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SPECIAL COMMITTEE ON AGING

FRANK CHURCH, Idaho, Chairman

WILLIAM E. ORIOL, Staff Director DAVID A. AFFELDT, Chief Counsel VAL J. HALAMANDARIS, Associate Counsel JOHN GUY MILLER, Minority Staff Director PATRICIA G. ORIOL, Chief Clerk

ACTION ON AGING LEGISLATION IN THE

93d CONGRESS

During its two years of existence (1973-74), the 93d Congress enacted and considered legislation of direct importance to older Americans and their families.

The U.S. Senate Special Committee on Aging presents this summary of these actions for the elderly and for those who work with them.

SOCIAL SECURITY, SSI, AND OTHER RELATED
AMENDMENTS

SOCIAL SECURITY AND WELFARE AMENDMENTS

(Enacted July 9, 1973)

The Congress attached several important amendments-affecting Social Security, the Supplemental Security Income program, social services, and Medicaid-as a part of legislation (Public Law 93-66) to continue the Renegotiation Act. Among the major provisions:

SOCIAL SECURITY

Retirement Test Liberalized.-Effective January 1974 the annual earnings limitation for Social Security beneficiaries under age 72 was increased from $2,100 to $2,400. Note: Under an automatic escalator provision in the 1972 Social Security Amendments (Public Law 9263), the retirement test increases to $2,520 in 1975.

SUPPLEMENTAL SECURITY INCOME

Background on SSI.-The Supplemental Security Income program became effective in January 1974, replacing the State administered adult assistance programs. It is administered by the Social Security Administration, and is designed to build a Federal floor under the incomes of the aged, blind, and disabled.

Covering "Essential Persons".-Eligibility for SSI payments is also extended to so-called "essential persons" (effective in January 1974). Essential persons are generally wives under 65 years of age of eligible aged recipients who have themselves reached age 65. An estimated 125.000 persons will receive additional Federal payments of $100 million under this provision in the first full year. This provision applies to "essential persons" who were already on State assistance rolls prior to January 1974.

State Supplementation Required.-Assurance is also provided that aged, blind, and disabled persons on the welfare rolls in December 1973, will not lose income because of the federalized Supplemental Security Income program. State supplementation will be required up

to present assistance levels, except for Texas which cannot provide supplementation under its Constitution.

SOCIAL SERVICES

90-10 Rule Repealed.-An amendment sponsored by Senator Frank Church was adopted to repeal the 90-10 rule concerning social serv ices for the aged, blind, and disabled under the Social Security Act. Under the Revenue Sharing Act, at least 90 percent of a State's allotment must be directed toward current welfare recipients, and only 10 percent can be targeted for past and potential beneficiaries. The Church Amendment allows greater flexibility in providing social services for former and potential adult welfare recipients.

MEDICAID

Protection Against Loss of Coverage.-Three groups of persons, eligible for Medicaid in December 1973, received protection against loss of Medicaid benefits when the SSI program became effective in January 1974:

1. Disabled and blind persons who do not meet the requirements under Federal definitions and who are eligible as medically indigent persons.

2. Inpatients at medical institutions whose special needs make them eligible for assistance.

3. An eligible spouse of an adult welfare recipient who is essential for that individual's welfare.

Extension of 1972 Medicaid Protection Clause.-Public Law 92-603 contained a savings clause continuing Medicaid for persons who would otherwise lose their eligibility because the 20 percent Social Security increase (Public Law 92-336) raised their incomes above the qualifying cash assistance levels. This savings clause, formerly scheduled to expire in October 1974, is extended through June 1975.

Repeal of Limit of Payments for Nursing Services.-Section 225 of Public Law 92-603 provided that the average per diem cost for skilled nursing homes and intermediate care facilities countable for Federal financial participation will be limited to 105 percent of costs for the same quarter of the preceding year. This measure is repealed.

SOCIAL SECURITY AMENDMENTS

(Enacted December 31, 1973)

Public Law 93-233 provides an 11-percent Social Security increase and makes other changes of direct interest to the elderly. Among the key provisions:

Two-Step, 11 Percent Increase.-The Act authorizes a two-step, 11 percent Social Security increase for more than 29 million beneficiaries, effective for checks delivered in July 1974 (7 percent of this amount became payable for checks delivered in April 1974). This action-to gether with three other across-the-board raises since December 1969means that Social Security benefits were boosted by 68.5 percent in a 412-year period.

Increase in the Special Minimum Benefit.-Under prior law, the special minimum monthly benefit was computed by multiplying $8.50

by the number of years of covered employment after 10 but not greater than 30 years. Public Law 93-233 increases this multiple from $8.50 to $9.00. Thus, the highest special minimum is increased from $170 to $180 a month for workers with 30 or more years of coverage.

Cost-of-Living Adjustment Improvements.-The automatic escalator provision is improved by measuring the increase on the basis of the change in the Consumer Price Index from the first quarter of one year to the first quarter of the following year (rather than from the second quarter in one year to the second quarter in the following year). An exception is made for the first automatic increase (effective for June 1975), which will be based upon the rise in the CPI between the second quarter in 1974 and the first quarter in 1975. Additionally, the effective date of the cost-of-living adjustment is in June, instead of January. These two changes will reduce from seven months to three months the lag between the end of the calendar quarter used to measure the rise in the cost-of-living and the payment of the resulting Social Security increase.

Supplemental Security Income Standards.-Monthly income standards for the new Supplemental Security Income program were increased in two stages from $130 to $146 for individuals and from $195 to $219 for couples.

Restoration of Food Stamp Eligibility for SSI Recipients.-The 1973 Amendments also restored food stamp eligibility for SSI recipients (through June 1974) on the basis of income and asset requirements of the program. The 1972 Social Security Amendments had prohibited participation by SSI recipients.

EXTENSION OF FOOD STAMP ELIGIBILITY FOR SSI RECIPIENTS

(Enacted July 8, 1974)

Public Law 93-335 amends Public Law 93-233 (Social Security Amendments) to extend food stamp eligibility for SSI recipients for an additional 12 months-through June 30, 1975.

COST-OF-LIVING ADJUSTMENTS FOR SSI RECIPIENTS

(Enacted August 7, 1974)

Public Law 93-368 provides an automatic cost-of-living increase for SSI recipients whenever there is a cost-of-living raise in Social Security payments. This provision becomes operative in July 1975. Additionally, the Act authorizes Federal reimbursement to States for interim assistance to SSI beneficiaries. Public Law 93-368 also permits instead of requires (as under Public Law 92-603)-States to impose premium charges for the medically indigent under Medicaid. SSI IMPROVEMENT FOR PERSONS IN NONPROFIT, RETIREMENT HOMES

(Enacted October 26, 1974)

Public Law 93-484 includes an amendment sponsored by Senator Church to exempt the value of maintenance and support furnished by private, nonprofit retirement homes in determining eligiblity for Supplemental Security Income benefits. Thus, the subsidized portion of an