March 1997 • No. 6, Article 3

Legislative Update

This past year has seen the most significant legislation affecting entitlement to Social Security and SSI benefits since the inception of the SSI disability program in 1973. Last March, the Contract with America Advancement Act eliminated entitlement to disability benefits for persons disabled by drug or alcohol addiction. In August, the sweeping welfare reform bill signed into law by President Clinton made dramatic changes in federal welfare programs, including provisions eliminating SSI entitlement for most non-citizens and tightening the disability standard for disabled children.

Elimination of Benefits for Drug Addiction and Alcoholism

Individuals who were receiving Social Security or SSI benefits because drug addiction or alcoholism was considered a material factor causing their disability were terminated from benefits on January 1, 1997. Many of those affected appealed on grounds that they were disabled by causes independent of the drug or alcohol addiction. For those who were able to prove an independent disability, benefits were continued. Thousands of others still have appeals pending, however their benefits will not be reinstated unless they are eventually successful in their appeals. With some exceptions, those who lost benefits also lost their MediCal and Medicare coverage.

SSI Eligibility Denied to Non-Citizens

Non-citizens were hit very hard by welfare reform. Entitlement to both SSI disability and old-age benefits was eliminated for all non-citizens unless the person falls into one of the following categories:

Refugees, Asylees, and Persons whose deportation has been withheld, but only for the first five years after entering the country.
Honorably discharged or active veterans, spouses or unmarried dependents of a veteran.
Individuals who have worked and earned 40 quarters of coverage under the Social Security Act, or in some limited cases, the spouse, widow or dependent of such individuals.

All other immigrants, even persons who have been legally in the U.S. for decades, who are now elderly and entirely dependent on SSI as their only source of income, will be cut off.

Notices from SSA to non-citizens currently receiving SSI benefits began going out in February and March or 1997. Immigrants deemed likely to be ineligible for benefits will be given 90 days to submit evidence of their status. In June and July of 1997, notices of "planned action" will go out. Non-citizens deemed ineligible will have their SSI benefits suspended after August, 1997. If, within one year of the suspension the individual becomes a citizen or meets one of the listed exceptions, benefits will be reinstated.

President Clinton is also proposing new legislation which will alleviate the impact of these changes on immigrants who became disabled after coming to the U.S.

Disabled Children Face Loss of Benefits

Social Security estimates that about 263,000 children receiving SSI benefits nationally will have their disability status reviewed and 135,000 will lose benefits as a result of new, stricter disability criteria adopted by the SSA as part of Congress' welfare reform package. Already over 14,700 parents of disabled children in California and over 2,000 in the Bay Area have received review notices. Redeterminations of eligibility are scheduled to begin in March 1997 with decisions of continuing eligibility or termination coming as early as the end of the month for the first cases reviewed. Because of the large number of children involved the redeterminations will take several months to complete.
Children who are terminated after a redetermination will have the right to appeal and if the appeal is filed quickly - most likely within 10 days of the termination notice - benefits will continue to be paid during the appeal process. Those who do not appeal will lose benefits in July 1997 at the earliest or the month after the decision if that is later.

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