SECTION 3. SUPPLEMENTAL SECURITY INCOME (SSI)
CONTENTS
Background
Trends
Basic Eligibility
Categorical Requirements
Citizenship and Residency Requirements
Prohibition of Payment to 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
Vocational Rehabilitation 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
Overview of Section 1619 Provisions
Measures of SSI Participation
SSI Participation Rates
Changes in Number of Recipients, 1970-96
SSI Program Costs
Legislative History
Legislative Changes Made in the 103d Congress
Legislative Changes Made in the 104th Congress
Legislative Changes Made in the 105th 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 from their dependent situations (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 areas 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 the Federal
Government (i.e., the Social Security Administration).
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 6.6 million in December 1996. 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 mid-1980s as rapid growth in
disabled recipients outstripped the minimal change in
the elderly and blind SSI populations.
2. Total annual benefits paid under the SSI Program rose from
about $5.2 billion in 1974 to $28.3 billion in 1996.
3. The monthly Federal benefit rates for individuals and
couples rose from $140 and $210 in 1974 to $484 and
$726 in 1997 (1997 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 1974-96
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Year
Item -------------------------------------------------------------------------------------------------------------------------------------
1974 1978 1980 1984 1986 1988 1990 1992 1993 1994 1995 1996
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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 1,474,852 1,465,905 1,446,122 1,412,632
Blind................................................. 74,616 77,135 78,401 80,524 83,115 82,864 83,686 85,400 85,456 84,911 83,545 82,137
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 4,424,022 4,744,470 4,984,467 5,118,949
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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 5,984,300 6,295,786 6,514,134 6,613,718
=====================================================================================================================================
Number with section 1619(a)............................... NA NA NA 406 (8/84) 992 (1/86) 19,920 \2\ 13,99
4 17,603 18,597 24,315 28,060 31,085
Number with section 1619(b)............................... NA NA NA 6,804 8,106 15,625 23,517 31,649 34,293 40,683 47,002 51,905
Annual payments (in millions):
Federal benefits...................................... $3,833 $4,881 $5,866 $8,281 $9,498 $10,734 $12,894 $18,247 $20,722 $22,175 $23,919 $25,265
Federal admin. State supp............................. 1,264 1,491 1,848 1,792 2,243 2,671 3,239 3,435 3,270 3,116 3,118 2,988
State admin. State supp............................... 149 180 226 299 340 381 466 \3\ 556 564 579 \4\ 620 4,546
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Total............................................... $5,246 $6,552 $7,940 $10,372 $12,081 $13,786 $16,599 $22,238 $23,991 $25,870 $27,037 $28,252
=====================================================================================================================================
Annual payments (in millions of 1996 dollars)............. $16,696 $15,767 $15,119 $15,663 $17,295 $18,284 $19,926 $24,869 $26,050 $27,389 $27,835 $28,252
Monthly Federal benefits rates:
Individuals........................................... $140.00 $177.80 $208.20 $314.00 $336.00 $354.00 $386.00 $422.00 $434.00 $446.00 $458.00 $470.00
Couples............................................... 210.00 266.70 312.30 472.00 504.00 532.00 579.00 633.00 652.00 687.00 687.00 705.00
Average Federal SSI payments: \1\
All recipients........................................ $95.11 $111.98 $143.35 $196.16 $215.40 $227.49 $261.47 $329.74 $317.41 $325.26 $334.12 $339.24
Aged individuals...................................... 78.48 91.22 112.45 143.24 151.38 159.36 175.29 195.86 204.45 211.55 219.13 227.42
Aged couples.......................................... 93.02 120.48 157.56 221.98 246.07 273.18 322.82 448.61 478.42 505.64 534.00 563.39
Average federally administered: \1\
State supplementation................................. $70.92 $75.00 $99.15 $97.61 $115.41 $122.68 $139.79 $118.08 $108.50 $101.46 $105.24 $104.58
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 40.1 39.1 37.9 37.0
Other unearned income................................. 10.5 11.5 11.0 11.2 12.1 12.4 13.0 14.5 13.4 13.1 12.8 12.4
Earnings.............................................. 2.8 3.1 3.2 3.5 3.9 4.4 4.7 4.4 4.3 4.2 4.3 4.4
Average amount of: \1\
Social Security benefits.............................. $130.01 $156.50 $196.94 $250.61 $263.29 $286.49 $318.57 $335.72 $338.85 $345.20 $354.47 $382.56
Other unearned income................................. 61.10 66.93 74.35 84.56 86.40 85.92 98.13 91.96 100.44 101.13 105.32 112.46
Earnings.............................................. 80.00 99.32 106.95 126.47 142.17 173.09 195.64 207.55 210.22 225.01 234.94 258.42
Poverty thresholds (age 65 and over):
Individual............................................ $2,364 $3,127 $3,949 $4,979 $5,255 $5,674 $6,268 $6,729 $6,930 $7,108 $7,309 $7,525
Couple................................................ 2,982 3,944 4,983 6,282 6,630 7,158 7,905 8,489 8,741 8,967 9,221 9,491
Federal benefit rate as a percent of poverty:
Individual............................................ 74.1 72.7 72.3 75.6 76.7 74.9 73.9 75.3 75.2 75.3 75.2 75.0
Couple................................................ 88.1 86.4 86.0 90.2 91.2 89.2 87.9 89.5 89.5 89.5 89.4 89.1
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\1\ December data.
\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\ Fiscal year 1996 data.
NA--Not available.
Source: Social Security Administration (1995 and various years) and unpublished data.
4. The proportion of SSI recipients receiving Social Security
benefits declined from nearly 53 percent in 1974 to 37
percent in 1996. The fraction of SSI recipients
receiving some other type of unearned income rose
slightly from about 11 percent in 1974 to 12 percent in
1996, and the fraction with earnings increased from
about 3 percent in 1974 to more than 4 percent in
December 1996.
5. The Federal benefit rate as a percent of the appropriate
poverty level for individuals has ranged from 72 to 77
percent and is currently 75 percent; for couples it has
ranged from 86 to 91 percent and is currently at 89
percent. 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
$500 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 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 previous 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 (Public Law 104-193)
discontinues the individualized functional assessment
disability determination procedure 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 Public Law 104-193, 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 Fugitives
The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193) provides that,
as of August 22, 1996, SSI benefits may not be paid to
individuals who are fleeing to avoid prosecution for a crime
which is a felony, or fleeing to avoid custody or confinement
after conviction for a crime which is a felony, 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 $484 for an individual and $726 for a couple
(calendar year 1997 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 is 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.
Major exclusions include the first $20 of monthly income from
virtually any source (such as Social Security benefits, but not
needs-tested income such as veterans' pensions) 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, 1997
----------------------------------------------------------------------------------------------------------------
Receiving only Social Receiving only wage
Security income
-----------------------------------------------
Monthly Annually Monthly Annually
----------------------------------------------------------------------------------------------------------------
Individual...................................................... $504 $6,048 $1,053 $12,636
Couple.......................................................... 746 8,952 1,537 18,444
----------------------------------------------------------------------------------------------------------------
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 her, 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 (plan for achieving self-support) 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 not 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,
the matches totaled 508,000. 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 years 1994 and 1995
there were 297,000 and 181,000 matches, respectively.
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 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 personal
needs allowance 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 1997 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 ($485)................. -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........................... 726.00
Less countable income...................................... -447.50
------------
Benefit payable to eligible individual............... 278.50
Thus, the benefit for the eligible individual will be $278
(SSI law requires that benefits be rounded down to the next
lower dollar). Without deeming and as an individual, the
recipient would have received $304 [$484 - ($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 1996, there were about 128,000 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
SSI law permits benefits to be paid to a person applying
for SSI benefits on the basis of disability or blindness before
a formal determination of disability or blindness has been made
when available information indicates a high probability that
the person will be eligible.
Section 1631(a)(4)(B) of the Social Security Act provides
that the Commissioner of Social Security may pay up to 6 months
of 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 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
In general, 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: Overview of Section 1619
Provisions'') 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 was 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 covered about 73
percent 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. According to the Congressional Budget
Office, this requirement is expected to save $100 million over
the 6-year period (1997-2002).
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
As noted, SSI law requires that applicants file for all
other benefits for which they may be entitled. 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 1996, 37 percent of
all SSI recipients also received Social Security benefits (62
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, 1996, 32
States and the District of Columbia chose this option, and SSI
recipients in these States account for approximately 78 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. The seven States of Alaska,
Idaho, Kansas, Nebraska, Nevada, Oregon, and Utah and the
Commonwealth of the Northern Mariana Islands, affecting about
2.6 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 19.3 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
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: Overview of Section 1619 Provisions'').
The same legislation required States to provide for
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.
VOCATIONAL REHABILITATION 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.
SSI BENEFITS
Federal SSI Benefit Standard
The Federal SSI benefit standard for an individual for 1997
is $484 a month and $726 for a couple. As is discussed later,
most States supplement the Federal SSI benefit. The result is a
combined Federal SSI/State supplemental benefit 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.
In fiscal year 1996, about 781,000 people 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 1996 for those determined to be living
in the household of another is $322.67 for an individual and
$484 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.
TABLE 3-3.--FEDERAL SSI BENEFIT LEVELS, 1974-97
[In dollars]
----------------------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------
\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 December 1996 4.2 percent, or about 277,800 SSI
recipients, had their benefits determined on the basis of this
``one-third reduction'' benefit standard. Sixty-three percent
of those recipients were receiving benefits on the basis of
disability (see table 3-4).
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
personal needs allowance, 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 personal needs allowance. 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.
TABLE 3-4.--NUMBER AND PERCENTAGE DISTRIBUTION OF PERSONS RECEIVING
FEDERALLY ADMINISTERED PAYMENTS, BY LIVING ARRANGEMENT AND CATEGORY,
DECEMBER 1996
------------------------------------------------------------------------
Reason for eligibility
Living arrangement \1\ Total ------------------------------
Aged Blind Disabled
------------------------------------------------------------------------
Own household................. 93.5 91.0 92.4 94.2
Another's household........... 4.2 6.7 4.8 3.5
Institutional care covered by
Medicaid..................... 2.3 2.2 2.8 2.3
-----------------------------------------
Total percent............. 100.0 100.0 100.0 100.0
=========================================
Total number.............. 6,613,718 1,412,632 82,137 5,118,949
------------------------------------------------------------------------
\1\ As used for determination of Federal SSI payment standard.
Source: Office of Research, Evaluation and Statistics, Social Security
Administration.
Approximately 152,120 or 2.3 percent of SSI recipients
received benefits in December 1996 on the basis of this
personal needs allowance. 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 them (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.
Sixteen 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
1996, California, the District of Columbia, Maine,
Massachusetts, Michigan, New Jersey, New York, Rhode Island,
and Vermont had opted for Federal administration. Approximately
28 States allow some or all of those individuals affected by
the Medicaid personal needs allowance regulations to retain
more than $30 a month.
Benefits of Former Recipients of State Assistance
Another benefit affecting some persons involves Federal
payments to 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 $242 monthly in 1997 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 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 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 1996, Social Security offices made 6,871 emergency advance
payments using their third-party drafts in these new claims
situations totaling $3,074,542 with an average payment amount
of $447.
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 1996, 48,235 Social Security and
51,516 SSI immediate payments were issued under this procedure.
The total amount of these payments equalled $35,233,014 for an
average of $353 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 his or 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 1996, approximately 2,800 recipients or
less than 0.1 percent of all recipients were receiving payments
based in part on or solely because of 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 eight 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, Texas, 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 encourage
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. As a result, SSI
recipients in those States received no increase in the combined
Federal/State benefit amount when the Federal payment rose.
Congress responded by enacting the pass-along/maintenance-of-
effort provision for State supplementary payments (that is,
section 1618).
Section 1618 allows States to comply with the pass along/
maintenance-of-effort 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 $484 a month in 1997, 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 a variety of 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 level of $484. Thus the maximum
total Federal and State SSI payment in a month in Maryland is
$1,150. 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)
increases the amount of the fee charged by the SSA to
administer a State's supplementary SSI payments. The current
fee is $5 per check. It will be increased to $6.20 in fiscal
year 1998, $7.60 in fiscal year 1999, $7.80 in fiscal year
2000, $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.
State SSI supplement levels over time
Throughout the entire period from July 1975 to January
1997, 23 States have continuously provided supplemental SSI
payments to aged individuals living independently.
During the period from July 1975 to January 1997, no State
increased supplements faster than inflation for aged
individuals living independently or aged couples living
independently (see tables 3-5 and 3-6).
TABLE 3-5.--STATE SSI SUPPLEMENTS FOR AGED INDIVIDUALS WITHOUT COUNTABLE INCOME LIVING INDEPENDENTLY, SELECTED YEARS 1975-97
--------------------------------------------------------------------------------------------------------------------------------------------------------
Percent
change
State July July Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. (constant
1975 1980 1985 1988 1990 1991 1992 1993 1994 1995 1996 1997 dollars)
1975-97 \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alaska \2\............................................ $142 $235 $261 $305 $331 $349 $362 $374 $362 $362 $362 $362 -13
California............................................ 101 182 179 221 244 223 223 186 157 157 156 156 -47
Colorado.............................................. 27 55 58 58 54 45 56 56 56 56 56 62 -22
Connecticut \3\....................................... NA 102 141 403 366 359 325 313 301 NA \3\ N
A 243 NA
District of Columbia.................................. 0 15 15 15 15 15 15 15 15 5 5 0 NA
Hawaii................................................ 17 15 5 5 5 5 5 5 5 5 5 5 -90
Idaho................................................. 63 74 78 73 73 70 70 65 45 37 37 48 -74
Illinois \3\.......................................... NA NA NA NA NA NA NA NA NA NA NA NA NA
Maine................................................. 10 10 10 10 10 10 10 10 10 10 10 10 -66
Massachusetts......................................... 111 137 129 129 129 129 129 129 129 129 126 126 -61
Michigan.............................................. 12 24 27 30 30 31 14 14 14 14 14 14 -60
Minnesota \4\......................................... 31 34 35 35 75 81 81 81 81 81 81 81 -11
Nebraska.............................................. 67 75 69 43 38 24 30 28 21 19 12 8 -96
Nevada................................................ 55 47 36 36 36 36 36 36 36 36 36 36 -78
New Hampshire......................................... 12 46 27 27 27 27 27 27 27 27 27 27 -23
New Jersey............................................ 24 23 31 31 31 31 31 31 31 31 31 31 -56
New York.............................................. 61 63 61 72 86 86 86 86 86 86 86 86 -52
Oklahoma.............................................. 27 79 60 64 64 64 64 60 57 55 54 53 -33
Oregon................................................ 17 12 2 2 2 2 2 2 2 2 2 2 -96
Pennsylvania.......................................... 20 32 32 32 32 32 32 32 32 32 27 27 -54
Rhode Island.......................................... 31 42 54 58 64 64 67 64 64 64 64 64 -30
South Dakota.......................................... 0 15 15 15 15 15 15 15 15 15 15 15 NA
Utah.................................................. 0 10 10 9 6 6 5 5 1 0 0 0 NA
Vermont............................................... 29 41 53 59 63 65 65 57 55 59 47 55 -35
Washington \5\........................................ 36 43 38 28 28 28 28 28 28 28 25 28 -74
Wisconsin............................................. 70 100 100 103 103 103 93 93 85 84 84 84 -59
Wyoming............................................... 0 20 20 20 20 20 20 10 10 10 10 10 NA
-------------------------------------------------------------------------------------------------
Median.............................................. 31 43 36 36 37 36 32 31 31 32 31 36 -60
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The percentage change in constant dollars was computed by inflating July 1975 to January 1996 by the CPI-U price index. The July 1975 index value is
54.2 and the January 1997 value is 159.1.
\2\ 1975 and 1980--less if shelter costs less than $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 Committee on Ways and Means staff calculations.
TABLE 3-6.--STATE SSI SUPPLEMENTS FOR AGED COUPLES WITHOUT COUNTABLE INCOME LIVING INDEPENDENTLY, SELECTED YEARS 1975-97
--------------------------------------------------------------------------------------------------------------------------------------------------------
Percent
change
State July July Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. (constant
1975 1980 1985 1988 1990 1991 1992 1993 1994 1995 1996 1997 dollars)
1975-97 \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama............................................... $9 0 0 0 0 0 0 0 0 0 0 0 -100
Alaska \2\............................................ 183 $338 $371 $444 $484 $510 $528 $544 $528 $528 $528 $528 -2
California............................................ 251 389 448 534 588 557 557 488 440 415 396 396 -46
Colorado.............................................. 133 229 278 292 309 293 323 328 323 323 323 346 -11
Connecticut \3\....................................... NA NA 86 602 525 522 461 442 425 NA \3\ N
A 368 NA
District of Columbia.................................. 0 30 30 30 30 30 30 30 30 15 15 0 NA
Hawaii................................................ 28 24 9 9 9 9 9 9 9 9 9 9 -89
Idaho................................................. 49 80 46 44 45 44 45 40 21 9 9 16 -89
Illinois \3\.......................................... NA NA NA NA NA NA NA NA NA NA NA NA NA
Maine................................................. 15 15 15 15 15 15 15 15 15 15 15 15 -66
Massachusetts......................................... 173 214 202 202 202 202 202 202 202 202 197 197 -61
Michigan.............................................. 18 36 40 45 45 46 21 21 21 28 28 28 -47
Minnesota \4\......................................... 38 44 66 66 88 132 129 126 126 126 111 111 -1
Nebraska.............................................. 67 114 100 66 65 34 48 39 40 22 14 3 -99
Nevada................................................ 106 90 74 74 74 74 74 74 74 74 74 74 -76
New Hampshire......................................... 0 42 21 21 21 21 21 21 21 21 22 21 NA
New Jersey............................................ 13 12 25 25 25 25 25 25 25 25 25 25 -35
New York.............................................. 76 79 76 93 102 103 103 102 102 102 103 103 -54
Oklahoma.............................................. 54 158 120 128 128 128 128 120 114 110 108 106 -33
Oregon................................................ 17 10 0 0 0 0 0 0 0 0 0 0 -100
Pennsylvania.......................................... 30 49 49 49 49 49 49 49 49 49 44 44 -50
Rhode Island.......................................... 59 79 102 111 120 121 127 120 120 120 121 121 -30
South Dakota.......................................... 0 15 15 15 15 15 15 15 15 15 15 15 NA
Utah.................................................. 0 20 20 18 12 12 11 10 5 5 5 5 NA
Vermont............................................... 61 76 96 106 115 118 118 110 103 110 92 103 -43
Washington \5\........................................ 40 44 37 22 22 22 22 22 22 22 20 22 -81
Wisconsin............................................. 105 161 161 166 166 166 146 146 134 132 132 132 -57
Wyoming............................................... 0 40 40 40 40 40 40 19 19 25 25 25 NA
-------------------------------------------------------------------------------------------------
Median.............................................. 57 63 66 66 65 49 49 30 39 28 28 44 -74
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The percentage change in constant dollars was computed by inflating July 1975 to January 1996 by the CPI-U price index. The July 1975 index value is
54.2 and the January 1997 value is 159.1.
\2\ 1975 and 1980--less if shelter costs less than $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.
\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.
Approximately 37 percent of SSI recipients receive 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 $2 a month to $362 a month for an
individual. At present, 25 States supplement the Federal
standard for individuals living independently.
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. These tables assume that the elderly individual or
couple receive an excess shelter deduction of $250 (the maximum
for nonelderly) and an excess medical cost deduction of $4 in
the Food Stamp Program. Approximately 66 percent of SSI
households in the Food Stamp Program claim a shelter deduction;
it is estimated that approximately 17 percent of them are
allowed a deduction that exceeds the excess shelter expense
ceiling for nonelderly or nondisabled households ($250 per
month). About 4 percent of SSI households claim a medical cost
deduction.
TABLE 3-7.--MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED INDIVIDUALS LIVING INDEPENDENTLY, JANUARY
1997 \1\
----------------------------------------------------------------------------------------------------------------
Combined benefits
State Maximum SSI Food stamp -------------------
benefit benefit \2\ Monthly Annual
----------------------------------------------------------------------------------------------------------------
Alabama.......................................................... $484 $91 $575 $6,900
Alaska........................................................... 846 99 945 11,340
Arizona.......................................................... 484 91 575 6,900
Arkansas......................................................... 484 91 575 6,900
California....................................................... 640 \3\ 0 640 7,680
Colorado......................................................... 546 72 618 7,416
Connecticut...................................................... 747 12 \4\ NA NA
Delaware......................................................... 484 91 575 6,900
District of Columbia............................................. 484 91 575 6,900
Florida.......................................................... 484 91 575 6,900
Georgia.......................................................... 484 91 575 6,900
Hawaii........................................................... 489 198 687 8,244
Idaho............................................................ \5\ 532 82 614 7,368
Illinois......................................................... \6\ NA NA NA NA
Indiana.......................................................... 484 91 575 6,900
Iowa............................................................. 484 91 575 6,900
Kansas........................................................... 484 91 575 6,900
Kentucky......................................................... 484 91 575 6,900
Louisiana........................................................ 484 91 575 6,900
Maine............................................................ 494 88 582 6,984
Maryland......................................................... 484 91 575 6,900
Massachusetts.................................................... 610 53 663 7,956
Michigan......................................................... 498 87 585 7,020
Minnesota........................................................ \7\ 565 66 631 7,572
Mississippi...................................................... 484 91 575 6,900
Missouri......................................................... 484 91 575 6,900
Montana.......................................................... 484 91 575 6,900
Nebraska......................................................... 492 88 580 6,960
Nevada........................................................... 520 80 600 7,200
New Hampshire.................................................... 511 83 594 7,128
New Jersey....................................................... 515 81 596 7,152
New Mexico....................................................... 484 91 575 6,900
New York......................................................... 570 65 635 7,620
North Carolina................................................... 484 91 575 6,900
North Dakota..................................................... 484 91 575 6,900
Ohio............................................................. 484 91 575 6,900
Oklahoma......................................................... 537 75 612 7,344
Oregon........................................................... 486 90 576 6,912
Pennsylvania..................................................... 511 83 594 7,128
Rhode Island..................................................... 548 72 620 7,440
South Carolina................................................... 484 91 575 6,900
South Dakota..................................................... 499 86 585 7,020
Tennessee........................................................ 484 91 575 6,900
Texas............................................................ 484 91 575 6,900
Utah............................................................. 484 91 575 6,900
Vermont.......................................................... \8\ 539 74 613 7,356
Virginia......................................................... 484 91 575 6,900
Washington....................................................... \9\ 512 82 594 7,128
West Virginia.................................................... 484 91 575 6,900
Wisconsin........................................................ 568 66 634 7,608
Wyoming.......................................................... 494 88 582 6,984
----------------------------------------------------------------------------------------------------------------
\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 1996 through September 1997 are $120 in
the 48 contiguous States and the District of Columbia, $153 in Alaska, and $198 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 shelter deduction of $250 per month (the maximum
allowable for nonelderly, nondisabled households); and (3) an excess medical expense deduction of $4 monthly
(estimated from 1995 medical expense information). If smaller excess shelter costs were assumed, food stamp
benefits would be smaller. 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\ SSI recipients in California are ineligible for food stamps. California provides increased cash aid in lieu
of stamps.
\4\ Individual budget process.
\5\ State disregards $20 of SSI payment in determining the State supplementary payment.
\6\ State decides benefits on case-by-case basis.
\7\ Payment level for Hennepin County. State has two geographic payment levels--one for Hennepin County and the
other for the remainder of the State.
\8\ State has two geographic payment levels--highest are shown in table.
\9\ Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.
NA--Not available.
Source: Table prepared by the Congressional Research Service (CRS) based on data from the Social Security
Administration.
TABLE 3-8.--MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED COUPLES LIVING INDEPENDENTLY, JANUARY 1997
\1\
----------------------------------------------------------------------------------------------------------------
Combined benefits
State Maximum SSI Food stamp -------------------
benefit benefit \2\ Monthly Annual
----------------------------------------------------------------------------------------------------------------
Alabama.......................................................... $726 $118 $844 $10,128
Alaska........................................................... 1,254 103 1,357 16,284
Arizona.......................................................... 726 118 844 10,128
Arkansas......................................................... 726 118 844 10,128
California....................................................... 1,122 \3\ 0 1,122 13,464
Colorado......................................................... 1,072 14 1,086 13,032
Connecticut...................................................... \4\ 1,094 8 NA NA
Delaware......................................................... 726 118 844 10,128
District of Columbia............................................. 726 118 844 10,128
Florida.......................................................... 726 118 844 10,128
Georgia.......................................................... 726 118 844 10,128
Hawaii........................................................... 735 308 1,043 12,516
Idaho............................................................ \5\ 742 119 861 10,332
Illinois......................................................... \6\ 726 118 844 10,128
Indiana.......................................................... 726 118 844 10,128
Iowa............................................................. 726 118 844 10,128
Kansas........................................................... 726 118 844 10,128
Kentucky......................................................... 726 118 844 10,128
Louisiana........................................................ 726 118 844 10,128
Maine............................................................ 741 114 855 10,260
Maryland......................................................... 726 118 844 10,128
Massachusetts.................................................... 923 59 982 11,784
Michigan......................................................... 754 110 864 10,368
Minnesota........................................................ \7\ 837 85 922 11,064
Mississippi...................................................... 726 118 844 10,128
Missouri......................................................... 726 118 844 10,128
Montana.......................................................... 726 118 844 10,128
Nebraska......................................................... 729 117 846 10,152
Nevada........................................................... 800 96 896 10,752
New Hampshire.................................................... 747 112 859 10,308
New Jersey....................................................... 751 111 862 10,344
New Mexico....................................................... 726 118 844 10,128
New York......................................................... 829 87 916 10,992
North Carolina................................................... 726 118 844 10,128
North Dakota..................................................... 726 118 844 10,128
Ohio............................................................. 726 118 844 10,128
Oklahoma......................................................... 832 86 918 11,016
Oregon........................................................... 726 118 844 10,128
Pennsylvania..................................................... 770 105 875 10,500
Rhode Island..................................................... 847 82 929 11,148
South Carolina................................................... 726 118 844 10,128
South Dakota..................................................... 741 114 855 10,260
Tennessee........................................................ 726 118 844 10,128
Texas............................................................ 726 118 844 10,128
Utah............................................................. 731 117 848 10,176
Vermont.......................................................... \8\ 829 87 916 10,992
Virginia......................................................... 726 118 844 10,128
Washington....................................................... \9\ 748 112 860 10,320
Wisconsin........................................................ 726 118 844 10,128
Wyoming.......................................................... 858 79 937 11,244
West Virginia.................................................... 751 111 862 10,344
----------------------------------------------------------------------------------------------------------------
\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 1996 through September 1997 are $220 in
the 48 contiguous States and the District of Columbia, $280 in Alaska, and $364 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 shelter deduction of $250 per month (the maximum
allowable for nonelderly, nondisabled households); and (3) an excess medical expense deduction of $4 monthly
(estimated from 1995 medical expense information). If smaller excess shelter costs were assumed, food stamp
benefits would be smaller. 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\ SSI recipients in California are ineligible for food stamps. California provides increased cash aid in lieu
of stamps.
\4\ Individual budget process.
\5\ State disregards $20 monthly of SSI income in determining the State supplementary payment amounts.
\6\ State decides benefits on case-by-case basis.
\7\ Payment level for Hennepin County. State has two geographic payment levels--one for Hennepin County and one
for the remainder of the State.
\8\ State has two geographic payment levels--highest levels are shown in table.
\9\ Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.
NA--Not available.
Source: Table prepared by the Congressional Research Service (CRS) 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, the 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
1997, benefit levels were 77.2 percent of the poverty level.
Table 3-10 presents the same information for a couple. The
SSI benefit for a couple is 91.8 percent of the poverty
threshold in 1997.
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 1975-97
--------------------------------------------------------------------------------------------------------------------------------------------------------
Calendar year
Poverty threshold and benefits --------------------------------------------------------------------------------------------------
1975 1980 1984 1986 1988 1990 1992 1993 1994 1996 1997
--------------------------------------------------------------------------------------------------------------------------------------------------------
Poverty threshold.................................... $2,572 $3,941 $4,980 $5,255 $5,672 $6,268 $6,729 $6,930 $7,107 $7,309 $7,525
Federal SSI benefits:
Dollars per year................................. $1,822 $2,677 $3,768 $4,032 $4,248 $4,632 $5,064 $5,208 $5,352 $5,640 $5,808
Percent of poverty............................... 70.8 72.3 75.6 76.7 74.9 73.9 75.3 75.2 75.3 77.2 77.2
Federal SSI and Social Security:
Dollars per year................................. $2,062 $2,917 $4,008 $4,272 $4,488 $4,872 $5,304 $5,448 $5,592 $5,880 $6,048
Percent of poverty............................... 80.2 74.0 80.5 81.3 79.1 77.7 78.8 78.6 78.7 80.4 80.4
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 $5,952 $6,072 $6,372 $6,600
Percent of poverty............................... 91.4 84.9 86.2 85.4 85.5 84.8 86.5 85.9 85.4 87.2 87.7
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996 and 1997),
the applicable standard deduction plus average shelter and medical deductions among all elderly households is assumed. For 1996 and 1997, 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 1975-97
--------------------------------------------------------------------------------------------------------------------------------------------------------
Calendar year
Poverty threshold and benefits --------------------------------------------------------------------------------------------------
1975 1980 1984 1986 1988 1990 1992 1993 1994 1996 1997
--------------------------------------------------------------------------------------------------------------------------------------------------------
Poverty threshold.................................... $3,232 $4,954 $6,280 $6,628 $7,156 $7,906 $8,489 $8,741 $8,964 $9,221 $9,491
Federal SSI benefits:
Dollars per year................................. $2,734 $4,016 $5,664 $6,048 $6,384 $6,948 $7,596 $7,824 $8,028 $8,460 $8,712
Percent of poverty............................... 84.6 81.1 90.2 91.2 89.2 87.9 89.5 89.5 89.6 91.7 91.8
Federal SSI and Social Security:
Dollars per year................................. $2,974 $4,256 $5,904 $6,288 $6,624 $7,188 $7,836 $8,064 $8,268 $8,700 $8,952
Percent of poverty............................... 92.0 86.0 94.0 94.9 92.6 90.9 92.3 92.3 92.2 94.3 94.3
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 $8,880 $9,084 $9,540 $9,828
Percent of poverty............................... 106.1 99.0 101.8 101.0 100.6 100.4 102.5 101.6 101.3 103.5 103.6
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996 and 1997),
the applicable standard deduction plus average shelter and medical deductions among all elderly households is assumed. For 1996 and 1997, the
applicable standard deduction plus average shelter and medical deductions among all SSI households is assumed.
Source: Congressional Research Service.
TRENDS IN THE SSI CASELOAD
Number of Recipients
As shown in table 3-11, in December 1996, 6.6 million
persons received federally administered SSI payments. Of these,
1.4 million received federally administered payments on the
basis of being aged, 5.1 million on the basis of being
disabled, and 82,137 on the basis of blindness. However,
677,519 of those receiving benefits on the basis of disability
or blindness were over the age of 65. Table 3-11 also indicates
that approximately 4.2 million of those receiving federally
administered SSI payments received only Federal SSI payments,
2.1 million received a combination of Federal and State
payments, and 288,187 received State supplements only.
Table 3-12 shows the trends in the numbers of persons
receiving federally administered SSI payments from December
1975 through September 1996, 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 12
years the number of SSI recipients has increased from about 3.9
million to more than 6.6 million, an increase of 70 percent.
Characteristics of Adult Disabled and Blind Recipients
Major disabling diagnosis.--As shown in table 3-13, of the
SSI disabled ages 18-64, 28.4 percent were eligible on the
basis of mental retardation and 30 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 nervous system and sense organs--10.1 percent; diseases of
musculoskeletal and connective tissues--7.3 percent; and
diseases of the circulatory system--4.9 percent. In December
1995, 1.3 million or 23.8 percent of the adult disabled or
blind receiving SSI benefits had a representative payee.
Representative payees are individuals, agencies, or
institutions selected by SSA to receive and use SSI payments on
behalf of the SSI recipient when it has been found necessary by
reason of the mental or physical limitations of the recipient.
Age.--When a person who is receiving SSI on the basis of
blindness or disability becomes age 65, SSA does not convert
the individual to eligibility on the basis of age. As shown in
table 3-14, 16.1 percent of the SSI adult population receiving
benefits on the basis of disability are age 65 or over (27.2
percent of the blind were age 65 or over).
Sex.--In January 1997, 54.8 percent of those receiving SSI
benefits on the basis of disability and 55.6 percent on the
basis of blindness were women (table 3-15).
Race.--In January 1997, 52.4 percent of those receiving SSI
on the basis of disability were white; 30.9 percent were black;
12.7 percent were other races; and in 4 percent of the cases,
race was not reported (table 3-15).
TABLE 3-11.--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED PAYMENTS, TOTAL AMOUNT AND AVERAGE MONTHLY
AMOUNT, BY SOURCE OF PAYMENT AND CATEGORY, DECEMBER 1996
----------------------------------------------------------------------------------------------------------------
Source of payment Total Aged Blind Disabled
----------------------------------------------------------------------------------------------------------------
Number of persons
----------------------------------------------
Federally administered payments \1\.............................. 6,613,718 1,412,632 \2\ 82,13
7 \3\ 5,118,9
49
Federal payment only......................................... 4,192,248 774,459 45,378 3,372,411
Both Federal and State supplementation....................... 2,133,283 522,003 30,802 1,580,478
State supplementation only................................... 288,187 116,170 5,957 166,060
----------------------------------------------
Total Federal payment \4\.................................. 6,325,531 1,296,462 76,180 4,952,889
Total State supplementation \5\............................ 2,421,470 638,173 36,759 1,746,538
----------------------------------------------
Amount of payments [in thousands]
----------------------------------------------
Federal payments................................................. $2,145,851 $296,665 $25,477 $1,823,709
State supplementation............................................ 253,242 71,678 5,653 175,911
----------------------------------------------
Total...................................................... 2,399,093 368,343 31,130 1,999,620
----------------------------------------------
Average monthly amount
----------------------------------------------
Federal payments................................................. 339.24 228.83 334.44 368.21
State supplementation............................................ 104.58 112.32 153.78 100.72
----------------------------------------------
Total...................................................... 362.75 260.75 379.00 390.63
----------------------------------------------------------------------------------------------------------------
\1\ All persons with Federal SSI payments and/or federally administered State supplementation.
\2\ Includes an estimated 20,747 persons age 65 or older.
\3\ Includes an estimated 646,149 persons age 65 or older.
\4\ All persons with a Federal SSI payment whether receiving a Federal payment only or both a Federal and State
supplementation.
\5\ All persons with federally administered State supplementation whether receiving State supplementation only
or both a Federal SSI payment and a State supplementation.
Source: Office of Research, Evaluation and Statistics, Social Security Administration.
Other income.--In December 1996, 30.2 percent of the
disabled and 35.4 percent of the blind received Social Security
benefits. Table 3-16 shows the number of SSI recipients with
other sources of income, both unearned and earned.
Characteristics of Recipients Receiving Benefits on the Basis of Age
Age.--In December 1996, of SSI recipients receiving
benefits on the basis of age (65 or older), 33.9 percent were
80 years of age or older (table 3-14).
TABLE 3-12.--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI PAYMENTS BY CATEGORY AND AGE, SELECTED YEARS 1975-96
[In thousands]
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Year
-----------------------------------------------------------------------------------------------
Reason for eligibility and age Dec. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept.
1975 1983 1986 1988 1989 1990 1991 1992 1993 1994 1995 1996
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
Blind................................................. 74 79 83 83 83 84 85 86 86 85 85 83
Under 18............................................ 3 6 7 7 7 7 7 8 8 8 8 8
18-21............................................... 4 5 5 4 4 4 4 4 4 4 4 4
22-64............................................... 46 45 48 49 49 50 51 52 52 52 52 51
65 or older......................................... 22 23 23 22 22 22 22 22 22 21 21 20
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
Under 18............................................ 104 191 231 247 256 287 366 511 683 812 898 950
18-21............................................... 90 122 138 136 139 143 150 167 186 202 219 232
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
65 or older......................................... 179 462 517 548 563 579 592 606 615 629 646 656
Age:
Under 18.............................................. 107 197 238 254 263 294 373 518 691 820 906 958
18-21................................................. 93 127 143 140 143 147 154 171 190 206 223 236
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
65 or older........................................... 2,508 2,013 2,016 2,003 2,023 2,051 2,078 2,107 2,110 2,120 2,121 2,105
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Total............................................... 4,314 3,898 4,232 4,434 4,570 4,764 5,050 5,486 5,908 6,247 6,495 6,636
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Source: Office of Research, Evaluation and Statistics, Social Security Administration.
TABLE 3-13.--DISABILITY DIAGNOSIS OF SSI AND SECTION 1619 DISABILITY
RECIPIENTS, DECEMBER 1996 \1\
[Percentage distribution by diagnostic group]
------------------------------------------------------------------------
Supplemental Security Income (SSI)
----------------------------------------
Diagnostic group All SSI SSI section SSI section
disabled 18- 1619(a) 1619(b)
64 yrs. participants participants
------------------------------------------------------------------------
Infectious and parasitic
diseases...................... 1.7 1.1 1.5
Neoplasms...................... 1.4 1.3 1.6
Endocrine, nutritional, and
metabolic disorders........... 4.3 2.1 2.7
Mental disorders:
Schizophrenia.............. 8.9 9.6 11.6
Other psychiatric.......... 21.5 19.3 20.0
Mental retardation......... 28.4 46.6 38.6
Diseases of:
Nervous system and sense
organs \2\................ 10.1 12.1 13.3
Circulatory system......... 4.9 1.5 2.3
Respiratory system........ 2.7 1.0 1.0
Digestive system........... 0.7 0.4 0.6
Genito-urinary system..... 0.9 1.1 1.6
Musculoskeletal system and
connective tissues........ 7.3 3.0 4.4
Congenital anomalies........... 1.7 0.9 0.8
Injury and poisoning........... 2.7 2.2 3.3
Other.......................... 2.7 1.3 1.2
----------------------------------------
Total percent............ 100.0 100.0 100.0