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SSI Issees I ssees
CLINTON LIBRARY PHOTOCOPY
June 12, 1995
TO:
Carol Rasco
Bruce Reed
Jeremy Ben-Ami
FR:
Diana Fortuna
Steve Warnath
BCW
Here is a draft response to the President's question about a
Washington Post article on elderly immigrants on SSI. Sorry it
took so long, but there were some developments on this issue last
week that we wanted to reflect in the responsé.
DRAFT
June 12, 1995
MEMORANDUM FOR THE PRESIDENT
FROM:
Carol Rasco
SUBJECT:
Attached Clipping on SSI and Elderly Immigrants
You had sent me the attached Washington Post article on the
growth in the number of elderly permanent residents on SSI and
noted that we need a careful position on the issue.
In our welfare reform bill, we took the position that the income
of an immigrant's sponsor should be deemed available to the
immigrant for a period of five years for the purposes of
determining eligibility for SSI, as well as AFDC and food stamps.
This period would be longer if the sponsor's annual income was
above the U.S. median family income. In that case, the immigrant
would not be eligible for benefits until citizenship.
However, since that time, the House and the Senate Finance
Committee have both acted on this issue as part of their welfare
reform bills. As the article notes, the House would bar legal
immigrants from receipt of Medicaid, SSI, school lunch, and other
Federal programs, with an exception for those older than 75 who
have lived in the U.S. for at least five years. The Senate
Finance Committee approach is tougher. It would bar legal
immigrants from receipt of SSI, except those who are older than
65 who have worked in the U.S. at least 10 years (long enough to
qualify for SSDI and old-age benefits). Both would also exempt
recent refugees and veterans. These measures result in
significant savings within each bill: $6 billion out of $69
billion in savings in the House welfare reform bill, and
approximately $10-11 billion out of $32 billion in savings in the
Senate Finance version.
One very recent development is Senator Simpson's immigration
proposal. Senator Simpson would require an immigrant's sponsor
to agree to financially support the sponsored individual until
the sponsored individual has worked in the U.S. for 40 qualifying
quarters. The bill would save $8.5 billion over five years. In
our comments on Simpson's bill, we said that, while the
Administration strongly supports making the affidavit of support
legally binding, we have reservations about setting the period of
obligation and deeming at 40 qualifying quarters, as it could
lead to deeming even after the immigrant becomes a naturalized
citizen. This feature of Simpson's bill was criticized by others
in the attached Washington Post article over the weekend.
2
We offered to work with Simpson's Subcommittee to establish a
reasonable deeming policy that addresses these concerns. We
suggested that one option could be to deem sponsored immigrants
for 10 years or until citizenship with certain exemptions.
We have not made this issue a priority in our comments on the
welfare reform bill to date, and have therefore not been actively
pushing our deeming proposal during the recent debate on the
Hill. The conference will be a more appropriate time for us to
weigh in, once we have ascertained how much support Senator
Simpson is garnering.
CC: Leon Panetta
Anthony Lake
Immigrant groups and others pro-
Day said Simpson had disagreed
tested the House provisions affect-
with the House provisions creating
Senate Measure
ing legal immigrants, arguing they
an outright ban on benefits to noncit-
are living in this country legally and
izens, arguing there should be a "lim-
paying taxes and should be eligible
fied safety net" for immigrants who
On Immigrants
for the same programs as other
fallion hard times.
Americans
But when that happens, sponsors
To some extent. those provisions
who have pledged to help support
Draws Protest
were softened in the legislation ap-
unmigrants should be held to that
proved by the Senate Finance Com-
greement, Day said. Taking into ac-
mittee last month. Under the Senate
Count the income of the sponsors in
bill, for example, noncitizens would
determining eligibility is similar to
The Washington Post, 11. 1995
Benefits Limits Apply
be barred from only one program,
considering the alimony or child sup-
Even After Citizenship
SSI, rather than the five programs in
port other welfare applicants may be
the House bill.
receivido he said.
But in other ways, the Senate bill
"It's just like another asset that
is 'more restrictive than the House
should be considered," Day said.
By Barbara Vobejda
"version.
Folks who are their relatives should
Washington Post Staff Writer
The issue most disturbing to im-
be responsible for them, not the
The Senate welfare reform bill
migrant groups is the Senate provi-
American taxpayer."
would make it more difficult for legal
sion that would make it more diffi-
immigrants to receive benefits even
"cult for legal immigrants to qualify
after they become citizens, which
for benefits even after they become
immigrant groups claim would vio-
citizens. The added barrier to bene-
late long-standing tradition by creat-
fits is a requirement that states,
ing two classes of citizens.
when determining eligibility, take in-
Republican legislation in the
to account the income not only of the
House and Senate calls for restrict-
Immigrants applying for assistance,
ing welfare aid to legal immigrants.
but the income of the sponsors of
But only in the Senate bill do the re-
those immigrants, and the sponsors'
strictions extend beyond the point at
spouses.
which immigrants become citizens.
For the most part, sponsors are
It means that a naturalized citi-
relatives of the immigrants.
zen doesn't have all the rights of a
Advocacy groups argue that few
citizen who was born here," said Josh
immigrants could qualify for assis-
Bernstein, a policy analyst with the
tance under the proposed provisions,
National Immigration Law Center.
known as "deeming" rules. Also,
"We're asking people to pledge alle-
these groups say, the relatives of im-
giance to the country, take on the
migrants are often struggling finan-
full responsibilities of citizenship, but
cially, and supporting another family
we withholding some of the bene-
would send them into further eco-
fits of citizens."
nomic difficulty.
A spokesman for Sen. Alan K.
Under current law, the income of
Simpson (R-Wyo.), who proposed
sponsors must be "deemed" when a
the language, dismissed arguments
noncitizen applies for three pro-
that the policy would be unfair to im-
grams: AFDC, food stamps and SSI.
migrants who become citizens.
In the House version, the deeming
For Simpson, said Richard W.
requirement would end when an im-
Day, chief counsel to the Judiciary
migrant became a citizen. In the
immigration subcommittee, "it's a
Senate bill, the deeming require-
matter of principle that newcomers
ment would apply even after an im-
should be self-supporting."
migrant becomes a citizen.
"To create this distinction be-
Under the welfare bill approved
by the House in March, most legal
tween naturalized citizens and other
immigrants who have not become
citizens is a huge departure from a
couple hundred years' worth of tra-
citizens would be barred from re-
dition in this country," said Cecilia
ceiving benefits under the major
Munoz, deputy vice president at the
welfare programs-including Aid to
National Council of La Raza.
Families with Dependent Children,
That argument was supported by
food stamps, Medicaid and Supple-
David Martin, University of Virginia
mental Security Income (SSI) for the
professor of law. "Traditionally, the
elderly and disabled.
dividing line has been obtaining citi-
Illegal immigrants are not eligible
Lenship," Martin said. "Virtually ev-
for most programs under current
ery, kind of restriction that applies to
law, nor would they be under the
aliens ceases to apply when you be-
proposed changes.
come a citizen."
MAY
of refugees during the Cold War and therefore
AN UNCERTAIN OLD AGE
tract With America.
has a special obligation to help them once they
"They live in your home town. They go to
are here.
THE IMMIGRANT ELDERLY
the Rotary Club. They're in the service club,"
Proponents of the bill say the United States
Simpson said. "They are in every sense part of
should not use welfare to compensate for misery
us-except for one thing, the right to vote."
under communism.
Renefit Lifeline
The House version of welfare reform would
The group most frequently criticized by propo-
produce savings of between $18 billion and $21
nents of restricting benefits are elderly immi-
billion over five years by barring most legal immi-
grants coming to the United States to join their
May Be Severed
grants from receiving a range of federally funded
American-citizen children. Many are too old or
benefits, from Medicaid to school lunches.
disabled to work. Advocates of welfare reform
Exceptions would be made for legal immi-
say children who sponsor their parents to come
grants over 75 who have lived here five years, re-
to the United States, not American taxpayers,
For Noncitizens
cent refugees and veterans, among others. Un-
should take care of them.
documented aliens would continue to be barred
Opponents say elderly immigrants who are eli-
from welfare programs and non-emergency
gible for SSI are not cheating the system but
as of three articles
health care welfare programs.
making normal use of a benefit that native-born
The Senate version of the welfare bill adopted
Americans would not deny their own families.
By Lena H. Sun
last week by the Finance Committee would give
In the Washington area, where foreign-born
Washington Post Sulf Writer
states the option of barring legal immigrants
residents make up 12 percent of the general pop-
from the basic cash welfare program, Aid to Fam-
ulation-higher than the national average-the
han Hue rolls up his pants and
ilies with Dependent Children.
P
two largest groups of legal residents receiving
sleeves to show the scars from
But, like the House bill, the Senate legislation
SSI are from Vietnam and South Korea, accord-
four bullet and shrapnel wounds,
targets the federal program that has been used
ing to the Social Security Administration.
reminders of his days in the South
by increasing numbers of elderly immigrants and
Vietnamese army. Now living in Falls
refugees in the last decade: the Supplemental Se-
When Families Can't Help
Church, Phan, 74, and his wife survive on
curity Income program, which provides assis-
$680 a month in federal benefits for the
tance to the nation's disabled and elderly poor.
Du Won Kim, a retired South Korean auto
elderly poor, known as Supplemental
The Senate version of welfare reform would
parts salesman, came to the United States 10
Security Income, or SSI. They stretch
produce savings of between $10 billion and $11
years ago to be with his grown daughter and
those dollars by turning the heat down in
billion over five years by keeping most elderly im-
son. Kim, now 74, stayed briefly with his
the winter, sitting outside in the sun to
migrants from receiving aid under SSI.
daughter in her Silver Spring home but moved
keep warm, and seldom buying meat.
Exceptions would be made for legal immi-
out because he did not want to live in the same
The two refugees are among hundreds
grants who have worked in 'the United States
house with his son-in-law's mother. He lives
of thousands of elderly immigrants, all of
long enough to qualify for Social Security disabili-
alone in a subsidized apartment in Rockville.
them legally admitted into the country,
ty income or old-age benefits-at least 10
He worked for about a year in a delicatessen
who would lose such benefits under the
years-and for recent refugees and veterans.
but stopped when he turned 65 and was eligible
Republican-sponsored welfare reform bill
An estimated 738,000 legal aliens received
to receive SSI. His monthly check is $458. He
that passed the House in March and under
SSI benefits in December 1994. Legal aliens ac-
can pay his $128 monthly rent, but he relies on
another bill pending in the Senate. These
count for nearly 12 percent of all SSI recipients
his daughter for additional money to cover liv-
and 30 percent of all recipients 65 or older. Since
cuts are an essential part of the GOP
ing expenses.
1982, the number of legal residents receiving
proposals because they produce roughly
The daughter, Chong Hong, 51, is an American
has risen 580 percent, reflecting a surge in immi-
one-third of the $66 billion in savings over
citizen. She owns a Rockville sandwich shop; her
gration
husband is an auto mechanic. With three daugh-
five years that backers expect to glean
Robert Rector, a policy analyst with the Heri-
from the House welfare plan, and about 4(
ters in college, she said, she is unable to provide
tage Foundation who favors the new restrictions,
full financial support for her father.
percent of the $26 billion in savings from
says knowledge about these benefits has spread
"I can't cover all his expenses," she said. "In
the Senate version.
in immigrant communities here and overseas, at-
Korea, the wives stay home, but in America, my
The impact of the legislation goes far
tracting foreign-born elderly who are turning the
husband and I both work hard, and still we do not
beyond dollars and cents. Already these
U.S. welfare system into a "deluxe retirement
have enough for everything."
money-saving proposals have prompted a
home."
Her brother, recently divorced, is also strug-
wide-ranging debate over the place of
Critics of the legislation say the bills, particu-
gling and cannot provide for his father.
legal immigrants in American society. For
larly the broader House legislation, would hurt
the needy and vulnerable. For immigrants who.
Kim turns 75 next year and would be exempt
the first time, they are being judged
substantially in relation to their use of
arrive too late in life to work enough time to qual-
from the ban under the House bill, but unprotec-
ify for Social Security, there is virtually no other
ted under the Senate version. He is taking no
publicly funded health care and other
way to get affordable health insurance except
chances. He is applying for citizenship.
entitlements, as opposed to their
See ELDERLY, A5, Col. 3
through SSI. In most states, elderly people re-
Other elderly immigrants may not be as fortu-
ceiving SSI automatically qualify for Medicaid,
nate.
ELDERLY, From A1
the government health insurance program for the
Phan, the former South Vietnamese army ser-
economic, social and cultural contributions to
poor and disabled.
geant, has a third-grade education and little
Another category of immigrants that oppo-
chance of learning enough English to pass the citi-
ciety.
"When did we change the definition of Ameri-
nents of the cutbacks consider particularly de-
zenship test. In 1987, he fled his village in central
can?
From Albert Einstein to Martina Navra-
serving are those who worked in the United
Vietnam for the Philippines on a fishing boat with
tilova; from An Wang, the founder of Wang com-
States long enough to get Social Security but
six of his nine children and their families.
puters, to Elie Wiesel, winner of the Nobel Peace
were employed in such low-wage, low-benefit
A year later, they arrived in the United States.
Prize-all have come to this country and been ac-
jobs that they now need SSI to keep them out of
The children are working-some as carpenters,
cepted as Americans," said Rep. Norman Y. Mi-
poverty. About one of every four legal immi-
one as a custodian-but their wages are low, and
neta (D-Calif.) during the House floor debate.
grants receiving SSI, many of them former work-
they cannot help their parents financially. The
But advocates of the new restrictions insist
ers in the garment and service industries, also
$680 in monthly SSI benefits barely covers rent,
that legal immigrants must accept substantial
gets Social Security retirement benefits.
utilities and food for Phan and his wife, Truong
sacrifices at a time of widespread cuts in federal
Juan Martinez, 71, a retired day laborer, lives
Thi Ty, 68, who arrived last year.
spending on assistance programs.
in Weslaco, Tex., in the Rio Grande valley. Origi-
The blue couch in their one-bedroom Falls
"Quite frankly, 1 do not think that when we're
nally from Mexico, Martinez worked for 16 years
cutting benefits and cutting welfare for our citi-
picking cucumbers, tomatoes, strawberries and
Church apartment is threadbare. A white Frisbee
oranges in Ohio, Florida and Michigan. He retired
turned upside down is the tray for chipped tea-
zens, 1 don't see why we should stretch and say
that we have an obligation to those that aren't
four years ago after he became ill with diabetes.
cups. One recent afternoon, the fiance of one of
He receives $287 a month in Social Security, and
their granddaughters brought them a bag of
even citizens of our own country," said Rep. E.
Clay Shaw Jr. (R-Fla.), an author of the House
$178 in SSI. His wife, also a retired farm worker,
shrimp, a treat they seldom buy themselves.
receives an additional spousal Social Security
Truong has frequent migraines, and may have
welfare plan.
The issue is likely to be a major point of con-
check of $139 a month.
diabetes. Phan suffers from severe arthritis. Be-
tention in coming months now that the welfare
Martinez would be protected under the Senate
cause of his age, Phan would keep his benefits un-
reform debate has moved to the Senate, where
welfare reform bill. but the House version would
der the House bill, but his wife would lose her SSI
some prominent Republicans favor either adopt-
cut off his SSI income and force the couple to live
stipend and Medicaid coverage. Under the Senate
ing less restrictive measures or letting individual
on an annual income of $5,112, substantially be-
version, the couple would lose their entire month-
states decide on immigrants' eligibility.
low the poverty line.
ly income of $680.
"They can check with my bosses, they can find
"If the government does not help out the old
'In Every Sense Part of Us'
out if I worked or not," said Martinez, his words
people, I don't see how we can survive," said
tumbling out in Spanish. "If they get rid of the
Phan, speaking agitatedly in Vietnamese. "The
Sen. Alan K. Simpson, (R-Wyo.), a longtime
check, I couldn't pay the electric, I couldn't pay
Americans helped the Vietnamese fight the Com-
leader on immigration policy, often argues that
the water, I couldn't pay for the old car I got-1
munists. I don't really don't understand about the
legal immigrants enter into a contract with the
couldn't pay for anything."
politics here. But if America had won the war,
government when they come to the United
Others who would be hard-hit are refugees,
then all the Vietnamese soldiers would be leading
States. They pay taxes and serve in the mili-
with the largest numbers having fled the former
a much happier life everywhere."
tary. To take the safety net from them, he said,
Soviet Union and Southeast Asia. Refugee advo-
"would be a very grave mistake" and goes
cates say the United States played a central role
Staff writers Guy Gugliotta and Peter Pae
against the spirit of House Republicans' "Con-
in the political upheavals that produced the flow
contributed to this rebort.
THE WASHINGTON POST
TUESDAY. MAY 30, 1995
THE PRESIDENT HAS SEEN 5/31
Leon ( coz/Tonyc
we new Ce caupus
position on Mai-
also rught have Sorm
freign policy carplications
BR
-
REGO II
- -SSI Up to the shots
- Privatiting Soc.Sec.
- Greater Die of 3rd party
2 BACKLOG
- ser up don
- acc on moiling lisv for repels.
s Apers
- Peg Clare think we're done
4
INFO from Treas my : ST by st. breandown of who pass
the 85%
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
Washington, D.C. 20503
May 20, 1994
LEGISLATIVE REFERRAL MEMORANDUM
LRM #I-2778
TO: Legislative Liaison Officer -
HHS - Frances White - (202)690-7760 - 328
JUSTICE - Sheila F. Anthony - (202)514-2141 - 217
TREASURY - Richard S. Carro - (202) 622-1146 - 228
AGRICULTURE - Marvin Shapiro - (202) 720-1516 - 312
LABOR - Robert A. Shapiro - (202) 219-8201 - 330
ONDCP - Babette Hankey - (202)395-6739 - 257
FROM:
Assistant JANET R. FORSGREN Director (for) for prit Legislative R. Forsyxence
OMB CONTACT: Melissa COOK (395-3924)
Secretary's line (for simple responses) : 395-7362
SUBJECT:
OMB Request for Views RE: HR 4419, To modify
the Supplemental Security Income program
under title XVI of the Social Security Act
DEADLINE:
C.O.B. June 1, 1994
OMB requests the views of your agency on the above subject before
advising on its relationship to the program of the President, in
accordance with OMB Circular A-19.
Please advise us if this item will affect direct spending or
receipts for purposes of the the "Pay-As-You-Go" provisions of
Title XIII of the Omnibus Budget Reconciliation Act of 1990.
CC:
Bernie Martin
Keith Fontenot
Bob Damus
Richard Popper
Art Stigile
Mike Ruffner
Ellen Seidman
Barry Clendenin (2
Bill-Dickens
copies)
Jeremy Benami
Doug Steiger
Cookie Walden
Barbara Selfridge
Clarissa Cerda
Ken Schwartz
Greg Simon
Jim Duke/Martha
Lorraine Miller
Gagne
Jennifer Palmieri
Lin Liu
Janet Forsgren
Laura Oliven
Chris Mustain
LRM #I-2778
RESPONSE TO LEGISLATIVE REFERRAL MEMORANDUM
If your response to this request for views is simple (e.g.,
concur/no comment) we prefer that you respond by faxing us this
response sheet. If the response is simple and you prefer to
call, please call the branch-wide line shown below (NOT the
analyst's line) to leave a message with a secretary.
You may also respond by (1) calling the analyst/attorney's direct
line (you will be connected to voice mail if the analyst does not
answer) i (2) sending us a memo or letter; or (3) if you are an
OASIS user in the Executive Office of the President, sending an
E-mail message. Please include the LRM number shown above, and
the subject shown below.
TO:
Melissa COOK
Office of Management and Budget
Fax Number: (202) 395-6148
Analyst/Attorney's Direct Number:
(202) 395-3924
Branch-Wide Line (to reach secretary) : (202) 395-7362
FROM:
(Date)
(Name)
(Agency)
(Telephone)
SUBJECT:
OMB Request for Views RE: HR 4419, To modify
the Supplemental Security Income program
under title XVI of the Social Security Act
The following is the response of our agency to your request for
views on the above-captioned subject:
Concur
No objection
No comment
See proposed edits on pages
Other:
FAX RETURN of
pages, attached to this
response sheet
I
103D CONGRESS
2D SESSION
H. R. 4419
To modify the supplemental security income program under title XVI
of the Social Security Act.
IN THE HOUSE OF REPRESENTATIVES
MAY 12, 1994
Mr. SANTORUM (for himself, Mr.ARCHER, Mr.GINGRICH, Mr.THOMAS of
California, Mr.SHAW, Mr.CAMP, Mr. HERGER, Mr.MCCRERY,
Mrs. JOHNSON of Connecticut, Mr.CASTLE, Mr. GEKAS, Mr. SMITH of
Michigan, and Mr. ISTOOK) introduced the following bill; which was
referred jointly to the Committees on Ways and Means and Energy
and Commerce
A BILL
To modify the supplemental security income program under title XVI
of the Social Security Act.
//Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
!!TITLE I--RESTRICTIONS FOR ALIENS!!
!!SEC. 101. CERTAIN ALIENS INELIGIBLE FOR SUPPLEMENTAL SECURITY
INCOME BENEFITS. !!
(a) IN GENERAL. Section 1614 (a) of the Social Security Act (42
U.S.C. 1382c (a)) is amended by adding at the end the following:
" (5) (A) An alien otherwise eligible for benefits under this
title who has qualified for entry pursuant to section 207 of the
Immigration and Nationality Act shall not be eligible for such
benefits after the 6-year period that begins with the date the alien
arrives in the United.States.
" (B) Subparagraph (A) shall not apply to an alien who--
" (i) has been lawfully admitted to the United States for
permanent residence;
" (ii) has attained 75 years of age; and
" (iii) has resided in the United States for at least 5
years.
" (C) Subparagraph (A) shall not apply to an alien who, on the
date of the enactment of this paragraph, is residing in the United
2
States and eligible for benefits under this title, until 1 year
after such date of enactment.
(b) NOTIFICATION OF AFFECTED ALIENS. Social Security
Administration shall, directly or through the States, notify each
alien receiving supplemental security income benefits under title
XVI of the Social Security Act whose eligibility for such benefits
is or will be terminated by reason of the amendment made by
subsection (a).
!!SEC. 102. STATE AFDC AGENCIES REQUIRED TO PROVIDE INFORMATION ON
ILLEGAL ALIENS TO THE IMMIGRATION AND NATURALIZATION
SERVICE. !!
Section 402 (a) of the Social Security Act (42 U.S.C. 602 (a)) is
amended--
(1) by striking "and" at the end of paragraph (44) i
(2) by striking the period at the end of paragraph (45) and
inserting "; and"; and
(3) by inserting after paragraph (45) the following:
" (46) require the State agency to provide to the
Immigration and Naturalization Service the name, address, and
other identifying information that the agency has with respect
to any individual unlawfully in the United States any of whose
children is a citizen of the United States."
!!TITLE II--RESTRICTIONS FOR DRUG ADDICTS AND ALCOHOLICS!!
!!SEC. 201. TIME-LIMITED BENEFITS. !!
(a) IN GENERAL. Section 1614 (a) of the Social Security Act (42
U.S.C. 1382c (a) ) is amended by adding at the end the following:
" (5) (A) The Secretary shall identify all recipients of benefits
under this title by reason of disability whose disability is a
result of addiction to illegal drugs.
" (B) The Secretary shall periodically, on a random basis, test
each recipient identified under subparagraph (A) (including any
recipient who had become temporarily ineligible for benefits by
reason of subparagraph (c)) to determine whether the recipient is
using illegal drugs.
" (C) (i) Notwithstanding any other provision of this title, any
individual who is determined under subparagraph (B) to be using
illegal drugs, or who refuses to submit to testing as provided for
under subparagraph (B) shall not be eligible for benefits under
this title during the period described in clause (ii).
" (ii) The period described in this clause begins with the date
of the determination referred to in clause (i) and ends with the
passage by the individual of 2 tests administered by the Secretary
(and paid for by the individual) to determine whether the individual
is using illegal drugs, which tests occur--
" (I) at least 2 months apart; and
" (II) after the 1-year period that begins with the date of
the determination.
3
"(6) (A) The Secretary shall identify all recipients of benefits
under this title by reason of disability whose disability is a
result of addiction to alcohol.
" (B) The Secretary shall periodically, on a random basis, test
each recipient identified under subparagraph (A) (including any
recipient who had become temporarily ineligible for benefits by
reason of subparagraph (c)) to determine whether the recipient is
using alcohol.
" (C) (i) Notwithstanding any other provision of this title, any
individual who is determined under subparagraph (B) to be using
alcohol, or who refuses to submit to testing as provided for under
subparagraph (B), shall not be eligible for benefits under this
title during the period described in clause (ii).
"(ii) The period described in this clause begins with the date
of the determination referred to in clause (i) and ends with the
passage by the individual of 2 tests administered by the Secretary
(and paid for by the individual) to determine whether the individual
is using alcohol, which tests occur--
'(I) at least 2 months apart; and
"(II) after the 6-month period that begins with the date of
the determination.
(b) PRESERVATION OF ELIGIBILITY FOR MEDICAID BENEFITS. Section
1634 of the Social Security Act (42 U.S.C. 1383c) is amended by
adding at the end the following:
" (e) For purposes of title XIX, an individual is deemed to be
receiving benefits under this title if the individual is ineligible
for such benefits solely by reason of paragraph (5) or (6) of
section 1614 (a) .".
!!SEC. 202. RESTRICTIONS ON PAYMENT OF BENEFITS BASED ON DISABILITY
TO SUBSTANCE ABUSERS. !!
(a) REQUIRED PAYMENT OF BENEFITS TO REPRESENTATIVE PAYEES.
(1) IN GENERAL. Section 1631 (a) (2) (A) of the Social
Security Act (42 U.S.C. 1383 (a) (2) (A)) is amended--
(A) in clause (ii), by adding at the end the following:
"In the case of an individual entitled to benefits under
this title by reason of disability, if alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination that the individual is disabled,
the payment of such benefits to a representative payee shall
be deemed to serve the interest of such individual under
this title. and
(B) in clause (iii), by striking "to the individual or
eligible spouse or to an alternative representative payee of
the individual or eligible spouse" and inserting "to an
alternative representative payee of the individual or
eligible spouse or, if the interest of the individual under
this title would be served thereby, to the individual or
eligible spouse".
(2) CONFORMING AMENDMENT. Section 1631 (a) (2) (B) (viii) (II)
4
of such Act (42 U.S.C. 1383 (a) (2) (B) (viii) (II)) is amended by
striking "15 years" and all that follows and inserting "of 15
years, or (if alcoholism or drug addition is a contributing
factor material to the Secretary's determination that the
individual is disabled) is entitled to benefits under this title
by reason of disability."
(3) EFFECTIVE DATE. The amendments made by this subsection
shall apply with respect to benefits for months beginning after
180 days after the date of the enactment of this Act.
(b) INCREASED RELIANCE ON PROFESSIONAL REPRESENTATIVE PAYEES.
(1) PREFERENCE REQUIRED FOR ORGANIZATIONAL REPRESENTATIVE
PAYEES. Section 1631 (a) (2) (B) of such Act (42 U.S.C.
1383 (a) (2) (B)) is amended--
(A) by redesignating clauses (vii) through (xii) as
clauses (viii) through (xiii), respectively;
(B) by inserting after clause (vi) the following:
"(vii) In the case of an individual entitled to benefits under
this title by reason of disability, if alcoholism or drug addiction
is a contributing factor material to the Secretary's determination
that the individual is disabled, when selecting such individual's
representative payee, preference shall be given to a--
" (I) community-based nonprofit social service agency
licensed or bonded by the State;
" (II) State or local government agency whose mission is to
carry out income maintenance, social service, or health care-
related activities; or
" (III) State or local government agency with fiduciary
responsibilities,
(or a designee of such an agency if the Secretary deems it
appropriate), unless the Secretary determines that selection of such
an agency would not be appropriate."
(C) in clause (viii) (as so redesignated), by striking
"clause (viii) and inserting "clause (ix)
(D) in clause (ix) (as so redesignated), by striking
"(vii)" and inserting " (viii)'
(E) in clause (xiii) (as so redesignated) --
(i) by striking " (xi) " and inserting " (xii) and
(ii) by striking "(x)" and inserting " (xi)
(2) AVAILABILITY OF PUBLIC AGENCIES AND OTHER QUALIFIED
ORGANIZATIONS TO SERVE AS REPRESENTATIVE PAYEES. Section
1631 (a) (2) (D) of such Act (42 U.S.C. 1383 (a) (2) (D)) is amended--
(A) in clause (i)
(i) by striking "exceed the lesser of--" and
inserting "exceed--"; and
(ii) by striking subclauses (I) and (II) and
inserting the following:
" (I) in any case in which an individual is entitled to
benefits under this title by reason of disability and alcoholism
or drug addiction is a contributing factor material to the
Secretary's determination that the individual is disabled, 10
percent of the monthly benefit involved, or
"(II) in any other case, the lesser of--
" (aa) 10 percent of the monthly benefit involved, or
" (bb) $25.00 per month.
5
(B) in clause (ii)
(i) by inserting "State or local government agency
whose mission is to carry out income maintenance, social
service, or health care-related activities, any State or
local government agency with fiduciary responsibilities,
or any" after "means any";
(ii) by inserting a comma after "service agency";
(iii) by adding "and" at the end of subclause (I) i
and
(iv) in subclause (II)
(I) by adding "and" at the end of item (aa) ;
(II) by striking "; and" at the end of item
(bb) and inserting a period; and
(III) by striking item (cc) ; and
(C) by striking clause (iv), effective July 1, 1994.
(c) NONPAYMENT OR TERMINATION OF BENEFITS.
(1) IN GENERAL. Section 1611 (e) (3) of such Act (42 U.S.C.
1382 (e) (3) ) is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following:
" (B) (i) Notwithstanding any other provision of this title, in
the case of any individual entitled to benefits under this title
solely by reason of disability, if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination that
such individual is disabled and such individual is determined by the
Secretary not to be in compliance with the requirements of this
subparagraph for a month, such benefits shall be suspended for a
period commencing with such month and ending with the month
preceding the first month, after the determination of noncompliance,
in which such individual demonstrates that he or she has
reestablished and maintained compliance with such requirements for
the applicable period specified in clause (iii).
"(ii) (I) An individual described in clause (i) is in compliance
with the requirements of this subparagraph for a month if the
individual in such month undergoes any medical or psychological
treatment that may be appropriate, for the individual's condition
diagnosed as substance abuse or alcohol abuse and for the stage of
the individual's rehabilitation, at an institution or facility
approved for purposes of this subparagraph by the Secretary, and
complies in such month with the terms, conditions, and requirements
of such treatment and with requirements imposed by the Secretary
under subparagraph (C).
" (II) An individual described in clause (i) shall not be
determined to be not in compliance with the requirements of this
subparagraph for a month if access by such individual to such
treatment is not reasonably available for the month, as determined
under regulations of the Secretary.
" (iii) The applicable period specified in this clause is--
" (I) 2 consecutive months, in the case of a 1st
determination that an individual is not in compliance with the
requirements of this subparagraph;
"(II) 3 consecutive months, in the case of the 2nd such
6
determination with respect to the individual; or
"(III) 6 consecutive months, in the case of the 3rd or
subsequent such determination with respect to the individual.
"(iv) An individual shall not be an eligible individual for
purposes of this title for the 12-month period that begins with the
end of any period of 12 consecutive months for which the benefits of
the individual under this title have been suspended by reason of
this subparagraph.
"(v) In the case of any individual entitled to benefits under
this title by reason of disability, if alcoholism or drug addiction
is a contributing factor material to the Secretary's determination
that such individual is disabled, such individual may not be
entitled to such benefits by reason of disability (or any past-due
benefits under such entitlement) for any month after the 36-month
period beginning with such individual's first month of such
entitlement, notwithstanding section 1619 (a).
"(vi) (I) The Secretary shall not, in a month, pay to an
individual described in clause (i) benefits under this title the
payment of which is past due, in an amount that exceeds the amount
of benefits under this title which are payable to the individual for
the month and the payment of which is not past due.
"(II) As used in subclause (I) of this clause, the term
'benefits under this title' includes supplementary payments of the
type described in section 1616 (a) and payments pursuant to an
agreement entered into under section 212 (a) of Public Law 93-66.".
(2) REFERRAL, MONITORING, AND TREATMENT. -Section
1611 (e) (3) (C) of such Act (42 U.S.C. 1382 (e) (3) (C) ) as so
designated by the amendment made by paragraph (1) of this
subsection, is amended--
(A) by adding at the end the following: "Each such
annual report shall include the number and percentage of
such individuals who did not receive regular drug testing
during the year covered by the report.
(B) by inserting "(i)" after "(C)"; and
(C) by adding after and below the end following:
"(ii) The Secretary, in consultation with drug and alcohol
treatment professionals, shall issue regulations--
" (I) defining appropriate treatment for alcoholics and drug
addicts who are subject to required medical or psychological
treatment under this subparagraph; and
" (II) establishing guidelines to be used to review and
evaluate their compliance, including measures of the progress of
participants in such programs.
"(iii) (I) For purposes of carrying out the requirements of
clauses (i) and (ii), the Secretary shall establish in each State a
referral and monitoring agency for the State.
"(II) Each referral and monitoring agency for a State shall--
(aa) identify appropriate placements, for individuals
residing in the State who are entitled to benefits under this
title by reason of disability and with respect to whom
7
alcoholism or drug addiction is a contributing factor material
to the Secretary's determination that they are disabled, where
they may obtain treatment described in subparagraph (B) (ii) (I) i
" (bb) refer such individuals to such placements for such
treatment; and
(cc) monitor compliance with the requirements of
subparagraph (B) by individuals who are referred by the agency
to such placements, and promptly report to the Secretary any
failure to comply with such requirements."
(3) PRESERVATION OF MEDICAID BENEFITS. Section 1634 of
such Act (42 U.S.C. 13283c) is amended by adding at the end the
following:
"(e) Each person to whom benefits under this title by reason of
disability are not payable for any month solely by reason of section
1611 (e) (3) (B) shall be treated, for purposes of title XIX, as
receiving benefits under this title for such month.
(4) CONFORMING AMENDMENTS. Section 1611 (e) (3) of such Act
(42 U.S.C. 1382 (e) (3) ) as amended by paragraphs (1) and (2) of
this subsection, is amended--
(A) in subparagraph (A), by striking "(B)" and
inserting "(C)"; and
(B) in subparagraph (c), by inserting "or (B)" after
"(A)".
(5) EFFECTIVE DATE.
(A) IN GENERAL. Except as provided in subparagraphs
(B) and (c), the amendments made by this subsection shall
apply with respect to benefits for months beginning after
180 days after the date of the enactment of this Act.
(B) TIME LIMITATION ON BENEFITS. Section
1611 (e) (3) (B) (v) of the Social Security Act (as added by the
amendment made by paragraph (1) of this subsection) shall
apply with respect to benefits for months ending after 180
days after the date of the enactment of this Act, and, for
purposes of such section, in the case of any individual
entitled to benefits by reason of disability for the first
month ending after 180 days after the date of the enactment
of this Act, such month shall be treated as such
individual's first month of entitlement to such benefits.
(C) ESTABLISHMENT OF REFERRAL AND MONITORING AGENCIES.-
Section 1611 (e) (3) (C) (iii) of the Social Security Act (as
added by the amendment made by paragraph (2) (c) of this
subsection) shall take effect 180 days after the date of the
enactment of this Act.
(d) IRRELEVANCE OF LEGALITY OF SUBSTANTIAL GAINFUL ACTIVITY
(1) IN GENERAL. Section 1614 (a) (3) (D) of such Act (42
U.S.C. 1382c (a) (3) (D) ) is amended by adding at the end the
following: "The Secretary shall make determinations under this
title with respect to substantial gainful activity, without
regard to the legality of the activity."
(2) EFFECTIVE DATE. The amendment made by paragraph (1)
shall take effect on the date of the enactment of this Act.
(e) EFFECTIVE DATE. Except as otherwise provided in this
section, the amendments made by this section shall apply to benefits
payable for months beginning 180 or more days after the date of the
enactment of this Act.
!!TITLE III--BENEFITS FOR CHILDREN!!
!!SEC. 301. REPLACEMENT OF CASH BENEFIT WITH MEDICAL VOUCHER. !!
(a) IN GENERAL. Section 1611 (b) of the Social Security Act (42
U.S.C. 1382 (b) ) is amended by adding at the end the following:
"(3) Notwithstanding paragraphs (1) and (2), the benefit under
this title for a child who has not attained 18 years of age shall be
vouchers issued pursuant to subsection (j) .".
(b) ISSUANCE OF VOUCHERS FOR TREATMENT OF DISABLING CONDITIONS
OF CHILDREN ELIGIBLE FOR SSI BENEFITS. Section 1611 of such Act (42
U.S.C. 1382 (b)) is amended by adding at the end the following:
" (j) (1) The Secretary of Health and Human Services shall issue
to each child eligible for benefits under this title who has not
attained 18 years of age a voucher which may be used to cover the
cost of any item--
" (A) that is associated with treating the blindness or
disability of the child;
" (B) for which a medical expense deduction may be claimed
under section 213 of the Internal Revenue Code of 1986 by the
child or any taxpayer who may claim the child as a dependent;
and
" (C) the cost of which is not covered by the program of
medical assistance approved under title XIX of the State in
which the child resides.
" (2) The face dollar amount of the voucher issued with respect
to a child shall not exceed the amount of the cash benefit to which
the child would (but for section 1611 (b) (3) have been entitled
under this title.
" (3) The Secretary shall pay to each provider of health care
goods or services that is licensed by a State, or by a professional
health care organization approved by the Secretary, that submits to
the Secretary a voucher issued under this subsection an amount equal
to the face dollar amount of the voucher.
!!SEC. 302. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO ARE
18 YEARS OF AGE. !!
(a) IN GENERAL. Section 1614 (a) (3) (G) of the Social Security
Act (42 U.S.C. 1382c (a) (3) (G)) is amended--
(1) by inserting "(i)" after "(G)"; and
(2) by adding after and below the end the following:
" (ii) (I) During the 1-year period that begins on the date a
recipient of benefits under this title by reason of disability
attains 18 years of age, the applicable State agency or the
Secretary (as may be appropriate) shall redetermine the eligibility
of the recipient for such benefits by reason of disability, by
applying the criteria used in determining eligibility for such
benefits of applicants who have attained 18 years of age.
9
'(II) A review under subclause (I) of this clause shall be
considered a substitute for a review required under clause (i) .".
(b) EFFECTIVE DATE. The amendments made by subsection (a)
shall apply to individuals who attain 18 years of age in or after
the 9th month after the month in which this Act is enacted.
!TITLE IV--FRAUD!!
!!SEC. 401. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY
ADMINISTRATION TO PREVENT, DETECT, AND TERMINATE
FRAUDULENT CLAIMS FOR SSI BENEFITS.
(a) PREVENTION OF FRAUD IN THE SSI PROGRAM BY TRANSLATORS OF
FOREIGN LANGUAGES.
(1) IN GENERAL.--Section 1631 (e) of the Social Security Act
(42 U.S.C. 1383 (e)) is amended by inserting after paragraph (3)
the following:
" (4) A translation into English by a third party of a statement
made in a foreign language by an applicant for or recipient of
benefits under this title shall not be regarded as reliable unless
the third party, under penalty of perjury--
" (A) certifies that the translation is accurate; and
" (B) discloses the nature and scope of the relationship
between the third party and the applicant or recipient, as the
case may be.
(2) EFFECTIVE DATE. The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(b) CIVIL MONETARY PENALTIES, ASSESSMENTS, AND EXCLUSIONS FOR
TITLE XVI.
(1) IN GENERAL.--Title XI of such Act (42 U.S.C. 1301-1320b-
14) is amended by inserting after section 1128B the following:
!! "SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR TITLE
XVI. !!
" (a) Any person (including an organization, agency, or other
entity) who makes, or causes to be made, a statement or
representation of a material fact for use in determining any initial
or continuing right to benefits or payments under title XVI that the
person knows or should know is false or misleading or knows or
should know omits a material fact shall be subject to, in addition
to any other penalties that may be prescribed by law, a civil money
penalty of not more than $5,000 for each such statement or
representation. Such person also shall be subject to an assessment,
in lieu of damages sustained by the United States because of such
statement or representation, of not more than twice the amount of
benefits or payments paid as a result of such a statement or
representation. In addition, the Secretary may make a determination
in the same proceeding to exclude the person from participation in
the programs under title XVIII and to direct the appropriate State
agency to exclude the person from participation in any State health
care program.
10
" (b) (1) The Secretary may initiate a proceeding to determine
whether to impose a civil money penalty, assessment, or exclusion
under subsection (a) only as authorized by the Attorney General
pursuant to procedures agreed upon by the Secretary and the Attorney
General. The Secretary may not initiate an action under this section
with respect to any violation described in subsection (a) later than
6 years after the date the violation was committed. The Secretary
may initiate an action under this section by serving notice of the
action in any manner authorized by Rule 4 of the Federal Rules of
Civil Procedure.
" (2) The Secretary shall not make a determination adverse to
any person under this section until the person has been given
written notice and an opportunity for the determination to be made
on the record after a hearing at which the person is entitled to be
represented by counsel, to present witnesses, and to cross-examine
witnesses against the person.
" (3) In a proceeding under this section which--
" (A) is against a person who has been convicted (whether
upon a verdict after trial or upon a plea of guilty or nolo
contendere) of a Federal crime charging fraud or false
statements; and
" (B) involves the same transaction as in the criminal
action,
the person is estopped from denying the essential elements of
the criminal offense.
" (4) The official conducting a hearing under this section may
sanction a person, including any party or attorney, for failing to
comply with an order or procedure, failing to defend an action, or
other misconduct as would interfere with the speedy, orderly, or
fair conduct of the hearing. Such sanction shall reasonably relate
to the severity and nature of the failure or misconduct. Such
sanction may include--
" (A) in the case of refusal to provide or permit discovery,
drawing negative factual inference or treating such refusal as
an admission by deeming the matter, or certain facts, to be
established;
" (B) prohibiting a party from introducing certain evidence
or otherwise supporting a particular claim or defense;
" (C) striking pleadings, in whole or in part;
" (D) staying the proceedings;
" (E) dismissal of the action;
" (F) entering a default judgment;
" (G) ordering the party or attorney to pay attorneys' fees
and other costs caused by the failure or misconduct; and
" (H) refusing to consider any motion or other action which
is not filed in a timely manner.
" (c) In determining the amount or scope of any penalty,
assessment, or exclusion imposed pursuant to this section, the
Secretary shall take into account--
" (1) the nature of the statements and representations
referred to in subsection (a) and the circumstances under which
they occurred;
" (2) the degree of culpability, history of prior offenses,
and financial condition of the person committing the offense;
and
" (3) such other matters as justice may require.
" (d) (1) Any person adversely affected by a determination of the
Secretary under this section may obtain a review of such
determination in the United States Court of Appeals for the circuit
in which the person resides, or in which the statement or
representation referred to in subsection (a) was made, by filing in
such court (within 60 days following the date the person is notified
of the Secretary's determination) a written petition requesting that
the determination be modified or set aside. A copy of the petition
shall be forthwith transmitted by the clerk of the court to the
Secretary, and thereupon the Secretary shall file in the court the
record in the proceeding as provided in section 2112 of title 28,
United States Code. Upon such filing, the court shall have
jurisdiction of the proceeding and of the question determined
therein, and shall have the power to make and enter upon the
pleadings, testimony, and proceedings set forth in such record a
decree affirming, modifying, remanding for further consideration, or
setting aside, in whole or in part, the determination of the
Secretary and enforcing the same to the extent that such order is
affirmed or modified. No objection that has not been urged before
the Secretary shall be considered by the court, unless the failure
or neglect to urge such objection shall be excused because of
extraordinary circumstances.
" (2) The findings of the Secretary with respect to questions of
fact, if supported by substantial evidence on the record considered
as a whole, shall be conclusive in the review described in paragraph
(1) If any party shall apply to the court for leave to adduce
additional evidence and shall show to the satisfaction of the court
that such additional evidence is material and that there were
reasonable grounds for the failure to adduce such evidence in the
hearing before the Secretary, the court may order such additional
evidence to be taken before the Secretary and to be made a part of
the record. The Secretary may modify its findings as to the facts,
or make new findings, by reason of additional evidence so taken and
filed, and the Secretary shall file with the court such modified or
new findings, which findings with respect to questions of fact, if
supported by substantial evidence on the record considered as a
whole shall be conclusive, and his recommendations, if any, for the
modification or setting aside of his original order.
" (3) Upon the filing of the record with the Secretary's
original or modified order, the jurisdiction of the court shall be
exclusive and its judgment and decree shall be final, except that
the same shall be subject to review by the Supreme Court of the
United States, as provided in section 1254 of title 28, United
States Code.
" (e) (1) Civil money penalties and assessments imposed under
this section may be compromised by the Secretary and may be
recovered--
II (A) in a civil action in the name of the United States
brought in United States district court for the district where
12
the statement or representation referred to in subsection (a)
was made, or where the person resides, as determined by the
Secretary;
" (B) by means of reduction in tax refunds to which the
person is entitled, based on notice to the Secretary of the
Treasury as permitted under section 3720A of title 31, United
States Code;
" (c) by decrease of any payment under title XVI to which
the person is entitled, notwithstanding section 207 of this Act,
as made applicable to this title by reason of section
1631 (d) (1) i
" (D) by authorities provided under the Debt Collection Act
of 1982, as amended, to the extent applicable to debts arising
under the Social Security Act;
"
(E) by deduction of the amount of such penalty or
assessment, when finally determined, or the amount agreed upon
in compromise, from any sum then or later owing by the United
States to the person against whom the penalty or assessment has
been assessed; or
" (F) by any combination of the foregoing.
" (f) A determination by the Secretary to impose a penalty,
assessment, or exclusion under this section shall be final upon the
expiration of the 60-day period referred to in subsection (d)
Matters that were raised or that could have been raised in a hearing
before the Secretary or in an appeal pursuant to subsection (d) may
not be raised as a defense to a civil action by the United States to
collect a penalty and assessment imposed under this section.
" (g) Whenever the Secretary's determination to impose a penalty,
assessment, or exclusion under this section with respect to a
medical provider or physician becomes final, the provisions of
section 1128A (h) shall apply.
" (h) Whenever the Secretary has reason to believe that any
person has engaged, is engaging, or is about to engage in any
activity which makes the person subject to a civil monetary penalty
under this section, the Secretary may bring an action in an
appropriate district court of the United States (or, if applicable,
a United States court of any territory) to enjoin such activity, or
to enjoin the person from concealing, removing, encumbering, or
disposing of assets which may be required in order to pay a civil
monetary penalty and assessment if any such penalty were to be
imposed or to seek other appropriate relief.
" (i) (1) The provisions of subsections (d) and (e) of section
205 shall apply with respect to this section to the same extent as
they are applicable with respect to title II. The Secretary may
delegate the authority granted by section 205 (d) (as made applicable
to this section) to the Inspector General of the Department of
Health and Human Services for purposes of any investigation under
this section.
" (2) The Secretary may delegate authority granted under this
section to the Inspector General of the Social Security
Administration.
13
"(j) For purposes of this section, the term 'State agency'
shall have the same meaning as in section 1128A (i) (1).
" (k) A principal is liable for penalties, assessments, and
exclusions under this section for the actions of the principal's
agent acting within the scope of the agency.
(2) CONFORMING AMENDMENTS. Section 1128 of such Act (42
U.) is amended--
(A) in subsection (b) (7), by striking "or section
1128B" and inserting ", section 1128B, or section 1129";
(B) in subsection (b) (8) (B) (ii), by inserting "and
section 1129" after "section 1128A";
(C) in subsection (c) (1), by striking "or under section
1128A" and inserting ", section 1128A, or section 1129";
(D) in subsection (c) (3) (A), by inserting "or section
1129" after "section 1128A";
(E) in subsection (d) (1), by striking "and section
1128A" and inserting ", section 1128A, and section 1129";
(F) in subsection (d) (2) (A), by striking "or section
1128A" and inserting ", section 1128A, or section 1129";
(G) in subsection (e) (1), by striking "or section
1128A" and inserting ", section 1128A, or section 1129";
(H) in subsection (f) (3), by inserting ", 1129, after
"sections 1128A";
(I) in subsection (g) (1), by striking "or section
1128A" each place such term appears and inserting ", section
1128A, or section 1129";
(J) in subsection (g) (2) (A), by inserting "and section
1129 (a) after "section 1128A (a) "; and
(K) in subsection (h), by striking "1128A and 1128B"
and inserting "1128A, 1128B, and 1129".
(c) SSI FRAUD CONSIDERED A FELONY.
(1) IN GENERAL Section 1632 (a) of such Act (42 U.S.C.
1383a (a) ) is amended by striking "shall" the 1st place such term
appears and all that follows and inserting "shall be fined under
title 18, United States Code, imprisoned not more than 5 years,
or both.".
(2) CONFORMING AMENDMENT. Section 1632 (b) of such Act (42
U.S.C. 1383a (b) ) is amended to read as follows:
(b) (1) If a person or entity violates subsection (a) in the
person's or entity's role as, or in applying to become, a payee
under section 1631 (a) (2) on behalf of another individual (other than
the person's eligible spouse), and the violation includes a willful
misuse of funds by the person or entity, the court may also require
that full or partial restitution of funds be made to such other
individual.
" (2) Any person or entity convicted of a violation of
subsection (a) of this section or of section 208 may not be
certified as a payee under section 1631 (a) (2) .".
(d) AUTHORITY TO REDETERMINE ELIGIBILITY IN DISABILITY CASES IF
FRAUD IS INVOLVED, AND TO TERMINATE BENEFITS IF THERE IS
INSUFFICIENT RELIABLE EVIDENCE OF DISABILITY.
(1) IN GENERAL. Section 1631 (e) of such Act (42 U.S.C.
14
1383 (e)) is amended by adding at the end the following:
" (6) (A) The Secretary shall immediately redetermine the
eligibility of an individual for benefits under this title by reason
of disability, disregarding any unreliable evidence of disability,
if there is reason to believe that fraud was involved in the
application of the individual for such benefits, unless a United
States attorney, or equivalent State prosecutor, with jurisdiction
over potential or actual related criminal cases, certifies, in
writing, that there is a substantial risk that redetermining such
eligibility would jeopardize the criminal prosecution of any person
who is a subject of the investigation from which the information is
derived.
" (B) If, after redetermining the eligibility of an individual
for benefits under this title by reason of disability, the Secretary
determines that there is insufficient reliable evidence of
disability, the Secretary may terminate such eligibility.
(2) EFFECTIVE DATE.-The amendment made by paragraph (1)
shall take effect on October 1, 1994, and shall apply to
eligibility determinations made before, on, or after such date.
(e) AVAILABILITY OF RECIPIENT IDENTIFYING INFORMATION FROM THE
INSPECTOR GENERAL, DEPARTMENT OF HEALTH AND HUMAN SERVICES.
(1) IN GENERAL. Section 1631 (e) of such Act (42 U.S.C.
1383 (e)), as amended by subsection (d) of this section, is
amended by adding at the end the following:
" (7) As soon as the Inspector General, Social Security
Administration, has reason to believe that fraud was involved in the
application of a recipient for benefits under this title, the
Inspector General shall make available to the Secretary information
identifying the recipient, unless a United States attorney, or
equivalent State prosecutor, with jurisdiction over potential or
actual related criminal cases, certifies, in writing, that there is
a substantial risk that making the information so available or
redetermining the eligibility of the recipient for such benefits
would jeopardize the criminal prosecution of any person who is a
subject of the investigation from which the information is
derived.
(2) EFFECTIVE DATE. The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(f) AUTHORITY TO USE AVAILABLE PREADMISSION IMMIGRANT AND
REFUGEE MEDICAL INFORMATION
(1) IN GENERAL Section 1631 (e) of such Act (42 U.S.C.
1383 (e) ) as amended by the preceding provisions of this Act, is
amended by adding at the end the following:
" (8) The Secretary shall request the Immigration and
Naturalization Service and the Centers for Diease Control to provide
the Secretary with whatever medical information either such entity
has with respect to any alien who has applied for benefits under
this title to the extent that the information is relevant to any
determination relating to such eligibility."
(2) EFFECTIVE DATE. The amendment made by paragraph (1)
shall take effect on October 1, 1994.
15
(g) ANNUAL REPORTS ON REVIEWS OF SSI CASES. The Secretary
shall annually submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the Senate
a report on the extent to which the Secretary has exercised its
authority to review supplemental security income cases under title
XVI of the Social Security Act, and the extent to which the cases
reviewed were those that involved a high likelihood or probability
of fraud.
(h) DEVELOPMENT OF PROFILES; PERIODIC TARGETED
REDETERMINATIONS. Part B of title XVI of such Act (42 U.S.C. 1383-
1383d) is amended by adding at the end the following:
!! "SEC. 1636. DEVELOPMENT OF PROFILES; PERIODIC TARGETED
REDETERMINATIONS.! !
"The Social Security Administration shall develop profiles of
the kinds of cases that have a high probability of fraud, and shall
conduct periodic targeted redeterminations based on such profiles.
THE WHITE HOUSE
WASHINGTON
April 27, 1994
MEMORANDUM FOR BRUCE REED
FROM:
SUSAN BROPHY SM
LEGISLATIVE AFFAIRS
SUBJECT: Presidential Correspondence
Enclosed please find a copy of the letter that was sent to the
President from several members of Congress.
The President has requested that he see and sign every letter
being sent to Capitol Hill. Since we did not want to respond to
this letter without your guidance, I am requesting that your
office draft a response and return it to LeeAnn Inadomi (WH-East
Wing) within 48 hours. She will then print the letter in final
form and have it sent to the President for his signature.
Thank you very much for your assistance with this matter. If you
have any questions, please feel free to call LeeAnn at 456-7500.
Enclosure
04-26-94 06:11PM FROM CONG. KLECZKA WDC
TO 94566221#
P001/002
Congress of the United States
Mashington, DC 20515
April 26, 1994
President William J. Clinton
The White House
1600 Pennsylvania Avenue NW
Washington, D.C. 20006-9900
Dear Mr. President:
The Supplemental Security Income program (SSI) is intended
to provide assistance to low-income disabled, blind, and aged
individuals. In Fiscal Year 1993, the federal government spent
almost $20 billion on SSI payments. That is over $7 billion more
than the federal benefits paid under the Aid to Families with
Dependent Children program. "with this amount of taxpayer dollars
going towards SSI payments, it is our responsibility to ensure
that these benefits are being used appropriately.
Unfortunately, this has not been happening. We have seen
widespread reports of abuses in the SSI programs for both
children and substance abusers. Recent government reports,
Congressional hearings, and media attention have confirmed that
SSI, as it, is currently administered, is flawed.
Let us stress that we do not wish to see deserving
recipients negatively affected in any way; we would simply like
to see SSI reformed so that it serves to help the disabled,
blind, and aged recipients it was intended to assist, while
preventing opportunities for abuse.
We urge you to either address this matter in your welfare
reform plan or to support our efforts to include SSI reform
during Congressional consideration of your plan. Together, we
can ensure that these needy individuals receive the assistance
they deserve, while protecting valuable taxpayer resources from
misuse. We thank you for your prompt consideration of this
matter.
Sincerely,
Mersed LI Keylen
Nancy L. Johnson
J.Ches
Rick Santown
04-26-94 06:11PM FROM CONG. KLECZKA WDC
TO 94566221#
P002/002
Mile Park
Shays
Mike Kreidlen
Town Banett
Leshi Byme
George Hakbweckner
Nick Smile
Bart Gordon
Peter Barca
Tom Ben
this Dobe
Sile Hagher
Tom Lewis
Body Daulen
You Success
Karen Shepherd
Wally Henger
TV 94566221
P002/002
Hon. Gerald D. Kleczka
Hon. J.J. Pickle
Hon. Nancy L. Johnson
Hon. Rick Santorum
Hon. Mike Parker
Hon. Mike Kreidler
Hon. Leslie Byrne
Hon. Nick Smith
Hon. Peter Barca
Hon. William Orton
Hon. Pat Roberts
Hon. Bill Hughes
Hon. Glenn Poshard
Hon. Jim Sensenbrenner
Hon. Wally Herger
Hon. Christopher Shays
Hon. Tom Barrett
Hon. George Hochbrueckner
Hon. Bart Gordon
Hon. Austin Murphy
Hon. Tom Petri
Hon. Tim Johnson
Hon. Tom Lewis
Hon. Buddy Darden
Hon. Karen Shepherd
SENT BY:Xerox Telecopier 7020 ; 4- 6-94 ; 10:24 ;
The White House-
202 456 7028:# 3
FED-22-1994 02:21 FROM DEP SEC HHS
TO
94562878 P.01
the
DEPARTMENT OF HEALTH & HUMAN SERVICES
Chief of Staff
MEALTH
Washington D.C. 20201
8
DEPARTMENT
Donsia-fy fyi
FACSIMILE
any : CHR
FFR ?? 100/1
DATE
JACK
CAMILLERI
TO:
(NAME, ORGANIZATION, CITY/STATE AND PHONE NUMBER)
:
690-7160
7753
Carol Rasco
Assistant to the President
for Domestic Policy
456-2216
FROM:
(NAME, ORGANIZATION, CITY/STATE AND PHONE NUMBER):
Kevin Thurm
Chief of Staff
690-6133
RECIPIENTS FAX NUMBER: ( ) 456-2878
NUMBER OF PAGES TO SEND (INCLUDING COVER SHEET):
2
COMMENTS:
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The White House-
202 456 7028;# 4
FEE-22-1994 02:22 FROM DEP SEC HHS
TO
94562878 P.02
DEPARTMENT OF HEALTH a HUMAN SERVICES
Chief of Statf
Washington, D.C. 20201
FEB , 2 1994
MEMORANDUM FOR CAROL RASCO
18 you know, there has been considerable publicity in the news
media about fraud involving foreign language interpreters in the
implemental Security Income (SSI) disability program in the
states of California and Washington. In a typical case of fraud,
interpreters aggressively market their services to immigrants and
coach claimants in actions necessary to support a finding of
disability. They usually collect substantial fees.
on January 7, 1994, the television program "20/20" also aired a
egment on fraudulent activity in the California public
assistance, Medical, and SSI programs. The program reached no
conclusions, but acknowledged the difficulty of assessing the
edical condition of some recent immigrants who are applying for
1sh benefits or MediCal assistance. Many persons from Southeast
sian countries, for example, are culturally disadvantaged, have
ten severely traumatized, have basic fear and distrust of
overnment in general, and may also be under-educated or
illiterate.
Representatives Harold Ford and J.J. Pickle, respective chairman
the Subcommittees on Human Resources and Oversight of the
emmittee on Ways and Means, have scheduled a joint hearing on
he issue for February 24, 1994. The hearing will focus on the
ature and extent of fraudulent activity in the SSI program, and
range of options and possible administrative and legislative
clutions the Department of Health and Human Services and the
Committee on Ways and Means should consider to address the
deuation.
missioner Chater will testify at the hearing. In our
estimony, we will provide background on the use of interpreters
Social Security Administration field offices, and describe our
forts to improve service to our non-English speaking clients
rough increased hiring of bilingual employees and other means
help detect and deter fraudulent activity.
pector General (IG) June Gibbs Brown will also testify at the
ring and describe the IG's involvement in this issue. I will
P you advised of any further 96-sh significant developments.
Kevin Thurm
Christine Varney
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:
The White House-
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Feb. 8, 1994
11:39PM WH CABINET AFFAIRS
DPCPmaram
No. 5333 P. 2/3
Staff
FACT SHEET: SSI BENEFITS FOR ALCOHOLICS/DRUG ADDICTS
On Tuesday night, February 8. 1994, the NBC program Dateline ran a segment about benefits being
paid to alcoholics and drug abusers through the Social Security Administration's disability program.
The Washington Post ran a story on this topic on February 7. 1994. Below are some key facts
regarding this issue.
THE PROBLEM:
Supplemental Security Income (SSI) benefits for drug addicts and alcoholics are
mandated by statute.
Since Congressional enactment In 1972. individuals have received SSI benefits for
disabling conditions that will last at least 12 months and will keep them from
working. Drug addiction and alcoholism are included.
Current law requires substance-addicted SSI recipients to accept treatment and that
their benefit be paid to a legal guardian or "representative payee." However, it it
often difficult to find decent representatives, or any representatives at all, for some
SSI recipients.
Recent reports have indicated that some SSI recipients addicted to drugs and alcohol
may use benefits to sustain their habits. This is a serious concurn.
THE RESPONSE:
The Social Security Administration (SSA) has already improved its referrals to
treatment programs and its monitoring systems.
In October, 1993, SSA had referral and monitoring contracts in only 18 states.
Today, such systems are in place in 33 states and the District of Columbia. By the
end of FY 1995. all states will be involved. These new contracts will require
recipients to undergo regular substance abuse testing.
SSA is also working aggressively to find more and better representative payees.
The FY 1995 Hudget reflects a determination to solve this problem.
The FY 1995 budget requests $36 million for referral and monitoring activities. an
80% increase from the FY 1994 level, and an 800% increase over the Bush
Administration figure of $4 million in FY 1993.
The FY 1995 budget also requests $345 million for the treatment of hard-core drug
abusers.
The Administration will work with Congress to make appropriate changes to the
program. The public has a right to expect those disabled by substance addiction to
take responsibility for themselves, seak treatment and do all they can to cure
themselves of their addiction.
6
A Takings Excep on
Jessica Mathews's venomous attack on
rights, but worth nothing without them. Ms.
Surely this increase in value is attribe
what she calls my "poisonous" view of the
Mathews insists that il is unconscionable for
to changes in local conditions,
202 456 7028:#
takings clause of the Constitution pop-ed,
any landowner to demand compensation for
preexisting highway. Second, whateve
the total wipeout in value if be is left in
ae Lucas received from the highway I
Feb. 14] calls for a clear response.
Her column ignores my oft-stated convic-
possession of land be cannot use.
paid for through federal income
ga
CRASTS unitay 3
tion that the takings clause was carefully
Why? Surely this building prohibition does
taxes, tike his neighbors. Yet Ms. Ma
craited to strike a balance between individu-
not offer reasonable protection against any
never explains why the
pay
THE PRESIDENT HAS SEEN
at rights and social needs. Unfortunately,
present or threatened harm. The environ-
while his more fortunate meighbors P
Ms. Mathews misconstrues my position to
mentalists argued in Lucas that the building
once.
hold that the state is obligated to compen-
ban prevented flying bits of a house from
Most ominous, her argument justifi
sate owners in cash whenever its regulations
damaging nearby land. This improbable
outright confiscation of all or
of L
reduce the value of their land. But this
claim would at most authorize uniform build-
land, for if these supposed highway be
characterization overlooks my view that two
ing codes for specific purposes. However,
compensate him for loss of
value
justifications for uncompensated takings are
this logic unwisely justifies ripping down
they also compensate him for the I
in principle available to the government in all
without compensation every home along the
possession. What 2 royal
to
The White House-
cases. It can show that regulation is reason-
South Carolina Coast, or preventing any new
tional evasion: Build one public highw:
ably calculated to prevent the infliction of
ones from being built.
the just compensation clause is aullifie
nome present or threatened harm to others;
Ms. Mathews then makes the add sugges-
ever after.
or it can show that the in-kind benefits the
tion that DO compensation is required be-
Ms. Mathews's unlikely readition
regulation provides the landowner offect the
cause Lucas has benefited from the con-
takings clause undermines any
losses that it imposes.
struction of Interstate 95 and the availability
effort to discipline indirectly
In the recent Lucas case (to which she
of subsidized flood insurance. Her I-95 arge-
mechanism the "arrogant, blunderin
refers, but not by name) South Carolina
ment makes x least three extors. First, I-95
reancracies" whose misdeeds the ad
sought to prohibit the construction of am
was built years ago, and yes the value of
edges. Having to pay just compes
ordinary single-family home on a beachfront
Lucas's buildable lot surged nearly 30 per-
rightly forces elected officials to CO
William S. Cohen
lot worth more than $500,000 with building
cent in the four years after be bought it.
the public benefit obtained with the I
Playing Social Security for a Sucker
k would maler Nome Peterson from
drugs, then diluted them into small
died of a lethal drug overdose bought
dicts theraselves .
cial Committee on Aging and the Gen-
doses and realized bage profits by re-
with thousands of dollars in retroactive
store owner in Dem
"Cheers" put down the beer mule and sit
eral Accounting Office. The investige-
tion examined the payment of benefits
selling them on the street. One mental
benefits. An alcoholic was awarded
worthy guardians of
up on his bar stool: The federal govern-
lump SMIR benefits of $26,000. After
SENT BY:Xerox Telecopier 7020 4- 6-94 10:25
ment has sent checks totaling more
under the Social Security Disability for
health worker said his caseload of ille-
The
than $160,000 per year directly to a
suraoce (SSDD and Supplemental Seon-
gel drug users was 99.5 percent SSI
turying two care and a van, be went on a
has abdicated its R
Denver fiquor store owner, who then
rity Income (SSI) programs.
recipients, and be reported several
drinking binge, wrecked the care and
ing to adequately .
uses those taxpayer dollars to run a tab
The GAO has estimated that last
deaths from drug overdoses.
landed, penniless, in a veterans' hospi-
cipients I
tre
year the federal government paid $1.4
The purpose of the Social Security
tzl.
example, is
of
for 40 alcoholics who me supposed to
be using the government money to get
billion to 250,000 drug addicts and
disability programs is to provide bene-
Congress has tried with little success
have never
help for their problem.
alcoholica who receive benefits under
fits to people who can't work because
to build controls into the system. To
SSA to refer addic
these two programs. But only
of medically certified physical or mental
stop payments from feeding addictions,
treatment and m
That's just one example of how a
78,000-leas than one-third-are re-
impairments. Drug addiction and aloo-
is required that all SSI payments to
dance.
federal program has gone startlingly
quired to receive treatment or have a
bolism are qualifying disabilities under
addicts and alcoholica be paid to a third
wrong. Across the country, the gov-
The investigation
both programs. Determining disability
party-or "representative payee"-
ernment is paying hundreds of millions
third party manage their benefits for
cases in which ad
of dollars each year to feed the habits of
them, and those controls are 50 lax that
is a Eve-step process, and if benefits
friend, relative, social service agency or
benefits
active
drug addicts and alcoholics. Under this
abuses abound. The other 172,000 are
are desied, there are avenues of sp-
other responsible person. Congress #
inal activities such
cockeyed policy. addicts and alcoholics
not required to receive treatment and
peal Since is often takes a year or
so required that a disabled drug addict
armed robbery. To
aften their cash benefits to buy
more to award benefits, and because
or alcoholic participate in a substance
receive federal benefits because they
more drugs and alcohol.
abuse treatment program, I such treat-
benefits, they opi
are disabled by their substance abuse.
benefits are retroactive to the date of
The director of a homeless shelter in
ment is available, as a condition of
were supporting 1
But the benefits often are then used to
application, it in not termsual for lump
crieninal activity.
perpetuate the addictions, rather than
Denver reported that SSI is, in effect,
sums as large as $15,000 or $20,000
receiving SSI benefits.
cure them, and the addicts and alcohol-
"surcide as the installment nbm" be-
to
the
awarded
10
substance
to
is
ride
(M)
a
drug-taden
train
to
e
upheal the day of a
Astonishingly, a re-
heir habits through
nly admitted they
realse their case case for for
dy engaged in crim-
diets who received
mitor their atten-
8 e alcoholica B
agency approved by
anitor whether re-
sponsibility by fail-
city Administration
cash payments.
r, like the liquor
inpare
antion
-Moth
g be-
price
the of
d for-
stitu-
of
then
nefits
И the
= but:
twice:
roline
& ,
to a
table
.
dealing drug E
also uncovered
states that
Maine, for
than trust-
108 sap
age.
Thryzap Hrup
profit from sech
intration to conduct continuing reviews
. Requiring the Social Security Admin-
holics receive treatment.
of Eminent Domain."
D Removing from the rolls those who
able for substance abusers.
. Making additional treatment avail-
tor addicts and alcoholics.
governments to have agencies to moni-
of individuals' eligibility and all state
D Requiring that all addicts and alco-
abusers until treatment is completed.
a psyments to substance
institution or approved agency to man-
crs. Benefits would be directed to -
directly in the hands of substance abus-
a Stopping the practice of putting cash
program by:
Probibiting I distribution of I
quirements and revemp the disability
Takings: Private Property and the Power
University of Chicago, and anthor
distinguished service professor of law at the
The cariter is James Parker Hall
City of Tigard, its first major takings case
when the Supreme Court considers Delan a
debate will be reinvigorated next month
debate on the takings question. Perhaps that
issue-the further need for open and robust
Mathews and I do agree on at lieast one
the wealthy that my positions prohibit. Ms.
That's just the kind of government abuse for
Oh, as for subsidies by flood insurance?
that Lucas had demanded!
who of course got the same right to build
commission sold it off to the highest bidder,
paid for Lucas's lot with hard cash, the
Commission into honest brokers. Having
Losing the case in fact converted the Coastal
benefits for stopping Lucas from building.
sons with extravagant claims of supposed
and pay. the state sidesteps these compari-
costs imposed. Without this principle of take
3S
WEDNESDAY. FEBRUARY 23. 1994 THE B'ASHINGTON POST