Text: H.R.8 — 101st Congress (1989-1990)All Information (Except Text)

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58925 [UPDATE]
HR 8 IH
101st CONGRESS
1st Session
 H. R. 8
To amend the Social Security Act to take into account monthly earnings in
determining the amount of disability benefits payable under title II, to
provide for continued entitlement to disability benefits under such title
and to Medicare benefits for individuals under disabled and working status,
to make miscellaneous improvements in the disabled and working status program
under title XVI, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
January 3, 1989
Mr. BARTLETT (for himself, Mr. LEVIN of Michigan, Mr. ARCHER, Mr. MATSUI,
Mr. GRADISON, Mr. STARK, Mr. GUNDERSON, Mr. CHANDLER, Mrs. KENNELLY,
Mr. BEILENSON, Mr. BROWN of Colorado, Ms. KAPTUR, Mrs. MARTIN of Illinois,
Mr. LEHMAN of California, Mr. FRENZEL, Mr. CHAPMAN, Mr. NIELSON of Utah,
Ms. PELOSI, Mr. TRAXLER, Mr. HILER, Mrs. MEYERS of Kansas, Mr. LAGOMARSINO,
Mr. SHAYS, Mr. PENNY, Mr. ROE, Mr. ROWLAND of Connecticut, Mr. WOLPE,
Mr. CLINGER, Mr. FRANK, Mr. HYDE, Ms. OAKAR, Mr. DORNAN of California,
Mr. SCHUETTE, Mrs. JOHNSON of Connecticut, Mr. DEFAZIO, Mr. TRAFICANT,
Mr. BATES, Mr. FLORIO, Mr. REGULA, Mr. UPTON, Mr. MORRISON of Connecticut,
Mr. ACKERMAN, Mr. FOGLIETTA, Mr. ROYBAL, Mrs. BOXER, Mr. GREEN, Mr. SLATTERY,
Mr. SABO, Mr. RITTER, Mrs. COLLINS, Mr. FAZIO, Mr. HOPKINS, Mr. WHEAT,
Mr. OBERSTAR, Mr. PETRI, Ms. SNOWE, Mr. TORRES, Mr. EDWARDS of California,
Mr. MILLER of California, Mr. VENTO, Mrs. SMITH of Nebraska, Mr. NEAL
of North Carolina, Mr. GOODLING, Mr. LEVINE of California, Mr. HENRY,
Mr. SMITH of New Jersey, Mrs. BENTLEY, Mr. BILIRAKIS, Mr. MCMILLAN of North
Carolina, Mr. HERGER, Mr. SHUMWAY, Mr. RAVENEL, Mr. LIGHTFOOT, Mr. BEREUTER,
Mr. HOUGHTON, Mr. BARTON of Texas, Mr. MCCRERY, Mr. MILLER of Washington,
Mr. TAUKE, Mrs. MORELLA, Mr. BONIOR, Mr. CROCKETT, Mr. MORRISON of Washington,
Mr. BAKER, Mr. COELHO, Mr. FROST, Mr. ROBINSON, Mr. PANETTA, Mr. DERRICK,
Mr. MFUME, Mr. HEFLEY, Mr. GRANDY, Mr. SUNDQUIST, and Mr. MILLER of Ohio)
introduced the following bill; which was referred jointly to the Committees
on Ways and Means and Energy and Commerce
A BILL
To amend the Social Security Act to take into account monthly earnings in
determining the amount of disability benefits payable under title II, to
provide for continued entitlement to disability benefits under such title
and to Medicare benefits for individuals under disabled and working status,
to make miscellaneous improvements in the disabled and working status program
under title XVI, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Social Security Work Incentives Act of 1989'.
TITLE I--DISABLED AND WORKING STATUS UNDER TITLE II OF THE SOCIAL SECURITY ACT
SEC. 101. MONTHLY EARNINGS TAKEN INTO ACCOUNT IN DETERMINING AMOUNT OF
DISABILITY BENEFITS PAYABLE UNDER TITLE II.
  (a) IN GENERAL- Title II of the Social Security Act is amended by inserting
  after section 224 (42 U.S.C. 424a) the following new section:
`REDUCTION OF BENEFITS BASED ON DISABILITY BY REASON OF MONTHLY EARNINGS
  `SEC. 224A. (a) Except as provided in subsection (b)--
  `(1) the amount of an individual's benefit for any month under subsection
  (d), (e), or (f) of section 202 based on disability shall be reduced (to
  not less than zero) by 50 percent of such individual's monthly earnings in
  excess of $85 ordinarily taken into account by the Secretary in determining
  substantial gainful activity, and
  `(2) the amount of an individual's disability insurance benefit for any
  month under section 223 and the amounts of all other monthly benefits under
  this title for such month based on the same wages and self-employment income
  shall, in the aggregate, be reduced (to not less than zero) by 50 percent
  of such individual's monthly earnings in excess of $85 ordinarily taken
  into account by the Secretary in determining substantial gainful activity,
  except that such reduction shall be applied--
  `(A) first to the disability insurance benefit for such month of such
  individual (in an amount not to exceed the amount of such benefit), and
  `(B) then to all such other benefits for such month in proportion to the
  amounts of such other benefits (in amounts not to exceed the respective
  amounts of such benefits).
  `(b) In the case of an individual who is entitled for any month both to a
  benefit referred to in subsection (a) and a benefit under section 1619(a),
  the amount of the reduction under this section for such month shall not
  exceed the excess of--
  `(1) the amount of income for such month determined (after applicable
  exclusions) for purposes of section 1611(b), over
  `(2) the amount of the benefit for such month under section 1619(a)
  (before reduction under section 1611(b)).
  `(c) The amount by which a benefit for any month is reduced under this
  section shall be determined on the basis of earnings in the first or,
  if the Secretary so determines, second month preceding such month. The
  amount of the reduction shall be redetermined at such time or times as
  may be provided by the Secretary.
  `(d) Reduction under this section shall be made after any reduction or
  deduction made under section 203, 222(b), or 224.'.
  (b) TREATMENT OF SIMULTANEOUS ENTITLEMENTS- Subsection (k) of section
  202 of such Act (42 U.S.C. 402(k)) is amended by adding at the end the
  following new paragraph:
  `(5) The preceding provisions of this subsection shall be applied to benefits
  for each month before application of section 224A to any such benefits.'.
  (c) LIMITATION ON DECREASES IN BENEFITS OF DISABLED CHILDREN BY REASON
  OF PRIOR OVERPAYMENTS RESULTING FROM FAILURE TO APPLY REDUCTIONS BASED
  ON EARNINGS- Section 204(a)(1)(A) of such Act (42 U.S.C. 404(a)(1)(A)) is
  amended by inserting after the first sentence the following new sentence:
  `In any case in which the overpaid person or any other person referred to
  in the preceding sentence is entitled to a benefit for any month under
  section 202(d) based on disability, if any decrease pursuant to this
  subparagraph in payments under this title for such month is a result
  of payment to the overpaid person of more than the correct amount by
  reason of failure to apply an appropriate reduction under section 224A,
  the benefit for such month of such person entitled under section 202(d)
  shall be determined without regard to deduction under this paragraph as a
  result of such payment, and the benefits under this title for such month
  of all other individuals who are entitled to such benefits on the basis
  of the wages and self-employment income of such overpaid person shall
  be determined as if such person entitled under section 202(d) were not
  entitled to a benefit for such month.'.
  (d) EXTENSION TO CURRENT RECIPIENTS OF DISABILITY INSURANCE BENEFITS
  OF CURRENT RULE PREVENTING REDUCTIONS IN PRIMARY INSURANCE AMOUNT FOR
  PRIOR RECIPIENTS- Subparagraph (C) of section 215(a)(2) of such Act (42
  U.S.C. 415(a)(2)(C)) is amended--
  (1) by striking `was entitled' and inserting `has been entitled';
  (2) by striking `after the close of' and inserting `during, or after the
  close of,';
  (3) by inserting `because of recomputation of such individual's primary
  insurance amount during such period of disability,' after `whether'; and
  (4) by striking `former'.
  (e) ROUNDING CONFORMING AMENDMENT- Subsection (g) of section 215 of such
  Act (42 U.S.C. 415(g)) is amended by striking `sections 203(a) and 224'
  and inserting `sections 203(a), 224, and 224A'.
  (f) CONFORMING AMENDMENT- The heading for section 224 of such Act (42
  U.S.C. 424a) is amended by adding at the end the following: `BY REASON OF
  PERIODIC BENEFITS'.
  (g) EFFECTIVE DATE-
  (1) IN GENERAL- The amendments made by this section shall apply with
  respect to benefits for months after June 1990.
  (2) SPECIAL RULE FOR EXISTING BENEFICIARIES- Section 224A of the Social
  Security Act (as added by this section) shall not apply in the case of
  an individual who is entitled to benefits for June 1990 under section
  223 of the Social Security Act or benefits under subsection (d), (e), or
  (f) of section 202 of such Act based on disability, if such individual's
  monthly earnings (for such month and each preceding month during the period
  of such entitlement) ordinarily taken into account by the Secretary of
  Health and Human Services in determining substantial gainful activity
  have not exceeded 80 percent of the amount designated by the Secretary
  (for the corresponding month) ordinarily to represent substantial gainful
  activity in connection with the disability involved.
SEC. 102. CONTINUATION OF ENTITLEMENT TO BENEFITS BASED ON DISABILITY WHILE
UNDER DISABLED AND WORKING STATUS.
  (a) TERMINATION OF ENTITLEMENT DELAYED UNTIL TERMINATION OF DISABLED AND
  WORKING STATUS-
  (1) DISABILITY INSURANCE BENEFITS- Section 223(a)(1) of the Social Security
  Act (42 U.S.C. 423(a)(1)) is amended in the second sentence by striking
  `except that' and all that follows through `activity.' and inserting
  `except that, in the case of an individual who is under disabled and
  working status under subsection (e), such individual's disability shall
  not be considered to have ceased until such status terminates.'.
  (2) CHILD'S INSURANCE BENEFITS BASED ON DISABILITY- Section 202(d)(1)(G)(i)
  of such Act (42 U.S.C. 402(d)(1)(G)(i)) is amended by striking `except that'
  and all that follows through `activity)' and inserting `except that, in
  the case of an individual who is under disabled and working status under
  section 223(e), such individual's disability shall not be considered to
  have ceased until such status terminates)'.
  (3) WIDOW'S INSURANCE BENEFITS BASED ON DISABILITY- Section 202(e)(1) of
  such Act (42 U.S.C. 402(e)(1)) is amended in the last sentence by striking
  `except that' and all that follows through `activity.' and inserting
  `except that, in the case of an individual who is under disabled and
  working status under section 223(e), such individual's disability shall
  not be considered to have ceased until such status terminates.'.
  (4) WIDOWER'S INSURANCE BENEFITS BASED ON DISABILITY- Section 202(f)(1) of
  such Act (42 U.S.C. 402(f)(1)) is amended in the last sentence by striking
  `except that' and all that follows through `activity.' and inserting
  `except that, in the case of an individual who is under disabled and
  working status under section 223(e), such individual's disability shall
  not be considered to have ceased until such status terminates.'.
  (b) DISABLED AND WORKING STATUS- Section 223(e) of such Act (42
  U.S.C. 423(e)) is amended to read as follows:
`Disabled and Working Status
  `(e) Any individual who is entitled for a month to a disability insurance
  benefit under this section, or to a monthly insurance benefit based on
  disability under subsection (d), (e), or (f) of section 202, and whose
  earnings in a subsequent month are greater than or equal to the amount
  designated by the Secretary ordinarily to represent substantial gainful
  activity shall be under disabled and working status under this subsection
  for so long as--
  `(1) such individual continues to have the disabling physical or mental
  impairment on the basis of which such individual was found to be under a
  disability, and
  `(2) such individual meets all other non-disability-related requirements
  for entitlement to such benefits under this title.'.
  (c) CONFORMING AMENDMENTS ELIMINATING TRIAL WORK PERIOD PROVISIONS-
  (1) Subsection (c) of section 222 of such Act (42 U.S.C. 422(c)) is repealed.
  (2) Paragraph (4) of section 223(d) of such Act (42 U.S.C. 423(d)(4)
  is amended in the third sentence by striking `, except for purposes of
  section 222(c),'.
  (d) 48-MONTH LIMITATION ON MEDICARE BENEFITS FOR INDIVIDUALS UNDER DISABLED
  AND WORKING STATUS WITH SUBSTANTIAL GAINFUL ACTIVITY-
  (1) IN GENERAL- Section 226(b) of the Social Security Act (42 U.S.C. 426(b))
  is amended--
  (A) in the third sentence--
  (i) by striking `benefits or' the first place it appears;
  (ii) by striking `to such benefits or';
  (iii) by striking `entitlement or' each place it appears; and
  (iv) by striking `entitled to monthly insurance benefits under title II
  or as'; and
  (B) by adding at the end the following: `Notwithstanding paragraph (2)(A),
  in the case of an individual who is entitled to hospital insurance benefits
  under this subsection for a month only because the individual is entitled
  to disability insurance benefits, or benefits under subsection (d), (e), or
  (f) of section 202 based on disability, as a result of being under disabled
  and working status under section 223(e), and whose earnings in the month are
  greater than or equal to the amount designated by the Secretary ordinarily
  to represent substantial gainful activity in connection with the disability
  involved, such entitlement shall cease as of the end of the 48th month
  (which need not be in a period of consecutive months) in which the individual
  both is so entitled and has such earnings and the Secretary shall provide
  such individuals notice (not later than the 45th such month) of the period
  remaining in such entitlement and the opportunity under section 1818A to
  buy into the medicare program after the expiration of the 48th such month.'.
  (2) TRANSITIONAL RULE- In the case of an individual who was provided
  hospital insurance benefits under the third sentence of section 226(b) of
  the Social Security Act before June 1990, months in which such benefits
  were provided under such sentence shall be counted against any 48-month
  limitation provided under the sentence added by paragraph (1)(E).
  (e) EFFECTIVE DATE- The amendments made by this section shall apply with
  respect to benefits for months after June 1990.
SEC. 103. PERMITTING MEDICARE BUY-IN FOR CONTINUED BENEFITS.
  (a) IN GENERAL- Title XVIII of the Social Security Act is amended--
  (1) in the heading of section 1818, by inserting `ELDERLY' after
  `UNINSURED', and
  (2) by inserting after section 1818 the following new section:
`HOSPITAL INSURANCE BENEFITS FOR UNINSURED DISABLED INDIVIDUALS WHO HAVE
EXHAUSTED OTHER ENTITLEMENT
  `SEC. 1818A. (a) Every individual who--
  `(1) has not attained the age of 65,
  `(2) would be entitled to benefits under this part under section 226(b),
  but for the 48-month limitation specified in the fourth sentence of such
  section, and
  `(3) is not otherwise entitled to benefits under this part,
shall be eligible to enroll in the insurance program established by this part.
  `(b) An individual may enroll under this section only in such manner and
  form as may be prescribed in regulations, and only during an enrollment
  period prescribed in or under this section.
  `(c) The provisions of section 1837 (except subsections (f), (g), and
  (i) thereof), section 1838 (other than subsections (c) and (e) thereof),
  subsection (b) of section 1839, and section 1840 shall apply to individuals
  authorized to enroll under this section, except that--
  `(1) the initial enrollment period shall begin on the first day of the third
  month before the month in which the individual first becomes eligible and
  shall end 7 months later; and
  `(2) an individual's entitlement under this section shall terminate with
  the month before the first month in which the individual becomes eligible
  for hospital insurance benefits under section 226 and upon such termination
  such individual shall be deemed, solely for purposes of hospital insurance
  entitlement, to have filed in such first month the application required
  to establish such entitlement.
  `(d) The provisions of subsections (d) through (f) of section 1818 shall
  apply to individuals enrolled under this section.'.
  (b) MEDICARE AS SECONDARY PAYOR TO EMPLOYER PLANS- Section 1862(b)(4)(A)(i)
  of the Social Security Act (42 U.S.C. 1395y(b)(4)(A)(i)) is amended by
  inserting `or any other individual is eligible for or receives benefits
  under this title due to enrollment under section 1818A' after `226(b)'.
SEC. 104. REQUIRING MEDICAID PAYMENT FOR MEDICARE COST-SHARING FOR POOR
INDIVIDUALS UNDER DISABLED AND WORKING STATUS.
  (a) IN GENERAL- Section 1902(a)(10)(E) of the Social Security Act (42
  U.S.C. 1396a(a)(10)(E)) is amended--
  (1) by inserting `(i)' after `(E)',
  (2) by striking the semicolon at the end and inserting `, and', and
  (3) by adding at the end the following new clause:
  `(ii) for making medical assistance available for medicare cost-sharing
  (as defined in section 1905(p)(3)) for qualified disabled and working
  individuals described in section 1905(r);'.
  (b) ELIGIBILITY- Section 1905 of such Act (42 U.S.C. 1396d) is amended by
  adding at the end the following new subsection:
  `(r) The term `qualified disabled and working individual' means an
  individual--
  `(1) who is entitled to enroll for hospital insurance benefits under part
  A of title XVIII under section 1818A;
  `(2) who, but for section 1902(a)(10)(E)(ii), is not eligible for medical
  assistance under the State plan;
  `(3) whose income (as determined under section 1613 for purposes of the
  supplemental security income program) do not exceed 300 percent of the
  official poverty line (as defined by the Office of Management and Budget
  and revised annually in accordance with section 673(2) of the Omnibus Budget
  Reconciliation Act of 1981) applicable to a family of the size involved; and
  `(4) whose resources (as determined under section 1613 for purposes of the
  supplemental security income program) do not exceed the maximum amount
  of resources that an individual may have and obtain benefits under that
  program.'.
  (c) COPAYMENTS REQUIRED FOR CERTAIN INDIVIDUALS- Section 1916 of such Act
  (42 U.S.C. 1396o) is amended--
  (1) in subsection (a), by striking `The State plan' and inserting `Except
  as provided in subsection (d), the State plan';
  (2) by redesignating subsections (d) and (e) as subsections (e) and (f); and
  (3) by inserting after subsection (c) the following new subsection:
  `(d) With respect to qualified disabled and working individuals described
  in section 1905(r) whose income (as determined under paragraph (3) of
  that section) exceeds 150 percent of the official poverty line referred
  to in that paragraph, the State plan of a State shall provide for the
  charging of a coinsurance amount according to a sliding scale under which
  the percentage of coinsurance increases from 0 percent to 100 percent,
  in reasonable increments, as the individual's income increases from 150
  percent of such poverty line to 300 percent of such poverty line.'.
  (d) BENEFITS- Section 1905(p)(3) of such Act (42 U.S.C. 1396d(p)(3)(A) is
  amended by striking `section 1818' and inserting `sections 1818 and 1818A'.
  (e) EFFECTIVE DATE- (1) The amendments made by this section apply (except
  as provided under paragraph (2)) to payments under title XIX of the Social
  Security Act for calendar quarters beginning on or after July 1, 1990,
  without regard to whether or not final regulations to carry out such
  amendments have been promulgated by such date.
  (2) In the case of a State plan for medical assistance under title XIX of
  the Social Security Act which the Secretary of Health and Human Services
  determines requires State legislation (other than legislation appropriating
  funds) in order for the plan to meet the additional requirements imposed by
  the amendments made by this section, the State plan shall not be regarded
  as failing to comply with the requirements of such title solely on the
  basis of its failure to meet these additional requirements before the first
  day of the first calendar quarter beginning after the close of the first
  regular session of the State legislature that begins after the date of the
  enactment of this Act. For purposes of the previous sentence, in the case
  of a State that has a 2-year legislative session, each year of such session
  shall be deemed to be a separate regular session of the State legislature.
SEC. 105. EXTENSION TO ALL RECIPIENTS OF CHILD'S INSURANCE BENEFITS BASED
ON DISABILITY OF CURRENT RULE PERMITTING CONTINUED ENTITLEMENT TO MEDICAID
BENEFITS OF INDIVIDUALS BECOMING ENTITLED TO SUCH CHILD'S INSURANCE BENEFITS.
  (a) IN GENERAL- Paragraph (1) of section 1634(c) of the Social Security Act
  (42 U.S.C. 1383c(c)(1)) is amended by striking `entitled, on or after the
  effective date of this subsection,' and inserting `entitled'.
  (b) EFFECTIVE DATE- Section 1634(c) of the Social Security Act (as amended by
  subsection (a) of this section) shall apply with respect to all individuals
  becoming entitled to benefits or increases referred to therein before,
  on, or after July 1, 1987, except that the provisions of this subsection
  and the amendment made by subsection (a) shall apply only with respect
  to medical assistance provided for care and services furnished in months
  after June 1990.
TITLE II--AMENDMENTS RELATING TO THE DISABLED AND WORKING STATUS PROGRAM
UNDER TITLE XVI OF THE SOCIAL SECURITY ACT
SEC. 201. INAPPLICABILITY OF SPOUSAL DEEMING UNDER SECTION 1619.
  Section 1619 of the Social Security Act (42 U.S.C. 1382h) is amended--
  (1) by redesignating subsection (c) and subsection (d); and
  (2) by inserting after subsection (b) the following new subsection:
  `(c) In applying subsections (a) and (b) in determining entitlement of an
  individual to benefits under subsection (a) or title XIX, the income and
  resources of any eligible spouse or of any spouse described in section
  1614(f)(1) shall not be taken into account.
SEC. 202. EXCLUSION FROM INCOME UNDER SECTION 1619 OF ALL COSTS OF ATTENDANT
CARE SERVICES.
  Section 1619(c) of the Social Security Act (as added by the preceding
  provisions of this title) is amended--
  (1) by inserting `(1)' after `(c)'; and
  (2) by adding at the end the following new paragraph:
  `(2) In applying section 1612(b) for purposes of determining an individual's
  income referred to in subsection (a)(1)(B) or subsection (b)(1)(B),
  earned income necessary to pay the costs of attendant care services shall
  be excluded from income under paragraph (4)(B)(ii) of section 1612(b)
  irrespective of whether such services are provided for such individual
  to work.'.
SEC. 203. EXCLUSION FROM INCOME OF IMPAIRMENT-RELATED WORK EXPENSES IN
DETERMINING SSI ELIGIBILITY UNDER SECTION 1619 OF TITLE II BENEFICIARIES
WHO ARE RECEIVING STATE SUPPLEMENTATION PAYMENTS.
  Section 1619(c) of the Social Security Act (as added and amended by the
  preceding provisions of this title) is further amended by adding at the
  end the following new paragraph:
  `(3) In the case of any individual who, for any month, has income consisting
  of an old-age, survivors, or disability insurance benefit and who would not
  (but for this paragraph) be eligible for benefits under this title for such
  month solely by reason of his or her income, for purposes of determining
  such individual's income referred to in subsection (a)(1)(B) or subsection
  (b)(1)(B), if a State supplementary payment referred to in section 1616(a)
  is made to such individual during such month, there shall be excluded any
  impairment-related work expenses of such individual during such month.'.
SEC. 204. DISREGARD OF COST-OF-LIVING ADJUSTMENTS UNDER TITLE II IN DETERMINING
MEDICAID ELIGIBLITY UNDER SECTION 1619 IF SUCH ADJUSTMENTS WOULD BE THE SOLE
BASIS FOR INELIGIBILITY.
  Section 1619(b) of the Social Security Act (42 U.S.C. 1382h(b)) is amended
  by adding at the end the following new paragraph:
  `(4) Benefits shall be provided under title XIX to any individual (and such
  individual's spouse (if any)) for any month for which such individual is
  entitled to a monthly insurance benefit under title II but is not eligible
  for benefits under subsection (a), in like manner and subject to the same
  terms and conditions as are applicable under this section in the case of
  individuals who are eligible for and receiving benefits under subsection
  (a) for such month, if for such month such individual would be (or could
  become) eligible for benefits under subsection (a) except for amounts of
  income received by such individual which are attributable to increases in
  the level of monthly insurance benefits payable under title II which have
  taken effect pursuant to section 215(i), in the case of such individual,
  since the later of November 1988 or the last month for which such individual
  was both eligible for (and received) benefits under subsection (a) and was
  entitled to a monthly insurance benefit under title II, and, in the case
  of such individual's spouse (if any), since the later of November 1988 and
  the last month for which such spouse was both eligible for (and received)
  benefits under subsection (a) and was entitled to a monthly insurance
  benefit under title II.'.
SEC. 205. ATTAINMENT OF AGE 65 NOT TO SERVE AS BASIS FOR TERMINATION OF
MEDICAID ENTITLEMENT UNDER SECTION 1619.
  Section 1619(b) of the Social Security Act (as amended by section 204)
  is further amended by adding at the end the following new paragraph:
  `(5) An individual with respect to whom all requirements of this subsection
  are otherwise met for entitlement to benefits under title XIX shall not
  cease to be so entitled solely by reason of attaining age 65.'.
SEC. 206. INCLUSION OF STATE SUPPLEMENTARY PAYMENTS IN CALCULATION OF
BREAK-EVEN POINT UNDER SECTION 1619.
  Section 1619(a)(1)(B) of the Social Security Act (42 U.S.C. 1382h(a)(1)(B))
  is amended by inserting `(including for purposes of this subparagraph
  any State supplementary payment referred to in section 1616(a))' after
  `section 1611'.
SEC. 207. TREATMENT OF ROYALTIES AND SCHOLARSHIPS AS EARNED INCOME.
  Section 1619(c) of the Social Security Act (as added and amended by the
  preceding provisions of this title) is further amended by adding at the
  end the following new paragraph:
  `(4) For purposes of determining an individual's income referred to in
  subsection (a)(1)(B) or subsection (b)(1)(B)--
  `(A) any royalty, described in section 1612(a)(2)(F), which is earned
  in connection with any publication of an individual's work shall not be
  treated as unearned income described in section 1612(a)(2)(F) and shall
  be treated as earned income described in section 1612(a)(1), irrespective
  of the extent to which a pattern of publication of such individual's work
  has been established, and
  `(B) any portion of any grant, scholarship, or fellowship which is not
  excluded from income under section 1612(b)(7) shall shall be treated as
  earned income described in section 1612(a)(1).'.
SEC. 208. EFFECTIVE DATE.
  The amendments made by this title shall apply with respect to benefits
  for months after the third month after the date of the enactment of this Act.