Foster Care Independence Act

Overview

General

History

Independent living provisions

• Assistance obtaining a high school diploma
• Career exploration
• Vocational training
• Job placement and retention
• Budgeting and financial management skills
• Training in activities of daily living
• Substance abuse prevention
• Preventative health; such as smoking cessation, nutrition, and pregnancy prevention

Use of independent living funds

Medicaid provisions

Adoption assistance provisions

OASDI and SSI provisions

Liability of representative payees

• Makes representative payees liable for any OASDI or SSI overpayment made to a beneficiary who is deceased.
• Requires the SSA to create a record under the representative payee's Social Security Number to establish overpayment control.

  Recovery of overpayments

• SSI overpayments must be recovered from SSI lump sum amounts by withholding 50 percent of the lump sum amount of the overpayment.

  Debt collection

• Extends the debt collection practices available for OASDI overpayments to the SSI program.

  Requirement to provide state prisoner information

• Prisoner information must be reported to Federal or federally assisted cash, food, or medical assistance programs.

  Treatment of assets held in trust

• For SSI purposes, the assets of any trust containing property transferred from an individual or an individual's spouse, will be included as countable resources.
• An earnings or additions to a trust will be counted as the individual's income.
• Application of the provision to include trust contributions can be waived in cases of "undue hardship," to ensure that SSI beneficiaries who lose their SSI benefits because of assets held in trust will not automatically lose Medicaid benefits.

  Disposal of resources

• Provides a penalty of loss of SSI benefits for up to 36 months for the disposal of resources at less than fair market value.

  Penalties for false or misleading statements

• For individuals who made a "statement or representation of material fact" for use in determining SSI or OASDI benefits, a penalty is imposed.
• Deletes the provision that denies benefits for 10 years to any individual convicted of making a fraudulent statement in order to simultaneously collect assistance payments in two or more States.

  Exclusion of representatives and health care providers

• If representatives and/or healthcare providers are found to have helped committed fraud, they are barred from the OASDI and SSI programs.
• The bar would last 5 years for a first offense, 10 years for a second offense, and permanent exclusion for a third offense.

  State data exchanges

• Require that the SSA's privacy standards for data sharing meet the State Privacy Standard.

  Study to improve fraud prevention

• Requires that a study be completed to identify measures to reduce OASDI and SSI fraud.
• Includes study to improve processing of beneficiaries reporting change or income.
• Requires a report of recommendations from the study to the United States House Committee on Ways and Means and the Senate Finance Committee.

  Annual reporting

• Requires that the SSA include in its annual budget an itemization of the amount of funds required to support efforts to combat fraud by applicants and beneficiaries.

  Computer matches with institutionalization data

• Requires periodic matches with Medicare and Medicaid data held by the Secretary of Health and Human Services.

  Access to information

• Provides that SSI applicants and beneficiaries may be required to provide authorization to the SSA to obtain financial records from any financial institution.
• Refusal to provide authorization to the SSA to obtain financial records may result in ineligibility for SSI.

  Study of denial of SSI benefits for family farmers

• Requires a study to determine the reasons why family farmers with resources under $100,000 are denied benefits.
• The study would include whether the policies discriminate against family farmers, and the number family farmers who have been denied benefits in each of the past 10 years.

  Provisions for special benefits to certain World War II veterans

• Are 65 years of age or older
• Are World War II veteran;
• Are eligible for a supplemental security income benefit under title XVI
• Have a total benefit income that is less than 75 percent of the Federal benefit rate under title XVI
• Have filed an application for benefits under this title
• Are in compliance with all requirements imposed by the Commissioner of Social Security under this title

  Legislative history

Hillary and I are very pleased that the Congress today approved H.R. 3443, "Foster Care Independence Act of 1999." This legislation helps ensure that young people in foster care get the tools they need to make the most of their lives. It builds on proposals in my budget to empower those leaving foster care by providing them access to health care, better educational opportunities, training, housing assistance, counseling, and other support and services. We cannot let these young people walk their tough road alone.