II 109th CONGRESS 2d Session S. 2759 IN THE SENATE OF THE UNITED STATES May 8, 2006 Mr. Smith (for himself and Mr. Bingaman) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide for additional outreach and education related to the Medicare program and to amend title XVIII of the Social Security Act to provide a special enrollment period for individuals who qualify for an income-related subsidy under the Medicare prescription drug program.

1.

Short title

This Act may be cited as the Medicare Part D Outreach and Enrollment Enhancement Act of 2006.

2.

Outreach and education funding

(a)

Medicare outreach and education by State Health Insurance Counseling Programs

(1)

Fiscal year 2006

There are appropriated $13,500,000 to the Centers for Medicare & Medicaid Services to be used to provide additional grants to State health insurance counseling and assistance programs to conduct outreach and education related to enrollment in the Medicare program under title XVIII of the Social Security Act. (2)

Additional funding for future outreach and education efforts

There are authorized to be appropriated for each of fiscal years 2007, 2008, 2009, and 2010, an amount equal to $1 multiplied by the total number of individuals entitled to benefits, or enrolled, under part A of title XVIII of the Social Security Act, or enrolled under part B of such title during the fiscal year (as determined by the Secretary of Health and Human Services, based on the most recent available data before the beginning of the fiscal year) to be used to provide additional grants to State health insurance counseling and assistance programs to conduct outreach and education related to enrollment in such Medicare program. (b)

Part D outreach and education

(1)

In general

There are appropriated $6,300,000 to the Centers for Medicare & Medicaid Services to be used to provide funding to Area Agencies on Aging and Native American aging programs to conduct outreach and education related to the Medicare prescription drug program under part D of title XVIII of the Social Security Act. (2)

Transfer of funds through interagency agreement

(A)

Transfer

Subject to subparagraph (B), the Administrator of the Centers for Medicare & Medicaid Services shall transfer amounts provided under paragraph (1) to the Administration on Aging under an interagency agreement. (B)

Interagency agreement

The interagency agreement entered into under subparagraph (A) shall establish guidelines with respect to the distribution of amounts transferred under such subparagraph to Area Agencies on Aging and Native American aging programs, taking into account any variations in the population served by such Agencies and such programs. (C)

Timing of interagency agreement and distribution of funds

(i)

Interagency agreement

Not later than the date that is 60 days after the date of enactment of this Act, the Administrator of the Centers for Medicare & Medicaid Services shall enter into the interagency agreement described in subparagraph (A). (ii)

Distribution of funds

Not later than the date that is 120 days after the date of enactment of this Act, the Administration on Aging shall distribute the amounts transferred under such interagency agreement.

3.

Special enrollment period for individuals eligible for an income-related subsidy

(a)

Special enrollment period

Section 1860D–1(b)(3) of the Social Security Act (42 U.S.C. 1395w–101(b)(3)) is amended by adding at the end the following new subparagraph: (F)

Application for low-income subsidy

(i)

In general

Subject to clause (iii), in the case of an applicable individual (as defined in clause (ii)). (ii)

Applicable individual defined

For purposes of this subparagraph, the term applicable individual means a part D eligible individual who— (I)has an application for an income-related subsidy under section 1860D–14 pending during the individual’s initial enrollment period (as determined under paragraph (2)); and (II)does not receive notification of the approval or disapproval of such application prior to the end of such initial enrollment period. (iii)

Timing of special enrollment period

The special enrollment period established under this subparagraph shall be for a period (not to exceed 30 days) beginning on the date the applicable individual receives the notification described in clause (ii)(II). . (b)

Waiver of late enrollment penalty

Section 1860D–13(b) of the Social Security Act (42 U.S.C. 1395w–113(b)) is amended by adding at the end the following new paragraph: (8)

Waiver of penalty

An applicable individual (as defined in clause (ii) of section 1860D–1(b)(3)(F)) who enrolls during the special enrollment period established under such section shall not be subject to an increase in the monthly beneficiary premium established under subsection (a) with respect to months occurring prior to the date of such enrollment. . (c)

Effective date

The amendments made by this section shall take effect as if included in the enactment of section 101(a) of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108–173).