A bill to amend title XVI of the Social Security Act to remove certain work disincentives for the disabled under the supplemental security income benefits program.

(Report to Senate from the Committee on Finance with amendment, S. Rept. 95-1312)

Amends Title XVI (Supplemental Security Income for the Aged, Blind, and Disabled) of the Social Security Act to provide that a person who ceases to be eligible for disability income because of the performance of substantial gainful activity, but who otherwise would meet all the eligibility requirements, be paid a special monthly benefit of $10. Declares that an individual will continue to receive this benefit as long as the Secretary of Health, Education, and Welfare determines that: (1) the individual continues to be under a disability; (2) the individual's income is not equal to or in excess of the amount which would cause him to be ineligible for payments; (3) the termination of such benefits would make it impossible to continue employment; and (4) the individual's earnings are not sufficient to allow for a reasonable equivalent of the benefits which would be available in the absence of such earnings.

Excludes from an individual's income, for purposes of determining elgibility for benefits under such title, an amount equal to the costs incurred by an individual for attendant care.

Directs the Secretary of Health, Education and Welfare to submit to Congress by March 15, 1979, recommendations for action and legislation dealing with disabled individuals receiving benefits under Title II (Old-Age, Survivors, and Disability Insurance) and Title XVI of the Social Security Act who wish to engage in gainful employment.