[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2375 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2375

   To authorize a demonstration project to expand eligibility under 
  existing State prescription drug assistance programs for low-income 
                                seniors.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 1999

  Mr. Gilman introduced the following bill; which was referred to the 
                         Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
   To authorize a demonstration project to expand eligibility under 
  existing State prescription drug assistance programs for low-income 
                                seniors.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Prescription Drug Assistance 
Expansion Demonstration Act of 1999''.

SEC. 2. DEMONSTRATION PROJECT TO EXPAND ELIGIBILITY UNDER EXISTING 
              STATE PRESCRIPTION DRUG ASSISTANCE PROGRAMS FOR LOW-
              INCOME SENIORS.

    (a) In General.--The Secretary of Health and Human Services shall 
provide for a demonstration project under this section under which 
grants are made to 3 States to expand eligibility under existing State 
low-income senior prescription drug assistance programs (as defined in 
subsection (e)(1)). Grants under the demonstration project shall be 
made for a 2-year period beginning during fiscal year 2000.
    (b) Qualification of States.--The Secretary may not make a grant to 
a State under the demonstration project unless the following conditions 
are met:
            (1) Existing program.--The State has an existing State low-
        income senior prescription drug assistance program and 
        continues to operate and fund such a program during the 
        duration of the demonstration project and does not reduce 
        eligibility of individuals for assistance under such program 
        during such period.
            (2) Qualifying expansion.--Under the grant the State will 
        expand eligibility under such program to qualifying low-income 
        seniors (as defined in subsection (e)(2)).
            (3) Same benefits.--
                    (A) In general.--With respect to coverage under 
                such program of such qualifying low-income seniors, 
                subject to subparagraph (B), the terms and conditions 
                of coverage (including enrollment fees, deductibles, 
                co-payments and other cost-sharing, and scope and 
                conditions of prescription drug coverage) shall be the 
                same as for other individuals 65 years of age or older 
                receiving assistance under such program.
                    (B) Treatment of conditions related to income.--In 
                applying subparagraph (A), if the program provides that 
                enrollment fees, deductibles, and other terms and 
                conditions under such program vary based on income of 
                individuals, the expansion under the grant may continue 
                to vary such fees, deductibles, and other terms and 
                conditions with respect to qualifying low-income 
                seniors based on their income but only in a manner that 
                reasonably reflects their higher income levels.
            (4) Application.--The State has submitted to the Secretary 
        an application containing such information and in such form and 
        manner as the Secretary may require to carry out the 
        demonstration project.
    (c) Selection Among Qualifying States.--In selecting the 3 States 
among those States that qualify to receive a grant under this section, 
the Secretary shall give priority to--
            (1) one State based on its receiving the highest level of 
        payments from the Federal government under its State medicaid 
        program; and
            (2) another State based on its being in the lowest quartile 
        of such payment level.
    (d) Payments.--
            (1) In general.--Under a grant to a State under the 
        demonstration project, subject to paragraph (2), the Secretary 
        shall pay to the State the additional costs incurred by the 
        State in its existing State low-income senior prescription drug 
        assistance program in providing assistance to qualifying low-
        income seniors under the demonstration project.
            (2) Limitation.--In no case shall the total of the payments 
        made under paragraph (1) to all States exceed the total amount 
        appropriated to carry out this section. Payments under 
        paragraph (1) shall be reduced pro rata to the extent necessary 
        to comply with the previous sentence.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated $150,000,000 for fiscal year 2000 to carry out this 
section. The amounts appropriated to carry out this section shall be 
available for obligation through fiscal year 2002.
    (f) Definitions.--For purposes of this section:
            (1) Existing state low-income senior prescription drug 
        assistance program.--The term ``existing State low-income 
        senior prescription drug assistance program'' means a program 
        that, as of June 1, 1999, is operated and funded by a State and 
        that provides assistance for the purchase of prescription drugs 
        to individuals 65 years of age or older who meet applicable 
        income and resource standards established under the program and 
        who are not eligible for medical assistance with respect to 
        prescription drugs under the State medicaid program.
            (2) Qualifying low-income senior.--The term ``qualifying 
        low-income senior'' means, with respect to a State, a resident 
        of the State who--
                    (A) is 65 years of age or older;
                    (B) does not qualify for medical assistance with 
                respect to prescription drugs under the State medicaid 
                program; and
                    (C) would be qualified for assistance under the 
                existing State low-income senior prescription drug 
                assistance program (as in effect on June 1, 1999) if 
                the individual's income were reduced by $5,000.
            (3) Demonstration project.--The term ``demonstration 
        project'' means the demonstration project conducted under this 
        section.
            (4) Grant.--The term ``grant'' includes a cooperative 
        agreement.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (6) State medicaid program.--The term ``State medicaid 
        program'' means a State plan under title XIX of the Social 
        Security Act.
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