Disability Insurance Reform Act of 1979

Disability Insurance Reform Act of 1979 - Title I: Entitlement and Benefit Amount - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to set, for individuals who attain age 62 after 1978 and become entitled to disability benefits after August 1979, a limit of 80 percent of the individual's average indexed monthly earnings as the maximum amount of total title II benefits that may be paid for any month. Stipulates that this reduction shall not apply to reduce the monthly benefits of such individual or such individual's beneficiaries, on the basis of the wages and self-employment income of such individual, for any month following the month preceding the month in which such individual dies.

Amends the procedure for computing the primary insurance amount of a disabled worker by stipulating that, in determining the number of benefit computation years, one year of low earnings shall be dropped for every five working years. Limits the maximum number of years which may be dropped to five.

Title II: Elimination of Disincentives to Engage in Substantial Gainful Activities - Eliminates the requirement that the 24 months which an individual must be disabled in order to qualify for hospital insurance benefits under the Medicare program be consecutive.

Provides "trial work periods" for disabled widows and widowers. Provides, in the case of children, widows, and widowers, that the period of time to which such individuals are entitled to disability insurance benefits payments may extend to the 15th month following the end of an individual's "trial work period." Entitles individuals who have had "trial work periods" to hospital insurance benefits under title XVIII (Medicare) for a period of 24 months following such period where such individuals have had disability benefits under title II terminated due to work.

Amends title XVI (Supplemental Security Income) of the Social Security Act to provide that an individual shall be considered disabled, if such individual's "trial work period" has ended, until: (1) the 15th month following the end of such individuals "trial work period", or (2) the month in which such individual's disability ceases. Prohibits such benefits from being paid solely by the application of the preceding sentence.

Amends title XIX (Medicaid) of the Social Security Act to extend medicaid coverage to an individual who had received supplemental security income under title XVI on the basis of: (1) disability but whose coverage was terminated due to returning to work; and (2) blindness but whose benefits were terminated because of the amount of his or her income.

Directs the Secretary of Health, Education, and Welfare, in determining when individuals can perform substantial gainful activity under the disability provisions of title II or the provisions of title XVI pertaining to blind individuals, to exclude from the earnings of such individuals costs incurred for attendant case or services which are necessary for them to engage in substantial gainful activity.

Directs the Secretary to report to Congress concerning the amendments made by title II of this Act.

Title III: Administrative Improvements - Directs the Secretary to promulgate regulations specifying performance standards and administrative procedures to be followed by States in making disability determinations. Authorizes the Secretary to make disability determinations if such regulations are not followed.

Directs the Secretary to make disability determinations if a State no longer wishes to make such determinations.

Amends part A (General Provisions) of title XI of the Social Security Act to authorize the Secretary to waive any of the requirements of titles II, XVI, or XVIII (Medicare) of the Social Security Act in order to carry out experimental or demonstration projects which, in the Secretary's judgment, are likely to assist in promoting the objectives of one or more of such titles.

Title IV: Judicial Review - Amends title II of the Social Security Act to make the findings of the Secretary as to any fact, in any hearing or investigation under title II, conclusive and not subject to judicial review, and permits a court to review only the validity of regulations under title II. Amends title XVIII to set forth similar provisions concerning judicial review of claims under title XI and XVIII of the Social Security.