FOR IMMEDIATE RELEASE, Contact: (202) 225-1025
February 11, 1999
No. HR 1-A
Congresswoman Nancy L. Johnson (R-CT), Chairman of the Subcommittee on Human Resources of the Committee on Ways and Means, today announced that on Wednesday, February 10, 1999, the Subcommittee ordered favorably reported to the full Committee, as amended, H.R. 631, the "SSI Fraud Prevention Act of 1999," by voice vote.
BACKGROUND:
The Supplemental Security Income (SSI) Fraud Prevention Act is designed to combat fraud in, and to improve the administration of, the programs -- especially disability programs -- under Titles II and XVI of the Social Security Act, and to provide SSI benefits to Filipino veterans of the U.S. armed forces during World War II who move back to the Philippines.
DESCRIPTION OF H.R. 631 AS APPROVED:
Fraud Prevention and Related Provisions:
1. Provisions pertaining to overpayment of benefits: (1) representative payees who do not return payments made after the death of a beneficiary would be held primarily liable for repayment, (2) the Social Security Administration (SSA) would offset lump sum payments to previous recipients who apply for and receive new benefits by at least
50 percent to recover prior SSI overpayments, and (3) SSA could use credit bureau reports, private debt collection agencies, State and Federal intercepts, and other means deemed effective by the Commissioner to facilitate collection of overpayments.
2. Provisions on prisoners: (1) SSA would be required to share its prisoner database with other Federal departments and agencies to prevent the continued fraudulent payment of other benefits (e.g., food stamps, veterans' benefits, unemployment benefits, and education aid) to prisoners, (2) SSA could not grant prisoners or fugitive felons a hardship waiver, (3) fugitive felons or former prisoners who knowingly fail to disclose to SSA at the time of reapplication their prior receipt of overpayments while a prisoner or a fugitive felon, or fail to agree to and abide by a repayment schedule, would be ineligible for benefits for 10 years, and (4) SSA would continue overpayment collection efforts while prisoners are in jail.
3. Provisions concerning applicant resources: (1) trusts would be considered to be resources in determining SSI eligibility (subject to rules and exceptions similar to those in Medicaid law), and (2) if resources are disposed of at less than fair market value within 36 months before the date of application for SSI, the applicant would be ineligible for benefits for the number of months equal to the uncompensated value of the resources divided by the maximum monthly SSI benefit (subject to rules and protections similar to those in Medicaid law).
4. Provisions giving new authority and responsibility to SSA: (1) a new SSA administrative process (subject to due process protections) would be established to determine whether individuals have fraudulently claimed benefits, especially in cases now considered too small to take to court. If individuals have attempted to gain or increase benefits through fraud, they would be barred from eligibility, with increasing penalties of 6, 12, and 24 months of ineligibility for the first, second, and third sanctionable offenses, respectively. The new administrative process would apply to fraud in the Title II programs and the Title XVI program, (2) doctors and attorneys convicted of fraud or administratively fined for fraud involving SSI eligibility determinations would be barred from further program participation for at least 5 years (10 years for a second conviction, and permanently for a third). SSA would also be required to collect overpayments, in addition to civil and monetary penalties, from doctors who commit fraud by helping individuals collect benefits they do not deserve, (3) State disability determination services would annually evaluate consultative examiners to prevent patterns of fraud and abuse and to ensure compliance with program rules, (4) to facilitate data sharing with States, SSA standards on data privacy would be deemed to meet all state standards for sharing data, (5) the SSA Commissioner, in consultation with the SSA Inspector General and the Attorney General, would be required to study and report to the House Committee on Ways and Means and Senate Committee on Finance within one year on legislative and administrative reforms that would reduce or prevent SSI and Social Security disability fraud and overpayments, and (6) the SSA Commissioner would be required to include in the annual SSA budget an itemization of the funds needed to combat SSI and Social Security disability fraud.
5. Provisions related to providing new sources of information to SSA: (1) SSA would conduct periodic comparisons between Medicaid and Medicare data and SSI rolls to ensure that nursing home residents are not receiving full SSI benefits, and (2) as a condition of eligibility, applicants for or recipients of SSI would be required to authorize SSA to obtain financial record information retained by financial institutions that will assist in determining the individual's eligibility for and amount of benefits.
Benefits for Filipino Veterans of the United States Armed Forces During World War II:
Certain Filipino veterans of the U.S. armed forces in World War II would be eligible for continued SSI benefits if they move back to the Philippines. Veterans who opt to move to the Philippines would be paid 75 percent of their benefit amount.