DATE: Saturday, August 16, 1997             TAG: 9708160257

SECTION: FRONT                   PAGE: A5   EDITION: FINAL 

SOURCE: THE NEW YORK TIMES 
DATELINE: WASHINGTON                        LENGTH:   58 lines

THOUSANDS OF DISABLED CHILDREN LOSING CASH BENEFITS

The government has decided to cut off cash benefits for 95,180 disabled children, representing more than half of all those whose cases have been reviewed under strict new standards established by the 1996 welfare law, federal officials say.

The denials are running somewhat higher than the White House had expected, and if the rate continues as more cases are reviewed, 15 percent of the 1 million children in the program could lose their benefits.

Data compiled by the Social Security Administration show that most of the children losing disability benefits - 78,600 of the 95,180 - have ``mental disorders.'' But Susan Daniels, the associate commissioner of Social Security in charge of disability programs, said she did not know how many of the children were mentally retarded, how many had personality disorders and how many had learning disabilities or behavioral problems.

Members of Congress, parents and other advocates said that children with major disabilities - those with IQs in the 60s, with uncontrolled diabetes or with AIDS - had been notified that their benefits would end even though they clearly seemed to meet the new standards.

The cash benefits, averaging $436 a month for a child, are paid under the Supplemental Security Income program. The children are all from low-income families.

The changes in the disability program provoked fierce debate in Congress in 1995 and 1996. Republicans said they were tightening the eligibility criteria to curtail fraud and abuse, and they said they had evidence that some parents were coaching children to misbehave in school or fake disabilities to get benefits. Democrats said that the Republicans, in an effort to balance the budget, were being cruel to children.

Defending the Republicans' proposal in 1995, Rep. Jim McCrery of Louisiana said, ``The lethal combination of generous cash benefits, loose eligibility criteria and the lack of proper congressional oversight inherent in all welfare entitlement programs has resulted in explosive program growth and widespread abuse.''

But Rep. Sander Levin, D-Mich., told the Republicans, ``You're being hard-hearted.'' He implored them to remember that ``we're talking about the most vulnerable children in America.''

Prior to 1996, children could qualify for benefits if they had impairments that seriously limited their ability to perform activities normal for their age. Under the new law, children can get benefits only if they have ``marked and severe functional limitations.'' Congress did not say precisely how severe the disability must be, letting the president and other officials answer that question by issuing regulations.

Federal officials notified 264,000 of the 1 million children on the disability rolls that they might be affected by the new law and that their cases would be reviewed. Those children did not have impairments that exactly matched the criteria for automatic eligibility, but had qualified for benefits through an assessment of their overall ability to function normally.

Benefits have been cut off in 56 percent of the 170,300 cases reassessed so far by disability examiners. KEYWORDS: SSI MENTAL DISABILITY

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