[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6066 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6066

  To amend title II of the Social Security Act to provide appropriate 
 safeguards for applicants for disability insurance benefits and other 
  benefits based on disability under such title against inappropriate 
  offsets of such benefits against benefits otherwise provided under 
                 private disability insurance coverage.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2010

Ms. Linda T. Sanchez of California introduced the following bill; which 
            was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend title II of the Social Security Act to provide appropriate 
 safeguards for applicants for disability insurance benefits and other 
  benefits based on disability under such title against inappropriate 
  offsets of such benefits against benefits otherwise provided under 
                 private disability insurance coverage.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preventing Social Security Fraud Act 
of 2010''.

SEC. 2. PROTECTIONS FOR APPLICANTS FOR DISABILITY INSURANCE BENEFITS OR 
              OTHER BENEFITS BASED ON DISABILITY AGAINST INAPPROPRIATE 
              OFFSETS AGAINST BENEFITS UNDER PRIVATE DISABILITY 
              INSURANCE COVERAGE.

    (a) In General.--Section 221 of the Social Security Act (42 U.S.C. 
421) is amended by adding at the end the following new subsection:
    ``(n)(1) At the time at which an insurance issuer takes any action 
in connection with private disability insurance coverage provided by 
the issuer which constitutes a presumed entitlement benefit reduction, 
the issuer shall certify to the Commissioner, in such form and manner 
as may be prescribed by the Commissioner, that the issuer has 
determined that there is reasonable cause to assume that the individual 
is under a disability (as defined in section 223(d)) and is, or upon 
application would be, entitled to disability insurance benefits under 
section 223, or child's, widow's, or widower's insurance benefits under 
section 202 based on disability. Such certification shall include a 
statement (meeting such requirements as the Commissioner may prescribe) 
in support of the issuer's determination.
    ``(2) For purposes of this subsection, an action taken in 
connection with private disability insurance coverage constitutes a 
presumed entitlement benefit reduction to the extent that such action 
has the effect of reducing the benefits under such coverage of any 
individual covered under such coverage by reason of a failure by such 
individual--
            ``(A) to apply for disability insurance benefits under 
        section 223, or child's, widow's, or widower's insurance 
        benefits under section 202 based on disability, or
            ``(B) to timely request a hearing under subsection (d) (or 
        an administrative review prior to such a hearing) with respect 
        to such benefits.
    ``(3) The Commissioner shall include in any application form for 
applying for benefits under section 223, or child's, widow's, or 
widower's insurance benefits under section 202 based on disability, and 
any application form for applying for a hearing under subsection (d) 
(or administrative review prior to such a hearing) relating to such 
benefits, a question regarding whether the applicant has been requested 
by an insurance issuer offering private disability insurance coverage, 
or any other person on behalf of such issuer, to file the application.
    ``(4) For purposes of this subsection--
            ``(A) The term `private disability insurance coverage' 
        means disability insurance coverage offered in the private 
        sector by an insurance issuer.
            ``(B) The term `disability insurance coverage' means cash 
        benefits provided to individuals in the event of disability or 
        physical or mental impairment (as defined in the terms of the 
        policy under which such coverage is provided) under a policy, 
        certificate, or contract offered by an insurance issuer.
            ``(C) The term `insurance issuer' means an insurance 
        company, insurance service, or insurance organization which is 
        licensed to engage in the business of insurance in a State and 
        which is subject to State law which regulates insurance.''.
    (b) Penalties.--Section 208(a) of such Act (42 U.S.C. 408(a)) is 
amended by inserting ``or'' at the end of paragraph (8), and by 
inserting after paragraph (8) the following new paragraph:
            ``(9) willfully, knowingly, and with intent to deceive the 
        Commissioner of Social Security--
                    ``(A) furnishes or causes to be furnished false 
                information in a certification required under section 
                221(n)(1); or
                    ``(B) fails to timely provide such 
                certification;''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to private disability insurance coverage for periods 
beginning on or after January 1, 2011.
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