Provides for auto-enrollment of subsidy eligible individuals in Medicare operated PDPs.

Amends SSA title XIX (Medicaid) to provide for the use of 2005 as base in computing the state clawback provision.

Amends SSA title XVIII (Medicare) to eliminate part D cost-sharing for certain non-institutionalized full-benefit dual eligible individuals.

Provides for: (1) expedited low-income subsidies under the Medicare PDP; (2) indexing of deductible and cost-sharing for certain individuals; and (3) Commissioner of Social Security screening for Medicare savings program eligibility.

Sets forth anti-fraud and abuse provisions.

Provides for protection against a decrease in Social Security benefits owing to part D Medicare premium increases.

Prohibits late enrollment penalties for months before January 2008. Allows a one-time change in plan during first year of enrollment.

Prohibits a PDP sponsor from removing a covered part D drug from the plan formulary, downgrading its cost-sharing status, or otherwise introducing a barrier to access to covered part D drugs, without advance notice.

Requires Medicare part D formularies to cover all drugs in six specified therapeutic categories.

Makes benzodiazepines covered part D drugs, subject to review by the Secretary.

Eliminates the MA Regional Stabilization Fund and certain Medicare Advantage overpayments.

Requires prompt payment of clean claims by Medicare and Medicare Advantage PDPs.

Prohibits co-branding.

Extends part D coverage to medication therapy management services.