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-17- The purpose of this, according to the conference committee, was to "permit appropriate steps to be taken for the working out of tentative agreements with the States for possible administration of the disability provisions" and to allow further hearings to be held. H. Rept. 2491, 82d Cong., 2d sess. (1952), p. 9.

Although the disability "freeze." in the 1952 amendments never went into effect, its specific provisions later served as a basis for the disability "freeze" enacted in the 1954 amendments.

Social Security Amendments of 1954

These amendments established the first operating disability program under the Social Security Act.

The definition of "disability" was basically the same as the definition which appeared in H.R. 6000 as passed by the House of Representatives in 1949.

The insured status requirements for a "freeze" were 20 quarters of coverage in the 40-quarter period ending with the quarter of disablement and 6 quarters of coverage in the 13-quarter period ending with such quarter -- the same as appeared in H.R. 6000 as passed by the House of Representatives in 1949. (Under present law, the "20-out-of-40" requirement still generally exists, while the "6-out-of-13" requirement was repealed in 1958.)

As under present law, the "freeze" was retroactive to the date of onset of disability, which could be as early as the fourth quarter of 1941. The law pro-vided, however, that retroactivity could exceed no more than 12 months if the application was filed after June 30, 1957.

In addition, Congress, recognizing the importance of rehabilitating dis-abled persons, specifically provided for the referral of such persons to State rehabilitation agencies for rehabilitation services so that the maximum number of disabled individuals may be restored to productive activity.

In all other respects (State determinations and effect of freeze) the law enacted in 1954 is the same as present, law.

In moving from determinations of disability made by the Federal Govern-ment (as provided in H.R. 6000 passed by the House of Representatives in 1949) tc State determinations (as first promulgated in the inoperative 1952 provision), the Committee on Ways and Means stated :

By and large, determinations of disability will be made by State agencies administering plans approved under the Vocational Reha-bilitation Act. This would serve the dual purpose of encouraging rehabilitation contacts by disabled persons and would offer the ad-vantages of the medical and vocational care development undertaken routinely by the rehabilitation agencies. These agencies have well-established relationships with the medical profession and would remove the major load of case development from the Department.

By agreement, the State agencies will apply the standards developed for evaluating severity of impairments for purposes of the freeze. This will promote equal treatment of all disabled individuals under the old-age and survivors insurance system in all States. The cost to these agencies for their services in making disability determi-nations will be met cut of the Trust Fund. -18-

-18- H. Rept. 1698, 83d Cong., 2d sess. (1954). pp. 23 and 24.

Social Security Amendments of 1956

Monthly disability insurance benefits were provided under the 1956 amendments to eligible disabled workers between the ages of 50 and 65. In addition, benefits were provided for disabled dependent children of a retired or deceased insured worker if the child was disabled before he attained the age of 18.

These changes in the Social Security Act were first included by the Committee on Ways and Means in H.R. 7225, the bill which later became the 1956 amendments to the Social Security Act. The provisions relating to the disabled insured workers were patterned after the provisions on disability appearing in H.R. 6000 as passed by the House of Representatives in 1949, except that benefits were to be paid only to individuals between the ages of 50 and 65. The provisions in the bill relating to childhood disability benefits were some-what restrictive in that they applied only if the child was on the benefit rolls prior to attainment of age 18. H.R. 7225 was passed by the House of Repre-sentatives in 1955.

The Senate Committee on Finance, which held hearings on the bill in 1956, recognized the problems of the severely disabled worker but did not agree that disability insurance benefits should be provided under the old-age and survivors insurance system. This was the position taken by Secretary of Health, Education, and Welfare Folsom, in testifying before the committee. The com-mittee, in opposing a cash disability insurance benefit program, considered :

(1) The difficulty in making disability; determinations, (2) the availability of assistance under the program of aid to the permanently and totally disabled, (3) the significant strides made in vocational rehabilitation, (4) the uncertainty as to the future costs of a cash disability insurance benefit program, and (5) the need for time to study and evaluate existing disability programs. -19-