‘‘(2) If, after the 3-month treatment period referred
to in paragraph (1)(A), the Secretary determines that the
person has not recovered from the condition treated, then,
as a condition of receiving benefits based on disability
under this title for any month after such period, the per-
son must continue to comply with the terms, conditions,
and requirements of such treatment and with the require-
ments imposed under paragraph (4), until the month in
which the Secretary determines that the person has recov-
ered from such condition.
‘‘(3)(A) Notwithstanding any other provision of this
title, in the case of a person who fails to continue treat-
ment as required by paragraph (2), no benefit based on
disability shall be paid under this title for any month end-
ing after such failure and before the person has completed
2 weeks of such treatment.
‘‘(B) In the case of a person to whom a benefit based
on disability under this title becomes payable for any
month after a month for which such benefit was not pay-
able under subparagraph (A), and who thereafter fails to
continue treatment as required by paragraph (2), no bene-
fit based on disability shall be paid under this title for
any month ending after such failure and before the person
has completed 2 months of such treatment.
‘‘(C) In the case of a person to whom a benefit based
on disability under this title becomes payable for any
month after a month for which such benefit was not pay-
able under subparagraph (B), and who thereafter fails to
continue treatment as required by paragraph (2), no bene-
fit based on disability shall be paid under this title for
any month ending after such failure.
‘‘(4) For purposes of this subsection, the term ‘bene-
fit based on disability’ of an individual means a disability
insurance benefit of such individual under section 223 or
a child’s, widow’s, or widower’s insurance benefit of such
individual under section 202 based on the disability of
such individual.
‘‘(5) Monthly insurance benefits under this title
which would be payable to any individual (other than the
disabled individual to whom benefits are not payable by
reason of this subsection) on the basis of the wages and
self-employment income of such a disabled individual but
for the provisions of paragraph (1), shall be payable as
though such disabled individual were receiving such bene-
fits which are not payable under this subsection.
‘‘(6) The Secretary shall provide for the monitoring
and testing of all individuals who are receiving benefits
under this title and who as a condition of such benefits
are required to be undergoing treatment and complying
with the terms, conditions, and requirements thereof as
described in the preceding provisions of this subsection,
in order to assure such compliance and to determine the
extent to which the imposition of such requirements is con-
tributing to the achievement of the purposes of this title.
The Secretary may retain jurisdiction in the case of a
hearing before the Secretary under this title to the extent
the Secretary determines necessary to carry out the pre-
ceding sentence. The Secretary shall annually submit to
the Congress a full and complete report on the Secretary’s
activities under this paragraph.
‘‘(7) The Secretary, in consultation with drug and al-
cohol treatment professionals, shall develop standards for
drug and alcohol treatment programs, and in consultation
with States, shall develop guidelines to be used to review
and evaluate the progress of participants in such pro-
grams.’’.
(b) PRESERVATION OF MEDICARE BENEFITS.—Sec-
tion 226 of such title (42 U.S.C. 426) is amended by add-
ing at the end the following:
‘‘(i) For purposes of this section, each person to
whom a benefit for any month is not payable by reason
of section 225(c) shall be treated as entitled to such bene-
fit for such month if such person would be entitled to such
benefit for such month in the absence of such section.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits payable for months be-
ginning 90 or more days after the date of the enactment
of this Act.
SEC. 3. RESTRICTION OF FUTURE REPRESENTATIVE PAY-
EES TO GOVERNMENT AGENCIES, STATE-
LICENCED OR CERTIFIED FACILITIES, OR
STATE-BONDED OR LICENSED COMMUNITY-
BASED NONPROFIT SOCIAL SERVICE AGEN-
CIES.
(a) RESTRICTION TO QUALIFIED ORGANIZATIONS.—
Section 205(j) of the Social Security Act (42 U.S.C.
405(j)) is amended—
(1) in paragraph (1), by striking ‘‘another indi-
vidual, or an organization,’’ and inserting ‘‘a quali-
fied organization’’;
(2) in paragraph (2)(A)(i), by striking ‘‘the per-
son’’ and inserting ‘‘the qualified organization’’, and
by striking ‘‘such person’’ and inserting ‘‘representa-
tives of such qualified organization’’;
(3) in paragraph (2)(B)(i), by striking ‘‘person’’
each place it appears in subclause (I) and inserting
‘‘qualified organization’’, by striking ‘‘person’s social
security account number (or employer identification
number)’’ in subclause (II) and inserting ‘‘qualified
organization’s employer identification number’’, by
striking ‘‘such person’’ in subclause (III) and insert-
ing ‘‘such qualified organization’’, and by striking
‘‘such person’’ each place it appears in subclause
(IV) and inserting ‘‘such qualified organization’’;
and
(4) by striking paragraph (2)(B)(ii), by redesig-
nating paragraph (2)(B)(i) (as amended by para-
graph (3)) as paragraph (2)(B), and by redesignat-
ing subclauses (I), (II), (III), and (IV) of paragraph
(2)(B) (as redesignated) as clauses (i), (ii), (iii), and
(iv), respectively.
(b) QUALIFIED ORGANIZATION DEFINED.—
(1) IN
GENERAL.—Section 205(j)(2)(C)(i) of
such Act (42 U.S.C. 405(j)(2)(C)(i)) is amended by
striking ‘‘Benefits of an individual may not be cer-
tified for payment to any other person pursuant to
this subsection if—’’ and inserting ‘‘For purposes of
this subsection, the term ‘qualified organization’
means an agency or instrumentality of a State or a
political subdivision of a State, a nonprofit facility
that is licensed or certified as a care facility under
the law of a State or a political subdivision of a
State, and, in connection with services provided as
a representative payee under this subsection in any
State, a community-based nonprofit social service
agency which is bonded or licensed in such State.
Except as otherwise provided in this subsection, such
term does not include any person if—’’.
(2) 
CONFORMING
AMENDMENTS.—Section
205(j)(2)(C) of such Act is further amended—
(A) by striking ‘‘subparagraph (B)(i)(III)’’
in clause (i)(I) and inserting ‘‘subparagraph
(B)(iii)’’, 
and 
by 
striking 
‘‘subparagraph
(B)(i)(IV)’’ in clause (i)(II) and inserting ‘‘sub-
paragraph (B)(iv)’’;
(B) in clause (iii), by striking subclauses
(I) and (IV), by redesignating subclauses (II),
(III), and (V) as subclauses (I), (II), and (III),
respectively, and by striking ‘‘an individual’’ in
subclause (III) (as redesignated) and inserting
‘‘a person’’; and
(C) in clause (iv), by striking ‘‘individual’’
each place it appears and inserting ‘‘person’’.
(c) AUTHORIZATION FOR FEES.—Section 205(j)(4)
of such Act (42 U.S.C. 405(j)(4)) is amended—
(1) by striking subparagraph (A) and inserting
the following:
‘‘(4)(A) A qualified organization may collect from an
individual a monthly fee for expenses (including overhead)
incurred by such organization in providing services per-
formed as such individual’s representative payee pursuant
to this subsection if such fee does not exceed 10 percent
of the monthly benefit involved. Any agreement providing
for a fee in excess of the amount permitted under this
subparagraph shall be void and shall be treated as misuse
by such organization of such individual’s benefits.’’;
(2) by striking subparagraph (B);
(3) by redesignating subparagraph (C) as sub-
paragraph (B) and, in subparagraph (B) (as so re-
designated), by striking ‘‘qualified organization’’ and
inserting ‘‘person’’; and
(4) by striking subparagraph (D).
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to certifications of
payments to representative payees made on or after the
date of the enactment of this Act. Section 205(j) of the
Social Security Act (42 U.S.C. 405(j)) as in effect imme-
diately before the date of the enactment of this Act shall
continue to apply, in the case of any person who is then
a representative payee under such section with respect to
benefits for which certification of payment to such person
under such section is then in effect, until such certification
ceases to be effective under such section as then in effect.
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