894 10,728

Georgia ................................................ 769 126 894 10,728

Hawaii ................................................. 778 254 1,031 12,372

Idaho ................................................... 6 788 120 908 10,896

Illinois .................................................. 7 769 126 894 10,728

Indiana ................................................ 769 126 894 10,728

Iowa ..................................................... 813 113 925 11,100

Kansas ................................................. 769 126 894 10,728

Kentucky .............................................. 769 126 894 10,728

Louisiana ............................................. 769 126 894 10,728

Maine ................................................... 784 121 905 10,860

Maryland .............................................. 769 126 894 10,728

Massachusetts .................................... 971 65 1,035 12,420

Michigan .............................................. 797 117 914 10,968

Minnesota 8 .......................................... 9 880 92 972 11,664

Mississippi .......................................... 769 126 894 10,728

Missouri ............................................... 769 126 894 10,728

Montana .............................................. 769 126 894 10,728

Nebraska ............................................. 769 126 894 10,728

Nevada ................................................ 843 103 946 11,352

New Hampshire ................................... 790 119 909 10,908

New Jersey ........................................... 794 118 912 10,944

New Mexico .......................................... 769 126 894 10,728

New York ............................................. 873 95 967 11,604

North Carolina ..................................... 769 126 894 10,728

North Dakota ....................................... 769 126 894 10,728

Ohio ..................................................... 769 126 894 10,728

Oklahoma ............................................ 875 94 968 11,616

Oregon ................................................. 769 126 894 10,728

Pennsylvania ....................................... 813 113 925 11,100

Rhode Island ....................................... 890 90 979 11,748

South Carolina .................................... 769 126 894 10,728

South Dakota 3 .................................... 784 121 905 10,860

Tennessee ............................................ 769 126 894 10,728

Texas ................................................... 769 126 894 10,728

243

TABLE 3–8.—MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED

COUPLES LIVING INDEPENDENTLY, JANUARY 2000 1—Continued

State Maximum SSI

benefit

Food

stamp

benefit 2

Combined benefits

Monthly Annual

Utah ..................................................... 774 124 897 10,764

Vermont ............................................... 10 877 93 970 11,640

Virginia ................................................ 769 126 894 10,728

Washington .......................................... 11 790 120 909 10,908

Wisconsin ............................................ 769 126 894 10,728

Wyoming .............................................. 644 163 807 9,684

West Virginia ....................................... 794 118 912 10,944

1 In most States these maximums apply also to blind or disabled SSI recipients who are living in their

own households; but some States provide different benefit schedules for each category. 2 For two-person households, maximum food stamp benefits from October 1999 through September

2000 are $234 in the 48 contiguous States and the District of Columbia, $290 in Alaska, and $365 in

Hawaii.

For the 48 contiguous States and the District of Columbia, the calculation of benefits assumes: (1) a

‘‘standard’’ deduction of $134 per month, (2) an excess deduction of $274 per month (the 1998 average

deduction based on all claimed values for elderly individuals not living alone). For Alaska and Hawaii,

higher deduction levels were used, as provided by law ($663 and $546, respectively, for combined standard and excess shelter allowance). 3 January 2000 State supplemental payments unavailable. Calculations based on January 1999 payment

rates. 4 SSI recipients in California are ineligible for food stamps. California provides increased cash aid in

lieu of stamps. 5 Individual budget process.

6 State disregards $20 monthly of SSI income in determining the State supplementary payment

amounts. 7 State decides benefits on case-by-case basis.

8 State supplemental SSI payment for individual whose entitlement began January 1, 1994. State supplement for individuals whose entitlement began before January 1, 1994 is an additional $15 per month. 9 Payment level for Hennepin County. State has two geographic payment levels—one for Hennepin

County and one for the remainder of the State. 10 State has two geographic payment levels—highest levels are shown in table. 11 Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.

Source: Table prepared by the Congressional Research Service based on data from the Social Security

Administration.

Table 3–10 presents the same information for a couple. The Supplemental Security Income (SSI) benefit for a couple is 91.6 percent

of the poverty threshold in 1999.

TRENDS IN THE SSI CASELOAD

NUMBER OF RECIPIENTS

As shown in table 3–11, in December 1999, nearly 6.6 million

persons received federally administered SSI payments. Of these,

1.3 million received federally administered payments on the basis

of being aged, 5.2 million on the basis of being disabled, and 79,000

on the basis of blindness. However, 709,600 of those receiving benefits on the basis of disability or blindness were over the age of 65.

Table 3–11 also indicates that approximately 4.1 million of those

receiving federally administered SSI payments received only Federal SSI payments, 2.2 million received a combination of Federal

and State payments, and 282,000 received State supplements only.

TABLE 3–9.—COMPARISON OF COMBINED BENEFITS TO POVERTY THRESHOLDS FOR ELIGIBLE INDIVIDUALS RECEIVING SSI; SSI AND SOCI

SECURITY; AND SSI, SOCIAL SECURITY, AND FOOD STAMPS, SELECTED YEARS 1975–99

Poverty threshold and benefits

Calendar year

1975 1980 1984 1986 1988 1990 1992 1994 1996 1998 

Poverty threshold ............................. $2,572 $3,941 $4,980 $5,255 $5,672 $6,268 $6,729 $7,107 $7,309 $7,818 Federal SSI benefits:

Dollars per year ...................... $1,822 $2,677 $3,768 $4,032 $4,248 $4,632 $5,064 $5,352 $5,640 $5,928 Percent of poverty ................... 70.8 72.3 75.6 76.7 74.9 73.9 75.3 75.3 77.2 75.8 

Federal SSI and Social Security:

Dollars per year ...................... $2,062 $2,917 $4,008 $4,272 $4,488 $4,872 $5,304 $5,592 $5,880 $6,168 Percent of poverty ................... 80.2 74.0 80.5 81.3 79.1 77.7 78.8 78.7 80.4 78.8 

Federal SSI, Social Security, and

food stamps: 1

Dollars per year ...................... $2,350 $3,345 $4,294 $4,488 $4,848 $5,318 $5,820 $6,072 $6,372 $6,672 Percent of poverty ................... 91.4 84.9 86.2 85.4 85.5 84.8 86.5 85.4 87.2 85.3 

1 In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996), the applicable standard 

plus average among all elderly households is assumed. For 1999 the food stamp benefit calculation is based on the 1998 average elderly individual deduction, the mosavailable. For 1996 the applicable standard deduction plus average shelter and medical deductions among all SSI households is assumed.

Source: Congressional Research Service.

TABLE 3–10.—COMPARISON OF COMBINED BENEFITS TO POVERTY THRESHOLDS FOR ELIGIBLE COUPLES RECEIVING SSI; SSI AND SOCIAL SEC

AND SSI, SOCIAL SECURITY, AND FOOD STAMPS, SELECTED YEARS 1975–99

Poverty threshold and benefits

Calendar year

1975 1980 1984 1986 1988 1990 1992 1994 1996 1998 

Poverty threshold ......................... $3,232 $4,954 $6,280 $6,628 $7,156 $7,906 $8,489 $8,964 $9,221 $9,862 Federal SSI benefits:

Dollars per year .................. $2,734 $4,016 $5,664 $6,048 $6,384 $6,948 $7,596 $8,028 $8,460 $8,892 Percent of poverty ............... 84.6 81.1 90.2 91.2 89.2 87.9 89.5 89.6 91.7 90.1 

Federal SSI and Social Security:

Dollars per year .................. $2,974 $4,256 $5,904 $6,288 $6,624 $7,188 $7,836 $8,268 $8,700 $9,132 Percent of poverty ............... 92.0 86.0 94.0 94.9 92.6 90.9 92.3 92.2 94.3 92.5 

Federal SSI, Social Security, and

food stamps: 1

Dollars per year .................. $3,430 $4,906 $6,393 $6,696 $7,200 $7,935 $8,700 $9,084 $9,540 $10,056 Percent of poverty ............... 106.1 99.0 101.8 101.0 100.6 100.4 102.5 101.3 103.5 101.9 

1 In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996), the applicable standard 

plus average shelter and medical deductions among all elderly households is assumed. For 1999, the food stamp benefit calculation is based on the 1998 average eldededuction, the most current available. For 1996 the applicable standard deduction plus average shelter and medical deductions among all SSI households is assumed.

Source: Congressional Research Service.

246

TABLE 3–11.—NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED PAYMENTS,

TOTAL AMOUNT AND AVERAGE MONTHLY AMOUNT, BY SOURCE OF PAYMENT AND

CATEGORY, DECEMBER 1999

Source of payment Total Aged Blind 1 Disabled 1

Number of persons

Federally administered payments 6,556,634 1,308,062 79,291 5,169,281

Federal payment only ......... 4,115,152 687,801 43,173 3,384,178

Both Federal and State

supplementation ............ 2,159,555 515,255 30,406 1,613,894

State supplementation only 281,927 105,006 5,712 171,209

Total Federal payment ... 6,274,707 1,203,056 73,579 4,998,072

Total State supplementation .................. 2,441,482 620,261 36,118 1,785,103

Amount of payments [in thousands] 2

Federal payments ........................ $2,290,591 $304,775 $26,347 $1,959,469

State supplementation ................ 283,428 79,579 6,246 197,603

Total ............................... 2,574,019 384,135 32,593 2,157,072

Average monthly amount

Federal payments ........................ 341.86 249.36 350.72 364.24

State supplementation ................ 110.92 125.90 167.64 104.52

Total ............................... 368.53 289.19 401.99 388.29

1 Blind includes approximately 19,200 and disabled 690,400 persons aged 65 and older.

2 Includes retroactive payments.

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI

Statistics and Analysis.

Table 3–12 shows the trends in the numbers of persons receiving

federally administered SSI payments from December 1975 through

December 1999, both by reason for eligibility and by age categories.

There was a steady decline in the number of SSI recipients from

1975 until 1983. However, in the last 16 years the number of SSI

recipients has increased from about 3.9 million to about 6.6 million,

an increase of 69 percent.

CHARACTERISTICS OF ADULT DISABLED AND BLIND RECIPIENTS

Major disabling diagnosis.—As shown in table 3–13, of the SSI

disabled ages 18–64, 24.5 percent were eligible on the basis of mental retardation and 33.9 percent on the basis of other mental disorders. Therefore, over one-half of all SSI disabled recipients are eligible on the basis of a mental disability. The next three largest

categories are: diseases of the musculoskeletal system and connective tissues—9.6 percent; diseases of the nervous system and sense

TABLE 3–12.—NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI PAYMENTS BY CATEGORY AND AGE, SELECTED YEARS 197

[In thousands]

Reason for eligibility and age

Year

Dec.

1975

Sept.1983

Sept.1986

Sept.1988

Sept.1989

Sept.1990

Sept.1991

Sept.1992

Sept.1993

Sept.1994

Sept.1995

Sept.1996

Dec.

1998

Reason for eligibility:

Aged ............................................... 2,307 1,528 1,476 1,434 1,439 1,452 1,463 1,478 1,474 1,470 1,455 1,429 1,332 Blind .............................................. 74 79 83 83 83 84 85 86 86 85 85 83 73 

Under 18 ................................... 3677777888887

18–21 ........................................ 455444444444422–64 ........................................ 46 45 48 49 49 50 51 52 52 52 52 51 50 65 or older ................................ 22 23 23 22 22 22 22 22 22 21 21 20 19 

Disabled ......................................... 1,933 2,292 2,673 2,917 3,048 3,229 3,502 3,921 4,348 4,692 4,956 5,124 5,154 

Under 18 ................................... 104 191 231 247 256 287 366 511 683 812 898 950 880 18–21 ........................................ 90 122 138 136 139 143 150 167 186 202 219 232 235 22–64 ........................................ 1,559 1,517 1,787 1,987 2,091 2,218 2,393 2,637 2,864 3,049 3,193 3,285 3,359 65 or older ................................ 179 462 517 548 563 579 592 606 615 629 646 656 684 

Age:

Under 18 ........................................ 107 197 238 254 263 294 373 518 691 820 906 958 887 18–21 ............................................ 93 127 143 140 143 147 154 171 190 206 223 236 236 22–64 ............................................ 1,605 1,562 1,835 2,036 2,140 2,269 2,445 2,690 2,917 3,101 3,245 3,337 3,409 65 or older ..................................... 2,508 2,013 2,016 2,003 2,023 2,051 2,078 2,107 2,110 2,120 2,121 2,105 2,035 

Total .......................................... 4,314 3,898 4,232 4,434 4,570 4,764 5,050 5,486 5,908 6,247 6,495 6,636 6,566 

Source: Office of Research, Evaluation and Statistics, Social Security Administration.

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TABLE 3–13.—DISABILITY DIAGNOSIS OF SSI AND SECTION 1619 DISABILITY

RECIPIENTS, DECEMBER 1999 1

[Percentage distribution by diagnostic group]

Diagnostic group

Supplemental Security Income (SSI)

All SSI disabled 18–64

yrs.

SSI section

1619(a) participants

SSI section

1619(b) participants

Infectious and parasitic diseases ............. 2.2 1.6 2.6

Neoplasms .................................................. 1.3 1.0 1.3

Endocrine, nutritional, and metabolic disorders ..................................................... 5.6 2.4 2.8

Mental disorders:

Schizophrenia .................................... 10.9 9.7 11.5

Other psychiatric ............................... 23.0 20.8 21.5

Mental retardation ............................ 24.5 43.7 37.2

Diseases of:

Nervous system and sense organs 2 8.3 12.0 12.3

Circulatory system ............................ 5.7 1.7 2.0

Respiratory system .......................... 2.5 1.1 1.0

Digestive system ............................... 0.9 0.4 0.5

Genito-urinary system ..................... 1.2 1.2 1.5

Musculoskeletal system and connective tissues ................................... 9.6 3.5 4.9

Congenital anomalies ................................ 0.4 0.8 0.8

Injury and poisoning .................................. 2.9 2.2 2.9

Other .......................................................... 0.9 1.2 1.1

Total percent 2 .............................. 100.0 100.0 100.0

Total individuals 3 ........................ 3,690,970 25,202 67,150

1 Information on diagnosis of all SSI disabled recipients is based on universe counts for December

1999. Information on diagnosis for section 1619 participants is available from SSI source files. 2 Includes only recipients whose diagnosis information is specifically identified on the source files.

3Most of the section 1619(b) participants who are classified as blind individuals are included in this

category. A few section 1619(b) blind participants have a primary impairment other than diseases of the

eye and are coded in other categories in this table. Also, there are a few participants classified as having diseases of the eye who are not blind, whose impairment does not meet the definition of blindness,

and who are classified as disabled.

Source: Office of Supplemental Security Income, Social Security Administration.

organs—8.3 percent; and diseases of the circulatory system—5.7

percent.

In December 1999, 1.3 million or 29.8 percent of the adult disabled or blind receiving SSI benefits had a representative payee.

Representative payees are individuals, agencies, or institutions selected by the Social Security Administration (SSA) to receive and

use SSI payments on behalf of the SSI recipient when it has been

found necessary by reason of the mental or physical limitations of

the recipient.

Age.—When a person who is receiving SSI on the basis of blindness or disability becomes age 65, SSA does not convert the individual to eligibility on the basis of age. As shown in table 3–14, 19.7

percent of the SSI adult population receiving benefits on the basis

249

of disability are age 65 or older (32.1 percent of the blind were age

65 or older).

Sex.—In December 1999, 55.5 percent of those receiving SSI benefits on the basis of disability were women.

Race.—In January 1997, the most recent available data showed

that 52.4 percent of those receiving SSI on the basis of disability

were white; 30.9 percent were black; 12.7 percent were other races;

and in 4 percent of the cases, race was not reported.

Other income.—In December 1999, 30.4 percent of the disabled

and 34.8 percent of the blind received Social Security benefits.

Table 3–15 shows the number of SSI recipients with other sources

of income, both unearned and earned.

TABLE 3–14.—NUMBER AND PERCENTAGE DISTRIBUTION OF SSI RECIPIENTS RECEIVING

FEDERALLY ADMINISTERED PAYMENTS BY CATEGORY AND AGE GROUP, DECEMBER 1999

Age group Total Aged Blind Disabled

Under 5 ............................................. 1.4 ................ ................ ................

5–9 .................................................... 2.2 ................ ................ ................

10–14 ................................................ 2.8 ................ ................ ................

15–17 ................................................ 1.6 ................ ................ ................

18–21 ................................................ 2.5 ................ 4.6 3.8

22–29 ................................................ 5.7 ................ 9.3 8.5

30–39 ................................................ 10.2 ................ 13.2 15.1

40–49 ................................................ 13.5 ................ 15.9 20.0

50–59 ................................................ 14.7 ................ 16.4 21.9

60–64 ................................................ 7.4 ................ 8.6 11.0

65–69 ................................................ 9.1 14.6 8.4 8.2

70–74 ................................................ 9.4 23.9 8.0 5.3

75–79 ................................................ 8.1 24.3 5.9 3.1

80 or older ........................................ 11.2 37.2 9.8 3.1

Total percent ........................ 100.0 100.0 100.0 100.0

Total number ....................... 6,556,634 1,308,062 72,500 4,328,810

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI

Statistics and Analysis.

CHARACTERISTICS OF RECIPIENTS RECEIVING BENEFITS ON THE

BASIS OF AGE

Age.—In December 1999, of SSI recipients receiving benefits on

the basis of age (65 or older), 37.2 percent were 80 years of age or

older (table 3–14).

Sex.—In January 1997, 72.9 percent of those receiving benefits

on the basis of age were women.

Race.—In January 1997, 48.6 percent of those receiving SSI on

the basis of age were white; 20.5 percent were black; 27.4 percent

were other races; and in 3.5 percent of the cases, race was not reported.

Other income.—In December 1996, 59.9 percent of SSI recipients

receiving benefits on the basis of age also received Social Security

benefits. Only 1.6 percent had earned income.

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The number of persons receiving federally administered SSI payment and unearned income, by type of income, is included in table

3–16.

TABLE 3–15.—PERSONS RECEIVING FEDERALLY ADMINISTERED PAYMENTS AND ALSO

RECEIVING OTHER INCOME, AND AVERAGE MONTHLY AMOUNT OF INCOME, BY

SOURCE OF INCOME AND DISABILITY CATEGORY, DECEMBER 1999

Source of income Total Aged Blind 1 Disabled 2

Number with income

Social Security benefits .............. 2,383,295 783,777 27,579 1,571,939

Other unearned income ............... 766,330 243,766 8,901 513,663

Earned income ............................ 294,525 21,028 5,708 267,789

Percent with income

Social Security benefits .............. 36.3 59.9 34.8 30.4

Other unearned income ............... 11.7 18.6 11.2 9.9

Earned income ............................ 4.5 1.6 7.2 5.2

Average monthly income

Social Security benefits .............. $383.82 $386.79 $399.54 $382.07

Other unearned income ............... 128.99 99.12 114.53 143.42

Earned income ............................ 286.62 251.83 544.48 283.86

Total number ................. 6,556,634 1,308,062 79,291 5,169,281

1 Includes approximately 19,200 persons aged 65 or older.

2 Includes approximately 690,400 persons aged 65 or older.

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI

Statistics and Analysis.

TABLE 3–16.—NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI PAYMENTS AND UNEARNED INCOME (OTHER THAN SOCIAL SECURITY) AND AVERAGE

MONTHLY UNEARNED INCOME, BY TYPE OF INCOME, DECEMBER 1999

Type of income Number Average income

Veterans benefits .................................................................... 96,603 $161.60

Income based on need ........................................................... 12,560 168.29

Worker’s compensation ........................................................... 4,616 317.30

Support from absent parents ................................................. 89,410 175.25

Employment pensions ............................................................. 59,266 152.51

Support and maintenance in kind ......................................... 230,630 116.21

Asset income .......................................................................... 237,692 6.80

Other ....................................................................................... 66,293 355.14

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI

Statistics and Analysis.

251

CHARACTERISTICS OF CHILDREN RECEIVING BENEFITS

To be eligible for Supplemental Security Income (SSI) payments

as a child, an individual must be under age 18 (or under age 22

if a full-time student), be unmarried, and meet the SSI criteria for:

disability or blindness; citizenship/residency; and income and resources.

At the end of SSI’s first year (December 1974), 71,000 disabled

and blind children received SSI benefits, less than 2 percent of the

total SSI caseload. By December 1980, payments were made to almost 229,000 blind and disabled children, 5.5 percent of the SSI

caseload. By December 1996, 1,018,000 blind and disabled children

were eligible for SSI payments, nearly a fourteenfold increase over

December 1974. These children made up 15.4 percent of SSI recipients, and represented a fast growing segment of the SSI population.

Many analysts attribute the growth in the early and midnineties

to outreach activities, the Supreme Court decision in the Zebley

case (which mandated an individualized functional assessment

process for children under age 18), expansion of the mental impairment category, and reduction in reviews of continuing disability.

The rapid growth in the number of children receiving SSI, as

well as the debate over the procedures by which children’s eligibility should be judged, led Congress to enact provisions as part of

the 1996 welfare reform law that changed the SSI Program with

respect to disabled children (Public Law 104–193). This law discontinued the individualized functional assessment disability determination procedure. Under this procedure, persons whose impairments were not equivalent to those in the Federal ‘‘Listing of Impairments’’ were reviewed under a less stringent process. The 1996

law established a new (separate) disability definition for children

(under age 18) which requires a child to have ‘‘a medically determinable physical or mental impairment which results in marked or

severe functional limitations, and which can be expected to result

in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.’’ Changes in the eligibility

rules applied to new applications and pending requests for administrative and judicial review effective beginning August 22, 1996.

The 1996 law also required SSA to conduct one-time redeterminations of the eligibility of children already on the rolls who

might not meet the new eligibility criteria. SSA is also required, on

an ongoing basis, to conduct continuing disability reviews (CDRs)

of low birth weight babies, all other children whose impairments

are likely to improve, and 18 year olds.

The Congressional Budget Office (CBO) estimated that the 1996

SSI reforms affecting children would result in direct (mandatory)

Federal SSI savings of $7.4 billion over 6 years (fiscal years 1997–

2002). However, after writing the regulations implementing the

1996 children’s reforms, SSA estimated that about 135,000 children

(13 percent of SSI child recipients) would no longer qualify for SSI

as a result of the new regulations. SSA expected the average number of SSI children to fall to 950,000 in fiscal year 1998, when the

law became fully implemented, before rising again in subsequent

years. SSA estimated that Federal program savings would amount

252

to $4.8 billion over the 6-year period—not $7.4 billion as estimated

by CBO.

SSA estimated that 288,000 children receiving SSI needed to be

redetermined under the new law. As of April 1, 2000, 102,000 (35

percent) of children who received notices of redetermination were

found to be ineligible for SSI benefits. About 21,000 of these cessations are pending appeal at the reconsideration or administrative

law judge level.

The number of children receiving SSI payments, and the percentage of the caseload they represent, has declined from 955,174 (14.4

percent) in December 1996 to 879,828 (13.5 percent) in December

1997, 887,066 (13.5 percent) in December 1998, and 847,063 (12.9

percent) in December 1999.

In December 1999, 65.7 percent of SSI children were 12 years old

or younger, and about 15 percent were under 5 years old. About

34.2 percent, an estimated 288,000 children, were between the ages

of 13 and 17. Child recipients were more likely to be boys than

girls, by about 3 to 2.

An estimated 82.1 percent of children lived in their parent’s

household. Less than 2 percent of the children were patients in a

medical facility where more than half of the cost of their care was

covered by the Medicaid Program. Another 16.6 percent lived in

other hospitals, nursing homes, residential schools, foster care, or

independently.

About 24.8 percent of the children had some type of unearned income. The three major types of unearned income were: support

from absent parents (10 percent), Social Security benefits (7.3 percent), and in-kind support and maintenance (6.8 percent). In addition, about 15.4 percent of children had income ‘‘deemed’’ from

their parents.

OVERVIEW OF CASELOAD DEVELOPMENTS

In summary, the trends in the nature of the SSI population show

the following:

—A steady decline in the number of persons receiving SSI benefits on the basis of old age.

—A recent decrease in the number of blind and disabled children

under 18 receiving SSI; from a high of 14.4 percent of total SSI

recipients in December 1996 to 12.9 percent in December 1999.

—A continuing increase in the number of persons ages 18–64 receiving benefits on the basis of disability or blindness. Between

December 1989 and December 1999, this group of beneficiaries

grew by more than 1,389,000 persons (from 50.1 percent to

56.3 percent of the recipient population).

ELIGIBILITY OF DRUG ADDICTS AND ALCOHOLICS

Under both the SSI and the Social Security Disability Insurance

(DI) Programs, disability is defined as a mental or physical impairment that is so severe that it prevents an individual from doing

any kind of work that exists in the national economy, taking into

account age, education, and work experience. Prior to January

1997, drug addiction and alcoholism (DAA) were qualifying medical

impairments under both SSI and DI. Thus, a person whose drug

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addiction or alcoholism was a contributing factor material to his

disability was eligible for SSI. The SSI Program required that payments for drug addicts and alcoholics be made to a representative

payee (i.e., a person or agency responsible for managing the recipient’s finances), that recipients participate in treatment if available,

and that the treatment be monitored.

SSI provisions relating to drug addicts and alcoholics were contained in the original SSI law (Public Law 92–603). Initially, the

Senate sought to exclude these individuals from SSI by putting

them in a separate services program. During debate on the 1972

legislation, Members of the Senate argued that these drug addicts

and alcoholics would need treatment, case management, and close

monitoring so that they would not use the SSI benefits to ‘‘support

their alcoholism or addiction.’’ The Senate provision that excluded

drug addicts and alcoholics from the SSI Program was deleted in

favor of the House provision that required recipients to undergo

treatment. The Senate’s concern about providing direct payments

to substance abusers was accommodated by the provision requiring

that benefits be provided through representative payees. Although

virtually all SSI recipients diagnosed as drug addicts or alcoholics

received their payments via a representative payee, most representative payees were family members or friends of recipients,

and it is suspected that some of them were likely to give in to

threats, coercion, or persuasion of the recipient, thereby in some

cases enabling recipients to obtain direct control of their SSI payments.

In 1994, Congress responded to concerns that significant numbers of SSI and DI recipients were using their Federal cash payments to support their addictions by passing legislation (Public

Law 103–296) that placed a 3-year time limit on program benefits

to persons disabled solely because of their addiction to drugs or alcohol, extended requirements on treatment and monitoring to DI

recipients, required DI recipients classified as substance abusers to

receive their benefits through representative payees, encouraged

organizations and agencies to act as representative payees for recipients classified as substance abusers, and temporarily or permanently ended benefits of recipients who failed to comply with treatment requirements.

In 1996, Congress passed legislation that went even further by

terminating drug and alcohol addiction as conditions that qualify

individuals for SSI benefits. Under Public Law 104–121, individuals would not be considered disabled for either SSI or DI if drug

addiction or alcoholism were the contributing factor material to

their disability. The law mandated the Commissioner of Social Security to require that persons who qualified for SSI or DI based on

some other disabling condition, but who are nonetheless determined to have a drug or alcohol condition and are incapable of

managing their own benefits, have a representative payee and be

referred for treatment. The preferred representative payee for persons with a drug or alcohol condition who are not capable of managing their own benefits is an organization. Public Law 104–121

also authorized $50 million for fiscal year 1997 and $50 million for

fiscal year 1998 for drug treatment services. Recipients classified

solely as drug addicts or alcoholics became ineligible for SSI beginVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00253 Fmt 6601 Sfmt 6602 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
254

ning January 1, 1997. Applicants were no longer eligible for benefits beginning March 29, 1996 if they were disabled solely on the

basis of drug or alcohol addiction.

Following the passage of Public Law 104–121, SSA notified

209,372 individuals who were receiving SSI or DI benefits based on

drug addiction and/or alcoholism. (According to SSA, approximately

90,000 recipients of DI—about 47,000 of whom were also SSI beneficiaries—were identified as drug addict and alcoholic beneficiaries

in 1996. However, historical data on DI beneficiaries does not exist

as the drug addict and alcoholic provisions of the Social Security

Act were not applicable until 1995.) As of April 2, 1999, approximately 140,978 beneficiaries responded to the notices. About 10,000

of these responses did not require medical determination because

of erroneous coding of disability diagnosis or cessation of benefits

before January 1, 1997.

Of all beneficiaries identified as having a drug or alcohol addiction, SSA terminated benefits for 124,746 (59.6 percent) and continued benefits based on another disability for 83,746 (39.9 percent).

Another 859 individuals qualified for benefits based on age. These

figures will change as the agency processes more appeals and hearing decisions.

ELIGIBILITY OF NONCITIZENS FOR SSI

Although the 1996 welfare reform law (Public Law 104–193)

barred most noncitizens from receiving SSI, this prohibition was

modified by Public Law 105–33, the Balanced Budget Act of 1997,

for legal immigrants who were receiving SSI on August 22, 1996

and disabled legal immigrants who were living in the United

States on August 22, 1996. The Noncitizen Benefit Clarification

and Other Technical Amendments Act of 1998 (Public Law 105–

306) provided continuing eligibility for SSI for nonqualified aliens

who were receiving benefits on August 22, 1996. For more information on provisions and issues related to noncitizens, see appendix

J.

ELIGIBILITY OF THE HOMELESS

SSA has developed several outreach programs and administrative initiatives to better meet the needs of the homeless who may

be eligible for SSI. This action was prompted by evidence that approximately 30 to 40 percent of the residents of emergency homeless shelters are chronically mentally ill and are former residents

of mental institutions (Quigley, 1992).

These initiatives address the special problems related to the

homeless: they are often difficult to locate and contact; they have

limited ability to find information needed to apply for benefits; and

they are often reluctant to follow through with the claims process

or are incapable of doing so. While many of the chronically mentally ill live with family members or have other ongoing contact

with those who can assist them with daily living activities, the

homeless mentally ill are more likely to have very limited contact

with family or others who could assist them in obtaining housing

or applying for benefits.

255

In response, SSA has initiated a wide range of outreach activities. For example, local field offices have established ongoing programs in which local social service agencies, soup kitchens, shelters, and churches screen homeless people for possible SSI eligibility, refer them to SSA, and help them through the application

process. Many of SSA’s outreach demonstration programs deal specifically with the homeless or concentrate on the homeless in addition to other target populations, especially individuals who suffer

from mental illness or AIDS.

SPECIAL SSI PROVISIONS FOR THE WORKING DISABLED

EARNED INCOME DISREGARDS

Since SSI began in 1974, the law has required that a portion of

the earned income of SSI recipients be disregarded in determining

eligibility for and the amount of SSI benefits. In determining SSI

eligibility and benefits, the first $65 of monthly earned income (or,

up to the first $85 if the recipient has no unearned income) plus

one-half of the remaining earnings are disregarded. In addition, all

work-related expenses are disregarded in the case of blind persons

and impairment-related work expenses are disregarded in the case

of disabled persons. Finally, income and resources set aside under

a plan for achieving self-support (PASS) are excluded.

ELIMINATING WORK DISINCENTIVES

Prior to enactment of the section 1619 program in 1980 on a temporary 3-year basis (see below), a disabled SSI recipient who

worked faced a substantial risk of losing both SSI cash benefits and

Medicaid. Work was treated the same way it was under the Social

Security Disability Insurance Program: after a trial work period,

work at the level of substantial gainful activity ($700 or more of

earnings per month; $300 per month before January 1990) led to

the loss of disability status even if the individual’s total income and

resources were within SSI Program limits. Loss of SSI disability

status caused loss of categorical Medicaid eligibility as well. Thus,

disabled individuals had a disincentive to work because of their

fear of losing SSI and Medicaid.

In response to this work disincentive, in 1986 Congress enacted

Public Law 99–643 which added section 1619 to the Social Security

Act. Under this provision, SSI recipients who work can continue to

receive benefits even if their earnings are at or above the level of

substantial gainful activity and as long as there is not a medical

improvement in the disabling condition. Under the income disregard formula, the amount of their cash benefits is gradually reduced as earnings increase until their countable earnings reach the

SSI benefit standard or what is known as the ‘‘break-even point.’’

In a State with no supplementation, as shown in table 3–2, this

earned income eligibility limit is $1,109 per month in 2000 for a

person who has no unearned income. People who receive section

1619 benefits continue to be eligible for Medicaid on the same basis

as regular SSI recipients. If States supplement the Federal benefits

standard, the ‘‘break-even point’’ increases $2 for every $1 of State

supplementation above the Federal benefit standard.

256

Under section 1619(b), blind and disabled individuals can continue to be eligible for Medicaid even if their earnings take them

past the SSI income disregard ‘‘break-even point.’’ In some 209(b)

States, workers may lose Medicaid eligibility before attaining 1619

(a) or (b) status if they did not have Medicaid coverage the month

before section 1619 status began, thus making this provision inoperable for those workers. Special eligibility status granted by section 1619(b), under which the individual is considered a blind or

disabled individual receiving SSI benefits for purposes of Medicaid

eligibility, applies as long as the individual: (1) continues to be

blind or have a disabling impairment; (2) except for earnings, continues to meet all the other requirements for SSI eligibility; (3)

would be seriously inhibited from continuing to work by the termination of eligibility for Medicaid services; and (4) has earnings that

are not sufficient to provide a reasonable equivalent of the benefits

(SSI, State supplementary payments, Medicaid and publicly funded

attendant care) that would have been available if he did not have

those earnings.

In making an initial determination under the fourth criterion,

SSA decided to compare the individual’s gross earnings to a

‘‘threshold’’ amount. The threshold amount is the amount of gross

earnings, after the monthly $20 general income, $65 earned income, and one-half of the remainder exclusions are applied, that it

would take to reduce to zero the Federal SSI benefit and State supplementary payment plus the average Medicaid expenditures for

disabled SSI cash recipients for the State of residence. If the individual’s earnings exceed this threshold, an individualized threshold

is calculated which considers the person’s actual Medicaid use, the

State supplement rate for the person’s actual living arrangement,

and the value of publicly funded attendant care available to the

person in the absence of earnings. In determining a person’s income to compare to the individualized threshold, any applicable exclusions are deducted from earnings, including work expenses if the

person is blind, impairment-related work expenses, and income set

aside under a plan for achieving self-support.

In other words, Medicaid eligibility continues until the individual’s earnings reach a higher plateau which takes into account the

person’s ability to afford both medical care and normal living expenses.

A disabled individual also has the ongoing protection of being

able to be reinstated to eligibility for cash assistance benefits under

regular SSI or 1619(a), or Medicaid only eligibility under 1619(b)

if her work attempt fails or the physical or mental disability causes

a pattern of erratic work. This protection is not indefinite, but SSA

cannot terminate the disability status of an individual for 12

months after her most recent determination of eligibility for regular SSI or under section 1619 (a) or (b). However, if the individual

recovers medically, a new application and new disability determination would be required to establish a new period of eligibility

once the individual has been off the rolls for 12 months or more.

The ticket to work law enacted in 1999 (Public Law 106–170)

contains a number of provisions designed to eliminate work disincentives that existed in the SSI Program. Under this law an individual whose eligibility for SSI benefits (including eligibility under

257

section 1619(b) has been terminated due to 12 consecutive months

of suspension for excess income from work activity, may request reinstatement of SSI benefits without filing a new application. To be

eligible for this expedited reinstatement of benefits, an individual

must have become unable to continue working due to a medical

condition and must file the application for reinstatement within 60

months of the termination of benefits.

The ticket to work law also requires SSA to establish a community-based Work Incentive Planning and Assistance Program to

provide individuals with information on SSI work incentives. Specifically, SSA must establish a corps of work incentive specialists

within the agency and a program of grants, cooperative agreements, and contracts to provide benefit planning and assistance to

individuals with disabilities and outreach to individuals who may

be eligible for the Work Incentive Program.

SSA is authorized by the ticket to work law to make grants directly to qualified protection and advocacy programs to provide

services and advice about vocational rehabilitation, employment

services, and obtaining employment to SSI beneficiaries.

States have the option of covering additional groups of working

individuals under Medicaid. The ticket to work law allows States

to provide Medicaid coverage to working individuals with disabilities who, except for their earnings, would be eligible for SSI and

to working individuals with disabilities whose medical conditions

have improved. Individuals covered under this new option could

buy into Medicaid coverage by paying premiums or other cost-sharing charges on a sliding fee scale based on income established by

the State. States are permitted to allow working individuals with

incomes above 250 percent of the Federal poverty level to buy into

the Medicaid Program.

SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS

Section 251 of Public Law 106–169, enacted on December 14,

1999, provides special benefits to certain World War II veterans

who served in the U.S. military during the period beginning September 16, 1940 and through July 24, 1947, or who served in the

organized military of the Philippines during the period beginning

July 26, 1941 and through December 30, 1946. The special benefits

are payable each month after April 2000 that these veterans reside

outside the United States.

In order to be eligible for the special benefits, an individual

must: (1) be age 65 or older on December 14, 1999 (the date Public

Law 106–169 was enacted); (2) be a World War II veteran as described above; (3) file an application for the special veterans benefits and be eligible for SSI for that month; (4) be eligible for SSI

in December 1999; and (5) not have other benefit income above 75

percent of the current SSI Federal benefit rate.

Qualified veterans receive a monthly benefit equal to 75 percent

of the current SSI Federal benefit rate less the amount of their

benefit income for the month. The maximum benefit under this formula for 2000 is $384. There is no provision for the payment of

benefits to dependents or survivors. ‘‘Benefit income’’ means any recurring payments such as annuities, pensions, retirement or disability benefits that the veteran received during the 12-month peVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00257 Fmt 6601 Sfmt 6602 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
258

riod immediately before applying for special benefits, or payments

received later that are similar to benefits received during the 12-

month period.

MEASURES OF SSI PARTICIPATION AND GROWTH

SSI PARTICIPATION RATES

Table 3–17 shows several measures of Federal SSI participation

among the elderly and the total population. The numerator in the

first three columns is the sum of columns 2 and 4 in table 3–19.

Thus, the number of SSI aged participants includes the disabled

and blind population over age 65. Column 1 simply divides the SSI

aged participants by the total number of elderly. That rate declined

from 11.1 percent in 1975 to 6.5 percent in 1989, primarily as a result of increasing incomes among the aged and decreasing participation among low-income elderly. The rate was 5.9 percent in 1998.

Column 2 presents the number of elderly SSI recipients divided by

the number of poor elderly. This rate declined from 76 percent in

1975 to 54 percent in 1982. Between 1982 and 1984, this percentTABLE 3–17.—PERCENTAGE OF GENERAL POPULATION ENROLLED IN SSI, 1975–96

Year Among all

elderly

Among elderly

poor

Among

pretransfer

elderly poor

Among entire

population

1975 .................................. 11.1 75.6 NA 2.0

1976 .................................. 10.3 72.4 NA 1.9

1977 .................................. 9.8 74.1 NA 1.9

1978 .................................. 9.4 71.5 NA 1.9

1979 .................................. 9.0 61.3 68.7 1.8

1980 .................................. 8.7 57.5 64.7 1.8

1981 .................................. 8.1 55.0 63.3 1.8

1982 .................................. 7.5 53.6 62.3 1.7

1983 .................................. 7.3 55.2 61.9 1.7

1984 .................................. 7.3 61.2 66.3 1.7

1985 .................................. 7.1 58.7 64.5 1.7

1986 .................................. 6.9 57.9 63.4 1.8

1987 .................................. 6.8 56.5 64.7 1.8

1988 .................................. 6.6 57.6 64.3 1.8

1989 .................................. 6.5 60.1 64.6 1.9

1990 .................................. 6.6 56.3 63.3 1.9

1991 .................................. 6.8 55.0 61.1 2.0

1992 .................................. 6.5 52.7 56.7 2.2

1993 .................................. 6.7 56.3 56.4 2.3

1994 .................................. 6.4 57.8 55.8 2.4

1995 .................................. 6.3 63.7 58.9 2.5

1996 .................................. 6.2 60.9 57.5 2.5

1995 .................................. 5.9 59.9 56.6 2.4

1996 .................................. 5.9 60.0 54.4 2.4

NA—Not available.

Source: Congressional Research Service.

259

age increased, perhaps as a result of outreach efforts mandated by

the 1983 Social Security Amendments (Public Law 98–21). After

1984, the rate declined to 56.5 percent in 1987, increased to 60.1

percent in 1989, declined to 52.7 percent in 1992, and increased to

60.0 percent in 1998. This rate is a gross measure of participation,

in that it does not control for other SSI eligibility factors such as

assets or the under counting of income.

The denominator for column 3 is the number of individuals age

65 and older who live in aged-only households and who would be

in poverty without SSI benefits. This rate has declined from 68.7

percent in 1979 to 54.4 percent in 1998.

The final column of table 3–17 shows the number of SSI participants as a percentage of the total population. The numerator for

this calculation is the first column of table 3–19. The percentage

of the entire population receiving SSI benefits declined from 2.0

percent in 1975 to 1.7 percent for the 1982–85 time period, but increased to 2.5 percent—its highest level ever—in 1995 and 1996. In

1998, 2.4 percent of the population received SSI benefits.

Table 3–18 shows the percentage of a given State’s population receiving SSI benefits for selected years.

TABLE 3–18.—PERCENTAGE OF GENERAL POPULATION ENROLLED IN SSI BY STATE,

SELECTED YEARS 1975–99

State

Year

1975 1985 1990 1992 1993 1996 1998 1999

Alabama ......................... 3.98 3.29 3.29 3.43 3.64 3.91 3.74 3.71

Alaska ............................. 0.81 0.65 0.84 0.90 0.96 1.20 1.27 1.33

Arizona ............................ 1.24 1.04 1.22 1.42 1.54 1.71 1.63 1.69

Arkansas ......................... 4.09 3.14 3.23 3.47 3.66 3.80 3.53 2.72

California ........................ 3.09 2.59 2.93 3.10 3.14 3.29 3.14 3.24

Colorado ......................... 1.37 0.93 1.14 1.29 1.38 1.52 1.39 1.41

Connecticut .................... 0.76 0.83 0.98 1.10 1.19 1.41 1.43 1.46

Delaware ......................... 1.19 1.21 1.21 1.27 1.34 1.58 1.57 1.59

District of Columbia ....... 2.23 2.51 2.67 3.00 3.21 3.76 3.80 3.83

Florida ............................ 1.86 1.62 1.71 1.90 2.06 2.44 2.39 2.45

Georgia ........................... 3.27 2.56 2.46 2.55 2.65 2.74 2.56 2.59

Hawaii ............................ 1.08 1.08 1.25 1.30 1.40 1.64 1.66 1.70

Idaho .............................. 1.06 0.84 1.03 1.21 1.28 1.46 1.40 1.44

Illinois ............................. 1.22 1.18 1.55 1.78 2.00 2.28 2.10 2.14

Indiana ........................... 0.83 0.87 1.09 1.26 1.39 1.56 1.51 1.51

Iowa ................................ 1.00 0.96 1.18 1.29 1.37 1.49 1.42 1.43

Kansas ............................ 1.05 0.87 0.99 1.14 1.26 1.51 1.38 1.39

Kentucky ......................... 2.83 2.65 3.11 3.42 3.71 4.37 4.34 4.37

Louisiana ........................ 3.90 2.87 3.15 3.49 3.84 4.21 3.99 3.92

Maine .............................. 2.31 1.89 1.93 2.03 2.17 2.23 2.31 2.35

Maryland ......................... 1.17 1.16 1.25 1.35 1.44 1.67 1.67 1.69

Massachusetts ............... 2.30 1.91 1.98 2.23 2.40 2.73 2.70 2.72

Michigan ......................... 1.31 1.35 1.54 1.71 1.93 2.23 2.15 2.16

Minnesota ....................... 1.00 0.78 0.92 1.05 1.17 1.38 1.33 1.36

Mississippi ..................... 5.21 4.28 4.42 4.68 4.98 5.23 4.88 4.83

Missouri .......................... 2.10 1.58 1.66 1.83 1.96 2.18 2.05 2.06

Montana ......................... 1.12 0.92 1.25 1.38 1.44 1.63 1.57 2.14

260

TABLE 3–18.—PERCENTAGE OF GENERAL POPULATION ENROLLED IN SSI BY STATE,

SELECTED YEARS 1975–99—Continued

State

Year

1975 1985 1990 1992 1993 1996 1998 1999

Nebraska ........................ 1.06 0.88 0.99 1.09 1.19 1.33 1.27 1.27

Nevada ........................... 1.00 0.85 0.95 1.04 1.14 1.36 1.29 1.37

New Hampshire .............. 0.67 0.62 0.62 0.71 0.77 0.95 0.94 0.96

New Jersey ...................... 1.11 1.23 1.36 1.52 1.66 1.84 1.78 1.80

New Mexico ..................... 2.29 1.83 2.08 2.25 2.39 2.67 2.62 2.65

New York ........................ 2.24 2.00 2.31 2.60 2.85 3.33 3.34 3.35

North Carolina ................ 2.71 2.21 2.24 2.36 2.47 2.67 2.54 2.56

North Dakota .................. 1.25 0.96 1.17 1.30 1.34 1.41 1.34 1.33

Ohio ................................ 1.22 1.19 1.44 1.63 1.84 2.28 2.21 2.19

Oklahoma ....................... 3.03 1.81 1.92 2.02 2.13 2.28 2.18 2.19

Oregon ............................ 1.12 0.95 1.11 1.24 1.35 1.52 1.48 1.53

Pennsylvania .................. 1.24 1.39 1.60 1.77 1.90 2.23 2.30 2.31

Rhode Island .................. 1.72 1.62 1.74 1.91 2.05 2.53 2.64 2.71

South Carolina ............... 2.84 2.60 2.59 2.67 2.80 3.04 2.83 2.84

South Dakota .................. 1.32 1.19 1.45 1.62 1.72 1.92 1.80 1.77

Tennessee ....................... 3.24 2.71 2.87 3.06 3.22 3.40 3.10 3.09

Texas .............................. 2.23 1.57 1.73 1.87 2.00 2.16 2.04 2.07

Utah ................................ 0.76 0.53 0.73 0.84 0.94 1.05 0.95 0.97

Vermont .......................... 1.93 1.76 1.79 1.99 2.08 2.19 2.14 2.15

Virginia ........................... 1.53 1.49 1.54 1.67 1.76 2.00 1.93 1.95

Washington ..................... 1.46 1.09 1.27 1.39 1.50 1.72 1.69 1.73

West Virginia .................. 2.37 2.24 2.63 2.91 3.17 3.78 3.91 3.92

Wisconsin ....................... 1.44 1.50 1.75 1.88 2.04 1.86 1.71 1.70

Wyoming ......................... 0.67 0.45 0.76 0.92 1.04 1.24 1.20 1.22

Total 1 ................ 2.00 1.74 1.94 2.11 2.26 2.50 2.43 2.41

1 The total number of SSI recipients used to calculate the total recipiency rate includes a certain number of recipients whose State is unknown. For 1975, 1985, 1990, 1991, 1992, and 1993, the numbers of

unknown (in thousands) respectively were 256, 14, 0, 96, 71, and 91.

Source: Social Security Administration, Ways and Means Committee staff, and Congressional Research

Service. Percentages are calculated as the average number of monthly SSI recipients over the total population of each State in July of the selected year. For 1995, percentages are calculated as the number of

SSI recipients in July 1995 divided by the total population of each State in July 1995. For 1996–99, percentages are calculated as the number of SSI recipients in July 1996 divided by the total population of

each State in July 1996.

TABLE 3–19.—NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI

PAYMENTS, 1974–2005; AND ADULT ASSISTANCE UNDER PRIOR PROGRAMS, 1970–73

[In thousands]

Year 1 Total 2 Aged 3

Blind or disabled Federal

SSI 6

State supplemental only Total 4 65 or older 5

1970 ................. 3,098 2,082 1,016 ...................... ............ ..................

1971 ................. 3,172 2,024 1,148 ...................... ............ ..................

1972 ................. 3,182 1,934 1,248 ...................... ............ ..................

1973 ................. 3,173 1,820 1,353 ...................... ............ ..................

261

TABLE 3–19.—NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI PAYMENTS, 1974–2005; AND ADULT ASSISTANCE UNDER PRIOR PROGRAMS, 1970–73—

Continued

[In thousands]

Year 1 Total 2 Aged 3

Blind or disabled Federal

SSI 6

State supplemental only Total 4 65 or older 5

1974 ................. 3,996 2,286 1,710 (7) (8) (8)

1975 ................. 4,314 2,307 2,007 201 3,893 421

1976 ................. 4,236 2,148 2,088 249 3,799 437

1977 ................. 4,238 2,051 2,187 302 3,778 460

1978 ................. 4,217 1,968 2,249 344 3,755 462

1979 ................. 4,150 1,872 2,278 386 3,687 462

1980 ................. 4,142 1,808 2,334 419 3,682 460

1981 ................. 4,019 1,678 2,341 443 3,590 429

1982 ................. 3,858 1,549 2,309 462 3,473 384

1983 ................. 3,901 1,515 2,386 485 3,590 312

1984 ................. 4,029 1,530 2,499 507 3,699 331

1985 ................. 4,138 1,504 2,634 525 3,799 339

1986 ................. 4,269 1,473 2,796 540 3,922 348

1987 ................. 4,385 1,455 2,930 560 4,019 366

1988 ................. 4,464 1,433 3,030 573 4,089 375

1989 ................. 4,593 1,439 3,154 587 4,206 387

1990 ................. 4,817 1,454 3,363 605 4,412 405

1991 ................. 5,118 1,465 3,654 615 4,730 389

1992 ................. 5,566 1,471 4,095 628 5,202 364

1993 ................. 5,984 1,475 4,507 638 5,636 348

1994 ................. 6,296 1,466 4,830 653 5,965 331

1995 ................. 6,514 1,446 5,068 669 6,194 320

1996 ................. 6,614 1,413 5,201 678 6,326 288

1997 ................. 6,495 1,332 5,132 691 6,212 287

1998 ................. 6,566 1,332 5,154 701 6,289 277

1999 ................. 6,557 1,308 5,249 711 6,275 282

2000 9 .............. 6,710 1,288 5,422 724 6,425 285

2001 9 .............. 6,790 1,266 5,523 736 6,502 288

2002 9 .............. 6,868 1,247 5,621 753 6,578 290

2003 9 .............. 6,942 1,229 5,713 770 6,650 292

2004 9 .............. 7,011 1,213 5,798 785 6,718 293

2005 9 .............. 7,074 1,199 5,875 800 6,781 293

1 Data are as of December of each year.

2 All persons with Federal SSI payments and/or federally administered State supplementation for 1974–

2005. For 1970–73, the total is the number of recipients under the Old-Age Assistance and Aid to the

Blind and Aid to the Permanently and Totally Disabled Programs. 3 For 1970–73, this column is the number of recipients under the Old-Age Assistance Program.

4 For 1970–73, this column is the number of recipients under the Aid to the Blind and Aid to the Permanently and Totally Disabled Programs. 5 Number of age 65 or older individuals included in the blind or disabled category.

6 All persons with Federal SSI payments, including those receiving Federal payments only or both Federal SSI and federally administered State supplementation. 7 Data not available for December 1974. In January 1974, there were 87,000 blind and disabled recipients aged 65 or older. 8 Data not available.

9 For 2000–2005, data are projections based on the President’s budget estimates of February 2000.

Source: Office of the Actuary, Social Security Administration.

262

CHANGES IN NUMBER OF RECIPIENTS, 1970–99

Supplemental Security Income (SSI) is one of the largest cash assistance programs for the poor and, until recently, was one of the

fastest growing entitlement programs (see table 3–12 above); program costs grew 20 percent annually from 1991 through 1994. According to GAO, three groups accounted for nearly 90 percent of

the SSI Program’s growth between 1986 and 1993: adults with

mental impairments, children, and noncitizens. These groups grew

at an annual average rate of 11.0, 16.4, and 15.5 percent, respectively, from 1986 through 1993, compared with 4.9 percent for all

SSI recipients. The SSI recipient population also changed dramatically: disabled recipients now account for nearly 80 percent of recipients. The GAO report found that SSI recipients now tend to be

younger, stay on SSI longer, receive larger benefits, and depend

more on SSI as a primary source of income. Factors contributing

to caseload growth include the following: expansion in disability eligibility, notably for mentally impaired adults and for children; increased outreach by the Social Security Administration (SSA); lack

of effort to help recipients return to work; infrequent reviews of

cases to confirm that the disability is continuing; immigration

growth; and transfers from State programs, among others (U.S.

General Accounting Office, 1995).

Table 3–19 illustrates the changes in the number of individuals

receiving assistance under the federally administered SSI Program

and prior programs. The total number of individuals receiving assistance was 3.1 million in 1970; this number increased to 4.3 million in 1975 and declined to 3.9 million in 1982. Since then, the

number of SSI recipients has grown each year. In 1999, there were

nearly 6.6 million SSI recipients. Despite this overall growth, the

number of aged receiving SSI has declined sharply since 1975 from

2.3 million (or 2.5 million if disabled and blind persons over age 65

are counted as aged) to 1.3 million individuals in 1999 (2.0 million

if disabled and blind persons over 65 are counted). Meanwhile, the

number of blind or disabled receiving assistance increased sharply.

The number of persons receiving SSI payments, by State, in December 1999 is provided in table 3–20.

SSI PROGRAM COSTS

Table 3–21 shows total expenditures for the SSI Program in each

State in 1999, including not only the federally administered Federal and State supplementation payments but also the State-administered State supplementation payments. Table 3–22 shows the

total (Federal- and State-administered) State supplementation payments by State for SSI for selected fiscal years, 1986–98.

Table 3–23 presents the total amount of Federal and State benefit payments from calendar years 1970–87 and fiscal years 1988–

2005. From 1970–73, these were the benefits under the Old-Age

Assistance, Aid to the Blind, and Aid to the Permanently and Totally Disabled Programs. In fiscal year 1999, Federal benefit payments totaled $28.1 billion and State payments totaled $3.2 billion,

amounting to an overall total of $31.3 billion. In fiscal year 2000,

total (Federal and State) SSI benefits are estimated to total $29.5

263

billion and are projected to increase to $32.7 billion in fiscal year

2002.

TABLE 3–20.—NUMBER OF PERSONS RECEIVING SSI PAYMENTS, BY STATE, DECEMBER

1999

State

Federally administered Stateadministered

total 1 Total Aged Blind Disabled

Alabama ................... 160,208 28,584 1,217 130,407 1,683

Alaska ....................... 8,156 1,348 124 6,684 4,726

Arizona ...................... 79,306 13,179 941 65,186 610

Arkansas ................... 87,686 15,453 976 71,257 ..................

California .................. 1,066,486 330,386 21,983 714,117 ..................

Colorado .................... 54,588 8,990 552 45,046 31,462

Connecticut ............... 47,609 7,079 499 40,031 29,153

Delaware ................... 11,840 1,414 116 10,310 ..................

District of Columbia 20,020 2,631 195 17,194 ..................

Florida ....................... 366,517 94,254 3,146 269,117 14,223

Georgia ..................... 196,784 35,843 2,340 158,601 ..................

Hawaii ....................... 20,404 7,300 160 12,944 ..................

Idaho ......................... 17,761 1,829 172 16,760 2,985

Illinois ....................... 251,112 32,841 2,361 215,910 44,137

Indiana ..................... 88,315 7,577 1,073 79,665 1,139

Iowa .......................... 40,450 4,716 843 34,891 ..................

Kansas ...................... 36,290 3,493 383 31,964 ..................

Kentucky ................... 172,225 19,906 1,485 150,834 5,680

Louisiana .................. 167,927 26,107 1,936 139,884 ..................

Maine ........................ 29,341 3,517 238 25,586 ..................

Maryland ................... 86,684 15,644 761 70,279 1,680

Massachusetts .......... 167,050 46,074 4,289 116,687 ..................

Michigan ................... 210,022 19,950 1,939 188,133 ..................

Minnesota ................. 63,626 10,122 713 52,791 4 21,339

Mississippi ................ 131,247 24,166 1,290 105,791 ..................

Missouri .................... 111,003 13,391 974 96,638 10,026

Montana .................... 13,697 1,390 127 12,180 ..................

Nebraska ................... 21,036 2,450 244 18,342 5,717

Nevada ...................... 24,303 6,840 641 16,822 ..................

New Hampshire ........ 11,404 1,055 121 10,228 6,678

New Jersey ................ 145,565 33,852 1,056 110,657 ..................

New Mexico ............... 45,861 8,989 559 36,313 243

New York ................... 609,459 138,987 3,425 487,047 ..................

North Carolina .......... 191,743 36,237 2,170 153,336 20,209

North Dakota ............ 8,278 1,400 80 6,798 4 355

Ohio .......................... 242,733 18,207 2,278 222,248 ..................

Oklahoma .................. 72,562 11,541 879 60,142 72,741

Oregon ...................... 50,515 7,148 635 42,732 4 16,971

Pennsylvania ............. 278,196 37,599 2,520 238,077 ..................

Rhode Island ............ 26,897 4,692 239 21,966 ..................

South Carolina .......... 108,093 18,364 1,640 88,089 4,351

South Dakota ............ 12,735 2,105 103 10,527 3,576

Tennessee ................. 166,327 24,755 1,703 139,869 ..................

Texas ......................... 407,872 116,874 5,657 285,341 ..................

Utah .......................... 19,968 2,072 282 17,614 ..................

264

TABLE 3–20.—NUMBER OF PERSONS RECEIVING SSI PAYMENTS, BY STATE, DECEMBER

1999—Continued

State

Federally administered Stateadministered

total 1 Total Aged Blind Disabled

Vermont .................... 12,551 1,629 125 10,797 ..................

Virginia ..................... 131,910 24,921 1,516 105,473 6,776

Washington ............... 98,314 13,874 937 83,503 82

West Virginia ............ 70,993 5,869 590 64,534 ..................

Wisconsin .................. 86,544 10,229 988 75,327 ..................

Wyoming ................... 5,784 573 55 5,156 2,923

Other:

Northern Mariana

Islands ............. 635 164 15 456 ..................

Total 2 .......... 6,556,634 1,308,062 79,291 5,169,281 309,383

1 In 1997, Iowa, Louisiana, Maine, and Michigan began reporting data to the Social Security Administration. 2 Includes recipients not distributed by State.

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI

Statistics and Analysis.

TABLE 3–21.—SUPPLEMENTAL SECURITY INCOME: TOTAL PAYMENTS, FEDERAL SSI PAYMENTS, AND FEDERAL- AND STATE-ADMINISTERED STATE SUPPLEMENTARY PAYMENTS, CALENDAR YEAR 1999

[In thousands of dollars]

State Total Federal SSI 1

State supplementation

Federally

administered 1

State

administered 2

Alabama .......................... $659,976 $659,321 .................... $655

Alaska ............................. 51,354 34,663 .................... 16,691

Arizona ............................ 340,568 340,318 .................... 250

Arkansas ......................... 410,567 339,065 .................... ..................

California ........................ 6,258,380 3,900,708 $2,266,934 ..................

Colorado .......................... 229,519 229,519 .................... 71,502

Connecticut ..................... 210,934 210,934 .................... 90,738

Delaware ......................... 49,523 48,583 940 ..................

District of Columbia ....... 91,130 87,884 3,246 ..................

Florida ............................. 1,588,501 1,564,220 10 24,271

Georgia ............................ 772,792 772,782 10 ..................

Hawaii ............................. 97,546 84,722 12,824 ..................

Idaho ............................... 83,951 73,216 .................... 10,735

Illinois ............................. 1,205,453 1,177,260 .................... 28,193

Indiana ............................ 384,576 380,000 .................... 4,576

Iowa ................................ 173,432 153,845 2,745 16,842

Kansas ............................ 150,723 150,723 .................... ..................

Kentucky .......................... 736,917 719,935 .................... 16,982

Louisiana ........................ 727,754 727,238 .................... 516

Maine .............................. 119,450 110,690 .................... 8,760

265

TABLE 3–21.—SUPPLEMENTAL SECURITY INCOME: TOTAL PAYMENTS, FEDERAL SSI PAYMENTS, AND FEDERAL- AND STATE-ADMINISTERED STATE SUPPLEMENTARY PAYMENTS, CALENDAR YEAR 1999—Continued

[In thousands of dollars]

State Total Federal SSI 1

State supplementation

Federally

administered 1

State

administered 2

Maryland ......................... 395,695 389,015 12 6,668

Massachusetts ................ 788,296 623,107 165,189 ..................

Michigan ......................... 997,231 953,887 28,761 14,583

Minnesota ....................... 336,541 266,246 .................... 70,295

Mississippi ...................... 517,090 517,081 9 ..................

Missouri .......................... 488,832 463,435 .................... 25,397

Montana .......................... 55,593 54,810 783 ..................

Nebraska ......................... 89,823 83,622 .................... 6,201

Nevada ............................ 100,977 96,147 4,830 ..................

New Hampshire ............... 58,190 46,972 .................... 11,218

New Jersey ...................... 665,113 586,359 78,754 ..................

New Mexico ..................... 187,105 186,871 .................... 234

New York ......................... 3,118,358 2,573,094 ....................

North Carolina ................ 843,399 719,909 .................... 123,490

North Dakota ................... 31,708 29,683 .................... 2,025

Northern Mariana Islands 2,937 2,937 .................... ..................

Ohio ................................. 1,124,699 1,124,684 15 ..................

Oklahoma ........................ 334,708 297,354 .................... 37,354

Oregon ............................. 239,459 219,117 .................... 20,342

Pennsylvania ................... 1,339,319 1,208,955 130,364 ..................

Rhode Island ................... 123,595 101,043 22,552 ..................

South Carolina ................ 436,684 423,301 .................... 13,383

South Dakota .................. 50,961 48,653 7 2,301

Tennessee ....................... 666,082 666,080 2 ..................

Texas ............................... 1,556,804 1,556,804 .................... ..................

Utah ................................ 86,511 86,456 55 ..................

Vermont ........................... 51,130 41,954 9,176 ..................

Virginia ........................... 551,881 529,962 .................... 21,919

Washington ..................... 469,541 440,462 28,731 348

West Virginia .................. 315,748 315,748 .................... ..................

Wisconsin ........................ 488,907 362,718 .................... 126,189

Wyoming .......................... 23,916 23,230 .................... 686

Total .................. 30,959,475 26,805,157 3,300,975 853,343

1 Includes data not distributed by State.

2 Includes amounts for six States not distributed by category.

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI

Statistics and Analysis.

TABLE 3–22.—STATE SSI SUPPLEMENTATION PAYMENTS, SELECTED FISCAL YEARS 1986–96, CALENDAR YEARS 1997–99

[In thousands of dollars]

State

Year

1986 1988 1990 1992 1993 1994 1995 1996 1997 1998 

Alabama .................... $13,659 $10,436 $6,594 $3,845 $2,083 $1,673 $1,370 $1,027 $987 $764 Alaska ....................... 12,970 12,970 12,972 12,972 12,972 12,972 12,972 12,972 12,972 12,977 Arizona ...................... 2,668 3,309 2,560 3,129 3,129 411 409 374 312 278 Arkansas ................... 28 20 15 8 0 6 4 5 (1) (1) 

California .................. 1,466,079 1,862,170 2,274,296 2,433,459 2,212,330 2,014,831 1,981,002 1,994,313 1,919,293 1,988,594 2Colorado .................... 38,320 24,132 42,649 53,309 55,057 53,376 56,703 59,114 66,600 70,151 Connecticut ............... 36,578 54,584 67,670 94,725 96,836 99,424 100,330 98,235 92,809 93,353 Delaware ................... 671 730 708 750 747 819 817 836 874 924 District of Columbia 4,202 4,538 4,365 4,694 4,899 5,095 4,342 2,879 2,743 2,968 Florida ....................... 9,718 11,309 14,656 18,899 18,608 18,608 18,380 18,384 18,392 18,392 Georgia ...................... 8 18 16 12 19 18 15 21 (2) 6 

Hawaii ....................... 3,740 4,263 10,885 10,698 11,066 11,299 11,305 11,479 11,306 13,237 Idaho ......................... 4,136 4,205 4,212 4,212 4,212 4,212 9,459 4,753 10,416 10,726 Illinois ....................... 51,197 59,573 57,137 64,241 65,836 73,398 69,450 31,890 29,180 28,326 Indiana ...................... 1,744 3,619 3,285 3,563 3,817 3,884 3,786 3,540 3,576 3,576 Iowa .......................... 1,908 2,204 2,408 2,672 2,859 2,940 2,951 3,018 14,330 19,675 Kansas ...................... 27 25 21 12 0 2 1 1 (2) (1) 

Kentucky .................... 9,795 10,467 11,611 15,492 15,313 16,612 16,843 16,327 15,576 16,609 Louisiana .................. 42 33 25 12 4 (1) (1) (1) 532 530 

Maine ........................ 5,413 7,540 7,494 7,325 7,233 7,415 7,542 3,916 646 8,370 Maryland ................... 5,252 6,159 6,155 6,542 6,269 6,102 6,235 6,430 6,688 5,014 Massachusetts .......... 109,452 120,010 117,113 137,516 147,866 153,034 160,080 159,629 160,524 154,085 Michigan ................... 66,338 69,833 74,682 61,636 62,683 61,955 37,296 27,387 31,492 121,304 Minnesota ................. 19,818 24,667 43,924 55,224 53,860 53,860 63,720 63,720 53,297 53,297 Mississippi ................ 29 27 22 12 11 7 6 8 (1)8 

Missouri .................... 5,132 4,009 2,808 26,158 25,866 24,286 29,549 25,154 25,193 24,400 Montana .................... 834 839 864 909 902 960 940 905 832 807 Nebraska ................... 5,348 5,454 5,793 6,175 6,705 5,990 5,970 6,293 6,199 6,199 

Nevada ...................... 2,531 2,704 2,928 3,184 3,586 3,717 3,885 4,083 4,261 4,542 New Hampshire ......... 7,326 5,865 6,843 7,948 8,512 9,573 11,039 10,489 11,088 11,209 New Jersey ................ 48,124 50,446 53,697 64,765 71,965 74,242 76,655 77,380 76,823 77,377 New Mexico ............... 216 248 263 333 329 321 293 287 268 255 New York ................... 277,035 317,504 388,150 440,374 476,029 494,345 510,096 527,128 523,123 533,372 North Carolina .......... 41,091 52,745 63,135 91,925 95,445 106,493 115,245 85,274 92,568 109,407 North Dakota ............. 1,518 1,480 1,390 1,408 1,220 1,676 1,928 1,917 1,916 1,916 Ohio ........................... 35 31 34 31 28 18 13 1 2 13 Oklahoma .................. 31,380 34,045 34,168 36,012 36,557 34,987 35,811 36,988 37,412 37,270 Oregon ....................... 9,767 11,843 17,946 20,169 20,169 20,169 28,045 28,045 20,174 20,174 Pennsylvania ............. 69,186 74,670 79,571 94,971 109,947 128,339 136,153 129,618 125,666 128,514 Rhode Island ............. 9,402 10,263 11,729 14,967 16,097 17,384 18,811 19,650 10,643 20,832 South Carolina .......... 4,812 5,004 8,897 11,685 12,377 11,880 12,750 13,258 13,043 13,783 South Dakota ............ 591 587 567 652 681 709 73 1,630 1,911 1,939 Tennessee ................. 0 1 4 1 0(2) (2) (2) (2)1 

Texas ......................... 0 0 0 0 0(3) (3) (3) (3) (3) 

Utah .......................... 872 1,086 808 959 878 201 60 57 59 55 Vermont ..................... 7,236 7,841 8,685 10,299 9,927 9,715 10,396 9,402 9,569 9,412 Virginia ..................... 12,164 14,432 15,296 16,782 17,317 17,752 19,156 19,632 19,257 21,161 Washington ............... 17,443 18,058 19,915 24,043 26,808 28,374 28,516 26,795 28,670 28,689 West Virginia ............ 0 0 0 0 0(3) (3) (3) (3) (3) Wisconsin .................. 80,288 90,642 100,276 118,063 132,761 125,789 123,693 32,510 124,002 125,664 Wyoming .................... 216 226 279 440 527 597 660 690 697 678 

Total ................. 2,496,275 3,006,796 3,589,348 3,987,110 3,862,151 3,719,314 3,735,250 3,577,102 3,594,702 3,811,552 3 54

1 Less than $500.2 Amount not shown; negative adjustment exceeds amount paid.3 Texas and West Virginia do not pay State supplementation.

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI Statistics and Analysis.

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TABLE 3–23.—FEDERAL AND STATE BENEFIT PAYMENTS UNDER SSI AND PRIOR ADULT

ASSISTANCE PROGRAMS, CALENDAR YEARS 1970–87 AND FISCAL YEARS 1988–20051

[In millions of dollars]

Year 2 Total

Total

constant

1999

dollars

Federal

payments

Total

State

payments

State payments SSI administrative

costs

(fiscal

year)

Federally

administered

State

administered

1970 .................... $2,939 $8,321 $1,801 $1,138 ............ .......... ..........

1971 .................... 3,206 13,180 (3) (3) ............ .......... ..........

1972 .................... 3,392 13,392 1,993 1,398 ............ .......... ..........

1973 .................... 3,418 12,818 1,987 1,432 ............ .......... ..........

1974 .................... 5,246 17,717 3,833 1,413 $1,264 $149 $285

1975 .................... 5,878 18,191 4,314 1,565 1,403 162 399

1976 .................... 6,066 17,750 4,512 1,554 1,388 166 500

1977 .................... 6,306 17,326 4,703 1,603 1,431 172 NA

1978 .................... 6,552 16,732 4,881 1,671 1,491 180 539

1979 .................... 7,075 16,226 5,279 1,796 1,590 207 610

1980 .................... 7,941 16,046 5,866 2,074 1,848 226 668

1981 .................... 8,593 15,740 6,518 2,076 1,839 237 718

1982 .................... 8,981 15,496 6,907 2,074 1,798 276 779

1983 .................... 9,404 15,721 7,423 1,981 1,711 270 830

1984 .................... 10,372 16,621 8,281 2,091 1,792 299 864

1985 .................... 11,060 17,114 8,777 2,283 1,973 311 953

1986 .................... 12,081 18,353 9,498 2,583 2,243 340 1,022

1987 .................... 12,951 18,982 10,029 2,922 2,563 359 976

1988 .................... 14,375 21,427 11,368 3,007 2,645 362 975

1989 .................... 14,707 19,973 11,399 3,308 2,881 427 1,051

1990 .................... 16,095 20,822 12,507 3,589 3,159 431 1,075

1991 .................... 17,979 22,141 14,228 3,751 3,235 516 1,257

1992 .................... 21,258 25,409 17,270 3,987 3,431 556 1,538

1993 .................... 24,173 28,047 20,312 3,862 3,298 564 1,467

1994 4 .................. 28,288 31,975 24,461 3,827 3,219 608 1,781

1995 4, 5 .............. 28,124 30,929 24,443 3,681 3,060 621 1,978

1996 4 .................. 27,429 29,350 24,038 3,391 2,845 546 1,949

1997 4 .................. 30,120 31,383 26,580 3,540 2,918 622 2,055

1998 4, 6 .............. 31,154 31,941 27,390 3,764 2,987 777 2,304

1999 4, 6 .............. 32,153 32,153 28,117 4,036 3,219 817 2,493

2000 4, 6 .............. NA ............ 29,189 NA 3,310 NA 2,343

2001 4, 6 .............. NA ............ 30,482 NA 3,410 NA 2,569

2002 4, 6 .............. NA ............ 31,826 NA 3,515 NA 2,569

2003 4, 6 .............. NA ............ 33,191 NA 3,625 NA 2,596

2004 4, 6 .............. NA ............ 34,596 NA 3,735 NA 2,658

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TABLE 3–23.—FEDERAL AND STATE BENEFIT PAYMENTS UNDER SSI AND PRIOR ADULT

ASSISTANCE PROGRAMS, CALENDAR YEARS 1970–87 AND FISCAL YEARS 1988–

20051—Continued

[In millions of dollars]

Year 2 Total

Total

constant

1999

dollars

Federal

payments

Total

State

payments

State payments SSI administrative

costs

(fiscal

year)

Federally

administered

State

administered

2005 4, 6 .............. NA ............ 38,617 NA 3,880 NA 2,717

1 Payments and adjustments during the respective year but not necessarily accrued for that year.

2 1970–73 refers to Old-Age Assistance, Aid to the Blind, and Aid to the Permanently and Totally Disabled; 1974–2005 refers to Supplemental Security Income. 3 Data not available.

4 Additional administrative costs are reflected for the SSI Program share of the President’s disability

investment in fiscal years 1994–95 and the automation investment in fiscal years 1994–2002. 5 Fiscal year 1995 administrative expenses included funds to pay back the Old-Age and Survivors Insurance Trust Fund with interest for SSI administrative funding shortfalls in prior years. 6 SSA does not collect the information necessary for making a forecast of State-administered benefit

payments. For 2000–2005, data are projections based on the President’s budget estimates of February

2000.

NA—Not available.

Source: Office of the Actuary, Social Security Administration and Office of Budget, Social Security Administration.

LEGISLATIVE HISTORY

104TH CONGRESS

Public Law 104–121, the Contract with America Advancement

Act of 1996, among other changes, prohibits disability insurance

(DI) and Supplemental Security Income (SSI) eligibility to individuals whose drug addiction and/or alcoholism (DAA) is a contributing factor material to the finding of disability. This provision would

apply to individuals who file for benefits on or after the date of enactment and to individuals whose claims are finally adjudicated on

or after the date of enactment. This provision also applies to current beneficiaries on January 1, 1997. It stipulates that SSI must:

(1) notify current DAA beneficiaries of the new provisions within

90 days of enactment; and (2) complete new medical determinations by January 1, 1997 for affected current beneficiaries who request such a determination within 120 days after the date of enactment. Public Law 104–121 applies representative payee requirements to DI or SSI beneficiaries who have a DAA condition, as determined by the Commissioner, and who are incapable of managing

benefits. The Social Security Administration (SSA) would refer

these individuals to the appropriate State agency for treatment.

The representative payee and referral for treatment provisions

would apply to applications filed after the third month following

the month of enactment. In addition, the new law retains the $50

fee that representatives can collect for beneficiaries who have a

DAA condition. The legislation also authorizes an appropriation of

$50 million for each of fiscal years 1997 and 1998 to carry out acVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00269 Fmt 6601 Sfmt 6602 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
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tivities relating to the treatment of drug and alcohol abuse under

the Public Health Service Act.

Further, Public Law 104–121 authorizes additional funds to SSA

for fiscal years 1996–2002 for the purpose of conducting Social Security disability insurance continuing disability reviews (CDRs)

and Supplemental Security Income CDRs and disability eligibility

redeterminations. This new funding level is achieved by increasing

the amount of funds available for appropriations under the discretionary spending cap. The Commissioner of Social Security must

ensure that the funds made available pursuant to this provision

are used, to the greatest extent practicable, to maximize the combined savings to the Old-Age, Survivors, and Disability Insurance

(OASDI), SSI, Medicare, and Medicaid Programs. Moreover, the

Commissioner is required to report annually, for fiscal years 1996–

2002, to Congress on the amount of money spent on CDRs, the

number of reviews conducted (by category), the disposition of such

reviews (by program), and the estimated savings over the short-,

medium-, and long-term for OASDI, SSI, Medicare, and Medicaid

Programs from CDRs which result in cessations, and the estimated

present value of such savings.

Public Law 104–193, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, signed on August

22, 1996, makes several major changes in SSI law. These include:

Limited eligibility of noncitizens for SSI benefits.—PRWORA prohibits SSI eligibility for all noncitizens except: refugees, asylees,

and noncitizens whose deportation has been withheld (limited to

their first 5 years of residence); certain active duty Armed Forces

personnel, honorably discharged veterans, and their spouses and

dependent children; and lawful permanent residents who have

worked for 10 years or more. For purposes of the exception based

on work, children are credited with all quarters worked by their

parents, and married individuals (including widows) are credited

with work performed by spouses during their marriage. However,

after December 31, 1996, quarters of work during which an individual received Federal public assistance are not countable toward

this exception.

Deeming of sponsors’ incomes and resources.—For purposes of eligibility for sponsored noncitizens admitted under new, legally enforceable affidavits of support, PRWORA deems all of the sponsors’

(and sponsors’ spouses’) incomes and resources to the noncitizen

until citizenship. However, deeming is not required for lawful permanent residents who have worked for 10 or more years (not

counting quarters of work after 1996 during which the individual

received Federal public assistance), or for children and spouses of

workers credited with work performed by them.

Requirements for affidavits of support for sponsorship.—Affidavits of support are made legally enforceable against the sponsor

until the noncitizen becomes a U.S. citizen. The agency that provides assistance to a noncitizen must request reimbursement from

the sponsor for assistance provided.

Reporting of illegal immigrants to the Immigration and Naturalization Service.—The Commissioner of Social Security must furnish to the Immigration and Naturalization Service the name, adVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00270 Fmt 6601 Sfmt 6602 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
271

dress, and other identifying information of any individual that SSA

knows is unlawfully present in the United States.

SSI eligibility based on childhood disability.—The comparable severity standard is eliminated and replaced by the standard that a

child is considered disabled if she has a medically determinable impairment which results in ‘‘marked and severe’’ functional limitations and which can be expected to result in death or which has

lasted or can be expected to last for a continuous period of not less

than 12 months. The Social Security Administration is directed to

eliminate references to maladaptive behavior in the domain of personal/behavioral function in the listing of impairments for children

and to discontinue the use of individualized functional assessments

in evaluating a child’s disability. SSA is also required to redetermine, using the new criteria and by no later than August 22, 1997,

the eligibility of recipients who may be affected by the new criteria.

Benefits for those recipients who do not meet the new criteria

would end on or after the later of July 1, 1997, or the date of the

redetermination.

CDRs must be conducted once every 3 years for child recipients

with nonpermanent impairments, and not later than 12 months

after birth for low birth weight babies. Representative payees must

present evidence to SSA that the recipient is receiving treatment

that is medically necessary and available, unless SSA determines

that such treatment would be inappropriate or unnecessary. An eligibility redetermination, using the adult initial eligibility criteria,

must be performed within 1 year after child recipients turn 18.

Funding.—PRWORA authorizes the appropriation of an additional $150 million in fiscal year 1997 and $100 million in fiscal

year 1998 for the costs of performing CDRs and redeterminations.

Prisoner reporting.—The law provides for incentive payments

($400 for information received within 30 days of confinement or

$200 for information received from 31 to 90 days after confinement)

to State and local penal institutions that furnish identifying information to SSA which results in suspension of SSI benefits to prisoners.

Modifying the effective date of applications.—An individual’s application for SSI benefits would be effective on the first day of the

month following the date on which the application is filed, or on

which the individual first becomes eligible, whichever is later. (This

change effectively eliminates prorated payments for the month of

application, while continuing emergency advance payments and

subsequent repayments over several months in certain cases.)

Reduction in cash benefits payable to institutionalized individuals

whose medical costs are covered by private insurance.—PRWORA

limits to not more than $30 a month, cash benefits payable to children who are in an institution receiving medical care covered by

private insurance.

Installment payments of large past-due SSI payments.—A schedule for paying large retroactive SSI benefit amounts at 6-month intervals is established.

Dedicated savings accounts.—PRWORA requires the establishment of a bank account to maintain large retroactive SSI benefits,

to be used for education or job skill training, special equipment,

272

medical rehabilitation, or other appropriate items or services related to the impairment of the child.

Public Law 104–208, the Department of Defense Appropriations

Act for fiscal year 1997, includes the Illegal Immigration Reform

and Immigrant Responsibility Act of 1996, which amends Public

Law 104–193 with regard to noncitizens’ eligibility for SSI benefits.

Noncitizen individuals and their children who are battered or

abused are added to the list of ‘‘qualified aliens.’’ Sponsorship affidavits of support are made legally binding and sponsor-to-immigrant deeming of income and resources in the SSI Program continues until noncitizens become U.S. citizens or they, their spouses, or

parents work 40 quarters in the United States. The law also provides additional exceptions to sponsor-to-immigrant deeming for indigent noncitizens whose sponsors do not provide them with income

sufficient to obtain food and shelter and for battered individuals

and their children.

In addition, Public Law 104–208 requires several reports to Congress. The Commissioner of Social Security is required to report the

aggregate number of Social Security numbers issued to noncitizens

not authorized to work but under which earnings were reported

and the extent to which Social Security numbers and Social Security cards are used by noncitizens for fraudulent purposes. These

two reports are due no later than 3 months after the end of each

fiscal year, and within 1 year after the date of enactment, respectively. The General Accounting Office also is required to report to

Congress and the Department of Justice within 180 days after the

date of enactment on the extent to which means-tested benefits are

being paid to noncitizens acting as representative payees who are

not ‘‘qualified aliens.’’

105TH CONGRESS

Public Law 105–18, an emergency supplemental appropriations

bill, provides a 1-month extension for noncitizens who were receiving benefits on the date of enactment of Public Law 104–193—August 22, 1996—and who would not continue to be eligible under the

noncitizen restrictions in that law by changing the date by which

SSI redeterminations of eligibility had to be completed from August

22, 1997 to September 30, 1997.

Public Law 105–33, the Balanced Budget Act of 1997, made several major changes in SSI. These include:

SSI eligibility for aliens receiving SSI on August 22, 1996 and

certain disabled legal aliens.—Public Law 105–33 provides that, despite restrictions in the 1996 welfare reform law, noncitizens lawfully residing in the United States who were receiving SSI on August 22, 1996, remain eligible for SSI. In addition, noncitizens lawfully residing in the United States on August 22, 1996, are eligible

for SSI if they become disabled in the future. The law also provides

that members of Native American Indian tribes who are noncitizens are not affected by the SSI restrictions in Public Law 104–

193. In addition, individuals who received SSI prior to January 1,

1979, continue to be eligible for benefits if the Commissioner of Social Security lacks clear and convincing evidence that such individuals are noncitizens ineligible for benefits.

273

Extension of eligibility period for refugees and certain other qualified aliens from 5 to 7 years for SSI and Medicaid; status of

Cuban/Haitian entrants and certain Amerasians.—Public Law

105–33 extends from 5 years to 7 years the initial eligibility period

for SSI and Medicaid for refugees, asylees, and noncitizens who

have had their deportations withheld. In addition, Cuban and Haitian entrants and Amerasian immigrants are added to the categories of noncitizens who are considered ‘‘qualified aliens.’’ These

groups are eligible for SSI for their initial 7 years, and are exempt

from the 5-year eligibility ban on noncitizens entering the United

States after August 22, 1996.

Exceptions for certain Indians from noncitizen limitations on eligibility for Supplemental Security Income and Medicaid benefits.—

Public Law 105–33 exempts noncitizen members of federally recognized Indian tribes or noncitizen Native Americans from the SSI

and Medicaid restrictions in the 1996 act.

Exemption from noncitizen restrictions on SSI Program participation by certain recipients eligible on the basis of very old applications.—Public Law 105–33 exempts certain individuals who have

been on SSI rolls since before January 1, 1979, from the noncitizen

restrictions in the 1996 act.

Derivative eligibility for noncitizens for Medicaid and food stamp

benefits.—Public Law 105–33 provides that noncitizens who are

otherwise ineligible for Medicaid under the 1996 act may be eligible for Medicaid if they receive SSI benefits and if the State’s Medicaid plan provides Medicaid eligibility for SSI recipients. The legislation also clarifies that noncitizens who are otherwise ineligible

under the 1996 act for food stamps would not be made eligible for

food stamps because they receive SSI benefits.

Fees for Federal administration of State supplementary payments.—Public Law 105–33 increases fees for SSA’s administering

State supplementary payments, with added collections available for

SSA administrative purposes.

Timing of delivery of October 1, 2000, SSI benefit payments.—In

order to meet budget targets, Public Law 105–33 provides that the

October 2000 SSI check be paid on October 2, which is a Monday,

rather than on the last Friday in September.

In addition, Public Law 105–33 gives the States the option of

permitting individuals who had been receiving SSI disability benefits, but are working, to buy into Medicaid if their family income

is less than 250 percent of poverty. In addition, States are required

to continue Medicaid coverage for children who were receiving SSI

disability benefits as of August 22, 1996, but whose eligibility

would end because they do not meet the new, more strict SSI childhood disability eligibility criteria.

Technical amendments to the 1996 welfare reform law.—The legislation makes a number of technical clarifications with regard to

the disabled children’s redetermination and continuing disability

review requirements. Technical changes also clarify the meaning of

the term ‘‘final adjudication’’ with regard to SSI disability cases

based on drug addiction or alcoholism and expands the applicability of provisions in Public Law 104–121 that require treatment referrals and authorization of fees for organizations serving as representative payees for SSI beneficiaries who have a DAA condition.

274

Technical corrections also are made that clarify when the reporting incentives involving prisoners apply and that allow SSA to

charge a fee as a condition of processing requests for information

by law enforcement authorities regarding SSI recipients who are

fugitive felons and probation or parole violators. Clarifications are

made concerning SSI dedicated savings account funds and terminology relating to medical treatment facilities and the applicability

of the $30 SSI payment limit are updated. Noncitizens technical

correction provisions include adding battered parents to the definition of ‘‘qualified alien’’ and the exemptions from sponsor-toimmigrant deeming, clarifying that veterans widow(er)s may be eligible for benefits, and authorizing SSA to disclose noncitizens’

quarters of coverage information to other governmental agencies

for the purpose of carrying out the noncitizen restriction provisions.

Public Law 105–306, the Noncitizen Benefit Clarification and

Other Technical Amendments Act of 1998 provided continuing eligibility for SSI for nonqualified aliens who were receiving benefits

on August 22, 1996.

106TH CONGRESS

Public Law 106–169, the Foster Care Independence Act of 1999,

contains numerous provisions related to SSI fraud reduction and

overpayment recovery. These provisions are summarized below.

Overpayments and debt collection.—The law amends the Social

Security Act to make representative payees liable for the repayment of Social Security benefit checks distributed after the recipient’s death. SSA will monitor these repayments using representative payees’ Social Security numbers. Beginning on December 14,

2000, SSA is authorized to recover up to 50 percent of lump sum

SSI benefit payments made to individuals (or eligible spouses) who

are themselves liable for the repayment of SSI benefits. The law

also authorizes SSA to intercept Federal and State payments owed

to individuals, use debt collection agencies, and other techniques to

collect overpayments.

Treatment of assets.—Public Law 106–169 changes the way assets held in trusts are treated when determining SSI Program eligibility and benefit amounts. (A trust is defined by SSA as a legal

arrangement involving property and ownership interests.) Assets

and income in irrevocable trusts may not be revoked or used by an

individual for personal support and maintenance. These trusts, previously exempt from SSI resource limit calculations, will be counted

toward the resource limit for program eligibility and used to determine benefit amounts. All trusts established after January 1,

2000—regardless of the purpose of the trust, degree of trustee discretion, or restrictions on distribution—will be affected by the law.

However, the new law allows the Commissioner of Social Security

to waive the consideration of a trust if doing so would create an

undue hardship for an individual. The criteria for undue hardship

will be determined by the Commissioner.

Disposal of resources.—The law also imposes new rules regarding

resources disposed of at less than fair market value. Individuals or

their spouses who dispose of resources at less than fair market

value will be ineligible for SSI benefits from the ‘‘look-back’’ date

(the date the individual applied for benefits or, if later, the date the

275

individual disposed of resources for less than fair market value) for

a length of time calculated by SSA. The ineligibility period is determined by dividing the total value of the disposed resources by the

maximum monthly benefit and the maximum applicable State supplementary payment. This ineligibility period may not exceed 36

months. Similar restrictions on the treatment of assets and the disposal of resources were already in effect for the Medicaid Program

before enactment of Public Law 106–169.

Certain resources are exempt from this provision: resources

transferred to a trust, if the trust is considered a resource available

to the individual; the transfer of a home to family members under

certain conditions; the transfer of resources to a spouse for the

spouse’s sole benefit; or the transfer of resources to an individual’s

blind or disabled child (under age 65). Furthermore, a resource

may be exempt if an individual proves to the Commissioner that

he intended to dispose of the resource at fair market value; or that

the resource was transferred for reasons other than to qualify for

the SSI Program; or if the Commissioner determines that denial of

eligibility would cause an undue hardship.

Penalties for false or misleading statements.—The law contains

provisions authorizing SSA to establish a new administrative process to determine whether individuals have fraudulently claimed

benefits in cases considered too small to prosecute in court. The

law provides for increasing penalties of 6, 12, and 24 months of ineligibility depending on the nature of the case. However, the imposition of these penalties will not impact an individual’s receipt of

other assistance. The penalty procedure applies only to false and

misleading statements made after the date of the law’s enactment,

December 14, 1999. The Commissioner is mandated to develop regulations detailing the administrative process for imposing the penalties within 6 months of enactment.

Health care providers and attorneys convicted of fraud or administratively fined for fraud involving SSI eligibility determinations

are barred from participating in the SSI Program for at least 5

years. SSA will provide individuals with reasonable notice and opportunity for a hearing and judicial review. SSA will also notify the

State agencies that employ such individuals and the State licensing

agencies that license or certify them. Attorneys and health care

providers are required to inform SSA of any past violations or convictions. The Commissioner or Inspector General of Social Security

may waive the exclusion from involvement with the SSI Program

for an individual who is the only provider of services to a community and may terminate exclusions on a case-by-case basis.

Information sharing requirements.—There are a number of provisions regarding information sharing between Federal and State

agencies in the new law. SSA is authorized to obtain financial

records for SSI recipients to ensure that they meet SSI’s resource

restrictions and remain eligible for benefits.

States are required to provide the Commissioner with information for determining individuals’ eligibility for Social Security and

SSI benefit programs. State prisons are also required to provide inmate information to Federal and federally assisted benefit programs. To help reduce fraudulent benefit payments to prisoners of

food stamps, veterans benefits, unemployment benefits, and eduVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00275 Fmt 6601 Sfmt 6602 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
276

cational aid, SSA is required to share its prisoner database with

other Federal agencies and departments.

The law directs SSA to conduct computer matches with Medicare

and Medicaid data maintained by the Department of Health and

Human Services on individuals who are residents of public institutions. Data obtained from these matches may be used as a substitute for a physician’s certification that an individual’s stay in an

institution will be less than 3 months. The Commissioner and the

Secretary of the Department of Health and Human Services will

mutually determine the terms of the data matching.

Future study and reporting requirements.—The law requires the

Commissioner, in consultation with the SSA Inspector General and

the Attorney General, to study and report to Congress on legislative and administrative reforms that would reduce or prevent SSI

and Social Security DI fraud and overpayments. Furthermore, the

Commissioner must include an itemized account of the amount of

funds required to support efforts to combat fraud by applicants and

beneficiaries in the SSA annual budget. This requirement is effective for annual budgets prepared after fiscal year 1999.

Public Law 106–170, the Ticket to Work and Work Incentives

Improvement Act of 1999, expands Medicaid coverage and provides

work incentives for disabled beneficiaries of SSI. The law also creates a ‘‘ticket to work’’ system whose purpose is to expand the numbers and types of providers that SSI beneficiaries may choose to assist them in receiving employment and vocational rehabilitation

services. In addition, the law has several other provisions:

Greater accessibility to vocational rehabilitation providers.—Individuals on the SSI rolls are given access to a broader pool of vocational rehabilitation providers. SSI recipients are provided with

‘‘tickets’’ that they can use as vouchers to obtain employment services, case management, vocational rehabilitation, and support services from the providers of their choice, including State vocational

rehabilitation agencies. This program will be implemented on a

gradual basis within 1 year of enactment at test sites and within

4 years in every State.

The law also authorizes the Commissioner to make grants of up

to $7 million each year for fiscal years 2000–2004 to protection and

advocacy organizations providing information and advice about obtaining vocational rehabilitation and employment services. The

Secretary of Health and Human Services is authorized to award

grants to States to design, establish, and operate infrastructures

providing items and services to support working individuals with

disabilities, and to conduct outreach campaigns to publicize the

new benefits under the legislation ($20 million, $25 million, $30

million, $35 million, and $40 million for fiscal years 2001–5, respectively; for fiscal years 2006–11, the law authorizes the prior year’s

amount adjusted for inflation.)

Creation of employment networks.—Employment networks are required to consist of a single public or private provider or an association of providers combined into a single entity which assumes

responsibility for the coordination and delivery of services. Employment networks, which must be experienced in providing relevant

employment and support services to individuals with disabilities

will work with beneficiaries to develop employment plans and emVerDate 20-JUL-2000 13:14 Sep 29, 2000 Jkt 061710 PO 00000 Frm 00276 Fmt 6601 Sfmt 6602 J:\SKAYNE\GB96\61710.003 WAYS3 PsN: WAYS3
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ployment goals. The employment networks are responsible for providing periodic performance reports to beneficiaries holding tickets

and periodic quality assurance reviews. The Commissioner will establish mechanisms for resolving disputes between employment

networks and beneficiaries. State vocational rehabilitation agencies

and employment networks must enter into agreements with individuals referred by an employment network to a State vocational

rehabilitation agency for services.

Payment to employment networks is based on one of two payment systems. Under the outcome payment system, employment

networks are provided with up to 40 percent of the average monthly disability benefit for each month (up to 60 months) benefits are

not payable to the beneficiary due to work. Under the outcomemilestone payment system, employment networks receive early

payments based on the achievement of one or more milestones toward permanent employment. The total amount payable under this

system may not exceed the total amount payable under the outcome payment system. Regardless of the system used, beneficiaries

forgo their SSI benefit and instead receive earnings from work. The

cost effectiveness of the payment systems will be evaluated by the

Commissioner.

Limitations on continuing disability reviews (CDRs) for ticket to

work participants.—The law prohibits the Commissioner from initiating a CDR for a beneficiary participating in the Ticket to Work

and Self-Sufficiency Program. Further, if beneficiaries do not succeed at their work effort, the law provides for the reinstatement of

SSI benefits without requiring re-application.

Medicaid expansion.—Under Public Law 106–170, States can opt

to cover persons with disabilities at higher income and resource

levels than otherwise permitted (i.e., over 250 percent of the Federal poverty level and over $2,000, respectively), and whose medical

condition would not otherwise permit them to be covered. States

can require these individuals to ‘‘buy into’’ Medicaid coverage by

paying premiums or other cost-sharing charges on a sliding fee

scale based on income, as established by the State.

Demonstration projects and studies.—The law extends Social Security demonstration projects relating to disabled beneficiaries and

establishes a new demonstration project to test phasing out disability benefits for earnings above a certain level of income. Further,

the General Accounting Office is required to study the effects of the

substantial gainful activity level on recipients who return to work,

and report on whether disregarding certain income for calculating

benefits is appropriate.

Other.—The law permits the Commissioner to withhold an assessment charge of 6.3 percent of the attorney’s fees for the purpose of recovering costs to SSA of withholding and payment of attorneys fees. SSA is authorized to penalize States that are late in

paying administrative fees to SSA.

REFERENCES

National Academy of Social Insurance. (1995). Restructuring the

SSI disability program for children and adolescents. Washington, DC: Author.

278

Quigley, E. (1992, August 7). The homeless. CQ Researcher, 2(No.

29).

Social Security Administration. (1999 and various years). Annual

statistical supplement to the Social Security Bulletin, 1999

(SSA Pub. No. 13–11700). Washington, DC: Author. [Earlier

years of this annual publication were used in preparing various tables for this chapter.]

Social Security Administration. (1999, December). Supplemental

Security Income for Children with Disabilities (Report to Congress of the National Commission on Childhood Disability).

Washington, DC: Author.

Sullivan v. Zebley, et al., No. 88–1377 (U.S. filed February 20,

1990).

U.S. General Accounting Office. (1995, July). Supplemental Security Income: Growth and changes in recipient population call

for reexamining program (GAO/HEHS 95–137). Washington,

DC: Author.

U.S. House of Representatives, Committee on Ways and Means.

(1971, May 26). Social Security Amendments of 1971 (House

Report No. 92–231). Washington, DC: U.S. Government Printing Office.

U.S. Senate, Committee on Finance. (1972, Sept. 26). Social Security amendments of 1972 (Senate Report No. 92–1230). Washington, DC: U.S. Government Printing Office.