To amend title II of the Social Security Act to eliminate the 5-month waiting period for entitlement to disability benefits and to eliminate reconsideration as an intervening step between initial benefit entitlement decisions and subsequent hearings on the record on such decisions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disability Benefit Fairness Act of 
2004''.

SEC. 2. ELIMINATION OF 5-MONTH WAITING PERIOD FOR BENEFITS BASED ON 
              DISABILITY.

    (a) Disability Insurance Benefits.--
            (1) In general.--The first sentence of section 223(a)(1) of 
        the Social Security Act (42 U.S.C. 423(a)(1)) is amended by 
        striking ``(i) for each month'' and all that follows through 
        ``the first month in which he is under such disability'' and 
        inserting the following: ``for each month beginning with the 
        first month during all of which such individual is under a 
        disability and in which such individual becomes so entitled to 
        such insurance benefits''.
            (2) Waiting period eliminated from determination of benefit 
        amount.--
                    (A) In general.--The first sentence of section 
                223(a)(2) of such Act (42 U.S.C. 423(a)(2)) is amended 
                by striking ``in--'' and all that follows through ``and 
                as though'' and inserting the following: ``in the first 
                month for which such individual becomes entitled to 
                such disability insurance benefits, and as though''.
                    (B) Conforming amendment.--The second sentence of 
                section 223(a)(2) of such Act (42 U.S.C. 423(a)(2)) is 
                amended by striking ``subparagraph (A) or (B) of such 
                sentence, as the case may be'' and inserting ``such 
                sentence''.
            (3) Elimination of defined term.--
                    (A) In general.--Section 223(c)(2) of such Act is 
                repealed.
                    (B) Conforming amendments.--
                            (i) The heading of section 223(c) of such 
                        Act (42 U.S.C. 423(c)) is amended to read as 
                        follows: ``Definition of Insured Status''.
                            (ii) Section 223(c)(1) of such Act (42 
                        U.S.C. 423(c)(1)) is amended by striking ``For 
                        purposes of subparagraph (B) of this paragraph, 
                        when the number of quarters'' in the last 
                        sentence and inserting the following:
            ``(2) In applying paragraph (1)(B), when the number of 
        quarters''.
    (b) Widow's Insurance Benefits Based on Disability.--
            (1) In general.--Section 202(e)(1)(F) of such Act (42 
        U.S.C. 402(e)(1)(F)) is amended to read as follows:
            ``(F) if she satisfies subparagraph (B) by reason of clause 
        (ii) thereof, the first month during all of which she is under 
        a disability and in which she becomes so entitled to such 
        insurance benefits,''.
            (2) Elimination of defined term.--Section 202(e) of such 
        Act (42 U.S.C. 402(e)) is amended--
                    (A) by striking paragraph (5); and
                    (B) by redesignating paragraphs (6), (7), (8), and 
                (9) as paragraphs (5), (6), (7), and (8), respectively.
    (c) Widower's Insurance Benefits Based on Disability.--
            (1) In general.--Section 202(f)(1)(F) of such Act (42 
        U.S.C. 402(f)(1)(F)) is amended to read as follows:
            ``(F) if he satisfies subparagraph (B) by reason of clause 
        (ii) thereof, the first month during all of which he is under a 
        disability and in which he becomes so entitled to such 
        insurance benefits,''.
            (2) Elimination of defined term.--Section 202(f) of such 
        Act (42 U.S.C. 402(f)) is amended--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraphs (7), (8), and (9) 
                as paragraphs (6), (7), and (8), respectively.
    (d) Elimination of Waiting Period for Commencement of Periods of 
Disability.--Section 216(i)(2)(A) of such Act (42 U.S.C. 416(i)(2)(A)) 
is amended by striking ``, but only'' and all that follows and 
inserting a period.
    (e) Effective Dates.--The amendments made by subsection (a) shall 
apply only with respect to benefits under section 223 of the Social 
Security Act, or under section 202 of such Act on the basis of the 
wages and self-employment income of an individual entitled to benefits 
under such section 223, for months after the third month following the 
month in which this Act is enacted. The amendments made by subsections 
(b) and (c) shall apply only with respect to benefits based on 
disability under subsection (e) or (f) of section 202 of the Social 
Security Act (42 U.S.C. 402) for months after the third month following 
the month in which this Act is enacted. The amendment made by 
subsection (d) shall apply only with respect to applications for 
disability determinations filed under title II of the Social Security 
Act on or after the 90th day following the date of the enactment of 
this Act.

SEC. 3. ELIMINATION OF RECONSIDERATION IN THE REVIEW PROCESS GOVERNING 
              DECISIONS ON BENEFIT ENTITLEMENT.

    (a) In General.--Section 205(b)(1) of the Social Security Act (42 
U.S.C. 405(b)(1)) is amended by adding at the end the following new 
sentence: ``Opportunity for a hearing under this title in accordance 
with this subsection with respect to any initial decision or 
determination under this title shall be available without any 
requirement for intervening reconsideration.''.
    (b) Conforming Amendments.--Section 205(b) of such Act is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to initial decisions and determinations (subject to 
opportunity for a hearing to the extent provided under section 205(b) 
of the Social Security Act) issued after 1 year after the date of the 
enactment of this Act.

Summary: Disability Benefit Fairness Act of 2004 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to eliminate: (1) the five-month waiting period for an individual (including a disabled widow or widower) to be eligible for benefits based on disability; and (2) eliminate any intervening reconsideration from the review process governing decisions on benefit entitlement.