SECTION 3. SUPPLEMENTAL SECURITY INCOME (SSI) CONTENTS Background Trends Basic Eligibility Categorical Requirements Citizenship and Residency Requirements Prohibition of Payment to Felons and Fugitives Income and Resource Requirements Presumptive SSI Eligibility for Persons with AIDS and HIV Public Institution Requirement Application to Other Programs Requirement Eligibility for Social Security Eligibility for Medicaid Eligibility for Food Stamps Self-Sufficiency and SSI SSI Benefits Federal SSI Benefit Standard Benefits for Persons Living in the Household of Another Benefits for Persons Living in a Medicaid Institution Benefits of Former Recipients of State Assistance Overpayments Faster Initial SSI (and Social Security) Payments State Supplementation Maximum SSI and Food Stamp Benefits for Individuals Living Independently Comparison of SSI Payment Levels to Poverty Thresholds Trends in the SSI Caseload Number of Recipients Characteristics of Adult Disabled and Blind Recipients Characteristics of Recipients Receiving Benefits on the Basis of Age Characteristics of Children Receiving Benefits Overview of Caseload Developments Eligibility of Drug Addicts and Alcoholics Eligibility of Noncitizens for SSI Eligibility of the Homeless Special SSI Provisions for the Working Disabled Earned Income Disregards Eliminating Work Disincentives Special Benefits for Certain World War II Veterans Measures of SSI Participation and Growth SSI Participation Rates Changes in Number of Recipients, 1970-99 SSI Program Costs Legislative History 104th Congress 105th Congress 106th Congress References BACKGROUND The Supplemental Security Income (SSI) Program is a means- tested, federally administered, income assistance program authorized by title XVI of the Social Security Act. Established in 1972 (Public Law 92-603) and begun in 1974, SSI provides monthly cash payments in accordance with uniform, nationwide eligibility requirements to needy aged, blind and disabled persons. The SSI Program replaced the Federal-State Programs of Old- Age Assistance and Aid to the Blind established by the original Social Security Act of 1935 as well as the Program of Aid to the Permanently and Totally Disabled established by the Social Security Amendments of 1950. Under the former programs, Federal matching funds were offered to the States to enable them to give cash relief, ``as far as practicable'' in each State, to eligible persons whom the States deemed needy. The States set benefit levels and administered these programs. The Federal- State adult assistance programs continue to operate in Guam, Puerto Rico, and the Virgin Islands. Under the Covenant to Establish a Commonwealth of the Northern Mariana Islands, enacted as Public Law 94-241 on March 24, 1976, the Northern Mariana Islands became the only U.S. jurisdiction outside the 50 States and the District of Columbia authorized to operate an SSI Program. The Congress intended the new SSI Program to be more than just a Federal version of the former State adult assistance programs which it replaced. In describing the new program, the report of the Committee on Finance stated: ``The Committee bill would make a major departure from the traditional concept of public assistance as it now applies to the aged, the blind and the disabled. Building on the present Social Security Program, it would create a new Federal program administered by the Social Security Administration (SSA), designed to provide a positive assurance that the Nation's aged, blind, and disabled people would no longer have to subsist on below poverty-level incomes'' (U.S. Senate, 1972, p. 384). The SSI Program was envisioned as a basic national income maintenance system for the aged, blind, and disabled which would differ from the State programs it replaced in a number of ways. It would be administered by SSA in a manner as comparable as possible to the way in which benefits were administered under the Social Security Program. While it was understood that modifications would be necessary to make SSA's systems work for the new program, SSI was seen as an add-on rather than a new system. SSA had a longstanding reputation for dealing with the public on a fair and humane basis, but with scrupulous regard for the requirements of law. Thus, it was expected that both recipients and taxpayers would be pleased with the outcome. Under the former adult assistance programs the amount of assistance could vary from person to person according to an evaluation of the individual's needs. The SSI Program, by contrast, represented a ``flat grant'' approach in which there would be a uniform Federal income support level. In contrast to the former State programs with their provisions for liens against property and relative support requirements, the SSI Program was intended to have minimal barriers to eligibility other than a lack of income. Even here, the new SSI Program incorporated more generous provisions for disregarding income--particularly earned income--than was provided under the Old-Age Assistance Program. The report of the House Committee on Ways and Means stated that the SSI Program was designed to provide incentives and opportunities for those able to work or to be rehabilitated that would enable them to escape dependency (U.S. House, 1971, p. 147). For the most part, the nature of the SSI Program is expressed by its title. It was conceived as a guaranteed minimum income for the aged, blind, and disabled which would supplement the Social Security Program and act as an income- related program to provide for those who were not covered or minimally covered under Social Security or who had earned only a minimal entitlement under the program. It should be noted that even though SSA administers the SSI Program, SSI is not the same as Social Security. The SSI Program is funded by general revenues of the U.S. Treasury-- personal income taxes, corporation taxes, and other taxes. Social Security benefits are funded by the Social Security taxes paid by workers, employers, and self-employed persons. The programs also differ in other ways such as the conditions of eligibility and the method of determining payments. In addition, States have the option of supplementing the basic Federal SSI payment. In some cases, State supplementary payments are administered by the State instead of SSA. TRENDS Table 3-1 summarizes the trends in the SSI Program since its inception in 1974: 1. The number of recipients on SSI has risen from nearly 4 million in 1974 to nearly 6.6 million in December 1999. The number of SSI recipients declined early in the program as the number of aged individuals on SSI declined, but that trend reversed in the mideighties as rapid growth in disabled recipients outstripped the minimal change in the elderly and blind SSI populations. However, since 1996, there has been a slight decrease in the total number of SSI recipients. 2. Total annual benefits paid under the SSI Program rose from about $5.2 billion in 1974 to $31.3 billion in 1999. 3. The monthly Federal benefit rates for individuals and couples rose from $140 and $210 in 1974 to $512 and $769 in 2000 (2000 figures are not in table), respectively. Nearly all of these changes resulted from the statutory indexation of the Federal benefit rates to the Consumer Price Index (CPI). TABLE 3-1.--SUPPLEMENTAL SECURITY INCOME SUMMARY, SELECTED YEARS 1974-99 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Year Item ------------------------------------------------------------------------------------------------------------------------------------- 1974 1978 1980 1984 1986 1988 1990 1992 1994 1996 1998 1999 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Recipients: \1\ Aged.................................................. 2,285,909 1,967,900 1,807,776 1,530,289 1,473,428 1,433,420 1,454,041 1,471,022 1,465,905 1,412,632 1,331,782 1,308,062 Blind................................................. 74,616 77,135 78,401 80,524 83,115 82,864 83,686 85,400 84,911 82,137 80,243 79,291 Disabled.............................................. 1,635,539 2,171,890 2,255,840 2,418,522 2,712,641 2,947,585 3,279,400 4,009,767 4,744,470 5,118,949 5,154,044 5,169,281 ------------------------------------------------------------------------------------------------------------------------------------- Total............................................... 3,996,064 4,216,925 4,142,017 4,029,333 4,269,184 4,463,869 4,817,127 5,566,189 6,295,786 6,613,718 6,566,069 6,566,634 ===================================================================================================================================== Number with section 1619(a)............................... NA NA NA 406 (8/84) 992 (1/86) 19,920 \2\ 13,99 17,603 24,315 31,085 37,271 25,528 4 Number with section 1619(b)............................... NA NA NA 6,804 8,106 15,625 23,517 31,649 40,683 51,905 59,542 69,265 Annual payments (in millions): Federal benefits...................................... $3,833 $4,881 $5,866 $8,281 $9,498 $10,734 $12,894 $18,247 $22,175 $25,265 26,405 26,805 Federally administered State supplementation.......... 1,264 1,491 1,848 1,792 2,243 2,671 3,239 3,435 3,116 2,988 3,003 3,301 State administered State supplementation.............. 149 180 226 299 340 381 466 \3\ 556 579 539 808 \4\ 808 ------------------------------------------------------------------------------------------------------------------------------------- Total............................................... $5,246 $6,552 $7,940 $10,372 $12,081 $13,786 $16,599 $22,238 $25,870 $28,252 30,216 30,914 ===================================================================================================================================== Annual payments (in millions of 1999 dollars)............. $18,630 $16,969 $16,427 $16,682 $18,293 $19,501 $23,821 $26,414 $29,074 $30,824 $30,793 $32,153 Monthly Federal benefits: Individuals........................................... $140.00 $177.80 $208.20 $314.00 $336.00 $354.00 $386.00 $422.00 $446.00 $470.00 $494.00 $500.00 Couples............................................... 210.00 266.70 357.00 472.00 504.00 532.00 579.00 633.00 687.00 705.00 741.00 751.00 Average Federal SSI payments: \1\ All recipients........................................ $95.11 $111.98 $143.35 $196.16 $215.40 $227.49 $261.47 $329.74 $325.26 $339.24 359.45 368.53 Aged individuals...................................... 78.48 91.22 112.45 143.24 151.38 159.36 175.29 195.86 211.55 227.42 271.66 282.37 Aged couples.......................................... 93.02 120.48 157.56 221.98 246.07 273.18 322.82 448.61 505.64 563.39 611.00 642.29 Average federally administered: \1\ State supplementation................................. $70.92 $75.00 $99.15 $97.61 $115.41 $122.68 $139.79 $118.08 $101.46 $104.58 102.33 110.92 Percent of recipients with other income: \1\ Social Security benefits.............................. 52.7 51.7 51.0 49.6 48.9 47.8 45.9 41.3 39.1 37.0 36.5 36.3 Other unearned income................................. 10.5 11.5 11.0 11.2 12.1 12.4 13.0 14.5 13.1 12.4 11.7 11.7 Earnings.............................................. 2.8 3.1 3.2 3.5 3.9 4.4 4.7 4.4 4.2 4.4 4.5 4.5 Average amount of: \1\ Social Security benefits.............................. $130.01 $156.50 $196.94 $250.61 $263.29 $286.49 $318.57 $335.72 $345.20 $382.56 374.60 383.82 Other unearned income................................. 61.10 66.93 74.35 84.56 86.40 85.92 98.13 91.96 101.13 112.46 129.90 128.99 Earnings.............................................. 80.00 99.32 106.95 126.47 142.17 173.09 195.64 207.55 225.01 258.42 282.52 286.62 Poverty thresholds (age 65 and over): Individual............................................ $2,364 $3,127 $3,949 $4,979 $5,255 $5,674 $6,268 $6,729 $7,108 $7,525 $7,818 $7,990 Couple................................................ 2,982 3,944 4,983 6,282 6,630 7,158 7,905 8,489 8,967 9,491 9,862 10,070 Federal benefit as a percent of poverty: Individual............................................ 74.1 72.7 72.3 75.6 76.7 74.9 73.9 75.3 75.3 75.0 75.8 75.0 Couple................................................ 88.1 86.4 86.0 90.2 91.2 89.2 87.9 89.5 89.5 89.1 90.2 89.3 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ \1\ December data. Includes Federal SSI and federally administered State supplements. \2\ The decrease in 1619(a) participants in 1990 was caused by the increase in the substantial gainful activity level to $500 monthly. \3\ Fiscal year 1992 data. \4\ Estimated. NA--Not available. Source: Social Security Administration (1999 and various years) and unpublished data. 4. The proportion of SSI recipients receiving Social Security benefits declined from nearly 53 percent in 1974 to 36 percent in 1999. The fraction of SSI recipients receiving some other type of unearned income rose slightly from about 11 percent in 1974 to nearly 12 percent in 1999, and the fraction with earnings increased slightly from less than 3 percent in 1974 to more than 4 percent in December 1999. 5. The Federal benefit rate as a percent of the appropriate poverty level for individuals has ranged from 72 to 77 percent and was 75 percent in 1999; for couples it has ranged from 86 to 91 percent and was 89 percent in 1999. Most States supplement the Federal benefit for at least some participants. 6. The SSI Program pays benefits to children who are blind or have other disabilities. Some of the increases in participation since 1991 reflect the revised definition of disability for children as a result of the Supreme Court's decision in the Sullivan v. Zebley case. Public Law 104-193 (enacted August 22, 1996) established a more restrictive disability definition for children which is expected to result in a slower rate of growth in the number of children receiving SSI benefits. BASIC ELIGIBILITY Categorical Requirements To qualify for SSI payments, a person must satisfy the program criteria for age, blindness or disability. The aged are defined as persons 65 years and older. The blind are individuals with 20/200 vision or less with the use of a correcting lens in the person's better eye, or those with tunnel vision of 20 degrees or less. Disabled individuals are those unable to engage in any substantial gainful activity by reason of a medically determined physical or mental impairment expected to result in death or that has lasted, or can be expected to last, for a continuous period of at least 12 months. The test of ``substantial gainful activity'' is to earn $700 monthly in counted income, with impairment-related expenses subtracted from earnings. Generally, the individual must be unable to do any kind of work that exists in the national economy, taking into account age, education, and work experience. Children may qualify for SSI if they are under age 18 (or under age 22 if a full-time student), unmarried, and meet the applicable SSI disability or blindness, income, and resource requirements. Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, established a new disability definition for children under age 18 which requires a child to have ``a medically determinable physical or mental impairment which results in marked and severe functional limitations, and which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.'' Under pre-1996 law, low-income children could qualify for SSI benefits in two ways: their disability could match one of the impairments in the medical ``listing of impairments'' or they could be evaluated under an individualized functional assessment disability determination procedure (generally considered a less stringent process) that determined whether an unlisted impairment seriously limited a child's ability to perform activities normal for his age. Both methods were stipulated in Federal regulations. Until the Supreme Court's 1990 ruling in Sullivan v. Zebley, the medical listings were the only way to determine a child's eligibility for SSI benefits. Adults, in contrast, could receive an assessment of their functional and vocational capacities even if they did not meet one of the listings. The Court ruled that sole reliance on the listings did not satisfy the law's requirement to gauge whether children's disorders were of comparable severity to impairments that would disable adults. The 1996 welfare reform law discontinued the individualized functional assessment and the ``comparable severity'' standard upon which it was based. Many children on the rolls as a result of an individualized functional assessment will have their benefits terminated, and future awards based on individualized functional assessments will be barred. Thus, the SSI Program for Children will be restricted to those who have impairments that meet or equal at least one of the listings. Pursuant to the 1996 law, the listing of impairments has been changed to reflect the new disability definition for children. Citizenship and Residency Requirements To qualify for SSI a person must be a citizen of the United States or, if not a citizen, be a refugee or asylee who has been in the country for less than 7 years, or be a ``qualified alien'' who was receiving SSI as of August 22, 1996 or who was living in the United States on August 22, 1996 and subsequently became disabled. (For more detailed information on eligibility requirements for noncitizens, see appendix J.) In addition to the citizenship requirement, a person must be a resident of the United States or the Northern Mariana Islands, or a child of a person in the military stationed outside the United States, or a student temporarily abroad; must apply for all other benefits to which she is entitled; and must, if she is disabled, accept vocational rehabilitation services if they are offered. Prohibition of Payment to Felons and Fugitives The 1996 welfare reform law provides that, as of August 22, 1996, SSI benefits may not be paid to individuals who are fleeing to avoid prosecution for a felony crime, or fleeing to avoid custody or confinement after conviction for a felony crime, or violating a condition of probation or parole imposed under Federal or State law. Income and Resource Requirements Income Individuals and couples are eligible for SSI if their incomes fall below the Federal maximum monthly SSI benefit, currently $512 for an individual and $769 for a couple (calendar year 2000 standards). If only one member of a couple qualifies for SSI, part of the ineligible spouse's income is considered to be that of the eligible spouse (this procedure is called ``deeming''). If a couple separates, each person is treated as an individual in the month following the month of separation. If an unmarried child living at home is under age 18, some of the parent's income is deemed to that child. If an immigrant is sponsored into the United States, some of the sponsor's and the sponsor's spouse's income may be deemed to that immigrant. Income includes cash, checks, and items received ``in kind'' such as food and shelter. Wages, net earnings from self- employment, and income from sheltered workshops are considered earned income. Social Security benefits, workers' or veterans compensation annuities, rent, and interest are counted as unearned income. An individual does not have to be totally without income to be eligible for SSI benefits. Maximum SSI benefits are paid, assuming the other conditions of eligibility are met, if the individual or couple has no ``countable'' income in that particular month. If the individual or couple has ``countable'' income, a dollar-for-dollar reduction is made against the maximum payment. Not all income is counted for SSI purposes. Since 1972, the major exclusions have included the first $20 of monthly income from virtually any source (such as Social Security benefits), and the first $65 of monthly earned income plus one-half of remaining earnings. Income received in sheltered workshops and work activity centers is considered earned income and qualifies for the earned income exclusion. Table 3-2 shows the maximum income that an individual and couple can have, taking into account these income exclusions, and still remain eligible for Federal SSI benefits. TABLE 3-2.--MAXIMUM INCOME FOR ELIGIBILITY FOR FEDERAL SSI BENEFITS, 2000 ---------------------------------------------------------------------------------------------------------------- Receiving only Social Receiving only wage Security income ----------------------------------------------- Monthly Annually Monthly Annually ---------------------------------------------------------------------------------------------------------------- Individual...................................................... $532 $6,384 $1,109 $13,308 Couple.......................................................... 789 9,468 1,623 19,476 ---------------------------------------------------------------------------------------------------------------- Source: Office of Research, Evaluation and Statistics, Social Security Administration. Work-related expenses are disregarded (i.e., subtracted from income) in the case of blind applicants or recipients and impairment-related work expenses are disregarded in the case of disabled applicants or recipients. The SSI Program also does not count income and resources that are set aside as part of an approved plan for achieving self-support (PASS). A PASS is an income and resource exclusion that allows an SSI recipient who is blind or disabled to set aside income and resources for a work goal. The money set aside can be used to pay for such items or services as education, vocational training, or starting a business. The value of any in-kind assistance is counted as income unless such in-kind assistance is specifically excluded by statute. Generally, in-kind assistance provided by or under the auspices of a federally assisted program, or by a State or local government (for example, nutrition, food stamps, housing or social services), will not be counted as income. As described later, if an SSI applicant or recipient is living in the household of another and receiving in-kind support and maintenance from him, the SSI benefit standard for such an individual is reduced by one-third. By regulation, SSA has also ruled that the value of any in-kind support and maintenance received (other than in-kind assistance received by reason of living in another's household) is presumed to equal one-third of the Federal SSI benefit standard plus $20. The individual can rebut this presumption. If it is determined that the actual value is less than the one-third amount, the lower actual value will be counted as unearned income. In-kind support and maintenance provided by a private nonprofit organization to aged, blind, or disabled individuals is excluded under the SSI Program if the State determines that the assistance is provided on the basis of need. Certain types of assistance provided to help meet home energy needs are also excluded from income. Assistance provided to an aged, blind, or disabled individual for the purpose of meeting home energy costs either in cash or in kind and which is furnished by a home heating oil or gas supplier or by a utility company is also excluded. Assistance for home energy costs provided in kind by a private nonprofit organization is also excluded. As countable income increases, a recipient's SSI benefit amount decreases. Ineligibility for SSI occurs when countable income equals the Federal benefit standard plus the amount of State supplementation, if any. Resources SSI eligibility is restricted to qualified persons who have resources of not more than $2,000, or $3,000 in the case of a couple. The resource limit for a couple applies even if only one member of a couple is eligible. If the couple has been separated or living independently for over 6 months, each person is treated as an individual. If an unmarried child living at home is under age 18, the parent's assets are considered to be the child's (i.e., deemed to the child). In determining countable resources, a number of items are not included, such as the individual's home; and, within reasonable limits set by SSA: household goods, personal effects, an automobile, and a burial space for the individual, spouse, and members of the immediate family. Regulations place a limit of $2,000 in equity value on excluded household goods and personal effects and exclude the first $4,500 in current market value of an auto (100 percent of the auto's value is excluded if it is used to obtain medical treatment or for employment or has been modified for use by or transportation of a handicapped person or is necessary to perform essential daily activities because of distance, climate or terrain). The value of property which is used in a person's trade, or business, or by the person as an employee is also excluded. The value of certain other property that produces income, goods, or services essential to a person's self-support may be excluded within limits set by SSA in regulations. SSI and Social Security retroactive benefit payments may not be considered as a resource for a period of 6 months after the month in which the retroactive benefit is received. Resources set aside under a PASS are also excluded. The cash surrender value of life insurance policies if the total face value of all policies is $1,500 or less are not counted toward the $2,000 or $3,000 countable resources limit. The entire cash surrender value of life insurance policies if the total face value of all policies on an individual's life is greater than $1,500 counts toward the resources limit, but may be excludable under one of the other resource provisions. An individual and spouse may have excluded up to $1,500 each of burial funds. However, the $1,500 maximum amount is reduced by the face value of any excluded life insurance policies and the value of any irrevocable burial contracts, trusts, or arrangements. If left to accumulate, interest earned on excluded burial funds and burial spaces is not countable as either income or resources for SSI purposes. Individuals who give away or sell any nonexcludable resource for less than fair market value are subject to penalty. However, such a transfer may make the individual ineligible for certain Medicaid covered nursing services. SSA must notify individuals of the penalty and provide information upon request to the States regarding transfers of resources. The Deficit Reduction Act of 1984 (Public Law 98-369) requires the Internal Revenue Service (IRS) to furnish SSA with certain nonwage information about SSI recipients. The IRS information consists primarily of reports of interest payments submitted to IRS by financial institutions but also includes income from dividends, unemployment compensation, and other sources. In fiscal year 1987, computer matches between IRS tax files and SSI records resulted in 239,000 matches. Only cases involving IRS reports of interest income of $51 or more were examined. The resulting savings to the SSI Program were $64 million. As a result of SSA's evaluation of these cases, the tolerance level was lowered to $41 beginning with fiscal year 1988 and 398,000 matches were identified. In fiscal year 1989, there were 508,000 matches. SSA has evaluated and adjusted the tolerance levels several times over the years. Effective October 1993, the tolerance level for income from resources-- e.g., interest and dividends--is $60. The tolerance level for other nonwage income not from resources--e.g., unemployment compensation and pensions--is $1,000. Also, a special tolerance was developed for cases that had been matched before; if the current year's resources are less than $10 more than the prior year's resource indicators, the IRS report is not examined. All match information is sent to Social Security offices for verification of the information. For fiscal year 1999 there were 76,000 matches. Based on a study of the 1993 matches, SSA decided to apply a statistical profiling technique to the IRS matches. Statistical profiling increases the cost effectiveness of the IRS process by targeting the more error-prone matches and eliminating the less productive matches. The resulting savings to the SSI Program were $45 million. Prior to the 1984 Deficit Reduction Act, if in any month a recipient's assets exceeded the asset limit, the individual was ineligible for benefits in that month and the entire amount of the benefit paid for that month was considered an overpayment subject to recovery. Effective October 1, 1984, SSI law provides that in cases where there is an overpayment based solely on an excess of assets of $50 or less, the recipient is deemed to be without fault for purposes of waiving the overpayment and the overpayment is not recovered unless the Secretary finds that the failure to accurately and timely report the excess was knowing and willful on the part of the recipient. An individual may receive SSI benefits for a limited time even though he has certain nonliquid property that, if counted, would make him ineligible. These benefits are conditioned upon the disposal of the property, and are subject to recovery as overpayments when the property is sold. The 1987 Budget Reconciliation Act provides, in addition, for the exclusion of real property if it cannot be sold because it is jointly owned and sale would cause undue hardship to the joint owner due to loss of housing, because there are legal impediments to its sale, or because reasonable efforts to sell it have been unsuccessful. Deeming of income and resources The income of an ineligible spouse who lives with an adult SSI applicant or recipient is considered in determining the eligibility and amount of payment to the individual. The income of the parents of a child under the age of 18 who is blind or disabled is also considered in determining the eligibility and payment for the child. However, since 1990, children with disabilities who are eligible for Medicaid at home under State home care plans, who previously received SSI personal needs allowances (PNAs) while in medical institutions, and who otherwise would be ineligible for SSI because of their parents' income or resources, have been eligible for the $30 monthly PNA that would be payable if they were institutionalized, without regard to their parents' income and resources. Effective October 1, 1993, an ineligible parent or spouse who is absent from a household due solely to a duty assignment as a member of the Armed Forces is considered, absent evidence to the contrary, to be living in the same household as the SSI applicant or recipient for deeming purposes. By regulation, the Commissioner of Social Security has provided that in determining the amount of the income of an ineligible spouse or parent to be deemed to the SSI applicant or recipient, the needs of the spouse or parent and other children in the household are taken into account. In addition, the SSI earned and unearned income exclusions are applied in determining the amount of income to be deemed to the SSI applicant or recipient. If the combined countable income of an SSI applicant and an ineligible spouse does not exceed the SSI benefit standard for an eligible couple in that State (including any federally administered State supplementary payment), the SSI applicant would be eligible to receive an SSI and/or State supplementary benefit. For example, in 2000 in a State with no supplementation, here is how the deeming procedure would work in the case of an ineligible spouse earning $600 per month living with an eligible individual with $200 of Social Security benefits: Unearned income of eligible individual..................... $200.00 Less $20 exclusion......................................... -20.00 ------------ Countable unearned income............................ 180.00 ============ Earned income of ineligible individual..................... 600.00 Less $65 earned income disregard........................... -65.00 Less one-half of remaining earnings ($535)................. -267.50 ------------ Countable earned income.............................. 267.50 Plus countable unearned income............................. 180.00 ------------ Couple's total countable income...................... 447.50 ============ SSI payment standard for couples........................... 769.00 Less countable income...................................... -447.50 ------------ Benefit payable to eligible individual............... 321.50 ============ Thus, the benefit for the eligible individual will be $321 (SSI law requires that benefits be rounded down to the next lower dollar). Without deeming and as an individual, the recipient would have received $332 [$512 - ($200 less $20 exclusion)]. The $20 exclusion can only be used once and is first applied to unearned income, which in this example is the $200 of Social Security income. An individual's resources are deemed to include those of the ineligible spouse (or in the case of a child under the age of 18, those of the parents) with whom the individual is living. Under SSI regulations, in determining the amount of the spouse's or parents' resources that can be deemed, all applicable exclusions are applied. In the case of a child, only the value of the parents' resources that exceeds the applicable limits ($2,000 for a single parent, and $3,000 for two parents) is deemed to the child. Also, under regulations, pension funds of an ineligible spouse or parent are excluded from deeming. In December 1999, there were about 130,500 children's cases in which deeming reduced benefits. This figure does not take into account, however, the number of children who were not eligible because of the deeming provision. (For a discussion of deeming rules for noncitizens, see appendix J.) Presumptive SSI Eligibility for Persons with AIDS and HIV Section 1631(a)(4)(B) of the Social Security Act provides that the Commissioner of Social Security may pay up to 6 months of Supplemental Security Income (SSI) benefits to a person applying for SSI based on disability or blindness prior to the determination of the individual's disability or blindness if the individual is presumptively disabled or blind and otherwise eligible. A finding of presumptive disability or blindness may be made at the Social Security field offices only for specified impairment categories because the field office employees generally are not trained disability adjudicators; however, at the State agencies where there are disability adjudicators a finding of presumptive eligibility may be made for any impairment category. On February 11, 1985, acquired immune deficiency syndrome (AIDS), as defined by the Centers for Disease Control, was added (pursuant to interim Federal regulations) to the impairment categories, thus allowing field offices to find presumptive disability for persons claiming they had AIDS. These regulations were scheduled to expire February 11, 1988, but were extended until December 31, 1989; and in 1989 they were extended until December 31, 1991. In December 1991, a new more liberal regulation was implemented. Under the new procedures, the Social Security field offices may make a finding of presumptive disability for any individual with the human immunodeficiency virus (HIV) whose disease manifestations are of listing-level severity, rather than only for those who have been diagnosed with AIDS. The Social Security Administration (SSA) standards governing presumptive SSI eligibility for persons with HIV disease have been challenged in court in at least one State on the grounds that they discriminate against women. The contention is that the listing of impairments reflects the course of HIV disease in men, while women tend to have different symptoms and are therefore excluded. Others have argued that the Centers for Disease Control definition and the somewhat broader SSA listing have failed to keep pace with changing manifestations of HIV disease. Public Institution Requirement Public institutions are prisons, hospitals, nursing homes, or any institution that is operated or administered by a governmental unit. The governmental unit could be the Federal, State, city, or county government, or another political subdivision of the State. Residents of public institutions for a full calendar month are ineligible for SSI unless one of the following exceptions applies: 1. The public institution is a medical treatment facility and Medicaid pays more than 50 percent of the cost of care. 2. The individual is residing in a publicly operated community residence which serves no more than 16 residents. Such a facility must provide an alternative living arrangement to a large institution and be residential (i.e., not a correctional, educational or medical facility). 3. The public institution is a public emergency shelter for the homeless. Such a facility provides food, a place to sleep, and some services to homeless individuals on a temporary basis. Payments to a resident of a public emergency shelter for the homeless are limited to no more than 6 months in any 9-month period. 4. The individual is in a public institution primarily to receive educational or vocational training. To qualify, the training must be an approved program and must be designed to prepare an individual for gainful employment. 5. The individual was eligible for SSI under one of the special provisions of section 1619 of the Social Security Act (see section on ``Special SSI Provisions for the Working Disabled'') in the month preceding the first full month of residency in a medical or psychiatric institution which agrees to permit the individual to retain benefit payments. Payment may be made for the first full month of institutionalization and the subsequent month. 6. A physician certifies that the recipient's stay in a medical facility is likely not to exceed 3 months and the recipient needs to continue to maintain and provide for the expenses of the home to which she may return. Payments may be made for up to the first 3 full months of institutionalization. To help institutionalized individuals return to community living, the SSI Program includes a prerelease procedure for institutionalized individuals. Some individuals are medically ready to be released from an institution but are financially unable to support themselves. The prerelease procedure allows such individuals to apply for SSI payments and food stamps several months in advance of their anticipated release so benefits can commence quickly after release. A formal prerelease agreement can be developed between an institution and the local Social Security office. However, an individual can file an application for SSI under prerelease without the existence of such an agreement. Under Federal law, residents of public institutions for a full calendar month generally are ineligible for SSI benefits. Prisons are considered public institutions. The bar against SSI benefits to prisoners has been enforced through an exchange of computerized data between the Social Security Administration and the Federal Bureau of Prisons, State prisons, and some county prisons. According to the SSA's Office of the Inspector General, these computerized arrangements generally covered about three-quarters of inmates--all Federal and State prisoners but only about 15 percent of county prisoners. The agreements were voluntary and until recently involved no payments to the institutions. However, the 1996 welfare reform law (Public Law 104-193), required the Commissioner of Social Security to enter into a contract with any interested State or local institution (such as a prison, jail, or mental hospital) under which the institution must provide to the Commissioner on a monthly basis the names, Social Security numbers, dates of birth, and such other identifying information concerning the inmates or residents of the institution to help the Commissioner enforce the ``prohibition of payments to residents of public institutions'' rule. The Commissioner must pay the institution up to $400 for each resident if the information is provided to the Commissioner within 30 days after such individual becomes a resident or up to $200 for each inmate if the information is provided after 30 days but within 90 days of the person becoming a resident. Between March 1, 1997 and August 2, 1999, SSA paid $19.2 million for 53,900 incentive payments. In 1999, Congress acted to further tighten restrictions on the payment of Federal benefits to prisoners. Public Law 106- 169, signed into law on December 14, 1999, expands the SSI Program's benefit suspension rules and incentive payments regarding State and local prisoners to include individuals receiving Old-Age, Survivors, and Disability Insurance (OASDI) benefits. (Payments to prisons will be reduced by 50 percent for multiple reports on individuals who receive both SSI and OASDI benefits.) Public Law 106-169 also requires State prisons to provide inmate information to Federal and federally assisted benefit programs, including SSA. To help reduce fraudulent benefit payments of food stamps, veterans benefits, unemployment benefits, and educational aid, Public Law 106-169 directs SSA to share its prisoner database with other Federal agencies and departments. APPLICATION TO OTHER PROGRAMS REQUIREMENT Since SSI payments are reduced by other income, applicants and recipients must apply for any other money benefits due them. SSA works with recipients and helps them get any other benefits for which they are eligible. Eligibility for Social Security Since its inception SSI has been viewed as the ``program of last resort.'' That is, after evaluating all other income, SSI pays what is necessary to bring an individual to the statutorily prescribed income ``floor.'' As of December 1999, 36.3 percent of all SSI recipients also received Social Security benefits (60 percent of the aged, 30 percent of the disabled, and 35 percent of the blind). Social Security benefits are the single highest source of income for SSI recipients. The SSI Program considers Social Security benefits unearned income and thus counts all but $20 monthly in determining the SSI benefit amount. Eligibility for Medicaid States have three options as to how they treat SSI recipients in relation to Medicaid eligibility. Section 1634 of SSI law allows SSA to enter into agreements with States to cover all SSI recipients with Medicaid eligibility. SSI recipients are not required to make a separate application for Medicaid under this arrangement. As of January 1, 2000, 32 States and the District of Columbia chose this option, and SSI recipients in these States account for approximately 79 percent of all SSI recipients nationwide. Under the second option, States elect to provide Medicaid eligibility for all SSI recipients, but only if the recipient completes a separate application with the State agency which administers the Medicaid Program. Alaska, Idaho, Kansas, Nebraska, Nevada, Oregon, and Utah and the Commonwealth of the Northern Mariana Islands, affecting about 5 percent of SSI recipients nationwide, have elected this option. The third and most restrictive option is known as the ``209(b)'' option, under which States may impose Medicaid eligibility criteria which are more restrictive than SSI criteria, so long as the criteria chosen are not more restrictive than the State's approved Medicaid State plan in January 1972. The 209(b) States may be more restrictive in defining blindness or disability, and/or more restrictive in their financial requirements for eligibility, and/or require a Medicaid application with the State. However, aged, blind, and disabled SSI recipients who are Medicaid applicants must be allowed to spend down in 209(b) States, regardless of whether the State has a medically needy program. Currently 11 States use the 209(b) option for Medicaid coverage of aged, blind, and disabled SSI recipients. About 16 percent of the SSI recipient population nationwide lives in these 209(b) States. The 11 States that use this option are Connecticut, Hawaii, Illinois, Indiana, Minnesota, Missouri, New Hampshire, North Dakota, Ohio, Oklahoma, and Virginia. An amendment included in the 1986 SSI Disability Amendments (Public Law 99-643) required, effective July 1, 1987, that 209(b) States continue Medicaid coverage for individuals in section 1619 status if they had been eligible for Medicaid for the month preceding their becoming eligible under section 1619 (see section below on ``Special SSI Provisions for the Working Disabled''). The same legislation required States to provide continued Medicaid coverage for those individuals who lose eligibility for SSI on or after July 1, 1987 when their income increases because they become newly eligible for Social Security benefits as an adult who was disabled as a child (disabled adult child) or because of an increase in their benefits as an adult who was disabled as a child. ``Disabled adult children'' who otherwise would be eligible for SSI continue to be considered SSI recipients for Medicaid purposes. Protection against loss of Medicaid also is provided for certain blind or disabled individuals who lose their SSI benefits when they qualify for Social Security disabled widow or widower's benefits beginning as early as age 50. The Omnibus Budget Reconciliation Act of 1990 provides that such individuals, who otherwise would continue to qualify for SSI on the basis of blindness or disability, will be deemed to be SSI recipients for purposes of Medicaid eligibility until they become eligible for Medicare. Eligibility for Food Stamps Except in California, which has converted food stamp benefits to cash that is included in the State supplementary payments, SSI recipients may be eligible to receive food stamps. SSI beneficiaries living alone or in a household where all other members of the household receive or are applying for SSI benefits can file for food stamps at an SSA office. If all household members receive SSI, they do not need to meet the Food Stamp Program financial eligibility standards to participate in the program because they are categorically eligible. However, SSI beneficiaries living in households where other household members do not receive or are not applying for SSI benefits are referred to the local food stamp office to file for food stamps. These households must meet the net income eligibility standard of the Food Stamp Program to be eligible for food stamp benefits. The interaction with the Food Stamp Program has important financial implications for a State which desires to increase the income of its SSI recipients by $1. Because food stamps are reduced by $0.30 for each additional $1 of SSI income including State supplements, the State must expend $1.43 to obtain an effective $1 increase in SSI recipients' total income. SELF-SUFFICIENCY AND SSI Section 1615(d) of the Social Security Act requires SSA to reimburse State vocational rehabilitation agencies for reasonable and necessary costs of services which resulted in disabled SSI recipients being successfully rehabilitated. The objective of vocational rehabilitation for SSI recipients is to help disabled individuals achieve and sustain productive, self- supporting work activity. SSA provides funds to reimburse vocational rehabilitation agencies for costs incurred in successfully rehabilitating SSI recipients. A successful rehabilitation is defined by law as one in which vocational rehabilitation services result in performance of substantial gainful activity for a continuous period of 9 months. In 1999, Congress expanded the Vocational Rehabilitation Program. Public Law 106-170, signed into law on December 17, 1999, creates a Ticket to Work and Self-Sufficiency Program. The purpose of the program is to help recipients leave the SSI rolls through greater accessibility to a broader pool of vocational rehabilitation providers than is currently available to them. Under the new law, the Commissioner of Social Security will provide tickets to work to disabled SSI beneficiaries that they can use as vouchers to obtain employment services, case management, vocational rehabilitation, and support services from providers of their choice, including State vocational rehabilitation agencies. The program will be implemented on a graduated basis beginning within 1 year of enactment at sites selected by the Commissioner and within 4 years of enactment in every State. The program is permanently authorized. The elements of the ticket system include program managers, employment networks, individual work plans, program evaluations, and a Ticket to Work and Work Incentives Advisory Panel composed of 12 members. The Commissioner is required to contract with program managers (one or more public or private organizations with expertise and experience in the field of vocational rehabilitation or employment services) through a competitive bidding process to help SSA administer the program. Program managers will have to recruit and recommend employment networks to the Commissioner, ensure that adequate choices of services are available to beneficiaries, ensure beneficiary access to services, and provide assurances to SSA that employment networks are complying with agreement terms. The ticket to work law requires employment networks to consist of a single public or private provider or an association of providers combined into a single entity which assumes responsibility for the coordination and delivery of services. Employment networks are required to have experience providing relevant employment services and support for individuals with disabilities and will have to provide an array of such services under the program. Employment networks and beneficiaries will have to develop an individual employment plan so that the beneficiary can exercise informed choice in selecting an employment goal and specific services needed to achieve that goal. Employment networks will prepare and provide periodic performance reports to beneficiaries holding a ticket and will have to provide periodic quality assurance reviews of employment networks. The Commissioner is required to establish a method for resolving disputes between beneficiaries and employment networks. The ticket to work law also requires that State vocational rehabilitation agencies and employment networks enter into agreements regarding the conditions under which services will be provided when an individual is referred by an employment network to State vocational rehabilitation agencies. The Commissioner is required to establish a timeframe for these agreements and a dispute resolution method. Payment to employment networks are based on outcomes and long-term results by providing one of two payment systems: an outcome payment system or an outcome-milestone payment system. Under the outcome payment system, employment networks are provided with up to 40 percent of the average monthly disability benefit for each month benefits are not payable to the beneficiary due to work (but not for more than 60 months). Under the outcome-milestone payment system, the employment networks receive early payments based on the achievement of one or more milestones toward permanent employment. The total amount payable under the outcome-milestone payment system must be less than the total amount that otherwise would have been payable for an individual under the outcome payment system. Regardless of which payment system is used, SSI beneficiaries forgo SSI payments to participate in the ticket to work system, and instead receive earnings from work. Providers use the ticket, or voucher, to claim payment from SSA for services they provide to beneficiaries. Providers are paid for each month in which an SSI beneficiary is not receiving benefits because the individual is working or has earnings. The Commissioner is required to design and conduct a series of evaluations of the payment system to assess the cost effectiveness and effects of the program, in consultation with the Advisory Panel, and report the findings to Congress. SSI BENEFITS Federal SSI Benefit Standard The Federal SSI benefit standard for 2000 is $512 a month for an individual and $769 for a couple. As is discussed later, most States supplement the Federal SSI benefit. The result is a combined Federal SSI/State supplemental benefit standard against which countable income is compared in determining eligibility and benefit amount. However, many States limit their supplementation to certain categories of individuals based on specific indicators of need--especially special housing needs. Like Social Security benefits, Federal SSI benefits are indexed to the Consumer Price Index (CPI). Indexing occurs through a reference in the SSI law to the Social Security cost- of-living adjustment (COLA) provision. Prior to the Social Security Amendments of 1983 (Public Law 98-21), the SSI and Social Security cost-of-living increases occurred in benefits paid in July. Public law 98-21 delayed the Social Security and SSI COLAs from July 1983 to January 1984. However, in lieu of a COLA increase in the SSI benefit standard, the Federal SSI benefit was increased in July 1983 by $20 a month for an individual and $30 a month for a couple. Table 3-3 shows the Federal SSI benefit from the beginning of the SSI Program until the present time. TABLE 3-3.--FEDERAL SSI BENEFIT LEVELS, 1974-2000 ---------------------------------------------------------------------------------------------------------------- Eligibility status ------------------------------------------------------------------------- Own household Household of another Year Medicaid ------------------------------------------------------------ institution Essential Essential Single Couple person Single Couple person ---------------------------------------------------------------------------------------------------------------- Initial............................... $25.00 $130.00 $195.00 $65.00 $86.67 $130.00 $43.34 Jan. 1974............................. 25.00 140.00 210.00 70.00 93.34 140.00 46.67 July 1974............................. 25.00 146.00 219.00 73.00 97.34 146.00 48.67 July 1975............................. 25.00 157.70 236.60 78.90 105.14 157.74 52.60 July 1976............................. 25.00 167.80 251.80 84.00 111.87 167.87 56.00 July 1977............................. 25.00 177.80 266.70 89.00 118.54 177.80 59.34 July 1978............................. 25.00 189.40 284.10 94.80 126.27 189.40 63.20 July 1979............................. 25.00 208.20 312.30 104.20 138.80 208.20 69.47 July 1980............................. 25.00 238.00 357.00 119.20 158.67 238.00 79.47 July 1981............................. 25.00 264.70 397.00 132.60 176.47 264.67 88.40 July 1982............................. 25.00 284.30 426.40 142.50 189.54 284.27 95.00 July 1983............................. 25.00 304.30 456.40 152.50 202.87 304.27 101.67 Jan. 1984 \1\......................... 25.00 314.00 472.00 157.00 209.34 314.67 104.67 Jan. 1985............................. 25.00 325.00 488.00 163.00 216.67 325.34 108.67 Jan. 1986............................. 25.00 336.00 504.00 168.00 224.00 336.00 112.00 Jan. 1987............................. 25.00 340.00 510.00 170.00 226.67 340.00 113.34 Jan. 1988............................. 25.00 354.00 532.00 177.00 236.00 354.67 118.00 Jan. 1989............................. 30.00 368.00 553.00 184.00 245.34 368.67 122.67 Jan. 1990............................. 30.00 386.00 579.00 193.00 257.34 386.00 128.67 Jan. 1991............................. 30.00 407.00 610.00 204.00 271.34 406.67 136.00 Jan. 1992............................. 30.00 422.00 633.00 211.00 281.34 422.00 140.67 Jan. 1993............................. 30.00 434.00 652.00 217.00 289.34 434.67 144.67 Jan. 1994............................. 30.00 446.00 669.00 223.00 297.34 446.00 148.67 Jan. 1995............................. 30.00 458.00 687.00 229.00 305.34 458.00 152.66 Jan. 1996............................. 30.00 470.00 705.00 235.00 313.34 470.00 152.57 Jan. 1997............................. 30.00 484.00 726.00 242.00 322.67 484.00 161.33 Jan. 1998............................. 30.00 494.00 741.00 247.00 329.34 494.00 164.67 Jan. 1999............................. 30.00 500.00 751.00 250.00 333.34 500.67 166.67 Jan. 2000............................. 30.00 512.00 769.00 256.00 341.34 512.67 170.67 ---------------------------------------------------------------------------------------------------------------- \1\ Cost-of-living adjustments to Federal SSI benefit levels are rounded to the next lower whole dollar beginning with the increase effective January 1984. Source: Office of Research, Evaluation and Statistics, Social Security Administration. In calendar year 1999, about 757,580 applicants were awarded SSI benefits. Under previous law, new recipients received a prorated SSI benefit for the month in which they applied. For example, a person who applied on the 15th of the month could receive 2 weeks of benefits for that month. (The typical applicant did not get that money immediately because SSA might take several months to process the application.) The 1996 welfare reform law changes the effective date of an SSI application to the later of the first day of the month following the date the application is filed or the date the individual first becomes eligible for SSI benefits. Benefits for Persons Living in the Household of Another SSI law provides that if an applicant or recipient is ``living in another person's household and receiving support and maintenance in kind from such person,'' the Federal SSI benefit applicable to such individual or couple is two-thirds of the regular Federal SSI benefit. As shown in table 3-3, the Federal SSI benefit in 2000 for those determined to be living in the household of another is $341 for an individual and $513 for a couple. Regulations specify the criteria for determining when this reduced benefit applies. It does not apply to an individual who owns or rents, buys food separately, eats meals out rather than eating with the household, or pays a pro rata share of the household's food and shelter expenses. In December 1999 4.1 percent, or about 268,800 SSI recipients, had their benefits determined on the basis of this ``one-third reduction'' benefit standard. Sixty-five percent of those recipients were receiving benefits on the basis of disability (see table 3-4). TABLE 3-4.--PERCENTAGE AND NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED PAYMENTS, BY LIVING ARRANGEMENT AND CATEGORY, DECEMBER 1999 ---------------------------------------------------------------------------------------------------------------- Reason for eligibility Living arrangement \1\ Total ---------------------------------- Aged Blind Disabled ---------------------------------------------------------------------------------------------------------------- Own household..................................................... 93.7 91.0 92.3 94.4 Another's household............................................... 4.1 7.0 5.1 3.4 Institutional care covered by Medicaid............................ 2.2 2.0 2.6 2.2 --------------------------------------------- Total percent................................................. 100.0 100.0 100.0 100.0 ============================================= Total number.................................................. 6,556,634 1,308,062 \2\ 79,29 \3\ 5,169,2 1 81 ---------------------------------------------------------------------------------------------------------------- \1\ As defined for determination of Federal SSI payment standards. \2\ Includes approximately 19,200 persons aged 65 or older. \3\ Includes approximately 690,400 persons aged 65 or older. Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI Statistics and Analysis. Benefits for Persons Living in a Medicaid Institution When individuals enter a hospital or other medical institution in which more than half of the bill is paid by the Medicaid Program, their monthly SSI benefit standard is reduced to $30, beginning with the first full calendar month of residence. This benefit, called a personal needs allowance (PNA), is intended to take care of small personal expenses, with the cost of maintenance and medical care being provided through Medicaid. The 1996 welfare reform law requires that children (under age 18) residing in medical institutions who have private medical insurance be eligible only for the $30 SSI PNA, just like those with Medicaid coverage. The Federal PNA benefit of $25 was increased to $30 a month on July 1, 1988-- the first increase since the SSI Program began in 1974. The annual cost-of-living increase for SSI does not apply to the PNA. However, the 1987 Budget Reconciliation Act provides that if a physician certifies that the recipient's stay in such a medical institution is not likely to exceed 3 months and they need to continue to maintain a home to which they may return, SSI benefits will not be reduced and recipients will continue to receive full SSI benefits for up to the first 3 months of institutionalization. Approximately 142,813 or 2.2 percent of SSI recipients received benefits as of December 1999 on the basis of this personal needs allowance. The average benefit was $21.80. For those individuals whose income from non-SSI sources exceeds the $30 benefit standard (including those who were receiving both Social Security and SSI before entering an institution), Medicaid regulations require States to allow SSI recipients (and other non-SSI Medicaid eligibles) to retain no less than $30 a month of their income as a ``personal needs allowance'' when their income is applied, along with Medicaid reimbursement, to pay for their institutional medical care. These regulations are applicable to individuals whose income from non-SSI sources exceeds the $30 benefit standard (including those who were receiving both Social Security and SSI before entering an institution). Eighteen State programs have exercised their option to supplement the PNA. Prior to the 1985 Budget Reconciliation Act, SSI regulations would not allow for Federal administration of State PNA supplements. An amendment included in that legislation now requires SSA, at the request of a State, to administer such State supplementary payments. As of December 1999, California, the District of Columbia, Massachusetts, Michigan, New Jersey, New York, Rhode Island, and Vermont had opted for Federal administration. Approximately 30 States allow some or all of those individuals affected by the Medicaid PNA regulations to retain more than $30 a month. Benefits of Former Recipients of State Assistance The essential person payment is a Federal benefit for an individual who was transferred to SSI from a former State Program of Aid to the Aged, Blind, or Disabled. As shown in table 3-3, the Federal benefits of these persons are increased by up to $250 monthly in 1999 to take into account an ``essential person'' living in the household. Essential persons are persons (generally an ineligible spouse or relative) who live with the eligible individual and who are considered necessary to provide essential care and services for the eligible individual and whose needs were taken into account in December 1973 in determining the need of the individual. Essential persons do not themselves receive SSI payments; rather, the standard of payment to which an eligible individual or couple is entitled is increased, and any income and resources of the essential persons are combined with those of the eligible individual or couple in calculating the amount for which the individual or couple is eligible. Eligibility for such increased payments apply only to a person included as an essential person in December 1973 and ends when the person no longer lives with the eligible individual, becomes eligible for SSI in his own right, or becomes the eligible spouse of an eligible individual. Some States have categories of State supplementation similar to the ``essential persons'' category for individuals transferred from the pre-SSI Program. Overpayments A provision in the 1984 Deficit Reduction Act established limits on recovery by the Social Security Administration (SSA) of overpayments made to SSI recipients. The amount of recovery in any month is now limited to the lesser of: (1) the amount of the benefit for that month; or (2) an amount equal to 10 percent of the countable income (plus the SSI payment) of the individual (or couple) for that month. This limitation does not apply if there is fraud, willful misrepresentation, or concealment of information in connection with the overpayment. The recipient may request a higher or lower rate at which benefits may be withheld to recover the overpayment. Faster Initial SSI (and Social Security) Payments Making initial payments faster for those who are presumptively or proven eligible is a goal of the Supplemental Security Income (SSI) Program. The provisions for a one-time emergency advance payment continues to permit a faster response to presumptive or proven eligibility in new claims with critical needs. Pursuant to the 1996 welfare reform legislation, these emergency advance payments must be repaid through proportionate reductions in SSI benefits over a period of not more than 6 months. In fiscal year 1999, Social Security offices made 6,510 emergency advance payments using their third-party drafts in these new claims situations totaling $3,137,417 with an average payment amount of $474. Beginning in October 1985, local Social Security offices were given the authority to make ``immediate payments'' for Social Security and SSI cases at management's discretion when the local offices found that benefits were due but unpaid and an expedited Treasury payment would be too slow. ``Immediate'' usually means while the beneficiary waits or the next day at the latest. Payments are made using third-party drafts issued by the local field office. Payments are limited to the maximum per beneficiary of $400 or the amount due, whichever is less, once in a 30-day period. The payment must be approved by office management. During fiscal year 1999, 61,563 Social Security and 71,778 SSI immediate payments were issued under this procedure. The total amount of these payments equalled $49,269,896 for an average of $369 per payment. State Supplementation Mandatory State supplementation State supplementary payments are required by law to maintain income levels of former State adult assistance recipients transferred to the Federal SSI Program. The purpose of these mandatory State supplements is to assure that no person suffers a reduction in income as a result of the transfer to the SSI Program. Under mandatory supplementation rules, States are to maintain recipients of the Programs of Old-Age Assistance, Aid to the Blind, and Aid to the Permanently and Totally Disabled at their December 1973 income level. That level is the amount an individual received in December 1973 under the terms and conditions of the State plan in effect for the month of June 1973, plus her other income. Thus, States must provide a supplementary payment to any individual who, because of special needs or other reasons, had a December 1973 payment higher than the amount she received under the basic Federal SSI Program. To remain eligible for Medicaid Federal matching funds, States were required to adopt a mandatory State supplementation program. In December 1999, approximately 1,800 recipients or less than 0.02 percent of all recipients were receiving payments based in part or solely on the mandatory supplementation rule. Optional State supplementation In addition to any mandatory supplementation States must provide, a State (or political subdivision) may choose to provide an optional supplement to Federal SSI payments. This optional supplement also is intended to help individuals meet needs which are not fully met by the Federal payment. The State determines whether it will make such a payment, to whom, and in what amount. States have the option of covering recipients of mandatory supplementation under their program of optional supplementation. At the present time, all but seven States and jurisdictions provide some form of optional State supplementation. States that provide no supplement are: Arkansas, Georgia, Kansas, Mississippi, Commonwealth of the Northern Mariana Islands, Tennessee, and West Virginia. States (or local jurisdictions) may elect to administer their supplementary payments themselves or may contract with SSA for Federal administration. Fifteen States and the District of Columbia have contracted with SSA to administer the State optional supplementation program. Since the SSI Program began in 1974, seven States have shifted from Federal to State administration of their optional State supplementation program. Section 1618 of the Social Security Act requires States that have chosen to supplement the Federal SSI benefit to continue to provide supplementation and to maintain the supplementary payments (or spending for supplements) at specified levels. The purpose of section 1618 is to require States to pass along to SSI recipients the amount of any Federal benefit increase. Some States had not done this before the enactment of section 1618 on October 21, 1976 (Public Law 94-585). Instead, when Congress enacted cost-of-living increases in the Federal SSI benefit amount, some States would reduce the levels of the State supplementary payments by the amount of the Federal benefit increase. Congress responded by enacting the section 1618 pass-along/maintenance-of-effort provision for State supplementary payments. Section 1618 allows States to comply with the pass along requirement by either (1) maintaining their State supplementary payment levels for specified types of living arrangements at or above March 1983 levels (sometimes referred to as the payment level method) or (2) maintaining their supplementary payment spending so that total annual Federal and State expenditures will be at least equal to what they were in the prior 12-month period plus any Federal cost-of-living increase, provided the State was in compliance for that period (sometimes referred to as the total expenditures method). In effect, section 1618 requires that once a State elects to provide supplementary payments, it must continue to do so. Under section 1618, a State that is found to be out of compliance under the maintenance-of-effort rules is subject to loss of its Federal Medicaid reimbursement. In California's case, a further ``penalty'' would be levied for failure to meet the pass along/maintenance-of-effort mandate. It would lose permission to ``cash out'' food stamp benefits for SSI recipients, and regular food stamp allotments would have to be offered to them. Variation in payment amount In addition to categorical variations which may apply (i.e., aged, blind, disabled), a State may elect a number of variations in optional supplementary payments to account for specific differences in living costs to a recipient. The type and amount of the variations selected must be specified in the Federal-State agreement. A State may make variations in its payments to account for both geographic and living arrangement cost differences. A significant number of the aged, disabled, and blind receiving SSI cannot live alone because of mental or physical limitations and have a need for housing which includes services beyond room and board. These services often include supervision for daily living and protective services for the mentally retarded, chronically mentally ill, or the frail or confused elderly. Such nonmedical supervised and/or group living arrangements generally cost more than the Federal SSI benefit needs standard of $512 a month in 2000, and often more than the combined Federal and SSI State supplementation for those classified as living independently. Thus, all but 10 of the 50 States and the District of Columbia have Federal- or State- administered State supplementation which is specifically directed at covering the additional cost of providing housing in a protective, supervised, or group living arrangement. These living arrangements are identified by a variety of terms including: adult foster care homes; domiciliary care homes; congregate care; group homes for the mentally retarded, and other terms. The amount of supplementation by the State also varies a great deal. For example, in the State of Maryland under a State-administered supplementation program, a ``specialized and intensive supervision'' group living facility has a State supplementation of $666 a month in addition to the Federal benefit of $512. Thus the maximum total Federal and State SSI payment in a month in Maryland is $1,178. In one State, the State supplementation is less than $2 a month for those who need little supervision and care. However, in some States the cost of supervised group living care is also partially met by direct State funding of the staff. Some States make payments for nonmedical group care directly to private residential facilities based on a rate negotiated by the State with each facility. In such cases, there is often a PNA payment made directly to or on behalf of the residents of the facility. Administrative fees The Omnibus Budget Reconciliation Act of 1993 amended the State supplementation provision to provide for State payment for Federal administration of State supplementary payments. For fiscal year 1994, the administration fee was $1.67 per payment. The rate per payment rose to $3.33 for fiscal year 1995, and $5.00 for fiscal year 1996 and each succeeding year, or a different rate deemed appropriate for the State by the Commissioner. The Balanced Budget Act of 1997 (Public Law 105-33) increased the fee charged by the SSA to administer a State's supplementary SSI payments. The current fee is $7.80 per check. It will be increased to $8.10 in fiscal year 2001, and $8.50 in fiscal year 2002. Each succeeding year, fees would be indexed to increases in the Consumer Price Index or set at a different rate as determined by the Commissioner of Social Security. Amounts of fees collected in excess of $5 per check would be credited to a special Treasury fund available for Social Security Administration administrative purposes. Such amounts would be credited as a discretionary offset to discretionary spending to the extent that they are made available for expenditures in appropriation acts. Public Law 106-170 authorizes SSA to penalize States that are late in paying their administrative fees. Specifically, SSA may charge a State for whom it administers supplementary payments a penalty equal to 5 percent of the supplementary payment and administrative fees due if that State has not paid SSA the administrative fees it owes. States must pay SSA on the business day preceding the date that SSA pays monthly benefits, or for the last month in a State's fiscal year, the fifth business day following the date that SSA pays monthly benefits. State SSI supplement levels over time Throughout the period from July 1975 to January 2000, 23 States have continuously provided supplemental SSI payments to aged individuals living independently. During the period from July 1975 to January 2000, no State increased supplements faster than inflation for aged individuals living independently or aged couples living independently (see tables 3-5 and 3-6). As of December 1999, there were 2,441,482 beneficiaries (37 percent) receiving a State supplement. For those SSI recipients, other than those receiving a State supplement because they are living in some type of group living arrangement, the amount of State supplement ranges from $1.70 a month to $362 a month for an individual. At present, 25 States supplement the Federal standard for individuals living independently. TABLE 3-5.--STATE SSI SUPPLEMENTS FOR AGED INDIVIDUALS WITHOUT COUNTABLE INCOME LIVING INDEPENDENTLY, SELECTED YEARS 1975-99 -------------------------------------------------------------------------------------------------------------------------------------------------------- Percent State July July Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. change 1975- 1975 1980 1985 1988 1990 1992 1994 1996 1997 1998 1999 99 \1\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alaska \2\................................................. $142 $235 $261 $305 $331 $362 $362 $362 $362 $362 $362 -20 California................................................. 101 182 179 221 244 223 157 156 156 156 176 -45 Colorado................................................... 27 55 58 58 54 56 56 56 62 39 36 -58 Connecticut \3\............................................ NA 102 141 403 366 325 301 \3\ N 243 253 247 NA A District of Columbia....................................... 0 15 15 15 15 15 15 5 0 0 0 NA Hawaii..................................................... 17 15 5 5 5 5 5 5 5 5 5 -91 Idaho...................................................... 63 74 78 73 73 70 45 37 48 48 48 -76 Illinois \3\............................................... NA NA NA NA NA NA NA NA NA 0 0 NA Maine...................................................... 10 10 10 10 10 10 10 10 10 10 10 -69 Massachusetts.............................................. 111 137 129 129 129 129 129 126 126 129 129 -64 Michigan................................................... 12 24 27 30 30 14 14 14 14 14 14 -64 Minnesota \4\.............................................. 31 34 35 35 75 81 81 81 81 81 81 -18 Nebraska................................................... 67 75 69 43 38 30 21 12 8 8 27 -87 Nevada..................................................... 55 47 36 36 36 36 36 36 36 36 36 -79 New Hampshire.............................................. 12 46 27 27 27 27 27 27 27 27 27 -30 New Jersey................................................. 24 23 31 31 31 31 31 31 31 31 31 -59 New York................................................... 61 63 61 72 86 86 86 86 86 86 87 -55 Oklahoma................................................... 27 79 60 64 64 64 57 54 53 53 53 -39 Oregon..................................................... 17 12 2 2 2 2 2 2 2 2 2 -97 Pennsylvania............................................... 20 32 32 32 32 32 32 27 27 27 27 -57 Rhode Island............................................... 31 42 54 58 64 67 64 64 64 64 64 -35 South Dakota............................................... 0 15 15 15 15 15 15 15 15 15 15 NA Utah....................................................... 0 10 10 9 6 5 1 0 0 0 0 NA Vermont.................................................... 29 41 53 59 63 65 55 47 55 55 55 -41 Washington \5\............................................. 36 43 38 28 28 28 28 25 28 7 27 -77 Wisconsin.................................................. 70 100 100 103 103 93 85 84 84 84 84 -63 Wyoming.................................................... 0 20 20 20 20 20 10 10 10 10 10 NA -------------------------------------------------------------------------------------------- Median................................................... 31 43 36 36 37 32 31 31 36 31.25 31.25 -68 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ The percentage change in constant dollars was computed by inflating July 1975 to January 1999 by the Consumer Price Index for All Urban Consumers (CPI-U). The July 1975 index value is 51.8 and the January 1999 value is 165.5. \2\ Through 1982 the State supplement was less if shelter costs were below $35 monthly. \3\ State decides benefit on a case-by-case basis. \4\ State has two geographic payment levels--Hennepin County and the remainder of Minnesota. Level shown is for Hennepin County, the area with the largest number of SSI recipients. \5\ State has two geographic payment levels--highest levels are shown in table. Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties. NA--Not available. Source: Office of Supplemental Security Income, Social Security Administration and Congressional Research Service calculations. TABLE 3-6.--STATE SSI SUPPLEMENTS FOR AGED COUPLES WITHOUT COUNTABLE INCOME LIVING INDEPENDENTLY, SELECTED YEARS 1975-99 -------------------------------------------------------------------------------------------------------------------------------------------------------- Percent State July July Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. change 1975- 1975 1980 1985 1988 1990 1992 1994 1996 1997 1998 1999 99 \1\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama...................................................... $9 0 0 0 0 0 0 0 0 0 0 -100 Alaska \2\................................................... 43 $338 $371 $444 $484 $528 $528 $528 $528 $528 $528 -10 California................................................... 251 389 448 534 588 557 440 396 396 415 450 -44 Colorado..................................................... 133 229 278 292 309 323 323 323 346 345 321 -23 Connecticut \3\.............................................. NA NA 86 602 525 461 425 \3\ N 368 353 343 NA A District of Columbia......................................... 0 30 30 30 30 30 30 15 0 0 0 -100 Hawaii....................................................... 28 24 9 9 9 9 9 9 9 8.8 8.8 -94 Idaho........................................................ 49 80 46 44 45 45 21 9 16 17 17 NA Illinois \3\................................................. NA NA NA NA NA NA NA NA NA 0 0 -100 Maine........................................................ 15 15 15 15 15 15 15 15 15 15 15 -97 Massachusetts................................................ 173 214 202 202 202 202 202 197 197 202 202 251 Michigan..................................................... 18 36 40 45 45 21 21 28 28 28 28 -77 Minnesota \4\................................................ 38 44 66 66 88 129 126 111 111 111 111 -48 Nebraska..................................................... 67 114 100 66 65 48 40 14 3 98 13 -96 Nevada....................................................... 106 90 74 74 74 74 74 74 74 74 74 NA New Hampshire................................................ 0 42 21 21 21 21 21 22 21 21 21 -49 New Jersey................................................... 13 12 25 25 25 25 25 25 25 25 25 -90 New York..................................................... 76 79 76 93 102 103 102 103 103 103 104 -40 Oklahoma..................................................... 54 158 120 128 128 128 114 108 106 106 106 95 Oregon....................................................... 17 10 0 0 0 0 0 0 0 0 0 -100 Pennsylvania................................................. 30 49 49 49 49 49 49 44 44 44 44 -77 Rhode Island................................................. 59 79 102 111 120 127 120 121 121 121 121 NA South Dakota................................................. 0 15 15 15 15 15 15 15 15 15 15 NA Utah......................................................... 0 20 20 18 12 11 5 5 5 5 5 NA Vermont...................................................... 61 76 96 106 115 118 103 92 103 103 103 -47 Washington \5\............................................... 40 44 37 22 22 22 22 20 22 0 21 -84 Wisconsin.................................................... 105 161 161 166 166 146 134 132 132 132 132 -61 Wyoming...................................................... 0 40 40 40 40 40 19 25 25 25 25 NA ------------------------------------------------------------------------------------------ Median..................................................... 57 63 66 66 65 49 39 28 44 43.7 28 -78 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ The percentage change in constant dollars was computed by inflating July 1975 to January 1999 by the CPI-U price index. The July 1975 index value is 51.8 and the January 1999 value is 165.5. \2\ Through 1982 the State supplement was less if shelter costs were below $35 monthly. \3\ State decides benefit on a case-by-case basis. \4\ State has various geographic payment levels. Level shown is for Hennepin County, the area with the largest number of SSI recipients. State supplemental SSI payment for individual whose entitlement began January 1, 1994. State supplement for individuals whose entitlement began before January 1, 1994 is an additional $15 per month. \5\ State has two geographic payment levels--highest levels are shown in table. Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties. NA--Not available. Source: Office of Supplemental Security Income, Social Security Administration and Congressional Research Service calculations. Maximum SSI and Food Stamp Benefits For Individuals Living Independently Table 3-7 for individuals and table 3-8 for couples illustrate by State the maximum potential payment from Federal SSI, State supplements, and food stamps for persons with no income. Approximately 65 percent of SSI households in the Food Stamp Program claim a shelter deduction for shelter expenses exceeding roughly one-third of their monthly income. About 3 percent of SSI households claim a medical cost deduction for out-of-pocket expenses over $35 per month. TABLE 3-7.--MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED INDIVIDUALS LIVING INDEPENDENTLY, JANUARY 2000 \1\ ---------------------------------------------------------------------------------------------------------------- Combined benefits State Maximum SSI Food stamp ------------------- benefit benefit \2\ Monthly Annual ---------------------------------------------------------------------------------------------------------------- Alabama.......................................................... $512 $89 $600 $7,200 Alaska........................................................... 874 120 993 11,916 Arizona \3\...................................................... 512 89 600 7,200 Arkansas......................................................... 512 89 600 7,200 California....................................................... 692 \4\ 0 726 8,712 Colorado......................................................... 548 78 625 7,500 Connecticut...................................................... 747 18 \5\ 765 9,180 Delaware......................................................... 512 89 600 7,200 District of Columbia............................................. 512 89 600 7,200 Florida.......................................................... 512 89 600 7,200 Georgia.......................................................... 512 89 600 7,200 Hawaii........................................................... 517 159 676 8,112 Idaho............................................................ \6\ 565 73 637 7,644 Illinois......................................................... \7\ 512 89 600 7,200 Indiana.......................................................... 512 89 600 7,200 Iowa............................................................. 534 82 616 7,392 Kansas........................................................... 512 89 600 7,200 Kentucky......................................................... 512 89 600 7,200 Louisiana........................................................ 512 89 600 7,200 Maine............................................................ 522 86 607 7,284 Maryland......................................................... 512 89 600 7,200 Massachusetts.................................................... 641 50 690 8,280 Michigan......................................................... 526 84 610 7,320 Minnesota........................................................ \8\ 593 64 657 7,884 Mississippi...................................................... 512 89 600 7,200 Missouri......................................................... 512 89 600 7,200 Montana.......................................................... 512 89 600 7,200 Nebraska......................................................... 519 87 605 7,260 Nevada........................................................... 548 78 626 7,512 New Hampshire.................................................... 539 81 619 7,428 New Jersey....................................................... 543 79 622 7,464 New Mexico....................................................... 512 89 600 7,200 New York......................................................... 599 63 661 7,932 North Carolina................................................... 512 89 600 7,200 North Dakota..................................................... 512 89 600 7,200 Ohio............................................................. 512 89 600 7,200 Oklahoma......................................................... 565 73 637 7,644 Oregon........................................................... 514 88 601 7,212 Pennsylvania..................................................... 539 80 619 7,428 Rhode Island..................................................... 576 69 645 7,740 South Carolina................................................... 512 89 600 7,200 South Dakota \3\................................................. 527 84 611 7,332 Tennessee........................................................ 512 89 600 7,200 Texas............................................................ 512 89 600 7,200 Utah............................................................. 512 89 600 7,200 Vermont.......................................................... \9\ 570 71 640 7,680 Virginia......................................................... 512 89 600 7,200 Washington....................................................... \10\ 539 81 619 7,428 West Virginia.................................................... 512 89 600 7,200 Wisconsin........................................................ 596 63 659 7,908 Wyoming.......................................................... 522 86 607 7,284 ---------------------------------------------------------------------------------------------------------------- \1\ In most States these maximums apply also to blind or disabled SSI recipients who are living in their own households; but some States provide different benefit schedules for each category. \2\ For one-person households, maximum food stamp benefits from October 1999 through September 2000 are $127 in the 48 contiguous States and the District of Columbia, $158 in Alaska, and $199 in Hawaii. For the 48 contiguous States and the District of Columbia, the calculation of benefits assumes: (1) a ``standard'' deduction of $134 per month; (2) an excess deduction of $250 per month (the 1998 average deduction based on all claimed values for elderly individuals living alone). For Alaska and Hawaii, higher deduction levels were used, as provided by law ($663 and $546, respectively, for combined standard and excess shelter allowance). \3\ January 2000 State supplemental payments unavailable. Calculations based on January 1999 payment rates. \4\ SSI recipients in California are ineligible for food stamps. California provides increased cash aid in lieu of stamps. \5\ Individual budget process. \6\ State disregards $20 of SSI payment in determining the State supplementary payment. \7\ State decides benefits on case-by-case basis. \8\ Payment level for Hennepin County. State has two geographic payment levels--one for Hennepin County and the other for the remainder of the State. \9\ State has two geographic payment levels--highest are shown in table. \10\ Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties. Source: Table prepared by the Congressional Research Service based on data from the Social Security Administration. Comparison of SSI Payment Levels to Poverty Thresholds Table 3-9 compares the Federal SSI benefit for a single individual to the Bureau of the Census poverty threshold. Both the poverty threshold and the benefit level are indexed to the Consumer Price Index. (The percentage increase for the poverty threshold and the SSI benefit increase varies slightly because of a difference in the method of calculation.) As a result of Public Law 98-21, SSI benefit levels were increased by $20 per month for individuals and $30 per month for couples in July 1983. They were further increased by 3.5 percent in January 1984. This explains why SSI benefits, in relation to the poverty level, increased to approximately 75 percent in 1984 and 1985 compared to 71 percent in the 1975 to 1982 period. In 1999, benefit levels were 76.8 percent of the poverty level. TABLE 3-8.--MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED COUPLES LIVING INDEPENDENTLY, JANUARY 2000 \1\ ---------------------------------------------------------------------------------------------------------------- Combined benefits State Maximum SSI Food stamp ------------------- benefit benefit \2\ Monthly Annual ---------------------------------------------------------------------------------------------------------------- Alabama.......................................................... $769 $126 $894 $10,728 Alaska........................................................... 1,297 23 1,320 15,840 Arizona \3\...................................................... 769 126 894 10,728 Arkansas......................................................... 769 126 894 10,728 California....................................................... 1,229 \4\ 0 1,216 14,592 Colorado......................................................... 1,096 28 1,123 13,476 Connecticut...................................................... \5\ 1,094 28 1,122 13,464 Delaware......................................................... 769 126 894 10,728 District of Columbia............................................. 769 126 894 10,728 Florida.......................................................... 769 126 894 10,728 Georgia.......................................................... 769 126 894 10,728 Hawaii........................................................... 778 254 1,031 12,372 Idaho............................................................ \6\ 788 120 908 10,896 Illinois......................................................... \7\ 769 126 894 10,728 Indiana.......................................................... 769 126 894 10,728 Iowa............................................................. 813 113 925 11,100 Kansas........................................................... 769 126 894 10,728 Kentucky......................................................... 769 126 894 10,728 Louisiana........................................................ 769 126 894 10,728 Maine............................................................ 784 121 905 10,860 Maryland......................................................... 769 126 894 10,728 Massachusetts.................................................... 971 65 1,035 12,420 Michigan......................................................... 797 117 914 10,968 Minnesota \8\.................................................... \9\ 880 92 972 11,664 Mississippi...................................................... 769 126 894 10,728 Missouri......................................................... 769 126 894 10,728 Montana.......................................................... 769 126 894 10,728 Nebraska......................................................... 769 126 894 10,728 Nevada........................................................... 843 103 946 11,352 New Hampshire.................................................... 790 119 909 10,908 New Jersey....................................................... 794 118 912 10,944 New Mexico....................................................... 769 126 894 10,728 New York......................................................... 873 95 967 11,604 North Carolina................................................... 769 126 894 10,728 North Dakota..................................................... 769 126 894 10,728 Ohio............................................................. 769 126 894 10,728 Oklahoma......................................................... 875 94 968 11,616 Oregon........................................................... 769 126 894 10,728 Pennsylvania..................................................... 813 113 925 11,100 Rhode Island..................................................... 890 90 979 11,748 South Carolina................................................... 769 126 894 10,728 South Dakota \3\................................................. 784 121 905 10,860 Tennessee........................................................ 769 126 894 10,728 Texas............................................................ 769 126 894 10,728 Utah............................................................. 774 124 897 10,764 Vermont.......................................................... \10\ 877 93 970 11,640 Virginia......................................................... 769 126 894 10,728 Washington....................................................... \11\ 790 120 909 10,908 Wisconsin........................................................ 769 126 894 10,728 Wyoming.......................................................... 644 163 807 9,684 West Virginia.................................................... 794 118 912 10,944 ---------------------------------------------------------------------------------------------------------------- \1\ In most States these maximums apply also to blind or disabled SSI recipients who are living in their own households; but some States provide different benefit schedules for each category. \2\ For two-person households, maximum food stamp benefits from October 1999 through September 2000 are $234 in the 48 contiguous States and the District of Columbia, $290 in Alaska, and $365 in Hawaii. For the 48 contiguous States and the District of Columbia, the calculation of benefits assumes: (1) a ``standard'' deduction of $134 per month, (2) an excess deduction of $274 per month (the 1998 average deduction based on all claimed values for elderly individuals not living alone). For Alaska and Hawaii, higher deduction levels were used, as provided by law ($663 and $546, respectively, for combined standard and excess shelter allowance). \3\ January 2000 State supplemental payments unavailable. Calculations based on January 1999 payment rates. \4\ SSI recipients in California are ineligible for food stamps. California provides increased cash aid in lieu of stamps. \5\ Individual budget process. \6\ State disregards $20 monthly of SSI income in determining the State supplementary payment amounts. \7\ State decides benefits on case-by-case basis. \8\ State supplemental SSI payment for individual whose entitlement began January 1, 1994. State supplement for individuals whose entitlement began before January 1, 1994 is an additional $15 per month. \9\ Payment level for Hennepin County. State has two geographic payment levels--one for Hennepin County and one for the remainder of the State. \10\ State has two geographic payment levels--highest levels are shown in table. \11\ Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties. Source: Table prepared by the Congressional Research Service based on data from the Social Security Administration. Table 3-10 presents the same information for a couple. The Supplemental Security Income (SSI) benefit for a couple is 91.6 percent of the poverty threshold in 1999. TRENDS IN THE SSI CASELOAD Number of Recipients As shown in table 3-11, in December 1999, nearly 6.6 million persons received federally administered SSI payments. Of these, 1.3 million received federally administered payments on the basis of being aged, 5.2 million on the basis of being disabled, and 79,000 on the basis of blindness. However, 709,600 of those receiving benefits on the basis of disability or blindness were over the age of 65. Table 3-11 also indicates that approximately 4.1 million of those receiving federally administered SSI payments received only Federal SSI payments, 2.2 million received a combination of Federal and State payments, and 282,000 received State supplements only. TABLE 3-9.--COMPARISON OF COMBINED BENEFITS TO POVERTY THRESHOLDS FOR ELIGIBLE INDIVIDUALS RECEIVING SSI; SSI AND SOCIAL SECURITY; AND SSI, SOCIAL SECURITY, AND FOOD STAMPS, SELECTED YEARS 1975-99 -------------------------------------------------------------------------------------------------------------------------------------------------------- Calendar year Poverty threshold and benefits -------------------------------------------------------------------------------------------------- 1975 1980 1984 1986 1988 1990 1992 1994 1996 1998 1999 -------------------------------------------------------------------------------------------------------------------------------------------------------- Poverty threshold.................................... $2,572 $3,941 $4,980 $5,255 $5,672 $6,268 $6,729 $7,107 $7,309 $7,818 $7,990 Federal SSI benefits: Dollars per year................................. $1,822 $2,677 $3,768 $4,032 $4,248 $4,632 $5,064 $5,352 $5,640 $5,928 $6,000 Percent of poverty............................... 70.8 72.3 75.6 76.7 74.9 73.9 75.3 75.3 77.2 75.8 75.0 Federal SSI and Social Security: Dollars per year................................. $2,062 $2,917 $4,008 $4,272 $4,488 $4,872 $5,304 $5,592 $5,880 $6,168 $6,240 Percent of poverty............................... 80.2 74.0 80.5 81.3 79.1 77.7 78.8 78.7 80.4 78.8 78.0 Federal SSI, Social Security, and food stamps: \1\ Dollars per year................................. $2,350 $3,345 $4,294 $4,488 $4,848 $5,318 $5,820 $6,072 $6,372 $6,672 $6,792 Percent of poverty............................... 91.4 84.9 86.2 85.4 85.5 84.8 86.5 85.4 87.2 85.3 85.0 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996), the applicable standard deduction plus average among all elderly households is assumed. For 1999 the food stamp benefit calculation is based on the 1998 average elderly individual deduction, the most current available. For 1996 the applicable standard deduction plus average shelter and medical deductions among all SSI households is assumed. Source: Congressional Research Service. TABLE 3-10.--COMPARISON OF COMBINED BENEFITS TO POVERTY THRESHOLDS FOR ELIGIBLE COUPLES RECEIVING SSI; SSI AND SOCIAL SECURITY; AND SSI, SOCIAL SECURITY, AND FOOD STAMPS, SELECTED YEARS 1975-99 -------------------------------------------------------------------------------------------------------------------------------------------------------- Calendar year Poverty threshold and benefits ---------------------------------------------------------------------------------------------------- 1975 1980 1984 1986 1988 1990 1992 1994 1996 1998 1999 -------------------------------------------------------------------------------------------------------------------------------------------------------- Poverty threshold.................................. $3,232 $4,954 $6,280 $6,628 $7,156 $7,906 $8,489 $8,964 $9,221 $9,862 $10,070 Federal SSI benefits: Dollars per year............................... $2,734 $4,016 $5,664 $6,048 $6,384 $6,948 $7,596 $8,028 $8,460 $8,892 $9,000 Percent of poverty............................. 84.6 81.1 90.2 91.2 89.2 87.9 89.5 89.6 91.7 90.1 89.3 Federal SSI and Social Security: Dollars per year............................... $2,974 $4,256 $5,904 $6,288 $6,624 $7,188 $7,836 $8,268 $8,700 $9,132 $9,240 Percent of poverty............................. 92.0 86.0 94.0 94.9 92.6 90.9 92.3 92.2 94.3 92.5 91.7 Federal SSI, Social Security, and food stamps: \1\ Dollars per year............................... $3,430 $4,906 $6,393 $6,696 $7,200 $7,935 $8,700 $9,084 $9,540 $10,056 $10,260 Percent of poverty............................. 106.1 99.0 101.8 101.0 100.6 100.4 102.5 101.3 103.5 101.9 101.8 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996), the applicable standard deduction plus average shelter and medical deductions among all elderly households is assumed. For 1999, the food stamp benefit calculation is based on the 1998 average elderly couple deduction, the most current available. For 1996 the applicable standard deduction plus average shelter and medical deductions among all SSI households is assumed. Source: Congressional Research Service. TABLE 3-11.--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED PAYMENTS, TOTAL AMOUNT AND AVERAGE MONTHLY AMOUNT, BY SOURCE OF PAYMENT AND CATEGORY, DECEMBER 1999 ---------------------------------------------------------------------------------------------------------------- Source of payment Total Aged Blind \1\ Disabled \1\ ---------------------------------------------------------------------------------------------------------------- Number of persons ----------------------------------------------- Federally administered payments................................. 6,556,634 1,308,062 79,291 5,169,281 Federal payment only........................................ 4,115,152 687,801 43,173 3,384,178 Both Federal and State supplementation...................... 2,159,555 515,255 30,406 1,613,894 State supplementation only.................................. 281,927 105,006 5,712 171,209 ----------------------------------------------- Total Federal payment..................................... 6,274,707 1,203,056 73,579 4,998,072 Total State supplementation............................... 2,441,482 620,261 36,118 1,785,103 ----------------------------------------------- Amount of payments [in thousands] \2\ ----------------------------------------------- Federal payments................................................ $2,290,591 $304,775 $26,347 $1,959,469 State supplementation........................................... 283,428 79,579 6,246 197,603 ----------------------------------------------- Total..................................................... 2,574,019 384,135 32,593 2,157,072 ----------------------------------------------- Average monthly amount ----------------------------------------------- Federal payments................................................ 341.86 249.36 350.72 364.24 State supplementation........................................... 110.92 125.90 167.64 104.52 ----------------------------------------------- Total..................................................... 368.53 289.19 401.99 388.29 ---------------------------------------------------------------------------------------------------------------- \1\ Blind includes approximately 19,200 and disabled 690,400 persons aged 65 and older. \2\ Includes retroactive payments. Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI Statistics and Analysis. Table 3-12 shows the trends in the numbers of persons receiving federally administered SSI payments from December 1975 through December 1999, both by reason for eligibility and by age categories. There was a steady decline in the number of SSI recipients from 1975 until 1983. However, in the last 16 years the number of SSI recipients has increased from about 3.9 million to about 6.6 million, an increase of 69 percent. Characteristics of Adult Disabled and Blind Recipients Major disabling diagnosis.--As shown in table 3-13, of the SSI disabled ages 18-64, 24.5 percent were eligible on the basis of mental retardation and 33.9 percent on the basis of other mental disorders. Therefore, over one-half of all SSI disabled recipients are eligible on the basis of a mental disability. The next three largest categories are: diseases of the musculoskeletal system and connective tissues--9.6 percent; diseases of the nervous system and sense TABLE 3-12.--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI PAYMENTS BY CATEGORY AND AGE, SELECTED YEARS 1975-99 [In thousands] -------------------------------------------------------------------------------------------------------------------------------------------------------- Year --------------------------------------------------------------------------------------------------------------- Reason for eligibility and age Dec. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Dec. Dec. 1975 1983 1986 1988 1989 1990 1991 1992 1993 1994 1995 1996 1998 1999 -------------------------------------------------------------------------------------------------------------------------------------------------------- Reason for eligibility: Aged.................................. 2,307 1,528 1,476 1,434 1,439 1,452 1,463 1,478 1,474 1,470 1,455 1,429 1,332 1,308 Blind................................. 74 79 83 83 83 84 85 86 86 85 85 83 73 79 Under 18............................ 3 6 7 7 7 7 7 8 8 8 8 8 7 7 18-21............................... 4 5 5 4 4 4 4 4 4 4 4 4 4 3 22-64............................... 46 45 48 49 49 50 51 52 52 52 52 51 50 46 65 or older......................... 22 23 23 22 22 22 22 22 22 21 21 20 19 23 Disabled.............................. 1,933 2,292 2,673 2,917 3,048 3,229 3,502 3,921 4,348 4,692 4,956 5,124 5,154 5,169 Under 18............................ 104 191 231 247 256 287 366 511 683 812 898 950 880 890 18-21............................... 90 122 138 136 139 143 150 167 186 202 219 232 235 164 22-64............................... 1,559 1,517 1,787 1,987 2,091 2,218 2,393 2,637 2,864 3,049 3,193 3,285 3,359 3,312 65 or older......................... 179 462 517 548 563 579 592 606 615 629 646 656 684 853 Age: Under 18.............................. 107 197 238 254 263 294 373 518 691 820 906 958 887 847 18-21................................. 93 127 143 140 143 147 154 171 190 206 223 236 236 164 22-64................................. 1,605 1,562 1,835 2,036 2,140 2,269 2,445 2,690 2,917 3,101 3,245 3,337 3,409 3,377 65 or older........................... 2,508 2,013 2,016 2,003