[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2605 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2605

   To amend title XVIII of the Social Security Act to geographically 
 adjust the amount of the medicare part B premium based on the use of 
   health care items and services in the State in which the medicare 
              beneficiary resides, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 10, 2002

Mr. Daschle (for Mr. Harkin (for himself and Mr. Craig)) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
   To amend title XVIII of the Social Security Act to geographically 
 adjust the amount of the medicare part B premium based on the use of 
   health care items and services in the State in which the medicare 
              beneficiary resides, and for other purposes.

    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 ``Medicare Premium Fairness Act of 
2002''.

SEC. 2. GEOGRAPHIC ADJUSTMENT OF MEDICARE PART B PREMIUMS.

    (a) In General.--Section 1839 of the Social Security Act (42 U.S.C. 
1395r), as amended by section 606(a)(2)(B)(i) of the Medicare, 
Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 
(114 Stat. 2763A-557), as enacted into law by section 1(a)(6) of Public 
Law 106-554, is amended--
            (1) in subsection (a)(2), by striking ``shall'' and all 
        that follows and inserting the following: ``shall be--
                    ``(A) the amount determined under paragraph (3), 
                adjusted as required in accordance with subsections 
                (b), (c), and (f), and, for each month after December 
                2002, to reflect 80 percent of any reduction elected 
                under section 1854(f)(1)(E); and
                    ``(B) for each month after December 2002, 
                multiplied by the geographic adjustment factor 
                established under subsection (h) applicable with 
                respect to the State in which the individual resides 
                for months in that year.''; and
            (2) by adding at the end the following new subsection:
    ``(h)(1) The Secretary, in consultation with the Medicare Payment 
Advisory Commission, shall establish a geographic adjustment factor for 
a year for each State based on the most recent available data regarding 
the average amount of expenditures under this part for the year for a 
beneficiary enrolled under this part that resides in the State during 
that year.
    ``(2) In establishing the geographic adjustment factors under 
paragraph (1), the Secretary shall ensure that the total amount of 
monthly premiums for individuals in all States after the application of 
such factors equals the amount that would have been the total amount of 
monthly premiums for individuals in all States if such factors did not 
apply.''.
    (b) Payment of Premiums.--Section 1840 of the Social Security Act 
(42 U.S.C. 1395s), as amended by section 606(a)(2)(B)(ii) of the 
Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act 
of 2000 (114 Stat. 2763A-557), as enacted into law by section 1(a)(6) 
of Public Law 106-554, is amended by adding at the end the following 
new subsection:
    ``(j) For months beginning after December 2002, the Secretary shall 
provide for necessary adjustments of the monthly premium of each 
individual under this part to reflect the application of the geographic 
adjustment factors established under section 1839(h). To the extent to 
which the Secretary determines that such an adjustment is appropriate, 
with the concurrence of any agency responsible for the administration 
of such benefits, such premium adjustment may be provided directly, as 
an adjustment to any social security, railroad retirement, or civil 
service retirement benefits, or, in the case of an individual who 
receives medical assistance under title XIX for medicare costs 
described in section 1905(p)(3)(A)(ii), as an adjustment to the amount 
otherwise owed by the State for such medical assistance.''.
                                 <all>