[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2725 Introduced in Senate (IS)]

  2d Session
                                S. 2725

To amend the Medicare Prescription Drug, Improvement, and Modernization 
Act of 2003 to eliminate the coverage gap, to eliminate HMO subsidies, 
       to repeal health savings accounts, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 2004

Mrs. Boxer (for herself, Ms. Mikulski, Mr. Lautenberg, and Mr. Corzine) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Medicare Prescription Drug, Improvement, and Modernization 
Act of 2003 to eliminate the coverage gap, to eliminate HMO subsidies, 
       to repeal health savings accounts, 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 ``Closing the Coverage Gap Act of 
2004''.

       TITLE I--IMPROVEMENT OF MEDICARE PRESCRIPTION DRUG BENEFIT

SEC. 101. ELIMINATION OF COVERAGE GAP.

    (a) In General.--Section 1860D-2(b) of the Social Security Act, as 
added by section 101(a) of the Medicare Prescription Drug, Improvement, 
and Modernization Act of 2003, is amended--
            (1) in paragraph (1)(A)(ii), by striking ``paragraph (6)'' 
        and inserting ``paragraph (5)'';
            (2) in paragraph (2)(A), by striking `` and up to the 
        initial coverage limit under paragraph (3)'';
            (3) by striking paragraphs (3) and (4) and inserting the 
        following:
            ``(3) Protection against high out-of-pocket expenditures.--
                    ``(A) In general.--The coverage provides benefits 
                with cost-sharing that is equal to the greater of--
                            ``(i) a copayment of $2 for a generic drug 
                        or a preferred drug that is a multiple source 
                        drug (as defined in section 1927(k)(7)(A)(i)) 
                        and $5 for any other drug; or
                            ``(ii) coinsurance that is equal to 5 
                        percent.
                    ``(B) Adjustment of amount.--For a year after 2006, 
                the dollar amounts specified in subparagraph (A)(i) 
                shall be equal to the dollar amounts specified in this 
                subparagraph for the previous year, increased by the 
                annual percentage increase described in paragraph (5) 
                for the year involved. Any amount established under 
                this clause that is not a multiple of a 5 cents shall 
                be rounded to the nearest multiple of 5 cents.''; and
            (4) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.
    (b) Conforming Amendment.--Section 1860D-14(a) of such Act, as so 
added, is amended by striking subparagraph (C) of paragraphs (1) and 
(2).
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the Medicare Prescription 
Drug, Improvement, and Modernization Act of 2003.

                 TITLE II--ELIMINATION OF HMO SUBSIDIES

SEC. 201. ELIMINATION OF MA REGIONAL PLAN STABILIZATION FUND.

    Subsection (e) of section 1858 of the Social Security Act, as added 
by section 221(c) of the Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003, is repealed.

SEC. 202. ELIMINATION OF PREMIUM SUPPORT DEMONSTRATION PROGRAM.

    Effective as if included in the enactment of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003, subtitle 
E of title I of such Act is repealed and any provisions of law amended 
by such subtitle are restored as if such subtitle had not been enacted.

              TITLE III--REPEAL OF HEALTH SAVINGS ACCOUNTS

SEC. 301. REPEAL OF HEALTH SAVINGS ACCOUNTS.

    Section 1201 of the Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003 is repealed and any provisions of law amended 
by such section are restored as if such section had not been enacted.
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