text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Preserving and Reforming SSDI (PAR-
  SSDI) Act of 2016''.
  
  SEC. 2. CONSIDERATION OF VOCATIONAL FACTORS IN DISABILITY 
                DETERMINATIONS.
  
      (a) Language Proficiency.--Section 223(d)(2) of the Social Security 
  Act (42 U.S.C. 423(d)(2)) is amended by adding at the end the 
  following:
              ``(D) In determining whether an individual is under a 
          disability, the Commissioner shall make such determination 
          without regard to the individual's ability to communicate in 
          English.''.
      (b) Quarters of Coverage Requirement.--Section 223(d)(2) of the 
  Social Security Act (42 U.S.C. 423(d)(2)), as amended by subsection 
  (a), is further amended by adding at the end the following:
              ``(E) In determining whether an individual is under a 
          disability for a month, the Commissioner may not consider the 
          individual's vocational background unless the individual had 
          not less than 16 quarters of coverage during the 24-quarter 
          period ending with the quarter in which such month occurs.''.
      (c) Periodic Update of Vocational and Educational Factors.--Not 
  later than 5 years after the date of the enactment of this Act and not 
  later than the end of every subsequent 5-year period, the Commissioner 
  of Social Security shall prepare and implement a complete update of the 
  vocational and educational factors considered in making disability 
  determinations under title II of the Social Security Act.
      (d) Effective Date.--The amendments made by this section shall 
  apply with respect to applications for disability insurance benefits 
  filed on or after the date of the enactment of this Act.
  
  SEC. 3. DISQUALIFICATION ON RECEIPT OF DISABILITY INSURANCE BENEFITS IN 
                A MONTH FOR WHICH UNEMPLOYMENT COMPENSATION IS RECEIVED.
  
      (a) In General.--Section 223(d)(4) of the Social Security Act (42 
  U.S.C. 423(d)(4)) is amended by adding at the end the following:
      ``(C)(i) If for any week in whole or in part within a month an 
  individual is paid or determined to be eligible for unemployment 
  compensation, such individual shall be deemed to have engaged in 
  substantial gainful activity for such month.
              ``(ii) For purposes of clause (i), the term `unemployment 
          compensation' means--
                      ``(I) `regular compensation', `extended 
                  compensation', and `additional compensation' (as such 
                  terms are defined by section 205 of the Federal-State 
                  Extended Unemployment Compensation Act (26 U.S.C. 3304 
                  note)); and
                      ``(II) trade adjustment assistance under title II 
                  of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
      (b) Trial Work Period.--Section 222(c) of the Social Security Act 
  (42 U.S.C. 422(c)) is amended by adding at the end the following:
      ``(6)(A) For purposes of this subsection, an individual shall be 
  deemed to have rendered services in a month if the individual is 
  entitled to unemployment compensation for such month.
              ``(B) For purposes of subparagraph (A), the term 
          `unemployment compensation' means--
                      ``(i) `regular compensation', `extended 
                  compensation', and `additional compensation' (as such 
                  terms are defined by section 205 of the Federal-State 
                  Extended Unemployment Compensation Act (26 U.S.C. 3304 
                  note)); and
                      ``(ii) trade adjustment assistance under title II 
                  of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).''.
      (c) Data Matching.--The Commissioner of Social Security shall 
  implement the amendments made by this section using appropriate 
  electronic data.
      (d) Effective Date.--The amendments made by this subsection shall 
  apply with respect to individuals who initially apply for disability 
  insurance benefits on or after January 1, 2017.
  
  SEC. 4. ELIGIBILITY FOR MEDICARE.
  
      (a) In General.--Section 226(b)(2) of the Social Security Act (42 
  U.S.C. 426(b)) is amended--
              (1) in subparagraph (A), by striking ``24 calendar months'' 
          and inserting ``60 calendar months'';
              (2) in subparagraph (B), by striking ``24 months'' and 
          inserting ``60 months'';
              (3) in subparagraph (C)(ii), by striking ``24 months'' and 
          inserting ``60 months''; and
              (4) in the matter following subparagraph (C)(ii)(II)--
                      (A) by striking ``twenty-fifth month'' before ``of 
                  his entitlement or status'' and inserting ``sixty-first 
                  month''; and
                      (B) by striking ```twenty-fifth month of his 
                  entitlement' refers to the first month after the 
                  twenty-fourth month'' and inserting ```sixty-first 
                  month of his entitlement' refers to the first month 
                  after the sixtieth month''.
      (b) Conforming Amendments.--Section 226 of such Act (42 U.S.C. 
  426), as amended by subsection (a), is further amended--
              (1) in subsection (e)(1)(B), by striking ``24 months'' and 
          inserting ``60 months''; and
              (2) in subsection (f), by striking ``24 months'' and 
          inserting ``60 months''.
      (c) Effective Date.--The amendments made by this section shall 
  apply with respect to applications for disability insurance benefits 
  filed on or after the date of the enactment of this Act.
  
  SEC. 5. INCLUSION OF UNEARNED INCOME IN DETERMINATION OF SUBSTANTIAL 
                GAINFUL ACTIVITY.
  
      (a) In General.--Section 223(d)(4) of the Social Security Act (42 
  U.S.C. 423(d)(4)), as amended by section 3(b), is further amended by 
  adding at the end the following:
      ``(D)(i) If the amount of unearned income (as defined in section 
  1612) of an individual for a month is equal to or greater than the 
  monthly income limit for such month, the individual shall be deemed to 
  have engaged in substantial gainful activity for such month.
      ``(ii) For purposes of this subparagraph, the monthly income limit 
  is the amount of earnings derived from services, prescribed by the 
  Commissioner under regulations issued pursuant to subparagraph (A), 
  sufficient to demonstrate an individual's ability to engage in 
  substantial gainful activity for a month.''.
      (b) Effective Date.--The amendment made by subsection (a) shall 
  apply with respect to monthly insurance benefits paid for months 
  beginning after the date that is 1 year after the date of the enactment 
  of this Act.
  
  SEC. 6. MEDICAL EVIDENCE IN DISABILITY DETERMINATIONS.
  
      (a) Exclusion of Medical Evidence That Is Not Submitted in Its 
  Entirety or Furnished by a Licensed Practitioner.--Section 223(d)(5) of 
  the Social Security Act (42 U.S.C. 423(d)(5)) is amended--
              (1) in subparagraph (B), by striking ``In'' and inserting 
          ``Subject to subparagraphs (C) and (D), in''; and
              (2) by adding at the end the following new subparagraphs:
      ``(C)(i) An individual and, if applicable, such individual's 
  representative shall submit, in its entirety and without redaction, all 
  relevant medical evidence known to the individual or the representative 
  to the Commissioner of Social Security.
              ``(ii) In the case of a hearing before an administrative 
          law judge to determine if an individual is under a disability 
          (as defined in paragraph (1)), the Commissioner of Social 
          Security shall not consider any piece of medical evidence 
          furnished by an individual or such individual's representative 
          unless such individual and, if applicable, such individual's 
          representative, certifies at the hearing that all relevant 
          medical evidence has been submitted in its entirety and without 
          redaction.
              ``(iii) For purposes of this subparagraph, the term 
          `relevant medical evidence' means any medical evidence relating 
          to the individual's claimed physical or mental impairments that 
          the Commissioner of Social Security should consider to 
          determine whether the individual is under a disability, 
          regardless of whether such evidence is favorable or unfavorable 
          to the individual's case, but shall not include any oral or 
          written communication or other document exchanged between the 
          individual and such individual's attorney representative that 
          are subject to attorney-client privilege or work product 
          doctrine, unless the individual voluntarily discloses such 
          communication to the Commissioner. Neither the attorney-client 
          privilege nor the work product doctrine shall prevent from 
          disclosure medical evidence, medical source opinions, or any 
          other factual matter that the Commissioner may consider in 
          determining whether or not the individual is entitled to 
          benefits.
              ``(iv) Any individual or representative who knowingly 
          violates this subparagraph shall be guilty of making a false 
          statement or representation of material fact, shall be subject 
          to civil and criminal penalties under sections 208 and 1129, 
          and, in the case of a representative, shall be suspended or 
          disqualified from appearing before the Social Security 
          Administration.
      ``(D) The Commissioner of Social Security shall not consider any 
  evidence furnished by a physician or health care practitioner who is 
  not licensed or has been sanctioned.''.
      (b) Health Care Providers Supplying Consultative Exams.--
              (1) In general.--Beginning 1 year after the date of 
          enactment of this Act, in determining whether an individual 
          applying for disability insurance benefits under title II of 
          the Social Security Act is disabled, the Commissioner of Social 
          Security shall not consider medical evidence resulting from a 
          consultative exam with a health care provider conducted for the 
          purpose of supporting the individual's application unless the 
          evidence is accompanied by a Medical Consultant Acknowledgment 
          Form signed by the health care provider who conducted the exam.
              (2) Medical consultant acknowledgment form.--
                      (A) Definition.--As used in this subsection, the 
                  term ``Medical Consultant Acknowledgment Form'' means a 
                  form published by the Commissioner of Social Security 
                  that meets the requirements of subparagraph (B).
                      (B) Requirements.--The Commissioner of Social 
                  Security shall develop the Medical Consultant 
                  Acknowledgment Form and make it available to the public 
                  not later than 6 months after the date of enactment of 
                  this Act. The contents of the Medical Consultant 
                  Acknowledgment Form shall include--
                              (i) information on how medical evidence is 
                          used in disability determinations;
                              (ii) instructions on completing a residual 
                          functional capacity form;
                              (iii) information on the legal and ethical 
                          obligations of a health care provider who 
                          supplies medical evidence for use in a 
                          disability determination, including any civil 
                          or criminal penalties that may be imposed on a 
                          health care provider who supplies medical 
                          evidence for use in a disability determination; 
                          and
                              (iv) a statement that the signatory has 
                          read and understands the contents of the form.
              (3) Penalties for fraud.--In addition to any other 
          penalties that may be prescribed by law, any individual who 
          forges a signature on a Medical Consultant Acknowledgment Form 
          submitted to the Commissioner of Social Security shall be 
          guilty of making a false statement or representation of 
          material fact, and upon conviction shall be subject to civil 
          and criminal penalties under sections 208 and 1129 of the 
          Social Security Act and, in the case of a representative, shall 
          be suspended or disqualified from appearing before the Social 
          Security Administration.
      (c) Effective Date.--The amendments made by subsection (a) shall 
  apply with respect to applications for disability insurance benefits 
  filed on or after the date of the enactment of this Act.
  
  SEC. 7. CHANGE IN INDEX USED TO CALCULATE SOCIAL SECURITY COST-OF-
                LIVING ADJUSTMENTS.
  
      (a) In General.--Section 215(i)(1) of the Social Security Act (42 
  U.S.C. 415(i)(1)) is amended--
              (1) in subparagraph (G), by striking the period at the end 
          and inserting ``; and''; and
              (2) by adding at the end the following new subparagraph:
              ``(H) the term `Consumer Price Index' means the Chained 
          Consumer Price Index for All Urban Consumers (C-CPI-U, as 
          published in its initial version by the Bureau of Labor 
          Statistics of the Department of Labor).''.
      (b) Application to Pre-1979 Law.--
              (1) In general.--Section 215(i)(1) of the Social Security 
          Act as in effect in December 1978, and as applied in certain 
          cases under the provisions of such Act as in effect after 
          December 1978, is amended--
                      (A) in subparagraph (C), by striking the period at 
                  the end and inserting ``; and''; and
                      (B) by adding at the end the following new 
                  subparagraph:
              ``(D) the term `Consumer Price Index' means the Chained 
          Consumer Price Index for All Urban Consumers (C-CPI-U, as 
          published in its initial version by the Bureau of Labor 
          Statistics of the Department of Labor).''.
              (2) Conforming change.--Section 215(i)(4) of the Social 
          Security Act (42 U.S.C. 415(i)(4)) is amended by inserting 
          ``and by section 231 of the Preserving and Reforming SSDI (PAR-
          SSDI) Act of 2016'' after ``1986''.
      (c) Effective Date.--The amendments made by this section shall 
  apply with respect to adjustments effective with or after the first 
  December that begins at least 3 years after the date of the enactment 
  of this Act.
  
  SEC. 8. THIRD-PARTY INCOME VERIFICATION.
  
      (a) In General.--Section 223(i) of the Social Security Act (42 
  U.S.C. 423(i)) is amended--
              (1) by redesignating paragraph (5) as paragraph (6); and
              (2) by inserting after paragraph (4) the following:
      ``(5)(A) In any case in which the Commissioner of Social Security 
  initiates a review under this subsection of the case of an individual 
  who has been determined to be under a disability, such review shall 
  include an independent estimate by a qualified social security income 
  verification contractor of such individual's monthly income at the time 
  of such review.
      ``(B) Upon initiating a review of an individual under this 
  subsection, the Commissioner of Social Security shall provide such 
  individual's name, address, and social security account number to a 
  qualified social security income verification contractor for purposes 
  of obtaining the independent estimate described in subparagraph (A).
      ``(C)(i) Not later than 60 days after the date of the enactment of 
  this paragraph, the Commissioner of Social Security shall enter into 
  one or more qualified income verification contracts.
      ``(ii) For purposes of this paragraph, the term `qualified social 
  security income verification contract' means any contract which is for 
  the services of any person (other than an officer or employee of the 
  Social Security Administration)--
              ``(I) to provide an estimate (based on the best information 
          available to such person) of the income of any individual 
          specified by the Commissioner as described in subparagraph (A);
              ``(II) to provide such information regarding the basis for 
          such estimate as the Commissioner may specify; and
              ``(III) that prohibits each person providing such services 
          from contacting the individual, employers of the individual, 
          members of the individual's family, and such other persons as 
          the Commissioner may specify.
      ``(iii) For purposes of this section, the term `qualified social 
  security income verification contractor' means the person providing 
  services to the Secretary under a qualified social security income 
  verification contract.
      ``(D)(i) Nothing in any provision of law shall be construed to 
  prevent the Secretary from--
              ``(I) entering into a qualified social security income 
          verification contract, or
              ``(II) providing identifying information to a qualified 
          social security income verification contractor as provided in 
          this paragraph.
      ``(ii) The United States shall not be liable for any act or 
  omission of any person performing services under a qualified social 
  security income verification contract.
      ``(E) In any case in which an independent estimate conducted 
  pursuant to this paragraph with respect to an individual entitled to 
  disability insurance benefits demonstrates that such individual failed 
  to accurately report any monthly income, the Commissioner of Social 
  Security shall conduct an investigation of such individual to determine 
  whether such individual's monthly income demonstrates the individual's 
  ability to engage in substantial gainful activity.''.
target: Preserving and Reforming SSDI (PAR-SSDI) Act of 2016 This bill amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSAct) to:  direct the Social Security Administration (SSA), in determining whether an individual is under a disability, to make such a determination without regard to the individual's ability to communicate in English; prohibit the SSA, in determining whether an individual is under a disability for a month, from considering the individual's vocational background in computing the quarters of coverage requirement unless the individual had not less than 16 quarters of coverage during the 24-quarter period ending with the quarter in which such month occurs; and direct the SSA to prepare and implement a complete update of the vocational and educational factors considered in making disability determinations.  The bill declares that for any week in whole or in part within a month that an individual is paid or determined to be eligible for unemployment compensation he or she shall be deemed to have engaged in substantial gainful activity and so be disqualified from receiving Social Security disability benefits after a certain period has elapsed. The bill also states that, for purposes of determining services rendered by an individual during a period of trial work which will not disqualify the individual for disability benefits, the individual shall be deemed to have rendered services in a month if he or she is entitled to unemployment compensation or trade adjustment assistance for that month. The bill revises prerequisites for the entitlement of certain individuals under age 65 to SSAct title XVIII (Medicare) part A hospital insurance benefits. The length of time such an individual must be entitled to disability insurance, child's insurance, or widow's insurance benefits, in order to qualify for entitlement to Medicare part A hospital benefits, shall increase from the current 24 months to 60 months. If the amount of an individual's unearned income for a month is equal to or greater than the monthly income limit for that month, the individual shall be deemed to have engaged in substantial gainful activity for the month for purposes of determining disability insurance benefit payments. The SSA must receive from an individual and/or the individual's representative, in its entirety and without redaction, all known relevant medical evidence related to a disability claim. Any medical evidence not submitted in its entirety or not furnished by a licensed practitioner shall be excluded in disability determinations. In determining whether a disability benefits applicant is disabled, the SSA shall not consider medical evidence resulting from a consultative exam with a health care provider unless the application is accompanied by a Medical Consultant Acknowledgment Form signed by the health care provider who conducted the exam. The bill changes the index used to calculate OASDI cost-of-living adjustments to the Chained Price Index for All Urban Consumers. In any case in which SSA initiates a review of disability benefits for an individual, the review shall include an independent estimate by a qualified Social Security income verification contractor of the individual's monthly income.
feat_title: Preserving and Reforming SSDI (PAR-SSDI) Act of 2016