PI Action alerts & updates ... 1996

1996 Changes in Social Security Law

People diagnosed with substance abuse disability
will no longer receive Social Security benefits

On March 29, 1996 President Clinton signed H.R. 3138, the “Contract with America Advancement Act of 1996” into law. This bill, among other things, eliminated drug addiction and alcoholism (D&A, as the social security folks term it) as a basis for disability in both the Title II, Social Security Disability Insurance (SSDA), and the Title XVI, Social Security Insurance (SSI) programs. This law means that anyone who is disabled because of substance abuse and has applied to either SSDI or SSI after March 29, 1996 will not be eligible for benefits. People who believe they are eligible under a different disability category, whether or not issues will substance use are being addressed, should go to the Social Security Administration (SSA) office and reapply for benefits immediately. You will need to be prepared to release or obtain medical records backing up your new disability claim.

This new law will also affect current SSI and SSDI recipients for whom drug abuse or alcoholism is a “material factor” contributing to the determination of their disability. As of January 1, 1997, people in this category will no longer receive benefits.

If you are unclear as to whether you fall into this category, call your local SSA office, or call the national office at 800-772-1213 and ask if you will be affected by the new rules for receiving benefits. The 800 number is open from 7am–7pm Eastern Time, Monday through Friday. If you use the 800 number, be prepared for a long wait, as this number is currently swamped with calls. You may also need to speak with a supervisor to get clear information. Don’t be shy to ask for a supervisor if the representative is unable to clearly answer your questions.

SSA is supposed to notify all affective individuals by June 28, 1996 of the January termination date, but no one has yet articulated a plan to reach those individuals who may be difficult to reach by letter.

People must reapply with the Social Security office for benefits under a new disability category no later than July 28, 1996. Otherwise, they will miss at least one benefit payment. Apparently, a final decision has not been made about the re-application procedure. Currently, SSA is asking people to sign a one paragraph re-application form and fill out a new disability report and new medical releases. The new application is then reviewed and decided by the Bureau of Disability Determination Services.

People with the disability diagnosis of substance abuse will also no longer be eligible for Medicaid or Medicare unless they otherwise qualify for those programs. Elderly people, and people with dependent children (AFDC recipients) will continue to qualify for Medicaid and Medicare.

It is important that people get this information in as many ways as possible. For many people affected by the new law, receiving written information from the Social Security Administration will not be an option, and they may be unaware of the change in law until it is too late. Anything you can do to get this information to the appropriate people is greatly appreciated!