II 109th CONGRESS 2d Session S. 3764 IN THE SENATE OF THE UNITED STATES July 31, 2006 Mr. Lautenberg 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 eliminate the coverage gap under the Medicare part D prescription drug program.

1.

Short title

This Act may be cited as the Medicare Part D Coverage Gap Elimination Act of 2006.

2.

Elimination of Medicare part D coverage gap

(a)

Elimination of coverage gap

(1)

In general

(A)

In general

Paragraph (3) of section 1860D–2(b) of the Social Security Act (42 U.S.C. 1395w–102(b)) is repealed. (B)

Revision of benefit structure

Section 1860D–2(b)(2)(A) of such Act (42 U.S.C. 1395w–102(b)(2)(A)) is amended by striking and up to the initial coverage limit under paragraph (3) and inserting and up to the point at which the annual out-of-pocket threshold is reached under paragraph (4) in the matter preceding clause (i). (2)

Conforming amendments

(A)

Supplemental prescription drug coverage

Section 1860D–2(a)(2)(A)(i)(I) of such Act (42 U.S.C. 1395w–102(a)(2)(A)(i)(I)) is amended— (i)by striking deductible, and inserting deductible or; (ii)by striking , or an increase in the initial coverage limit; and (iii)by striking or increase. (B)

Catastrophic

Section 1860D–2(b)(4)(C)(i) of such Act (42 U.S.C. 1395w–102(b)(4)(C)(i)) is amended— (i)by striking paragraph (1), and inserting paragraph (1) or; and (ii)by striking and for amounts for which benefits are not provided because of the application of the initial coverage limit described in paragraph (3),. (C)

Alternative prescription drug coverage

Section 1860D–2(c)(1)(C) of such Act (42 U.S.C. 1395w–102(c)(1)(C)) is amended— (i)in the heading by striking initial coverage limit and inserting out-of-pocket threshold; and (ii)by striking the initial coverage limit under subsection (b)(3) each place it appears and inserting the out-of-pocket threshold under subsection (b)(4). (D)

Access to negotiated prices

Section 1860D–2(d)(1)(A) of such Act (42 U.S.C. 1395w–102(d)(1)(A)) is amended by striking or an initial coverage limit (described in subsection (b)(3)). (E)

Claims information

Section 1860D–4(a)(4)(B)(i) of such Act (42 U.S.C. 1395w–104(a)(4)(B)(i)) is amended by striking relation to— and all that follows through the annual and inserting relation to the annual. (F)

Low-income subsidies

Section 1860D–14(a) of such Act (42 U.S.C. 1395w–114(a)) is amended by striking subparagraph (C) of paragraphs (1) and (2). (G)

Definition

Section 1860D–41(a)(6) of such Act (42 U.S.C. 1395w–151(a)(6)) is repealed. (b)

Effective Date

The amendments made by this section shall take effect on January 1, 2007.