[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1536 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1536

  To amend part D of title XVIII of the Social Security Act to assist 
   low-income individuals in obtaining subsidized prescription drug 
coverage under the Medicare prescription drug program by expediting the 
  application and qualification process and by revising the resource 
  standards used to determine eligibility for such subsidies, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 15, 2007

Mr. Doggett (for himself, Mr. Abercrombie, Mr. Ackerman, Mr. Allen, Mr. 
Andrews, Mr. Baca, Mr. Becerra, Ms. Berkley, Mr. Berman, Mr. Berry, Mr. 
Bishop of Georgia, Mr. Bishop of New York, Mr. Blumenauer, Ms. Corrine 
    Brown of Florida, Mr. Butterfield, Mrs. Capps, Mr. Capuano, Mr. 
 Cardoza, Ms. Carson, Ms. Castor, Mr. Chandler, Mrs. Christensen, Ms. 
Clarke, Mr. Clay, Mr. Cleaver, Mr. Clyburn, Mr. Cohen, Mr. Conyers, Mr. 
  Costello, Mr. Courtney, Mr. Crowley, Mr. Cuellar, Mr. Cummings, Mr. 
Davis of Alabama, Mr. Davis of Illinois, Mrs. Davis of California, Mr. 
    DeFazio, Ms. DeGette, Mr. Delahunt, Ms. DeLauro, Mr. Doyle, Mr. 
  Edwards, Mr. Ellison, Mr. Emanuel, Mr. Engel, Mr. Faleomavaega, Mr. 
Farr, Mr. Fattah, Mr. Filner, Mr. Frank of Massachusetts, Mr. Gonzalez, 
   Mr. Gordon of Tennessee, Mr. Al Green of Texas, Mr. Gene Green of 
Texas, Mr. Grijalva, Mr. Gutierrez, Mr. Hare, Mr. Hastings of Florida, 
 Ms. Herseth, Mr. Higgins, Mr. Hinchey, Mr. Hinojosa, Ms. Hirono, Mr. 
Honda, Mr. Inslee, Mr. Israel, Mr. Jackson of Illinois, Ms. Jackson-Lee 
   of Texas, Mr. Jefferson, Ms. Eddie Bernice Johnson of Texas, Mr. 
Johnson of Georgia, Mrs. Jones of Ohio, Mr. Kanjorski, Ms. Kaptur, Mr. 
    Kennedy, Mr. Kildee, Ms. Kilpatrick, Mr. Klein of Florida, Mr. 
Kucinich, Mr. Langevin, Mr. Lantos, Mr. Larson of Connecticut, Ms. Lee, 
 Mr. Levin, Mr. Lewis of Georgia, Mr. Lipinski, Mrs. Lowey, Mr. Lynch, 
 Mrs. Maloney of New York, Ms. Matsui, Ms. McCollum of Minnesota, Mr. 
McDermott, Mr. McGovern, Mr. McNulty, Mr. Meehan, Mr. Meek of Florida, 
Mr. Meeks of New York, Mr. Michaud, Ms. Millender-McDonald, Mr. Miller 
   of North Carolina, Mr. George Miller of California, Mr. Moore of 
Kansas, Ms. Moore of Wisconsin, Mr. Moran of Virginia, Mr. Nadler, Mrs. 
 Napolitano, Mr. Neal of Massachusetts, Ms. Norton, Mr. Oberstar, Mr. 
Olver, Mr. Ortiz, Mr. Pascrell, Mr. Pastor, Mr. Payne, Mr. Pomeroy, Mr. 
   Price of North Carolina, Mr. Rangel, Mr. Rodriguez, Mr. Ross, Mr. 
 Rothman, Ms. Roybal-Allard, Mr. Rush, Mr. Ryan of Ohio, Ms. Linda T. 
Sanchez of California, Ms. Loretta Sanchez of California, Mr. Sarbanes, 
 Ms. Schakowsky, Mr. Schiff, Ms. Schwartz, Mr. Scott of Virginia, Mr. 
 Scott of Georgia, Mr. Serrano, Mr. Sherman, Mr. Sires, Ms. Slaughter, 
     Ms. Solis, Mr. Stark, Mr. Stupak, Ms. Sutton, Mr. Thompson of 
 Mississippi, Mr. Tierney, Mr. Towns, Mr. Udall of New Mexico, Mr. Van 
 Hollen, Ms. Velazquez, Ms. Wasserman Schultz, Ms. Waters, Ms. Watson, 
Mr. Watt, Mr. Waxman, Mr. Weiner, Mr. Welch of Vermont, Mr. Wexler, Ms. 
 Woolsey, Mr. Wu, Mr. Wynn, Mr. Yarmuth, and Mr. Loebsack) introduced 
 the following bill; which was referred to the Committee on Energy and 
  Commerce, and in addition to the Committee on Ways and Means, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend part D of title XVIII of the Social Security Act to assist 
   low-income individuals in obtaining subsidized prescription drug 
coverage under the Medicare prescription drug program by expediting the 
  application and qualification process and by revising the resource 
  standards used to determine eligibility for such subsidies, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Prescription 
Coverage Now Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Expediting low-income subsidies under the Medicare prescription 
                            drug program.
Sec. 3. Modification of resource standards for determination of 
                            eligibility for low-income subsidy; 
                            simplification of income and asset rules.
Sec. 4. Indexing deductible and cost-sharing above annual out-of-pocket 
                            threshold for individuals with income below 
                            150 percent of poverty line.
Sec. 5. No impact on eligibility for benefits under other programs.
Sec. 6. Screening by Commissioner of Social Security for eligibility 
                            under Medicare savings programs.
Sec. 7. Special enrollment period for subsidy eligible individuals.
Sec. 8. Waiver of late enrollment penalty for subsidy eligible 
                            individuals.

SEC. 2. EXPEDITING LOW-INCOME SUBSIDIES UNDER THE MEDICARE PRESCRIPTION 
              DRUG PROGRAM.

    (a) In General.--Section 1860D-14 of the Social Security Act (42 
U.S.C. 1395w-114) is amended by adding at the end the following new 
subsection:
    ``(e) Expedited Application and Eligibility Process.--
            ``(1) Expedited process.--
                    ``(A) In general.--The Secretary shall provide for 
                an expedited process under this subsection for the 
                qualification for low-income assistance under this 
                section through a request to the Secretary of the 
                Treasury as provided in subparagraphs (B) and (C) for 
                information sufficient to identify whether the 
                individual involved is likely eligible for subsidies 
                under this section based on such information and the 
                amount of premium and cost-sharing subsidies for which 
                they would qualify based on such information. Such 
                process shall be conducted in cooperation with the 
                Commissioner of Social Security.
                    ``(B) Opt in for newly eligible individuals.--Not 
                later than 60 days after the date of the enactment of 
                this subsection, the Secretary shall ensure that, as 
                part of the Medicare enrollment process, enrolling 
                individuals--
                            ``(i) receive information describing the 
                        low-income subsidy provided under this section; 
                        and
                            ``(ii) are provided the opportunity to opt-
                        in to the expedited process described in this 
                        subsection by requesting that the Commissioner 
                        of Social Security screen the individual 
                        involved for eligibility for such subsidy 
                        through a request to the Secretary of the 
                        Treasury under section 6103(l)(21) of the 
                        Internal Revenue Code of 1986.
                    ``(C) Transition for currently eligible 
                individuals.--In the case of any part D eligible 
                individual to which subparagraph (B) did not apply at 
                the time of such individual's enrollment, the Secretary 
                shall, not later than 60 days after the date of the 
                implementation of subparagraph (B), request that the 
                Commissioner of Social Security screen such individual 
                for eligibility for the low-income subsidy provided 
                under this section through a request to the Secretary 
                of the Treasury under section 6103(l)(21) of the 
                Internal Revenue Code of 1986.
            ``(2) Notification of potentially eligible individuals.--
        Under such process, in the case of each individual identified 
        under paragraph (1) who has not otherwise applied for, or been 
        determined eligible for, benefits under this section (or who 
        has applied for and been determined ineligible for such 
        benefits based only on excess resources), the Secretary shall 
        send them a letter (using basic, uncomplicated language) 
        containing the following:
                    ``(A) Eligibility.--A statement that, based on the 
                information obtained under paragraph (1), the 
                individual is likely eligible for low-income subsidies 
                under this section.
                    ``(B) Amount of subsidies.--A description of the 
                amount of premium and cost-sharing subsidies under this 
                section for which the individual would likely be 
                eligible based on such information.
                    ``(C) Enrollment opportunity.--In case the 
                individual is not enrolled in a prescription drug plan 
                or MA-PD plan--
                            ``(i) a statement that--
                                    ``(I) the individual has the 
                                opportunity to enroll in a prescription 
                                drug plan or MA-PD plan for benefits 
                                under this part, but is not required to 
                                be so enrolled; and
                                    ``(II) if the individual has 
                                creditable prescription drug coverage, 
                                the individual need not so enroll;
                            ``(ii) a list of the prescription drug 
                        plans and MA-PD plans in which the individual 
                        is eligible to enroll;
                            ``(iii) an enrollment form that may be used 
                        to enroll in such a plan by mail and that 
                        provides that if the individual wishes to 
                        enroll but does not designate a plan, the 
                        Secretary is authorized to enroll the 
                        individual in such a prescription drug plan 
                        selected by the Secretary; and
                            ``(iv) a statement that the individual may 
                        also enroll online or by telephone, but, in 
                        order to qualify for low-income subsidies, the 
                        individual must complete the attestation 
                        described in subparagraph (D) or otherwise 
                        apply for such subsidies.
                    ``(D) Attestation.--A one-page application form 
                that provides for a signed attestation, under penalty 
                of law, as to the amount of income and assets of the 
                individual and constitutes an application for the low-
                income subsidies described in subparagraph (B). Such 
                form--
                            ``(i) shall not require the submittal of 
                        additional documentation regarding income or 
                        assets;
                            ``(ii) shall permit the appointment of a 
                        personal representative described in paragraph 
                        (5); and
                            ``(iii) shall allow for the specification 
                        of a language (other than English) that is 
                        preferred by the individual for subsequent 
                        communications with respect to the individual 
                        under this part.
                    ``(E) Information on ship.--Information on how the 
                individual may contact the State Health Insurance 
                Assistance Program (SHIP) for the State in which the 
                individual is located in order to obtain assistance 
                regarding enrollment and benefits under this part.
        If a State is doing its own outreach to low-income seniors 
        regarding enrollment and low-income subsidies under this part, 
        such process shall be coordinated with the State's outreach 
        effort.
            ``(3) Follow-up communications.--If the individual does not 
        respond to the letter described in paragraph (2) either by 
        making an enrollment described in paragraph (2)(C), completing 
        an attestation described in paragraph (2)(D), or declining 
        either or both, the Secretary shall make additional attempts to 
        contact the individual to obtain such an affirmative response.
            ``(4) Hold-harmless.--Under such process, if an individual 
        in good faith and in the absence of fraud executes an 
        attestation described in paragraph (2)(D) and is provided low-
        income subsidies under this section on the basis of such 
        attestation, if the individual is subsequently found not 
        eligible for such subsidies, there shall be no recovery made 
        against the individual because of such subsidies improperly 
        paid.
            ``(5) Use of authorized representative.--Under such 
        process, with proper authorization (which may be part of the 
        attestation form described in paragraph (2)(D)), an individual 
        may authorize another individual to act as the individual's 
        personal representative with respect to communications under 
        this part and the enrollment of the individual under a 
        prescription drug plan (or MA-PD plan) and for low-income 
        subsidies under this section.
            ``(6) Use of preferred language in subsequent 
        communications.--In the case an attestation described in 
        paragraph (2)(D) is completed and in which a language other 
        than English is specified under clause (iii) of such paragraph, 
        the Secretary shall provide that subsequent communications to 
        the individual under this part shall be in such language.
            ``(7) Construction.--Nothing in this subsection shall be 
        construed as precluding the Secretary from taking additional 
        outreach efforts to enroll eligible individuals under this part 
        and to provide low-income subsidies to eligible individuals.''.
    (b) Prescription Drug Plans Required To Provide Expedited Low-
Income Subsidy Opt-in as Part of Applications.--
            (1) In general.--Section 1860D-1(b)(1)(B)(vi) of such Act 
        (42 U.S.C. 1395w-101(b)(1)(B)(vi)) is amended by inserting 
        before the period at the end the following: ``, except that any 
        application form distributed by a sponsor of a prescription 
        drug plan, or an organization offering an MA-PD plan, shall 
        contain an option for a part D eligible individual to opt-in to 
        the expedited process under section 1860D-14(e) for low-income 
        assistance subsidies under such section by requesting that the 
        individual be screened for eligibility for such subsidy through 
        a request to the Secretary of the Treasury under section 
        6103(l)(21) of the Internal Revenue Code of 1986''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to application forms for plan years beginning with 
        2008.
    (c) Disclosure of Return Information for Purposes of Screening 
Individuals for Eligibility for Low-Income Subsidies Under Medicare.--
            (1) In general.--Subsection (l) of section 6103 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(21) Disclosure of return information for purposes of 
        providing low-income subsidies under medicare.--
                    ``(A) Return information from internal revenue 
                service to social security administration.--The 
                Secretary, upon written request from the Commissioner 
                of Social Security under section 1860D-14(e)(1) of the 
                Social Security Act, shall disclose to the Commissioner 
                with respect to any taxpayer identified by the 
                Commissioner--
                            ``(i)(I) whether the adjusted gross income, 
                        as modified in accordance with specifications 
                        of the Secretary of Health and Human Services 
                        for purposes of carrying out such section, of 
                        such taxpayer and, if applicable, such 
                        taxpayer's spouse, for the applicable year, 
                        exceeds the amounts specified by the Secretary 
                        of Health and Human Services in order to apply 
                        the 135 and 150 percent poverty lines under 
                        such section,
                            ``(II) the adjusted gross income (as 
                        determined under subclause (I)), in the case of 
                        a taxpayer with respect to which such adjusted 
                        gross income exceeds the amount so specified 
                        for applying the 135 percent poverty line and 
                        does not exceed the amount so specified for 
                        applying the 150 percent poverty line,
                            ``(III) whether the return was a joint 
                        return for the applicable year, and
                            ``(IV) the applicable year, or
                            ``(ii) if applicable, the fact that there 
                        is no return filed for such taxpayer for the 
                        applicable year.
                    ``(B) Definition of applicable year.--For the 
                purposes of this paragraph, the term `applicable year' 
                means the most recent taxable year for which 
                information is available in the Internal Revenue 
                Service's taxpayer data information systems, or, if 
                there is no return filed for such taxpayer for such 
                year, the prior taxable year.
                    ``(C) Restriction on individuals for whom 
                disclosure is requested.--The Commissioner of Social 
                Security shall only request information under this 
                paragraph with respect to individuals who are described 
                in subparagraph (C) of section 1860D-14(e)(1) of the 
                Social Security Act or who have requested that such 
                request be made under subparagraph (B) of such section.
                    ``(D) Return information from social security 
                administration to department of health and human 
                services.--The Commissioner of Social Security shall, 
                upon written request from the Secretary of Health and 
                Human Services, disclose to the Secretary of Health and 
                Human Services the information described in clauses (i) 
                and (ii) of subparagraph (A).
                    ``(E) Permissive disclosure to officers, employees, 
                and contractors.--The information described in clauses 
                (i) and (ii) of subparagraph (A) may be disclosed among 
                officers, employees, and contractors of the Social 
                Security Administration and the Department of Health 
                and Human Services for the purposes described in 
                subparagraph (F).
                    ``(F) Restriction on use of disclosed 
                information.--Return information disclosed under this 
                paragraph may be used only for the purposes of 
                identifying eligible individuals for, and 
                administering--
                            ``(i) low-income subsidies under section 
                        1860D-14 of the Social Security Act, and
                            ``(ii) the Medicare Savings Program 
                        implemented under clauses (i), (iii), and (iv) 
                        of section 1902(a)(10)(E) of such Act.
                    ``(G) Termination of disclosures for certain 
                eligibility determinations.--With respect to 
                individuals who are described in subparagraph (C) of 
                section 1860D-14(e)(1) of the Social Security Act, 
                return information may not be disclosed under this 
                paragraph after the date that is one year after the 
                date of the enactment of this paragraph.''.
            (2) Confidentiality.--Paragraph (3) of section 6103(a) of 
        such Code is amended by striking ``or (20)'' and inserting 
        ``(20), or (21)''.
            (3) Procedures and recordkeeping related to disclosures.--
        Paragraph (4) of section 6103(p) of such Code is amended by 
        striking ``or (20)'' each place it appears and inserting 
        ``(20), or (21)''.
            (4) Unauthorized disclosure or inspection.--Paragraph (2) 
        of section 7213(a) of such Code is amended by striking ``or 
        (20)'' and inserting ``(20), or (21)''.

SEC. 3. MODIFICATION OF RESOURCE STANDARDS FOR DETERMINATION OF 
              ELIGIBILITY FOR LOW-INCOME SUBSIDY; SIMPLIFICATION OF 
              INCOME AND ASSET RULES.

    (a) Increasing the Resource Standard Applied to Full Low-Income 
Subsidy.--Subparagraph (D) of section 1860D-14(a)(3)(D) of the Social 
Security Act (42 U.S.C. 1395w-114(a)(3)) is amended--
            (1) in the heading, by striking ``three times'';
            (2) in clause (i), by striking ``and'' at the end;
            (3) in clause (ii)--
                    (A) by striking ``a subsequent year'' and inserting 
                ``2007'';
                    (B) by striking ``this clause for the previous 
                year'' and inserting ``clause (i) for 2006''; and
                    (C) by inserting ``(or clause (i))'' after ``this 
                clause''; and
                    (D) by striking the period at the end and inserting 
                a semicolon;
            (4) by adding at the end the following new clauses:
                            ``(iii) for 2008, six times the maximum 
                        amount of resources that an individual may have 
                        and obtain benefits under such supplemental 
                        security income program; and
                            ``(iv) for a subsequent year the resource 
                        limitation established under this clause (or 
                        clause (iii)) for the previous year increased 
                        by the annual percentage increase in the 
                        consumer price index (all items; U.S. city 
                        average) as of September of such previous 
                        year.''; and
            (5) in the last sentence, by inserting ``or (iv)'' after 
        ``clause (ii)''.
    (b) Increasing the Alternate Resource Standard.--Subparagraph 
(E)(i) of such section is amended--
            (1) by striking ``and'' at the end of subclause (I);
            (2) in subclause (II)--
                    (A) by striking ``a subsequent year'' and inserting 
                ``2007'';
                    (B) by striking ``in this subclause (or subclause 
                (I)) for the previous year'' and inserting ``in 
                subclause (I) for 2006''; and
                    (C) by striking the period at the end and inserting 
                a semicolon;
            (3) by inserting after subclause (II) the following new 
        subclauses:
                                    ``(III) for 2008, $27,500 (or 
                                $55,000 in the case of the combined 
                                value of the individual's assets or 
                                resources and the assets or resources 
                                of the individual's spouse); and
                                    ``(IV) for a subsequent year the 
                                dollar amounts specified in this 
                                subclause (or subclause (III)) for the 
                                previous year increased by the annual 
                                percentage increase in the consumer 
                                price index (all items; U.S. city 
                                average) as of September of such 
                                previous year.''; and
            (4) in the last sentence, by inserting ``or (IV)'' after 
        ``subclause (II)''.
    (c) Exemptions From Resources.--Such section is further amended--
            (1) in subparagraphs (D) and (E), by inserting ``, except 
        as provided in subparagraph (G)'' after ``supplemental security 
        income program''; and
            (2) by adding at the end the following new subparagraph:
                    ``(G) Additional exclusions.--In determining the 
                resources of an individual (and their eligible spouse, 
                if any) under section 1613 for purposes of 
                subparagraphs (D) and (E), the following additional 
                exclusions shall apply for months beginning after the 
                date of the enactment of this subparagraph:
                            ``(i) Life insurance policy.--No part of 
                        the value of any life insurance policy shall be 
                        taken into account.
                            ``(ii) Pension or retirement plan.--No 
                        balance in any pension or retirement plan shall 
                        be taken into account.''.
    (d) Not Counting In-Kind Support and Maintenance as Income.--Such 
section is further amended in subparagraph (C)(i), by inserting ``and 
except that support and maintenance furnished in kind shall not be 
counted as income for months beginning after the date of the enactment 
of the Prescription Coverage Now Act of 2007'' after ``section 
1902(r)(2)''.

SEC. 4. INDEXING DEDUCTIBLE AND COST-SHARING ABOVE ANNUAL OUT-OF-POCKET 
              THRESHOLD FOR INDIVIDUALS WITH INCOME BELOW 150 PERCENT 
              OF POVERTY LINE.

    (a) Indexing Deductible.--Section 1860D-14(a)(4)(B) of the Social 
Security Act (42 U.S.C. 1395w-114(a)(4)(B)) is amended--
            (1) in clause (i), by striking ``or'';
            (2) in clause (ii)--
                    (A) by striking ``a subsequent year'' and inserting 
                ``2008'';
                    (B) by striking ``this clause (or clause (i)) for 
                the previous year'' and inserting ``clause (i) for 
                2007''; and
                    (C) by striking the period at the end and inserting 
                ``; and'';
            (3) by adding after clause (ii) the following new clause:
                            ``(iii) for 2008 and each succeeding year, 
                        the amount determined under this subparagraph 
                        for the previous year increased by the annual 
                        percentage increase in the consumer price index 
                        (all items; U.S. city average) as of September 
                        of such previous year.''; and
            (4) in the last sentence, by striking ``clause (i) or 
        (ii)'' and inserting ``clause (i), (ii), or (iii)''.
    (b) Indexing Cost-Sharing.--Section 1860D-14(a) of the Social 
Security Act (42 U.S.C. 1395w-114(a)) is amended--
            (1) in paragraph (1)(D)(iii), by striking ``exceed the 
        copayment amount'' and all that follows through the period at 
        the end and inserting ``exceed--
                                    ``(I) for 2006 and 2007, the 
                                copayment amount specified under 
                                section 1860D-2(b)(4)(A)(i)(I) for the 
                                drug and year involved; and
                                    ``(II) for 2008 and each succeeding 
                                year, the amount determined under this 
                                subparagraph for the previous year 
                                increased by the annual percentage 
                                increase in the consumer price index 
                                (all items; U.S. city average) as of 
                                September of such previous year.''; and
            (2) in paragraph (2)(E), by striking ``exceed the copayment 
        or coinsurance amount'' and all that follows through the period 
        at the end and inserting ``exceed--
                            ``(i) for 2006 and 2007, the copayment or 
                        coinsurance amount specified under section 
                        1860D-2(b)(4)(A)(i)(I) for the drug and year 
                        involved; and
                            ``(ii) for 2008 and each succeeding year, 
                        the amount determined under this clause for the 
                        previous year increased by the annual 
                        percentage increase in the consumer price index 
                        (all items; U.S. city average) as of September 
                        of such previous year.''.

SEC. 5. NO IMPACT ON ELIGIBILITY FOR BENEFITS UNDER OTHER PROGRAMS.

    (a) In General.--Section 1860D-14(a)(3) of the Social Security Act 
(42 U.S.C. 1395w-114(a)(3)), as amended by section 3(c)(2), is 
amended--
            (1) in subparagraph (A), in the matter preceding clause 
        (i), by striking ``subparagraph (F)'' and inserting 
        ``subparagraphs (F) and (H)''; and
            (2) by adding at the end the following new subparagraph:
                    ``(H) No impact on eligibility for benefits under 
                other programs.--The availability of premium and cost-
                sharing subsidies under this section shall not be 
                treated as benefits or otherwise taken into account in 
                determining an individual's eligibility for, or the 
                amount of benefits under, any other Federal program.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to premium and cost-sharing subsidies for months beginning after 
the date of the enactment of this Act.

SEC. 6. SCREENING BY COMMISSIONER OF SOCIAL SECURITY FOR ELIGIBILITY 
              UNDER MEDICARE SAVINGS PROGRAMS.

    (a) In General.--Section 1860D-14(a)(3)(B)(i) of the Social 
Security Act (42 U.S.C. 1395w-114(a)(3)(B)(i)) is amended by inserting 
after the first sentence the following: ``As part of making an 
eligibility determination under the preceding sentence for an 
individual, the Commissioner shall make a determination of the 
individual's eligibility for medical assistance for any medicare cost-
sharing described in section 1905(p)(3) and, if the individual is 
eligible for any such medicare cost-sharing, transmit the data 
necessary to verify such eligibility to the appropriate State Medicaid 
agency.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to determinations made for months beginning after the date of the 
enactment of this Act.

SEC. 7. SPECIAL ENROLLMENT PERIOD FOR SUBSIDY ELIGIBLE INDIVIDUALS.

    (a) In General.--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) Eligibility for low-income subsidy.--
                            ``(i) In general.--In the case of an 
                        applicable subsidy eligible individual (as 
                        defined in clause (ii)), the special enrollment 
                        period described in clause (iii).
                            ``(ii) Applicable subsidy eligible 
                        individual defined.--For purposes of this 
                        subparagraph, the term `applicable subsidy 
                        eligible individual' means a part D eligible 
                        individual who is determined under subparagraph 
                        (B) of section 1860D-14(a)(3) to be a subsidy 
                        eligible individual (as defined in subparagraph 
                        (A) of such section), and includes such an 
                        individual who was enrolled in a prescription 
                        drug plan or an MA-PD plan on the date of such 
                        determination.
                            ``(iii) Special enrollment period 
                        described.--The special enrollment period 
                        described in this clause, with respect to an 
                        applicable subsidy eligible individual, is the 
                        90-day period beginning on the date the 
                        individual receives notification that such 
                        individual has been determined under section 
                        1860D-14(a)(3)(B) to be a subsidy eligible 
                        individual (as so defined).''.
    (b) Automatic Enrollment Process for Certain Subsidy Eligible 
Individuals.--Section 1860D-1(b)(1) is amended by adding at the end the 
following new subparagraph:
                    ``(D) Special rule for subsidy eligible 
                individuals.--The process established under 
                subparagraph (A) shall include, in the case of an 
                applicable subsidy eligible individual (as defined in 
                clause (ii) of paragraph (3)(F)) who fails to enroll in 
                a prescription drug plan or an MA-PD plan during the 
                special enrollment period described in clause (iii) of 
                such paragraph applicable to such individual, a process 
                for the facilitated enrollment of the individual in the 
                prescription drug plan or MA-PD plan that is most 
                appropriate for such individual (as determined by the 
                Secretary). Nothing in the previous sentence shall 
                prevent an individual described in such sentence from 
                declining enrollment in a plan determined appropriate 
                by the Secretary (or in the program under this part) or 
                from changing such enrollment.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to subsidy determinations made for months beginning with January 
2008.

SEC. 8. WAIVER OF LATE ENROLLMENT PENALTY FOR SUBSIDY ELIGIBLE 
              INDIVIDUALS.

    (a) In General.--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 late enrollment penalty for subsidy 
        eligible individuals.--In the case of a subsidy eligible 
        individual (as defined in paragraph (3)(A) of section 1860D-
        14(a)) who is determined to be entitled to a subsidy in 
        accordance with paragraph (1) or (2) of such section, there 
        shall not be an increase under paragraph (1) in the monthly 
        premium of such individual for any month in which such 
        individual is determined to be so entitled.''.
    (b) Conforming Amendment.--Section 1860D-14(a)(1)(A) of such Act 
(42 U.S.C. 1395w-114(a)(1)(A)) is amended--
            (1) by striking ``equal to--'' and all that follows through 
        ``(i) 100 percent'' and inserting ``equal to 100 percent'';
            (2) by striking ``; plus'' and inserting a period; and
            (3) by striking clause (ii).
    (c) Effective Date.--The amendments made by this section shall 
apply to premiums and subsidies for months beginning with January 2008. 
Nothing in this section shall be construed as affecting the waiver of 
any late enrollment penalties for subsidy eligible individuals that may 
have been effected by administrative action for months before such 
month.
                                 <all>