[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3647 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3647

 To amend title XVIII of the Social Security Act to waive the monthly 
  beneficiary premium under a prescription drug plan or an MA-PD plan 
during months in which an individual enrolled in such a plan has a gap 
                     in prescription drug coverage.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 12, 2006

 Mr. Dorgan (for himself, Mr. Bingaman, Ms. Stabenow, Mr. Lautenberg, 
 Mr. Johnson, Ms. Mikulski, Mrs. Clinton, Mr. Menendez, and Mr. Akaka) 
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 waive the monthly 
  beneficiary premium under a prescription drug plan or an MA-PD plan 
during months in which an individual enrolled in such a plan has a gap 
                     in prescription drug coverage.

    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 ``Prescription for Fairness Act of 
2006''.

SEC. 2. WAIVER OF MONTHLY BENEFICIARY PREMIUM DURING COVERAGE GAP.

    (a) In General.--Section 1860D-13(a) of the Social Security Act (42 
U.S.C. 1395w-113(a)) is amended by adding at the end the following new 
paragraph:
            ``(7) Waiver of monthly beneficiary premium during coverage 
        gap.--
                    ``(A) In general.--During the period beginning on 
                the date of enactment of the Prescription for Fairness 
                Act of 2006 and ending on September 30, 2008, in the 
                case of an individual enrolled in a prescription drug 
                plan or an MA-PD plan which does not provide any 
                coverage of benefits after the individual has reached 
                the initial coverage limit under paragraph (3) of 
                section 1860D-2(b) and before the individual has 
                reached the annual out-of-pocket threshold specified in 
                paragraph (4)(B) of such section, the following rules 
                shall apply:
                            ``(i) The individual is not responsible for 
                        payment of the monthly beneficiary premium (as 
                        computed under paragraph (2) and adjusted under 
                        paragraph (1)) under such a plan for any month 
                        during which such coverage is not provided.
                            ``(ii) The Secretary shall provide for 
                        payment of such monthly beneficiary premium 
                        under such a plan on behalf of such an 
                        individual for any month described in clause 
                        (i). Such payment shall be made from the 
                        Medicare Prescription Drug Account.
                    ``(B) Refund of premiums paid.--In the case of such 
                an individual who pays the monthly beneficiary premium 
                under such a plan for a month during which such 
                coverage is not provided, the Secretary shall refund an 
                amount equal to the premium paid. Such refund shall be 
                made from such Account.''.
    (b) Conforming Amendments.--Section 1854(b)(1) of the Social 
Security Act (42 U.S.C. 1395w-24(b)(1)) is amended--
            (1) in subparagraph (A), by inserting ``and, if applicable, 
        the waiver under subparagraph (D)'' after ``subparagraph (C)''; 
        and
            (2) by adding at the end the following new subparagraph:
                    ``(D) Waiver of ma monthly prescription drug 
                beneficiary premium.--During the period beginning on 
                the date of enactment of the Prescription for Fairness 
                Act of 2006 and ending on September 30, 2008, the 
                provisions of section 1860D-13(a)(7) shall apply to the 
                MA monthly prescription drug beneficiary premium in the 
                same manner as they apply to the monthly beneficiary 
                premium under such section.''.

SEC. 3. REDUCTION OF MEDICARE ADVANTAGE REGIONAL PLAN STABILIZATION 
              FUND AMOUNT.

    (a) In General.--Section 1858(e)(2) of the Social Security Act (42 
U.S.C. 1395w-27a(e)(2)) is amended--
            (1) in subparagraph (A)(i), by striking ``There shall'' and 
        inserting ``Subject to subparagraph (E), there shall''; and
            (2) by adding at the end the following new subparagraph:
                    ``(E) Reduction in initial funding to offset cost 
                of waiver of prescription drug premium.--The Secretary 
                shall reduce the amount available under subparagraph 
                (A)(i) by an amount equal to the Secretary's estimate 
                of the increased expenditures from the Medicare 
                Prescription Drug Account by reason of the amendments 
                made by section 2 of the Prescription for Fairness Act 
                of 2006.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 221(c) of the 
Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
(Public Law 108-173; 117 Stat. 2181).
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