II 109th CONGRESS 2d Session S. 3647 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.

1.

Short title

This Act may be cited as the Prescription for Fairness Act of 2006.

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. .

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).