Work Incentive and Self-Sufficiency Act of 1996

Work Incentive and Self-Sufficiency Act of 1996 - Amends titles II (Old Age, Survivors and Disability Insurance) (OASDI) and XVIII (Medicare) of the Social Security Act to make a variety of specified changes designed to create a work incentive policy for social security disability income (SSDI) beneficiaries by: (1) repealing the trial work period and extended period of eligibility; (2) providing for continued Medicare eligibility for disabled individuals whose annual adjusted gross income does not exceed $15,000; (3) revising payment for Medicare hospital insurance benefits for disabled individuals who have exhausted other entitlement; and (4) providing for hospital insurance benefits for certain disabled individuals who are not otherwise eligible for them. Revises the premium for supplementary medical insurance benefits for disabled individuals who have exhausted other entitlement and for certain disabled individuals who are not otherwise eligible.

Directs the Secretary of Health and Human Services to conduct projects to demonstrate the manner in which States may use funds from the Medicare and Medicaid programs to provide a more cost-effective full continuum of care for delivering services to meet the needs of chronically-ill elderly and disabled beneficiaries who are eligible for items and services under such programs, through integrated systems of care, with an emphasis on case management, prevention, and interventions designed to avoid institutionalization whenever possible.

Amends the Omnibus Budget Reconciliation Act of 1993 to repeal the Medicare and Medicaid Coverage Data Bank.