Disability Insurance Reform Act of 1994

Disability Insurance Reform Act of 1994 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to prohibit the payment of benefits based on disability to any individual who is a drug addict or alcoholic until such individual: (1) undergoes appropriate substance abuse treatment at an approved facility; (2) has complied with the terms of such treatment; and (3) either recovers or makes progress towards recovery, with benefits terminated if the individual fails to continue treatment.

Requires lump sum disability payments to be made only through a qualified governmental or nonprofit care facility or community-based social service agency representative payees. Makes other changes with regard to representative payees, including allowing them to collect monthly fees for expenses in providing service.

Requires the Secretary of Health and Human Services to provide for a monitoring and testing program to ensure individual compliance with treatment requirements.