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to individuals who are receiving benefits under this subchapter or who would but for their income be eligible to receive benefits under this subchapter, as assistance based on need in supplementation of such benefits (as determined by the Secretary), shall be excluded under section 1382a (b) (6) of this title in determining the income of such individuals for purposes of this subchapter and the Secretary and such State may enter into an agreement which satisfies subsection (b) of this section under which the Secretary will, on behalf of such State (or subdivision) make such supplementary payments to all such individuals.

(b) Agreement between Secretary and State; contents. Any agreement between the Secretary and a State entered into under subsection (a) of this section shall provide

(1) that such payments will me made (subject to subsection (c) of this section) to all individuals residing in such State (or subdivision) who are receiving benefits under this subchapter, and

(2) such other rules with respect to eligibility for or amount of the supplementary payments, and such procedural or other general administrative provisions, as the Secretary finds necessary (subject to subsection (c) of this section) to achieve efficient and effective administration of both the program which he conducts under this subchapter and the optional State supplementation.

(c) Residence requirement by State or subdivision for supplementary payments; disregarding of amounts of certain income by State or subdivision in determining eligibility for supplementary payments. (1) Any State (or political subdivision) making supplementary payments described in subsection (a) of this section, may at its option impose as a condition of eligibility for such payments, and include in the State's agreement with the Secretary under such subsection, a residence requirement which excludes individuals who have resided in the State (or political subdivision) for less than a minimum period prior to application for such payments.

(2) Any State (or political subdivision), in determining the eligibility of any individual for supplementary payments described in subsection (a) of this section, may disregard amounts of earned and unearned income in addition to other amounts which it is required or permitted to disregard under this section in determining such eligibility, and shall include a provision specifying the amount of any such income that will be disregarded, if any. (d) Payment to Secretary by State of amount equal to expenditures by Secretary as supplementary payments; time and manner of payment by State. Any State which has entered into an agreement with the Secretary under this section which provides that the Secretary will, on behalf of the State (or political subdivision), make the supplementary payments to individuals who are receiving benefits under this subchapter (or who would but for their income be eligible to receive such benefits), shall, at such times and in such installments as may be agreed upon between the Secretary and such State, pay to the Secretary an amount equal to the expenditures made by the Secretary as such supplementary payments.

(e) Reduction of supplemental security income payments to individuals provided institutional medical or other remedial care, State financed under Federal grants for medical assistance.

Payments made under this subchapter with respect to an individual shall be reduced by an amount equal to the amount of any supplementary payment (as described in subsection (a) of this section) or other payment made by a State (or political subdivision thereof) which is made for or on account of any medical or any other type of remedial care provided by an institution to such individual as an inpatient of such institution in the case of any State which has a plan approved under subchapter XIX of this chapter if such care is (or could be) provided under a State plan approved under subchapter XIX of this chapter by an institution certified under such subchapter XIX. (Aug. 14, 1935, ch. 531, title XVI, § 1616, as added Oct. 30, 1972, Pub. L. 92-603, title III, § 301, 86 Stat. 1474, and amended Dec. 31, 1973, Pub. L. 93-233, § 14, 87 Stat. 965.)

AMENDMENTS

1973-Subsec. (e). Pub. L. 93-233 added subsec. (e).

EFFECTIVE DATE

Section 301 of Pub. L. 92-603 provided in part that this section is to take effect Jan. 1, 1974.

LIMITATION ON FISCAL LIABILITY OF STATES FOR PAYMENT TO
SECRETARY OF SUPPLEMENTARY PAYMENTS MADE BY SEC-
RETARY PURSUANT TO AGREEMENT; DEFINITIONS
Section 401 of Pub. L. 92-603, as amended by Pub. L.
93-233, § 18(h), Dec. 31, 1973, 87 Stat. 969, provided that:

"(a) (1) The amount payable to the Secretary by a State for any fiscal year, other than fiscal year 1974, pursuant to its agreement or agreements under section 1616 of the Social Security Act [this section] shall not exceed the non-Federal share of expenditures as aid or assistance for quarters in the calendar year 1972 under the plans of the State approved under titles I, X, XIV, and XVI of the Social Security Act (as defined in subsection (c) of this section) [subchapters I, X, XIV and XVI of this chapter], and the amount payable for fiscal year 1974 pursuant to such agreement or agreements shall not exceed one-half of the non-Federal share of such expenditures."

"(2) Paragraph (1) of this subsection shall only apply with respect to that portion of the supplementary payments made by the Secretary on behalf of the State under such agreements in any fiscal year which does not exceed in the case of any individual the difference between

"(A) the adjusted payment level under the appropriate approved plan of such State as in effect for January 1972 (as defined in subsection (b) of this section), and

"(B) the benefits under title XVI of the Social Security Act, plus income not excluded under section 1612 (b) of such Act [section 1382a (b) of this title] in determining such benefits, paid to such individual in such fiscal year,

and shall not apply with respect to supplementary payments to any individual who (i) is not required by section 1616 of such Act [this section] to be included in any such agreement administered by the Secretary and (ii) would have been ineligible (for reasons other than income) for payments under the appropriate approved State plan as in effect for January 1972.

"(b) (1) For purposes of subsection (a), the term 'adjusted payment level under the appropriate approved plan of a State as in effect for January 1972' means the amount of the money payment which an individual with no other income would have received under the plan of such State approved under title I, X, XIV, or XVI of the Social Security Act [subchapter I, X, XIV, or XVI of this chapter], as may be appropriate, and in effect for January 1972; except that the State may, at its option, increase such payment

level with respect to any such plan by an amount which does not exceed the sum of

"(A) a payment level modification (as defined in paragraph (2) of this subsection) with respect to such plan, and

"(B) the bonus value of food stamps in such State for January 1972 (as defined in paragraph (3) of this subsection).

"(2) For purposes of paragraph (1), the term 'payment level modification' with respect to any State plan means that amount by which a State which for January 1972 made money payments under such plan to individuals with no other income which were less than 100 per centum of its standard of need could have increased such money payments without increasing (if it reduced its standard of need under such plan so that such increased money payments equaled 100 per centum of such standard of need) the non-Federal share of expenditures as aid or assistance for quarters in calendar year 1972 under the plans of such State approved under titles I, X, XIV, and XVI of the Social Security Act [subchapters I, X, XIV, and XVI of this chapter].

"(3) For purposes of paragraph (1), the term 'bonus value of food stamps in a State for January 1972' (with respect to an individual) means

"(A) the face value of the coupon allotment which would have been provided to such an individual under the Food Stamp Act of 1964 [chapter 51 of Title 7] for January 1972, reduced by

"(B) the charge which such an individual would have paid for such coupon allotment,

if the income of such individual, for purposes of determining the charge it would have paid for its coupon allotment, had been equal to the adjusted payment level under the State plan (including any payment level modification with respect to the plan adopted pursuant to paragraph (2) (but not including any amount under this paragraph)). The total face value of food stamps and the cost thereof in January 1972 shall be determined in accordance with rules prescribed by the Secretary of Agriculture in effect in such month.

"(c) For purposes of this section, the term 'nonFederal share of expenditures as aid or assistance for quarters in the calendar year 1972 under the plans of a State approved under titles I, X, XIV, and XVI of the Social Security Act' [subchapters I, X, XIV, and XVI of this chapter] means the difference between

"(1) the total expenditures in such quarters under such plans for aid or assistance (excluding expenditures authorized under section 1119 of such Act [section 1319 of this title] for repairing the home of an individual who was receiving aid or assistance under one of such plans (as such section was in effect prior to the enactment of this Act) [Oct. 30, 1972]), and

"(2) the total of the amounts determined under sections 3, 1003, 1403, and 1603 of the Social Security Act [sections 303, 1203, 1353, and 1383 of this title], under section 1118 of such Act [section 1318 of this title], and under section 9 of the Act of April 19, 1950 [section 639 of Title 25], for such State with respect to such expenditures in such quarters."

SAME; ELIGIBILITY OF SUPPLEMENTAL SECURITY INCOME RECIPIENTS FOR FOOD STAMPS DURING 6-MONTH PERIOD BEGINNING JAN. 1, 1974

Section 8 (c) of Pub. L. 93-233 provided that: "For purposes of the last sentence of section 3(e) of the Food Stamp Act of 1964 [section 2012 (e) of Title 7] (as amended by subsection (a) of this section) [set out as a note under section 2012 of Title 7] and subsections (b) (3) and (f) of this section [set out as a note under section 612c of Title 7; there was no subsec. (f) enacted]. the level of State supplementary payment under section 1616(a) [subsec. (a) of this section] shall be found by the Secretary to have been specifically increased so as to include the bonus value of food stamps (1) only if, prior to October 1, 1973, the State has entered into an agreement with the Secretary or taken other positive steps which demonstrate its intention to provide supplementary payments under section 1616(a) [subsec. (a) of this section] at a level which is at least equal to the maximum level which can be determined under section 401 (b) (1) of the Social Security Amendments of 1972 [set out as a note under this section] and which

is such that the limitation on State fiscal liability under section 401 [set out as a note under this section] does result in a reduction in the amount which would otherwise be payable to the Secretary by the State, and (2) only with respect to such months as the State may, at its option, elect."

SAME; ADJUSTED PAYMENT LEVEL; PAYMENT LEVEL MODIFICATION FOR 6-MONTH PERIOD BEGINNING JAN. 1, 1974 Section 8(d) of Pub. L. 93-233 provided that: "Section 401(b)(1) of the Social Security Amendments of 1972 [supra] is amended by striking out everything after the word 'exceed' and inserting in lieu thereof: 'a payment level modification (as defined in paragraph (2) of this subsection) with respect to such plans.'"

Section 8(e) of Pub. L. 93-233 provided that: "The amendment made by subsection (d) [supra] shall be effective only for the 6-month period beginning January 1, 1974, except that such amendment shall not during such period, be effective in any State which provides supplementary payments of the type described in section 1616(a) of the Social Security Act [subsec. (a) of this section] the level of which has been found by the Secretary to have been specifically increased so as to include the bonus value of food stamps."

Amendment by section 18(h) of Pub. L. 93-233 effective Jan. 1, 1974, see section 18(z-3)(1) of Pub. L. 93-233, set out as a note under section 1320b of this title. TRANSITIONAL ADMINISTRATION OF PROGRAMS BY STATE PURSUANT TO AGREEMENT BETWEEN STATE AND SECRETARY Section 402 of Pub. L. 92-603, as amended by Pub. L. 93-233, § 18(1), Dec. 31, 1973, 87 Stat. 970, provided that: "In order for a State to be eligible for any payments pursuant to title IV, V, XVI, or XIX of the Social Security Act [subchapter IV, V, XVI, or XIX of this chapter] with respect to expenditures for the third and fourth quarters in the fiscal year ending June 30, 1974, and any quarter in the fiscal year ending June 30, 1975, and for the purpose of providing an orderly transition from State to Federal administration of the Supplemental Security Income Program, such State shall enter into an agreement with the Secretary of Health, Education, and Welfare under which the State agencies responsible for administering or for supervising the administration of the plans approved under titles I, X, XIV, and XVI of the Social Security Act [subchapters I, X, XIV, and XVI of this chapter] will, on behalf of the Secretary, administer all or such part or parts of the program established by section 301 of this Act [enacting this subchapter], during such portion of the third and fourth quarters of the fiscal year ending June 30, 1974, and any quarter of the fiscal year ending June 30, 1975, as may be provided in such agreement."

COMMODITY DISTRIBUTION PROGRAM: INDIVIDUAL RECEIVING SUPPLEMENTAL SECURITY INCOME BENEFITS AS MEMBER OF HOUSEHOLD FOR ANY PURPOSE OF PROGRAM Individual receiving supplemental security income benefits or payments as part of benefits or payments described in subsec. (a) of this section as member of a household for any purpose of the food distribution program, see section 4 (c) of Pub. L. 93-86, set out as a note under section 612c of Title 7, Agriculture.

PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS Enactment of provisions of Pub. L. 92-603, eff. Jan. 1, 1974, not applicable to Puerto Rico, Guam, and the Virgin Islands, see section 303 (b) of Pub. L. 92-603, set out as a note under section 301 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1382a of this title; title 7 section 2012.

PART B-PROCEDURAL AND GENERAL PROVISIONS

§ 1383. Procedure for payment of benefits. (a) Time, manner, form, and duration of payments; promulgation of regulations.

(1) Benefits under this subchapter shall be paid at such time or times and in such installments as will best effectuate the purposes of this subchapter, as

determined under regulations (and may in any case be paid less frequently than monthly where the amount of the monthly benefit would not exceed $10).

(2) Payments of the benefit of any individual may be made to any such individual or to his eligible spouse (if any) or partly to each, or, if the Secretary deems it appropriate to any other person (including an appropriate public or private agency) who is interested in or concerned with the welfare of such individual (or spouse). Notwithstanding the provisions of the preceding sentence, in the case of any individual or eligible spouse referred to in section 1382 (e) (3) (A) of this title, the Secretary shall provide for making payments of the benefit to any other person (including an appropriate public or private agency) who is interested in or concerned with the welfare of such individual (or spouse).

(3) The Secretary may by regulation establish ranges of incomes within which a single amount of benefits under this subchapter shall apply.

(4) The Secretary

(A) may make to any individual initially applying for benefits under this subchapter who is presumptively eligible for such benefits and who is faced with financial emergency a cash advance against such benefits in an amount not exceeding $100; and

(B) may pay benefits under this subchapter to an individual applying for such benefits on the basis of disability for a period not exceeding 3 months prior to the determination of such individual's disability, if such individual is presumptively disabled and is determined to be otherwise eligible for such benefits, and any benefits so paid prior to such determination shall in no event be considered overpayments for purposes of subsection (b) of this section solely because such individual is determined not to be disabled.

(5) Payment of the benefit of any individual who is an aged, blind, or disabled individual solely by reason of blindness (as determined under section 1382c (a) (2) of this title) or disability (as determined under section 1382c (a) (3), of this title), and who ceases to be blind or to be under such disability shall continue (so long as such individual is otherwise eligible) through the second month following the month in which such blindness or disability

ceases.

(b) Overpayments and underpayments; adjustment, recovery, or payment of amounts by Secretary. Whenever the Secretary finds that more or less than the correct amount of benefits has been paid with respect to any individual, proper adjustment or recovery shall, subject to the succeeding provisions of this subsection, be made by appropriate adjustments in future payments to such individual or by recovery from or payment to such individual or his eligible spouse (or by recovery from the estate of either). The Secretary shall make such provision as he finds appropriate in the case of payment of more than the correct amount of benefits with respect to an individual with a view to avoiding penalizing such individual or his eligible spouse who was without fault in connection with the overpayment, if adjustment or recovery on account of such over

payment in such case would defeat the purposes of this subchapter, or be against equity or good conscience, or (because of the small amount involved) impede efficient or effective administration of this subchapter.

(c) Hearing for eligible individual or eligible spouse where eligibility or amount of benefit is in question; time for request for hearing; time for determinations pursuant to hearing; finality and conclusiveness of determinations of Secretary. (1) The Secretary shall provide reasonable notice and opportunity for a hearing to any individual who is or claims to be an eligible individual or eligible spouse and is in disagreement with any determination under this subchapter with respect to eligibility of such individual for benefits, or the amount of such individual's benefits, if such individual requests a hearing on the matter in disagreement within thirty days after notice of such determination is received.

(2) Determination on the basis of such hearing, except to the extent that the matter in disagreement involves the existence of a disability (within the meaning of section 1382c (a) (3) of this title), shall be made within ninety days after the individual requests the hearing as provided in paragraph (1).

(3) The final determination of the Secretary after a hearing under paragraph (1) shall be subject to judicial review as provided in section 405 (g) of this title to the same extent as the Secretary's final determinations under section 405 of this title; except that the determination of the Secretary after such hearing as to any fact shall be final and conclusive and not subject to review by any court. (d) Applicability of procedural requirements; prohibition on assignment of payments, appointment of hearing examiners; representation of claimants; maximum fees; violations; penalties. (1) The provisions of section 407 of this title and subsections (a), (d), (e), and (f) of section 405 of this title shall apply with respect to this part to the same extent as they apply in the case of subchapter II of this chapter.

(2) To the extent the Secretary finds it will promote the achievement of the objectives of this subchapter, qualified persons may be appointed to serve as hearing examiners in hearings under subsection (c) of this section without meeting the specific standards prescribed for hearing examiners by or under subchapter II of chapter 5 of Title 5.

(3) The Secretary may prescribe rules and regulations governing the recognition of agents or other persons, other than attorneys, as hereinafter provided, representing claimants before the Secretary under this subchapter, and may require of such agents or other persons, before being recognized as representatives of claimants, that they shall show that they are of good character and in good repute, possessed of the necessary qualifications to enable them to render such claimants valuable service, and otherwise competent to advise and assist such claimants in the presentation of their cases. An attorney in good standing who is admitted to practice before the highest court of the State, Territory, District, or insular possession of his residence or before the Supreme Court of the United States or the inferior

Federal courts, shall be entitled to represent claimants before the Secretary. The Secretary may, after due notice and opportunity for hearing, suspend or prohibit from further practice before him any such person, agent, or attorney who refuses to comply with the Secretary's rules and regulations or who violates any provision of this paragraph for which a penalty is prescribed. The Secretary may, by rule and regulation, prescribe the maximum fees which may be charged for services performed in connection with any claim before the Secretary under this subchapter, and any agreement in violation of such rules and regulations shall be void. Any person who shall, with intent to defraud, in any manner willfully and knowingly deceive, mislead, or threaten any claimant or prospective claimant or beneficiary under this subchapter by word, circular, letter, or advertisement, or who shall knowingly charge or collect directly or indirectly any fee in excess of the maximum fee, or make any agreement directly or indirectly to charge or collect any fee in excess of the maximum fee, prescribed by the Secretary, shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall for each offense be punished by a fine not exceeding $500 or by imprisonment not exceeding one year, or both.

(e) Administrative requirements prescribed by Secretary; criteria; reduction of benefits to individual for noncompliance with requirements.

(1) (A) The Secretary shall, subject to subparagraph (B), prescribe such requirements with respect to the filing of applications, the suspension or termination of assistance, the furnishing of other data and material, and the reporting of events and changes in circumstances, as may be necessary for the effective and efficient administration of this subchapter.

(B) The requirements prescribed by the Secretary pursuant to subparagraph (A) shall require that eligibility for benefits under this subchapter will not be determined solely on the basis of declarations by the applicant concerning eligibility factors or other relevant facts, and that revelant information will be verified from independent or collateral sources and additional information obtained as necessary in order to assure that such benefits are only provided to eligible individuals (or eligible spouses) and that the amounts of such benefits are correct.

(2) In case of the failure by any individual to submit a report of events and changes in circumstances relevant to eligibility for or amount of benefits under this subchapter as required by the Secretary under paragraph (1), or delay by any individual in submitting a report as so required, the Secretary (in addition to taking any other action he may consider appropriate under paragraph (1)) shall reduce any benefits which may subsequently become payable to such individual under this subchapter by

(A) $25 in the case of the first such failure or delay,

(B) $50 in the case of the second such failure or delay, and

(C) $100 in the case of the third or a subsequent such failure or delay,

except where the individual was without fault or good cause for such failure or delay existed.

(f) Furnishing of information by Federal agencies.

The head of any Federal agency shall provide such information as the Secretary needs for purposes of determining eligibility for or amount of benefits, or verifying other information with respect thereto. (Aug. 14, 1935, ch. 531, title XVI, § 1631, as added Oct. 30, 1972, Pub. L. 92-603, title III, § 301, 86 Stat. 1475, and amended Dec. 31, 1973, Pub. L. 93-233, § 18 (g), 87 Stat. 969.)

CODIFICATION

A prior section 1383, act Aug. 14, 1935, ch. 531, title XVI, § 1603, as added July 25, 1962, Pub. L. 87-543, title I, § 141 (a), 76 Stat. 200, and amended July 30, 1965, Pub. L. 89-97, title I, § 122, title II, § 221(d) (4), title IV, § 401 (b), 79 Stat. 353, 359, 414; Jan. 2, 1968, Pub. L. 90-248, title II, § 212 (d), 81 Stat. 898; Oct. 20, 1972, Pub. L. 92-512, title III, § 301(b), (d), (e), 86 Stat. 946, 947, related to the determination of amounts payable to the states. See section 803 of this title.

AMENDMENTS

1973-Subsec. (a) (4) (B). Pub. L. 93-233 inserted "solely because such individual is determined not to be disabled." EFFECTIVE DATE OF 1973 AMENDMENT Amendment by Pub. L. 93-233 effective Jan. 1, 1974, see section 18(2-3)(1) of Pub. L. 93-233, set out as a note under section 1320b of this title.

EFFECTIVE DATE

Section 301 of Pub. L. 92-603 provided in part that this section is to take effect Jan. 1, 1974.

PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS Enactment of provisions of Pub. L. 92-603, eff. Jan. 1, 1974, not applicable to Puerto Rico, Guam, and the Virgin Islands, see section 303 (b) of Pub. L. 92-603, set out as a note under section 301 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1306a, 1320b of this title.

§ 1383a. Fraudulent acts; penalties. Whoever

(1) knowingly and willfully makes or causes to be made any false statement or representation of a material fact in any application for any benefit under this subchapter,

(2) at any time knowingly and willfully makes or causes to be made any false statement or representation of a material fact for use in determining rights to any such benefit.

(3) having knowledge of the occurrence of any event affecting (A) his initial or continued right to any such benefit, or (B) the initial or continued right to any such benefit of any other individual in whose behalf he has applied for or is receiving such benefit, conceals or fails to disclose such event with an intent fraudulently to secure such benefit either in a greater amount or quantity than is due or when no such benefit is authorized, or

(4) having made application to receive any such benefit for the use and benefit of another and having received it, knowingly and willfully converts such benefit or any part thereof to a use other than for the use and benefit of such other person,

shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than $1,000 or imprisoned for not more than one year, or both.

(Aug. 14, 1935, ch. 531, title XVI, § 1632, as added Oct. 30, 1972, Pub. L. 92-603, title III, § 301, 86 Stat. 1478.)

EFFECTIVE DATE

Section 301 of Pub. L. 92-603 provided in part that this section is to take effect Jan. 1, 1974.

PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS Enactment of provisions of Pub. L. 92-603, eff. Jan. 1, 1974, not applicable to Puerto Rico, Guam, and the Virgin Islands, see section 303(b) of Pub. L. 92-603, set out as a note under section 301 of this title.

§ 1383b. Administration.

(a) Subject to subsection (b) of this section, the Secretary may make such administrative and other arrangements (including arrangements for the determination of blindness and disability under section 1382c (a) (2) and (3) of this title in the same manner and subject to the same conditions as provided with respect to disability determinations under section 421 of this title) as may be necessary or appropriate to carry out his functions under this subchapter.

(b) In determining, for purposes of this subchapter, whether an individual is blind, there shall be an examination of such individual by a physician skilled in the diseases of the eye or by an optometrist, whichever the individual may select. (Aug. 14, 1935, ch. 531, title XVI, § 1633, as added Oct. 30, 1972, Pub. L. 92-603, title III, § 301, 86 Stat. 1478, and amended July 9, 1973, Pub. L. 93-66, title II, § 214, 87 Stat. 158.)

AMENDMENTS

1973 Subsec. (a). Pub. L. 93-66, § 214(1), (2), designated existing provisions as subsec. (a) and made the authority of the Secretary subject to subsec. (b) of this section.

Subsec. (b). Pub. L. 93-66, § 214(3), added subsec. (b).

EFFECTIVE DATE

Section 301 of Pub. L. 92-603 provided in part that this section is to take effect Jan. 1, 1974.

FEDERAL PROGRAM OF SUPPLEMENTAL SECURITY INCOME; PREFERENCE FOR PRESENT STATE AND LOCAL EMPLOYEES Section 213 of Pub. L. 93-66 provided that: "The Secretary of Health, Education, and Welfare, in the recruitment and selection for employment of personnel whose services will be utilized in the administration of the Federal program of supplemental security income for the aged, blind, and disabled (established by title XVI of the Social Security Act this subchapter]), shall give a preference, as among applicants whose qualifications are reasonably equal (subject to any preferences conferred by law or regulation on individuals who have been Federal employees and have been displaced from such employment), to applicants for employment who are or were employed in the administration of any State program approved under title [subchapter] I, X, XIV, or XVI of such Act [this chapter] and are or were involuntarily displaced from their employment as a result of the displacement of such State program by such Federal program."

PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS Enactment of provisions of Pub. L. 92-603, eff. Jan. 1, 1974, not applicable to Puerto Rico, Guam, and the Virgin Islands, see section 303 (b) of Pub. L. 92-603, set out as a note under section 301 of this title.

§ 1383c. Eligibility for medical assistance of aged, blind, or disabled individuals under State's medical assistance plan; determination by Secretary pursuant to agreement between Secretary and State; costs.

The Secretary may enter into an agreement with any State which wishes to do so under which he

will determine eligibility for medical assistance in the case of aged, blind, or disabled individuals under such State's plan approved under subchapter XIX of this chapter. Any such agreement shall provide for payments by the State, for use by the Secretary in carrying out the agreement, of an amount equal to one-half of the cost of carrying out the agreement, but in computing such cost with respect to individuals eligible for benefits under this subchapter, the Secretary shall include only those costs which are additional to the costs incurred in carrying out this subchapter. (Aug. 14, 1935, ch. 531, title XVI, § 1634, as added Oct. 30, 1972, Pub. L. 92-603, title III, § 301, 86 Stat. 1478.)

EFFECTIVE DATE

Section 301 of Pub. L. 92-603 provided in part that this section is to take effect Jan. 1, 1974.

PUERTO RICO, GUAM, AND THE VIRGIN ISLANDS Enactment of provisions of Pub. L. 92-603, eff. Jan. 1, 1974, not applicable to Puerto Rico, Guam, and the Virgin Islands, see section 303(b) of Pub. L. 92-603, set out as a note under section 301 of this title.

§ 1384. Operation of State plans.

Section, act Aug. 14, 1935, c. 531, title XVI, § 1604, as added July 25, 1962, Pub. L. 87-543, title I, § 141(a), 76 Stat. 204, which related to the operation of State plans, was omitted in the general revision of this subchapter by Pub. L. 92-603, Oct. 30, 1972, 86 Stat. 1465, eff. Jan. 1, 1974. See section 804 of this title.

§ 1385. Definitions.

Section, act Aug. 14, 1935, ch. 531, title XVI, § 1605, as added July 25, 1962, Pub. L. 87-543, title I, § 141(a), 76 Stat. 204, and amended July 30, 1965, Pub. L. 89-97, title II. §§ 221(d) (1), (2), 222 (b), title IV, § 402(b), 79 Stat. 358, 360, 416, which defined the terms "aid to the aged, blind, or disabled" and "medical assistance for the aged", was omitted in the general revision of this subchapter by Pub. L. 92-603, Oct. 30, 1972, 86 Stat. 1465, eff. Jan. 1, 1974. See section 805 of this title.

SUBCHAPTER XVIII-HEALTH INSURANCE

FOR THE AGED AND DISABLED SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in sections 300e-6, 705, 706, 1306, 1320a-1, 1320a-2, 1320c-9, 1320c-14, 1395x, 1395gg, 1396b, 13961 of this title; title 12 section 1715w; title 38 section 4108; title 45 section 228s-3.

§ 1395b-1. Incentives for economy while maintaining or improving quality in the provision of health services.

(a) Grants and contracts to develop and engage in experiments and demonstration projects.

(1) The Secretary of Health, Education, and Welfare is authorized, either directly or through grants to public or nonprofit private agencies, institutions, and organizations or contracts with public or private agencies, institutions, and organizations, to develop and engage in experiments and demonstration projects for the following purposes:

(A) to determine whether, and if so which, changes in methods of payment or reimbursement (other than those dealt with in section 222 (a) of the Social Security Amendments of 1972) for health care and services under health programs established by this chapter, including a change to methods based on negotiated rates, would have the effect of increasing the efficiency and economy of health services under such programs through the creation of additional incentives to these ends

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