Payment for Vocational Rehabilitation Services Furnished Individuals During Certain Months of Nonpayment of Supplemental Security Income Benefits

SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 416

[Regulations Nos. 4 and 16]

RIN 0960-AD39

Payment for Vocational Rehabilitation Services Furnished

Individuals During Certain Months of Nonpayment of Supplemental

Security Income Benefits

AGENCY: Social Security Administration (SSA).

ACTION: Final rules.

-----------------------------------------------------------------------

SUMMARY: We are amending our regulations relating to payment for

vocational rehabilitation (VR) services provided to recipients of

supplemental security income (SSI) benefit payments based on disability

or blindness under title XVI of the Social Security Act (the Act).

These regulations reflect section 5037 of the Omnibus Budget

Reconciliation Act of 1990 (OBRA 1990). Section 5037 of OBRA 1990 added

section 1615(e) to the Act which authorizes the Commissioner of Social

Security (the Commissioner) to pay a State VR agency for costs incurred

in furnishing VR services to an individual during certain months for

which the individual did not receive SSI payments based on disability

or blindness as well as during months for which the individual did

receive such payments. We also are amending our regulations on VR

payments to clarify certain rules and remove some outdated rules.

EFFECTIVE DATE: These regulations are effective June 19, 1996.

FOR FURTHER INFORMATION CONTACT: Regarding this Federal Register

document--Richard M. Bresnick, Legal Assistant, Division of Regulations

and Rulings, Social Security Administration, 6401 Security Boulevard,

Baltimore, MD 21235, (410) 965-1758; regarding eligibility or filing

for benefits--our national toll-free number, 1-800-772-1213.

SUPPLEMENTARY INFORMATION: We are amending our regulations on payment

for VR services provided to individuals receiving SSI benefits based on

disability or blindness. These amended regulations reflect section 5037

of OBRA 1990, Public Law (Pub. L.) 101-508, which added paragraph (e)

to section 1615 of the Act. Our existing regulations concerning payment

for such services carry out the provisions of section 1615(d) of the

Act.

In general, section 1615(d) of the Act authorizes the Commissioner

to reimburse a State VR agency for the costs incurred in providing VR

services

[[Page 31023]]

to individuals receiving SSI benefits under title XVI of the Act based

on disability or blindness in three categories of cases. Specifically,

section 1615(d) permits payment for VR services furnished to such

individuals only in cases where: (1) The furnishing of such services

results in the individual's performance of substantial gainful activity

(SGA) for a continuous period of nine months; (2) the individual is

continuing to receive benefits, despite his or her medical recovery,

under section 1631(a)(6) of the Act because of his or her participation

in a VR program; or (3) the individual, without good cause, refuses to

continue to accept VR services or fails to cooperate in such a manner

as to preclude his or her successful rehabilitation. (In such a case of

refusal to continue or cooperate in a VR program, payments are

authorized only for the VR services provided prior to the cessation of

VR participation. If the individual resumes participation, then

payments are authorized for the VR services provided after

participation is resumed only if all requirements for payment are met.)

These cases are described in sections 1615(d) (1), (2) and (3) of the

Act, respectively, and in Secs. 416.2211-416.2213 of our regulations.

Under section 1615(d) of the Act, payment may be made for VR

services furnished by a State VR agency, i.e., an agency administering

a State plan for VR services approved under title I of the

Rehabilitation Act of 1973, as amended. However, in the case of a State

which is unwilling to participate or does not have such a plan for VR

services, our regulation at Sec. 416.2204 provides that we may arrange

for VR services for an SSI recipient who is disabled or blind through

an alternative VR service provider (alternate participant) and pay such

provider for the costs of services under the same terms and conditions

that apply to State VR agencies. This regulation is based in part on

section 222(d)(2) of the Act, which provides for the use of alternate

participants in the VR payment program under title II of the Act

(relating to the rehabilitation of Social Security disability

beneficiaries), and on the authority provided to the Commissioner under

section 1633(a) of the Act to make such administrative and other

arrangements as may be necessary or appropriate to carry out title XVI

of the Act, including making arrangements under title XVI in the same

manner as they are made under title II.

Prior to the enactment of OBRA 1990, SSA was authorized to pay a

State VR agency under section 1615(d) of the Act only for VR services

that were provided to an individual during months for which the

individual received SSI benefits based on disability or blindness,

including benefits payable under section 1611 or 1619(a) of the Act or,

for cases under section 1615(d)(2), discussed above, continued payment

of such benefits under section 1631(a)(6) of the Act. This is reflected

in our existing regulations at Secs. 416.2201, 416.2203 and

416.2215(a)(2).

Section 5037 of OBRA 1990 added section 1615(e) to the Act to

provide us the authority to pay a State VR agency under section 1615(d)

for the costs described in that section that are incurred in providing

VR services to an individual during certain months for which the

individual was not receiving SSI benefits based on disability or

blindness as well as during months for which the individual was

receiving such benefits. Under section 1615(e) of the Act, payment may

be made for VR services in a case described in section 1615(d)(1), (2)

or (3) of the Act which are provided to an individual in a month for

which the individual receives, i.e., is eligible for--

SSI cash benefits under section 1611 or special SSI cash

benefits under section 1619(a) of the Act (this is the same as under

prior law);

A special status for Medicaid under section 1619(b) of the

Act; or

A federally administered State supplementary payment under

section 1616 of the Act or section 212(b) of Pub. L. 93-66.

In addition, section 1615(e) of the Act permits payment for VR

services provided in a month for which an individual was ineligible for

the benefits or special status described above for a reason other than

cessation of disability or blindness, if such month occurred prior to

the 13th consecutive month of such ineligibility following a month for

which the individual was eligible for such benefits or special status.

This means that payment may be made for VR services furnished during a

month for which an individual's benefit payment or special status for

Medicaid under section 1619(b) was suspended.

Section 1615(e) of the Act became effective November 5, 1990, the

date of the enactment of OBRA 1990, and applies to claims for

reimbursement pending on or after that date. This amendment to the Act,

which allows us to reimburse a State VR agency or alternate participant

for VR services furnished during certain months for which an individual

was not receiving SSI benefits, responds to a recommendation in the

March 1988 Report of the Disability Advisory Council that the Congress

amend the Act to permit SSA to pay for VR services provided in months

when an individual is in suspension status.

Changes to the VR Payment Regulations

These final rules amend the existing regulations concerning the SSI

VR payment program under title XVI of the Act to take account of the

provisions of section 1615(e) of the Act which permit payment for VR

services furnished during certain months for which a disabled or blind

individual does not receive SSI benefits. These rules also make some

other changes in the existing VR payment regulations to clarify certain

rules and delete some obsolete rules. These changes affect the

regulations governing the Social Security VR payment program under

title II of the Act as well as the regulations concerning the SSI VR

payment program under title XVI. The existing Social Security VR

payment regulations carry out section 222(d) of the Act which contains

provisions that are similar to the provisions of section 1615(d) of the

Act, except that they apply to payment for VR services provided to

individuals entitled to Social Security benefits based on disability

under title II.

Changes to the Regulations to Implement Section 1615(e) of the Act

We are amending Sec. 416.2201 to explain that, in general, sections

1615(d) and (e) of the Act authorize payment for costs of VR services

provided to certain disabled or blind individuals who are eligible for

SSI benefits, special SSI eligibility status, or federally administered

State supplementary payments. In the amendment to Sec. 416.2201, we

also explain that for the purpose of the SSI VR payment regulations, we

refer to SSI benefits, special SSI eligibility status, or federally

administered State supplementary payments as ``disability or blindness

benefits.'' Additionally, we are adding a corresponding definition of

``disability or blindness benefits'' for this purpose in Sec. 416.2203,

discussed below.

The amendment to Sec. 416.2201 further explains that, subject to

the other requirements and conditions for payment prescribed in the

regulations, payment may be made for VR services which are furnished

during a month(s) for which an individual is eligible for disability or

blindness benefits or continues to receive such benefits under section

1631(a)(6) of the Act, or which are furnished during a month(s) for

which the individual's disability or blindness benefits are suspended.

This rule also is reflected in the revised Sec. 416.2215, discussed

below.

[[Page 31024]]

In Sec. 416.2203, ``Definitions,'' we are deleting the paragraph

defining ``eligible,'' which discusses eligibility for SSI benefits

only, and adding a new paragraph to explain the meaning of ``disability

or blindness benefits'' when used in the SSI VR payment regulations.

These final rules provide that ``disability or blindness benefits,'' as

defined for the SSI VR payment regulations only, refer to regular SSI

benefits under section 1611 of the Act, special SSI cash benefits under

section 1619(a) of the Act, special SSI eligibility status under

section 1619(b) of the Act, and/or a federally administered State

supplementary payment under section 1616 of the Act or section 212(b)

of Pub. L. 93-66, for which an individual is eligible based on

disability or blindness, as appropriate. Thus, in these final VR

payment regulations, when we use the terms ``disability or blindness

benefits'' with reference to the SSI program, we mean the benefits,

status, or payments referred to in section 1615(e) of the Act. As used

in this preamble, ``disability or blindness benefits'' has the same

meaning as in the final rules. Further, in Sec. 416.2203, we are

defining the phrase ``special SSI eligibility status'' to refer to the

special status for Medicaid under section 1619(b) of the Act since this

is the phrase we use to describe the special status in our other SSI

regulations, e.g., Secs. 416.260 and 416.264.

We are also amending several sections of the SSI VR payment

regulations to replace phrases such as ``disability or blindness

payment'' with the phrase ``disability or blindness benefits'' and to

substitute the term ``benefits'' for ``payment'' or ``payments'' as the

context requires. We are making these changes to Secs. 416.2201(b),

416.2209 (b) and (c), 416.2212, 416.2213(c), 416.2215 (a) and (b), and

416.2216(c)(2).

Section 416.2215(a) of our existing regulations provides that in

order for the State VR agency or alternate participant to be paid, the

VR services must have been provided--(1) after September 30, 1981; (2)

during months the individual is eligible for SSI disability or

blindness payments; and (3) before completion of a continuous 9-month

period of SGA. We are revising paragraph (a)(2) of Sec. 416.2215 to

provide that to be payable, the VR services must have been provided

during a month or months for which--(i) the individual is eligible for

disability or blindness benefits or continues to receive such benefits

under section 1631(a)(6) of the Act; or (ii) the disability or

blindness benefits of the individual are suspended due to his or her

ineligibility for the benefits. We are also revising paragraph (a)(3)

of Sec. 416.2215 to provide that the VR services must have been

provided prior to the completion of a continuous 9-month period of SGA

or termination of disability or blindness benefits, whichever occurs

first.

The revisions to Sec. 416.2215 (a)(2) and (a)(3) provide cross-

references to the regulations in Subpart M of 20 CFR Part 416 which

contain our rules on suspension and termination of benefits under the

SSI program. In general, these regulations provide that unless a

termination of an individual's eligibility for benefits is required, an

individual's benefits will be suspended for any month for which the

individual no longer meets the requirements for eligibility for

benefits under the SSI program. Termination of eligibility is required

when benefits have been suspended for a period of 12 consecutive

months, i.e., the individual remains ineligible for SSI benefits,

special status for Medicaid, and/or federally administered State

supplementary payments for a continuous 12-month period. Eligibility

for SSI benefits based on disability or blindness also terminates if

the individual's disability or blindness ceases, unless the individual

is participating in an approved VR program and the other requirements

for the continuation of benefits under section 1631(a)(6) of the Act

are met.

The revisions to Secs. 416.2215 (a)(2) and (a)(3) are consistent

with the provisions of sections 1615 (d) and (e) of the Act. They

permit payment for VR services which are provided either during a

month(s) for which an individual is eligible for disability or

blindness benefits, including the continuation of such benefits under

section 1631(a)(6) of the Act, or during a month(s) for which the

individual is ineligible for disability or blindness benefits, for a

reason other than cessation of disability or blindness, if such

month(s) occurs prior to the 13th consecutive month of such

ineligibility, i.e., a month(s) for which benefits are suspended but

not terminated.

We are also amending the introductory paragraph of Sec. 416.2217 to

add a reference to section 1615(e) of the Act. In addition, we are

changing the regulations governing the Social Security VR payment

program under title II of the Act to reflect the expanded scope of the

SSI VR payment program under title XVI resulting from section 1615(e)

of the Act. We are amending Sec. 404.2115(b) of the title II

regulations to explain that if VR services are provided to an

individual who is entitled to title II disability benefits and who also

is or has been receiving disability or blindness benefits under the SSI

program, the determination as to when VR services must have been

provided may be made under either Sec. 404.2115 or Sec. 416.2215,

whichever is advantageous to the State VR agency or alternate

participant that is participating in both VR programs.

Other Changes to the VR Payment Regulations

In addition to the changes to the regulations discussed above, we

are amending the Social Security and SSI VR payment regulations to

clarify certain rules relating to payment for VR services provided to

an individual in a case where the individual, without good cause,

refuses to continue or cooperate in a VR program. Additionally, we are

deleting some obsolete rules relating to the time periods within which

claims for payment for VR services must be filed. Further, we are

making a few other nonsubstantive changes to certain provisions of the

regulations affected by the changes described above.

We are amending Secs. 404.2113(c) and 416.2213(c) to indicate that

if deductions are imposed against an individual's Social Security

disability benefits because of VR refusal, or if an individual's

disability or blindness benefits under the SSI program are suspended

because of VR refusal, the services for which payment may be made in

such a case are those VR services which were provided to the individual

prior to his or her VR refusal. If the individual thereafter resumes

participation in a VR program and again receives VR services, payment

may be made for those services only if the criteria for payment in

Sec. 404.2113 or Sec. 416.2213 are again met, or if the services

qualify for payment under one of the other provisions of the

regulations permitting payment, i.e., Secs. 404.2111, 404.2112,

416.2211, or 416.2212.

We are also deleting the parenthetical phrase ``(suspension of

benefits in cases described in Sec. 404.2113)'' in existing

Sec. 404.2115(a)(3). This change is appropriate since under section

222(b) of the Act and Sec. 404.422 of the title II regulations, a

determination by us that a Social Security disability beneficiary has

refused, without good cause, to accept VR services available to the

individual results in our imposing deductions against Social Security

benefits, rather than suspending benefits. This is reflected in

existing Secs. 404.2109(c) and 404.2113(c). To be consistent with these

sections, we are amending Sec. 404.2116(c)(2) to clarify that a

beneficiary's VR refusal results in deductions against Social Security

[[Page 31025]]

disability benefits, rather than a suspension of benefits.

Existing Secs. 404.2116 (b)(2) and (c)(2) and 416.2216 (b)(2) and

(c)(2) contain provisions which provide for the filing of claims for

payment for VR services in certain cases within 12 months after the

month of the initial publication of these sections in the Federal

Register, 55 FR 8449 (March 8, 1990). This 12-month period ended March

31, 1991, the close of the 12th month following the month of

publication in the Federal Register. Since this time period for filing

a claim is no longer in effect, we are deleting these provisions from

the regulations.

We are amending Secs. 404.2116(c)(2) and 416.2216(c)(2) to clarify

that the other 12-month period described in these sections for filing a

claim for payment in the case of an individual's VR refusal begins

after the first month for which deductions are imposed against Social

Security disability benefits, or after the first month for which

disability or blindness benefits under the SSI program are suspended,

because of such VR refusal.

On September 11, 1995, we published these final rules as proposed

rules in the Federal Register at 60 FR 47126 with a 60-day comment

period. We received comments from two sources, but one commenter simply

stated factually that the proposed regulations would amend certain

regulatory provisions. This commenter offered no further comment or

opinion about the nature or effect of the proposed regulations. The

other commenter generally was supportive of the proposed rules, but did

suggest a better description of the issues and a short explanation of

the statutory requirements. In the absence of other comments, we

believe the explanation of the proposed rules as published is adequate.

Therefore, we are publishing the final rules essentially unchanged from

the proposed rules.

Regulatory Procedures

Pursuant to section 702(a)(5) of the Social Security Act, 42 U.S.C.

902(a)(5), as amended by section 102 of Pub. L. 103-296, SSA follows

the Administrative Procedure Act (APA) rulemaking procedures specified

in 5 U.S.C. 553 in the development of its regulations. The APA provides

in 5 U.S.C. 553(d) that a substantive rule will be published at least

30 days before its effective date, with certain exceptions. We find

good cause for dispensing with the 30-day delay in the effective date

of this rule, as provided for by 5 U.S.C. 553(d)(3). As explained

above, we are amending our regulations to reflect current provisions of

the law. It would be contrary to the public interest to delay making

our regulations consistent with current law. Therefore, we find that it

is in the public interest to make this rule effective upon publication.

Executive Order 12866

We have consulted with the Office of Management and Budget (OMB)

and determined that these rules do not meet the criteria for a

significant regulatory action under Executive Order 12866. Thus, they

were not subject to OMB review.

Regulatory Flexibility Act

We certify that these regulations will not have a significant

economic impact on a substantial number of small entities. Therefore, a

regulatory flexibility analysis as provided in Pub. L. 96-354, the

Regulatory Flexibility Act, is not required.

These final regulations carry out section 1615(e) of the Act which

allows payment for VR services under section 1615(d) of the Act

provided during certain months for which an individual does not receive

SSI benefits based on disability or blindness. They apply to States and

certain alternate providers of VR services which are willing to provide

services to disabled or blind SSI recipients, or Social Security

disability beneficiaries, under our VR payment programs under the

conditions specified in the regulations.

Paperwork Reduction Act

These final regulations impose no additional reporting or

recordkeeping requirements subject to clearance by OMB.

(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social

Security-Disability Insurance; 96.006, Supplemental Security Income)

List of Subjects

20 CFR Part 404

Administrative practice and procedure, Blind, Disability benefits,

Old-Age, Survivors and Disability Insurance, Reporting and

recordkeeping requirements, Social Security.

20 CFR Part 416

Administrative practice and procedure, Aged, Blind, Disability

benefits, Public assistance programs, Supplemental Security Income

(SSI), Reporting and recordkeeping requirements.

Dated: June 4, 1996.

Shirley S. Chater,

Commissioner of Social Security.

For the reasons set out in the preamble, we are amending subpart V

of part 404 and subpart V of part 416 of 20 CFR chapter III as follows:

PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE

(1950- )

Subpart V--[Amended]

1. The authority citation for subpart V of part 404 continues to

read as follows:

Authority: Secs. 205(a), 222, and 702(a)(5) of the Social

Security Act (42 U.S.C. 405(a), 422, and 902(a)(5)).

2. Section 404.2113 is amended by revising the last sentence of

paragraph (c) to read as follows:

Sec. 404.2113 Payment for VR services in a case of VR refusal.

* * * * *

(c) * * * A State VR agency or alternate participant may be paid,

subject to the provisions of this subpart, for the costs of VR services

provided to an individual prior to his or her VR refusal if deductions

have been imposed against the individual's monthly disability benefits

for a month(s) after October 1984 because of such VR refusal.

3. Section 404.2115 is amended by revising paragraphs (a)(3) and

(b) to read as follows:

Sec. 404.2115 When services must have been provided.

(a) * * *

(3) Before completion of a continuous 9-month period of SGA or

termination of entitlement to disability benefits, whichever occurs

first.

(b) If an individual who is entitled to disability benefits under

this part also is or has been receiving disability or blindness

benefits under part 416 of this chapter, the determination as to when

services must have been provided may be made under this section or

Sec. 416.2215 of this chapter, whichever is advantageous to the State

VR agency or alternate participant that is participating in both VR

programs.

4. Section 404.2116 is amended by revising paragraphs (b)(2) and

(c)(2) to read as follows:

Sec. 404.2116 When claims for payment for VR services must be made

(filing deadlines).

* * * * *

(b) * * *

(2) If no written notice was sent to the State VR agency or

alternate participant, a claim must be filed within 12 months after the

month in which VR services end.

(c) * * *

(2) If no written notice was sent to the State VR agency or

alternate participant,

[[Page 31026]]

a claim must be filed within 12 months after the first month for which

deductions are imposed against disability benefits because of such VR

refusal.

PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND

DISABLED

Subpart V--[Amended]

5. The authority citation for subpart V of part 416 is revised to

read as follows:

Authority: Secs. 702(a)(5), 1615, 1631(d)(1) and (e), and

1633(a) of the Social Security Act (42 U.S.C. 902(a)(5), 1382d,

1383(d)(1) and (e), and 1683b(a)).

6. Section 416.2201 is amended by revising the introductory text

and paragraph (b) to read as follows:

Sec. 416.2201 General.

In general, sections 1615 (d) and (e) of the Social Security Act

(the Act) authorize payment from the general fund for the reasonable

and necessary costs of vocational rehabilitation (VR) services provided

certain disabled or blind individuals who are eligible for supplemental

security income (SSI) benefits, special SSI eligibility status, or

federally administered State supplementary payments. In this subpart,

such benefits, status, or payments are referred to as disability or

blindness benefits (see Sec. 416.2203). Subject to the provisions of

this subpart, payment may be made for VR services provided an

individual during a month(s) for which the individual is eligible for

disability or blindness benefits, including the continuation of such

benefits under section 1631(a)(6) of the Act, or for which the

individual's disability or blindness benefits are suspended (see

Sec. 416.2215). Paragraphs (a), (b) and (c) of this section describe

the cases in which the State VR agencies and alternate participants can

be paid for the VR services provided such an individual under this

subpart. The purpose of sections 1615 (d) and (e) of the Act is to make

VR services more readily available to disabled or blind individuals,

help State VR agencies and alternate participants to recover some of

their costs in VR refusal situations, as described in Sec. 416.2213,

and ensure that savings accrue to the general fund. Payment will be

made for VR services provided on behalf of such an individual in cases

where--

* * * * *

(b) The individual continues to receive disability or blindness

benefits, even though his or her disability or blindness has ceased,

under section 1631(a)(6) of the Act because of his or her continued

participation in an approved VR program which we have determined will

increase the likelihood that he or she will not return to the

disability or blindness rolls (see Sec. 416.2212); or

* * * * *

7. Section 416.2203 is amended by removing the definition of

``Eligible'' and adding 2 new definitions in alphabetical order to read

as follows:

Sec. 416.2203 Definitions.

* * * * *

Disability or blindness benefits, as defined for this subpart only,

refers to regular SSI benefits under section 1611 of the Act (see

Sec. 416.202), special SSI cash benefits under section 1619(a) of the

Act (see Sec. 416.261), special SSI eligibility status under section

1619(b) of the Act (see Sec. 416.264), and/or a federally administered

State supplementary payment under section 1616 of the Act or section

212(b) of Public Law 93-66 (see Sec. 416.2001), for which an individual

is eligible based on disability or blindness, as appropriate.

* * * * *

Special SSI eligibility status refers to the special status

described in Secs. 416.264 through 416.269 relating to eligibility for

Medicaid.

* * * * *

Sec. 416.2209 [Amended]

8. Section 416.2209 is amended in paragraph (b) by removing

``payments'' and adding ``benefits'' in its place and in paragraph (c)

by removing ``payment'' and adding ``benefits'' in its place.

9. Section 416.2212 is amended by revising the section heading and

the first and second sentences to read as follows:

Sec. 416.2212 Payment for VR services in a case where an individual

continues to receive disability or blindness benefits based on

participation in an approved VR program.

Section 1631(a)(6) of the Act contains the criteria we will use in

determining if an individual whose disability or blindness has ceased

should continue to receive disability or blindness benefits because of

his or her continued participation in an approved VR program. A VR

agency or alternate participant can be paid for the cost of VR services

provided to an individual if the individual was receiving benefits

based on this provision in a month(s) after October 1984 or, in the

case of a blindness recipient, in a month(s) after March 1988. * * *

10. Section 416.2213 is amended by revising the last sentence of

paragraph (c) to read as follows:

Sec. 416.2213 Payment for VR services in a case of VR refusal.

* * * * *

(c) * * * A State VR agency or alternate participant may be paid,

subject to the provisions of this subpart, for the costs of VR services

provided to an individual prior to his or her VR refusal if the

individual's disability or blindness benefits have been suspended for a

month(s) after October 1984 because of such VR refusal.

11. Section 416.2215 is revised to read as follows:

Sec. 416.2215 When services must have been provided.

(a) In order for the VR agency or alternate participant to be paid,

the services must have been provided--

(1) After September 30, 1981;

(2) During a month(s) for which--

(i) The individual is eligible for disability or blindness benefits

or continues to receive such benefits under section 1631(a)(6) of the

Act (see Sec. 416.2212); or

(ii) The disability or blindness benefits of the individual are

suspended due to his or her ineligibility for the benefits (see subpart

M of this part concerning suspension for ineligibility); and

(3) Before completion of a continuous 9-month period of SGA or

termination of disability or blindness benefits, whichever occurs first

(see subpart M of this part concerning termination of benefits).

(b) If an individual who is receiving disability or blindness

benefits under this part, or whose benefits under this part are

suspended, also is entitled to disability benefits under part 404 of

this chapter, the determination as to when services must have been

provided may be made under this section or Sec. 404.2115 of this

chapter, whichever is advantageous to the State VR agency or alternate

participant that is participating in both VR programs.

12. Section 416.2216 is amended by revising paragraphs (b)(2) and

(c)(2) to read as follows:

Sec. 416.2216 When claims for payment for VR services must be made

(filing deadlines).

* * * * *

(b) * * *

(2) If no written notice was sent to the State VR agency or

alternate participant, a claim must be filed within 12 months after the

month in which VR services end.

(c) * * *

(2) If no written notice was sent to the State VR agency or

alternate participant, a claim must be filed within 12 months

[[Page 31027]]

after the first month for which disability or blindness benefits are

suspended because of such VR refusal.

Sec. 416.2217 [Amended]

13. Section 416.2217 is amended in the introductory text of the

section by adding ``and (e)'' after ``section 1615(d).''

[FR Doc. 96-15407 Filed 6-18-96; 8:45 am]

BILLING CODE 4190-29-P