A bill to amend title II of the Social Security Act to make it clear that every beneficiary is entitled to apply the monthly earnings test in at least one year after 1977, to provide that income attributable to services performed before an individual first becomes entitled old-age insurance benefits shall not be taken into account (after 1977) in determining his or her net earnings from self-employment for purposes of the earnings test, and to assure the payment of benefits accordingly, to make the monthly retirement test available in limited circumstances in the case of certain beneficiaries, to amend the technical requirements for entitlement to medicare, and for other purposes.

Amends title II (Old-Age, Survivors and Disability Insurance) of the Social Security Act to permit an individual to use the monthly (instead of annual) earnings test during the first year, after 1977, of the individual's entitlement to OASDI benefits.

Disregards certain royalties and income received on a deferred basis, for purposes of determining OASDI eligibility based on income, where receiving income on a deferred basis for services performed in a previous year or years is a common practice in the business from which such income is derived.

Prevents excess earnings from being charged to any month in which an individual did not engage in self-employment and did not render services for wages of more than the applicable exempt amount as determined under title II in calculating the deduction from an individual's benefits because of work.

Extends Medicare hospital insurance benefits, available to individuals entitled to benefits under title II, to other individuals who would be entitled to benefits under title II except that such individuals have not applied for such benefits.