Preserving and Reforming SSDI (PAR-SSDI) Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preserving and Reforming SSDI (PAR-
SSDI) Act of 2016''.

SEC. 2. CONSIDERATION OF VOCATIONAL FACTORS IN DISABILITY 
              DETERMINATIONS.

    (a) Language Proficiency.--Section 223(d)(2) of the Social Security 
Act (42 U.S.C. 423(d)(2)) is amended by adding at the end the 
following:
            ``(D) In determining whether an individual is under a 
        disability, the Commissioner shall make such determination 
        without regard to the individual's ability to communicate in 
        English.''.
    (b) Quarters of Coverage Requirement.--Section 223(d)(2) of the 
Social Security Act (42 U.S.C. 423(d)(2)), as amended by subsection 
(a), is further amended by adding at the end the following:
            ``(E) In determining whether an individual is under a 
        disability for a month, the Commissioner may not consider the 
        individual's vocational background unless the individual had 
        not less than 16 quarters of coverage during the 24-quarter 
        period ending with the quarter in which such month occurs.''.
    (c) Periodic Update of Vocational and Educational Factors.--Not 
later than 5 years after the date of the enactment of this Act and not 
later than the end of every subsequent 5-year period, the Commissioner 
of Social Security shall prepare and implement a complete update of the 
vocational and educational factors considered in making disability 
determinations under title II of the Social Security Act.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to applications for disability insurance benefits 
filed on or after the date of the enactment of this Act.

SEC. 3. DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE BENEFITS IN 
              A MONTH FOR WHICH UNEMPLOYMENT COMPENSATION IS RECEIVED.

    (a) In General.--Section 223(d)(4) of the Social Security Act (42 
U.S.C. 423(d)(4)) is amended by adding at the end the following:
    ``(C)(i) If for any week in whole or in part within a month an 
individual is paid or determined to be eligible for unemployment 
compensation, such individual shall be deemed to have engaged in 
substantial gainful activity for such month.
            ``(ii) For purposes of clause (i), the term `unemployment 
        compensation' means--
                    ``(I) `regular compensation', `extended 
                compensation', and `additional compensation' (as such 
                terms are defined by section 205 of the Federal-State 
                Extended Unemployment Compensation Act (26 U.S.C. 3304 
                note)); and
                    ``(II) trade adjustment assistance under title II 
                of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
    (b) Trial Work Period.--Section 222(c) of the Social Security Act 
(42 U.S.C. 422(c)) is amended by adding at the end the following:
    ``(6)(A) For purposes of this subsection, an individual shall be 
deemed to have rendered services in a month if the individual is 
entitled to unemployment compensation for such month.
            ``(B) For purposes of subparagraph (A), the term 
        `unemployment compensation' means--
                    ``(i) `regular compensation', `extended 
                compensation', and `additional compensation' (as such 
                terms are defined by section 205 of the Federal-State 
                Extended Unemployment Compensation Act (26 U.S.C. 3304 
                note)); and
                    ``(ii) trade adjustment assistance under title II 
                of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
    (c) Data Matching.--The Commissioner of Social Security shall 
implement the amendments made by this section using appropriate 
electronic data.
    (d) Effective Date.--The amendments made by this subsection shall 
apply with respect to individuals who initially apply for disability 
insurance benefits on or after January 1, 2017.

SEC. 4. ELIGIBILITY FOR MEDICARE.

    (a) In General.--Section 226(b)(2) of the Social Security Act (42 
U.S.C. 426(b)) is amended--
            (1) in subparagraph (A), by striking ``24 calendar months'' 
        and inserting ``60 calendar months'';
            (2) in subparagraph (B), by striking ``24 months'' and 
        inserting ``60 months'';
            (3) in subparagraph (C)(ii), by striking ``24 months'' and 
        inserting ``60 months''; and
            (4) in the matter following subparagraph (C)(ii)(II)--
                    (A) by striking ``twenty-fifth month'' before ``of 
                his entitlement or status'' and inserting ``sixty-first 
                month''; and
                    (B) by striking ```twenty-fifth month of his 
                entitlement' refers to the first month after the 
                twenty-fourth month'' and inserting ```sixty-first 
                month of his entitlement' refers to the first month 
                after the sixtieth month''.
    (b) Conforming Amendments.--Section 226 of such Act (42 U.S.C. 
426), as amended by subsection (a), is further amended--
            (1) in subsection (e)(1)(B), by striking ``24 months'' and 
        inserting ``60 months''; and
            (2) in subsection (f), by striking ``24 months'' and 
        inserting ``60 months''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to applications for disability insurance benefits 
filed on or after the date of the enactment of this Act.

SEC. 5. INCLUSION OF UNEARNED INCOME IN DETERMINATION OF SUBSTANTIAL 
              GAINFUL ACTIVITY.

    (a) In General.--Section 223(d)(4) of the Social Security Act (42 
U.S.C. 423(d)(4)), as amended by section 3(b), is further amended by 
adding at the end the following:
    ``(D)(i) If the amount of unearned income (as defined in section 
1612) of an individual for a month is equal to or greater than the 
monthly income limit for such month, the individual shall be deemed to 
have engaged in substantial gainful activity for such month.
    ``(ii) For purposes of this subparagraph, the monthly income limit 
is the amount of earnings derived from services, prescribed by the 
Commissioner under regulations issued pursuant to subparagraph (A), 
sufficient to demonstrate an individual's ability to engage in 
substantial gainful activity for a month.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to monthly insurance benefits paid for months 
beginning after the date that is 1 year after the date of the enactment 
of this Act.

SEC. 6. MEDICAL EVIDENCE IN DISABILITY DETERMINATIONS.

    (a) Exclusion of Medical Evidence That Is Not Submitted in Its 
Entirety or Furnished by a Licensed Practitioner.--Section 223(d)(5) of 
the Social Security Act (42 U.S.C. 423(d)(5)) is amended--
            (1) in subparagraph (B), by striking ``In'' and inserting 
        ``Subject to subparagraphs (C) and (D), in''; and
            (2) by adding at the end the following new subparagraphs:
    ``(C)(i) An individual and, if applicable, such individual's 
representative shall submit, in its entirety and without redaction, all 
relevant medical evidence known to the individual or the representative 
to the Commissioner of Social Security.
            ``(ii) In the case of a hearing before an administrative 
        law judge to determine if an individual is under a disability 
        (as defined in paragraph (1)), the Commissioner of Social 
        Security shall not consider any piece of medical evidence 
        furnished by an individual or such individual's representative 
        unless such individual and, if applicable, such individual's 
        representative, certifies at the hearing that all relevant 
        medical evidence has been submitted in its entirety and without 
        redaction.
            ``(iii) For purposes of this subparagraph, the term 
        `relevant medical evidence' means any medical evidence relating 
        to the individual's claimed physical or mental impairments that 
        the Commissioner of Social Security should consider to 
        determine whether the individual is under a disability, 
        regardless of whether such evidence is favorable or unfavorable 
        to the individual's case, but shall not include any oral or 
        written communication or other document exchanged between the 
        individual and such individual's attorney representative that 
        are subject to attorney-client privilege or work product 
        doctrine, unless the individual voluntarily discloses such 
        communication to the Commissioner. Neither the attorney-client 
        privilege nor the work product doctrine shall prevent from 
        disclosure medical evidence, medical source opinions, or any 
        other factual matter that the Commissioner may consider in 
        determining whether or not the individual is entitled to 
        benefits.
            ``(iv) Any individual or representative who knowingly 
        violates this subparagraph shall be guilty of making a false 
        statement or representation of material fact, shall be subject 
        to civil and criminal penalties under sections 208 and 1129, 
        and, in the case of a representative, shall be suspended or 
        disqualified from appearing before the Social Security 
        Administration.
    ``(D) The Commissioner of Social Security shall not consider any 
evidence furnished by a physician or health care practitioner who is 
not licensed or has been sanctioned.''.
    (b) Health Care Providers Supplying Consultative Exams.--
            (1) In general.--Beginning 1 year after the date of 
        enactment of this Act, in determining whether an individual 
        applying for disability insurance benefits under title II of 
        the Social Security Act is disabled, the Commissioner of Social 
        Security shall not consider medical evidence resulting from a 
        consultative exam with a health care provider conducted for the 
        purpose of supporting the individual's application unless the 
        evidence is accompanied by a Medical Consultant Acknowledgment 
        Form signed by the health care provider who conducted the exam.
            (2) Medical consultant acknowledgment form.--
                    (A) Definition.--As used in this subsection, the 
                term ``Medical Consultant Acknowledgment Form'' means a 
                form published by the Commissioner of Social Security 
                that meets the requirements of subparagraph (B).
                    (B) Requirements.--The Commissioner of Social 
                Security shall develop the Medical Consultant 
                Acknowledgment Form and make it available to the public 
                not later than 6 months after the date of enactment of 
                this Act. The contents of the Medical Consultant 
                Acknowledgment Form shall include--
                            (i) information on how medical evidence is 
                        used in disability determinations;
                            (ii) instructions on completing a residual 
                        functional capacity form;
                            (iii) information on the legal and ethical 
                        obligations of a health care provider who 
                        supplies medical evidence for use in a 
                        disability determination, including any civil 
                        or criminal penalties that may be imposed on a 
                        health care provider who supplies medical 
                        evidence for use in a disability determination; 
                        and
                            (iv) a statement that the signatory has 
                        read and understands the contents of the form.
            (3) Penalties for fraud.--In addition to any other 
        penalties that may be prescribed by law, any individual who 
        forges a signature on a Medical Consultant Acknowledgment Form 
        submitted to the Commissioner of Social Security shall be 
        guilty of making a false statement or representation of 
        material fact, and upon conviction shall be subject to civil 
        and criminal penalties under sections 208 and 1129 of the 
        Social Security Act and, in the case of a representative, shall 
        be suspended or disqualified from appearing before the Social 
        Security Administration.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to applications for disability insurance benefits 
filed on or after the date of the enactment of this Act.

SEC. 7. CHANGE IN INDEX USED TO CALCULATE SOCIAL SECURITY COST-OF-
              LIVING ADJUSTMENTS.

    (a) In General.--Section 215(i)(1) of the Social Security Act (42 
U.S.C. 415(i)(1)) is amended--
            (1) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (2) by adding at the end the following new subparagraph:
            ``(H) the term `Consumer Price Index' means the Chained 
        Consumer Price Index for All Urban Consumers (C-CPI-U, as 
        published in its initial version by the Bureau of Labor 
        Statistics of the Department of Labor).''.
    (b) Application to Pre-1979 Law.--
            (1) In general.--Section 215(i)(1) of the Social Security 
        Act as in effect in December 1978, and as applied in certain 
        cases under the provisions of such Act as in effect after 
        December 1978, is amended--
                    (A) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(D) the term `Consumer Price Index' means the Chained 
        Consumer Price Index for All Urban Consumers (C-CPI-U, as 
        published in its initial version by the Bureau of Labor 
        Statistics of the Department of Labor).''.
            (2) Conforming change.--Section 215(i)(4) of the Social 
        Security Act (42 U.S.C. 415(i)(4)) is amended by inserting 
        ``and by section 231 of the Preserving and Reforming SSDI (PAR-
        SSDI) Act of 2016'' after ``1986''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to adjustments effective with or after the first 
December that begins at least 3 years after the date of the enactment 
of this Act.

SEC. 8. THIRD-PARTY INCOME VERIFICATION.

    (a) In General.--Section 223(i) of the Social Security Act (42 
U.S.C. 423(i)) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
    ``(5)(A) In any case in which the Commissioner of Social Security 
initiates a review under this subsection of the case of an individual 
who has been determined to be under a disability, such review shall 
include an independent estimate by a qualified social security income 
verification contractor of such individual's monthly income at the time 
of such review.
    ``(B) Upon initiating a review of an individual under this 
subsection, the Commissioner of Social Security shall provide such 
individual's name, address, and social security account number to a 
qualified social security income verification contractor for purposes 
of obtaining the independent estimate described in subparagraph (A).
    ``(C)(i) Not later than 60 days after the date of the enactment of 
this paragraph, the Commissioner of Social Security shall enter into 
one or more qualified income verification contracts.
    ``(ii) For purposes of this paragraph, the term `qualified social 
security income verification contract' means any contract which is for 
the services of any person (other than an officer or employee of the 
Social Security Administration)--
            ``(I) to provide an estimate (based on the best information 
        available to such person) of the income of any individual 
        specified by the Commissioner as described in subparagraph (A);
            ``(II) to provide such information regarding the basis for 
        such estimate as the Commissioner may specify; and
            ``(III) that prohibits each person providing such services 
        from contacting the individual, employers of the individual, 
        members of the individual's family, and such other persons as 
        the Commissioner may specify.
    ``(iii) For purposes of this section, the term `qualified social 
security income verification contractor' means the person providing 
services to the Secretary under a qualified social security income 
verification contract.
    ``(D)(i) Nothing in any provision of law shall be construed to 
prevent the Secretary from--
            ``(I) entering into a qualified social security income 
        verification contract, or
            ``(II) providing identifying information to a qualified 
        social security income verification contractor as provided in 
        this paragraph.
    ``(ii) The United States shall not be liable for any act or 
omission of any person performing services under a qualified social 
security income verification contract.
    ``(E) In any case in which an independent estimate conducted 
pursuant to this paragraph with respect to an individual entitled to 
disability insurance benefits demonstrates that such individual failed 
to accurately report any monthly income, the Commissioner of Social 
Security shall conduct an investigation of such individual to determine 
whether such individual's monthly income demonstrates the individual's 
ability to engage in substantial gainful activity.''.

Summary: Preserving and Reforming SSDI (PAR-SSDI) Act of 2016 This bill amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSAct) to:  direct the Social Security Administration (SSA), in determining whether an individual is under a disability, to make such a determination without regard to the individual's ability to communicate in English; prohibit the SSA, in determining whether an individual is under a disability for a month, from considering the individual's vocational background in computing the quarters of coverage requirement unless the individual had not less than 16 quarters of coverage during the 24-quarter period ending with the quarter in which such month occurs; and direct the SSA to prepare and implement a complete update of the vocational and educational factors considered in making disability determinations.  The bill declares that for any week in whole or in part within a month that an individual is paid or determined to be eligible for unemployment compensation he or she shall be deemed to have engaged in substantial gainful activity and so be disqualified from receiving Social Security disability benefits after a certain period has elapsed. The bill also states that, for purposes of determining services rendered by an individual during a period of trial work which will not disqualify the individual for disability benefits, the individual shall be deemed to have rendered services in a month if he or she is entitled to unemployment compensation or trade adjustment assistance for that month. The bill revises prerequisites for the entitlement of certain individuals under age 65 to SSAct title XVIII (Medicare) part A hospital insurance benefits. The length of time such an individual must be entitled to disability insurance, child's insurance, or widow's insurance benefits, in order to qualify for entitlement to Medicare part A hospital benefits, shall increase from the current 24 months to 60 months. If the amount of an individual's unearned income for a month is equal to or greater than the monthly income limit for that month, the individual shall be deemed to have engaged in substantial gainful activity for the month for purposes of determining disability insurance benefit payments. The SSA must receive from an individual and/or the individual's representative, in its entirety and without redaction, all known relevant medical evidence related to a disability claim. Any medical evidence not submitted in its entirety or not furnished by a licensed practitioner shall be excluded in disability determinations. In determining whether a disability benefits applicant is disabled, the SSA shall not consider medical evidence resulting from a consultative exam with a health care provider unless the application is accompanied by a Medical Consultant Acknowledgment Form signed by the health care provider who conducted the exam. The bill changes the index used to calculate OASDI cost-of-living adjustments to the Chained Price Index for All Urban Consumers. In any case in which SSA initiates a review of disability benefits for an individual, the review shall include an independent estimate by a qualified Social Security income verification contractor of the individual's monthly income.