SSI Improvement Amendments of 1986

SSI Improvement Amendments of 1986 - Title I: General SSI Amendments - Subtitle A: Treatment of Income and Resources - Amends title XVI (Supplemental Security Income) of the Social Security Act to exclude certain interest and dividends derived from an individual's resources from consideration as income. Provides that an individual's temporary income for the month such individual's SSI application becomes effective, or the month following ineligibility, shall be considered in the benefit computation only for such month. Excludes vehicles from the computation of an individual's resources.

Eliminates the benefits reduction imposed on persons living in another's household and receiving support and maintenance in kind if such person is expected, upon receipt of SSI benefits, to pay and ultimately does pay a reasonable portion of the household expenses.

Authorizes the Secretary of Health and Human Services to exclude certain unearned income in the form of consideration as an individual's income if such property is disposed of in the manner prescribed by the Secretary or any part of its value is excluded from the resource computation. Authorizes the Secretary, where necessary to avoid undue hardship, to suspend the penalties applied when individuals become SSI eligible by disposing of their resources at less than market value.

Subtitle B: Benefits for Residents of Medical Institutions - Increases the rate of SSI benefits payable to residents of medical facilities. Requires States making supplementary payments to SSI residents of medical facilities to increase and then maintain them at the increased level. Allows States to require Federal administration of such supplementation payments.

Subtitle C: Provisions Relating to Eligibility - Provides for the payment of benefits due deceased recipients to the surviving spouse or, if the deceased was a child, to the parents.

Permits certain SSI eligible individuals who are also eligible for widow's or widower's insurance benefits under title II (Old Age, Survivors and Disability Insurance) of the Act to elect not to apply for title II benefits without consequent loss of SSI eligibility.

Alters the definition of an "eligible spouse" to disqualify couples living apart for more than three months (currently, six months).

Provides that an alien's three-year period of ineligibility for SSI benefits shall not apply when the organization sponsoring the alien is no longer in existence or is adjudged bankrupt.

Subtitle D: Provisions Relating to Emergency Assistance - Extends Federal reimbursement of State interim SSI assistance to cover such assistance provided for the period during which: (1) an individual's benefits were erroneously terminated or suspended; or, (2) an issued benefit check was lost or stolen before being negotiated.

Authorizes the Secretary to make an emergency cash advance to presumptively eligible individuals who are initially applying for SSI benefits up to the amount which would be payable for the first month to an eligible individual with no other income.

Subtitle E: Provisions Relating to Group Living Facility Standards - Repeals a provision in title XVI of the Act reducing payments to SSI recipients where a group living facility fails to meet applicable standards. Directs the Secretary and the Comptroller General to conduct a study of alternative methods of promoting the enforcement of State standards for group living facilities.

Subtitle F: Provisions Relating to Outreach; Notice to SSI Recipients - Prohibits the Secretary from recovering overpayments before providing the SSI recipient with information regarding the overpayment, including the individual's right to seek a waiver or review of the overpayment determination. Requires the Secretary to establish an ongoing program providing information about SSI benefits to low-income aged, blind, and disabled individuals who are not currently receiving such benefits.

Directs the Secretary to increase the clarity and readability of written materials issued for use by SSI applicants and recipients.

Subtitle G: Provisions Relating to the Blind - Entitles individuals who are applying for or receiving SSI benefits on the basis of blindness to elect to receive either supplementary notice by telephone or initial notice by certified mail of any determination made or other action taken with respect to such individual's SSI rights. Directs the Secretary to study the desirability and feasibility of extending such notification rights to other individuals who may lack the ability to read.

Subtitle H: General Provisions - Sets forth effective dates.

Title II: SSI Work Incentive Provisions - Makes permanent provisions which provide SSI benefits for individuals who perform substantial gainful activity despite a severe medical impairment. Revises the eligibility requirements for such benefits.

Directs the Secretary to establish and implement procedures which provide that whenever an individual is formally notified of his or her SSI eligibility, such individual will also be notified of the availability of assistance under title XIX (Medicaid) of the Act. Directs the Secretary, when any individual receives SSI benefits on the basis of a disability, to notify such individual of his or her potential eligibility for the SSI benefits available for those performing substantial gainful activity despite a severe medical impairment.