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SOCIAL SECURITY; MEDICAL CARE FOR THE AGED

AMENDMENTS

THURSDAY, AUGUST 6, 1964

U.S. SENATE, COMMITTEE ON FINANCE, Washington, D.C.

The committee met, pursuant to notice, at 10:18 a.m., in room 2221, New Senate Office Building, Senator Harry F. Byrd (chairman) presiding.

Present: Senators Byrd, Long, Smathers, Douglas, McCarthy, Hartke, Williams, Carlson, Bennett, Curtis, Morton, Dirksen, and Ribicoff.

Also present: Elizabeth B. Springer, chief clerk; and Fred Arner and Helen Livingston, of the Education and Public Welfare Division, Legislative Reference Service, Library of Congress.

The CHAIRMAN. The committee will come to order.

The hearing today is on the social security bill, H.R. 11865, and amendments proposed thereto relating to medical care for the aged. Two amendments on this subject have been introduced thus far. They are amendment 1163, by Senator Javits, which is a modified version of his bill, S. 2431, and amendment 1178, by Senator Gore, which is identical to the so-called King-Anderson proposal, S. 880, except as to rate schedules and maximum taxable wage base. I place in the record a copy of the bill, the amendments, and a committee print comparing the provisions in amendments 1163 and 1178. If additional medical care for the aged amendments are introduced in the Senate before the completion of these hearings, copies thereof will be inserted in the record also.

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(The bill, amendments, and comparison referred to follow :)

[H.R. 11865, 88th Cong., 2d sess.]

AN ACT To increase benefits under the Federal old-age, survivors, and disability insurance system, to provide child's insurance benefits beyond age 18 while in school, to provide widow's benefits at age 60 on a reduced basis, to provide benefits for certain individuals not otherwise eligible at age 72, to improve the actuarial status of the trust funds, to extend coverage, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Social Security Amendments of 1964".

FIVE PER CENTUM INCREASE IN OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE

BENEFITS

SEC. 2. (a) Section 215 (a) of the Social Security Act is amended by striking out the table and inserting in lieu thereof the following:

"TABLE FOR DETERMINING PRIMARY INSURANCE AMOUNT AND MAXIMUM FAMILY

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(b) Section 215 (c) of such Act is amended to read as follows:

"Primary Insurance Amount Under 1958 Act, as Modified

"(c) (1) For the purposes of column II of the table appearing in subsection (a) of this section, an individual's primary insurance amount shall be computed as provided in, and subject to the limitations specified in, (A) this section as in effect prior to the enactment of the Social Security Amendments of 1964, and (B) the applicable provisions of the Social Security Amendments of 1960. "(2) The provisions of this subsection shall be applicable only in the case of an individual

"(A) who became entitled to benefits under section 202(a) or section 223 prior to the second month following the month in which the Social Security Amendments of 1964 are enacted or who died prior to such second month,

and

"(B) to whom neither paragraph (4) nor paragraph (5) of subsection (b) is applicable."

(c) (1) Paragraph (2) of section 203 (a) of such Act is amended to read as follows:

"(2) when 2 or more persons were entitled (without the application of section 202 (j) (1) and section 223(b)) to monthly benefits under sections 202 and 223 for the first month following the month in which the Social Security Amendments of 1964 are enacted on the basis of the wages and self-employment income of such insured individual, such total of benefits shall not be reduced to less than the larger of—

"(A) the amount determined under this subsection without regard to this paragraph, or

"(B) the sum of the amounts derived by multiplying the benefit amount (determined under this title as in effect prior to the enactment of the Social Security Amendments of 1964) of each such person for the month specified therein by 105 percent and raising each such increased amount, if it is not a multiple of $0.10, to the next higher multiple of $0.10."

(2) Paragraph (3) of such section 203 (a) is repealed.

(d) The amendments made by this section shall apply with respect to monthly benefits under title II of the Social Security Act for months after the first month following the month in which this Act is enacted and with respect to lump-sum death payments under such title in the case of deaths occurring after such first month.

(e) If an individual was entitled to a disability insurance benefit under section 223 of the Social Security Act for the first month following the month in which this Act is enacted and became entitled to old-age insurance benefits under section 202 (a) of such Act, or died, in the month following such first month, then, for purposes of section 215 (a) (4) of the Social Security Act, as amended by this Act, the amount in column IV of the table appearing in such section 215(a) for such individual shall be the amount in such column on the line on which in column II appears his primary insurance amount (as determined under section 215 (c) of such Act) instead of the amount in column IV equal to his disability insurance benefit.

PAYMENTS OF CHILD'S INSURANCE BENEFITS AFTER ATTAINMENT OF AGE EIGHTEEN IN CASE OF CHILD ATTENDING SCHOOL

SEC. 3. (a) Section 202 (d) (1) (B) of the Social Security Act is amended by striking out "either" before "(i)", and by striking out "or (ii)" and inserting in lieu thereof ", (ii) was a full-time student and had not attained the age of twenty-two, or (iii)".

(b) (1) So much of the first sentence of section 202 (d) (1) of such Act as follows subparagraph (C) is amended to read as follows:

"shall be entitled to a child's insurance benefit for each month, beginning with the first month after August 1950 in which such child becomes so entitled to such insurance benefits and ending with the month preceding whichever of the following first occurs—

"(D) the month in which such child dies, marries, or is adopted (except for adoption by a stepparent, grandparent, aunt, or uncle subsequent to the death of such fully or currently insured individual),

"(E) in the case of a child who is not under a disability (as defined in section 223 (c)) at the time he attains the age of 18 and who during no part of the month in which he attains such age is a full-time student, the month in which such child attains the age of 18,

"(F) in the case of a child who is a full-time student during the month in which he attains the age of 18, the first month (beginning after he attains such age) during no part of which he is a full-time student or the month in which he attains the age of 22, whichever occurs earlier, but only if in the third month preceding such earlier month he was not under a disability (as so defined) which began before he attained the age of 18,

"(G) in the case of a child who first becomes entitled to benefits under this subsection for the month in which he attains the age of 18 or a subsequent month and who in the month for which he becomes so entitled is not under a disability (as so defined) which began before he attained the age of 18, the first month (after he becomes so entitled) during no part of which he is a full-time student or the month in which he attains the age of 22, whichever occurs earlier,

"(H) in the case of a child who after he attains the age of 18 ceases to be under a disability (as so defined) which began before he attained the age of 18, and who either (i) attains the age of 22 before the close of the third month following the month in which he ceases to be under such disability or (ii) was a full-time student during no part of such third month, the third month following the month in which he ceases to be under such disability, or "(I) in the case of a child who after he attains the age of 18 ceases to be under a disability (as so defined) which began before he attained the age of 18, but who has not attained the age of 22 before the close of the third month following the month in which he ceases to be under such disability and is a full-time student in such third month, the earlier of (i) the first month (after such third month) during no part of which he is a full-time student, or (ii) the month in which he attains the age of 22." (2) The second sentence of section 202(d)(1) of such Act is repealed. (3) Section 202(d) of such Act is further amended by adding at the end thereof the following new paragraphs:

“(7) A child whose entitlement to child's insurance benefits on the basis of the wages and self-employment income of an insured individual terminated with the month preceding the month in which such child attained the age of 18, or with a subsequent month, may again become entitled to such benefits (provided no event specified in paragraph (1)(D) has occurred) beginning with the first month thereafter in which he is a full-time student and has not attained the age of 22 if he has filed application for such reentitlement. Such reentitlement shall end with the month preceding whichever of the following first occurs: The first month during no part of which he is a full-time student, the month in which he attains the age of 22 or the first month in which an event specified in paragraph (1) (D) occurs.

"(8) For the purposes of this subsection

"(A) A full-time student' is an individual who is in full-time attendance as a student at an educational institution, as determined by the Secretary (in accordance with regulations prescribed by him) in the light of the standards and practices of the institutions involved, except that no individual shall be considered a 'full-time student' if he is paid by his employer while attending an educational institution at the request, or pursuant to a requirement, of his employer.

"(B) Except to the extent provided in such regulations, an individual shall be deemed to be a full-time student during any period of nonattendance at an educational institution at which he has been in full-time attendance if (i) such period is 4 calendar months or less and (ii) he shows to the satisfaction of the Secretary that he intends to continue to be in full-time attendance at an educational institution immediately following such period.

"(C) An 'educational institution' is (i) a school or college or university operated or directly supported by the United States, or by any State or local government or political subdivision thereof, or (ii) a school or college or university which has been approved by a State or accredited by a State-recognized or nationally-recognized accrediting agency or body, or (iii) a school, or college or university for which there is no such agency or body or which has been in operation an insufficient period of time for

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