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<bill bill-stage="Introduced-in-House" bill-type="olc" dms-id="H8BFC7C0E689C46F39CE3C397E4A1C6BE" public-private="public">
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<dublinCore>
<dc:title>110 HR 3025 IH: Medicare Prescription Drug
</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2007-07-12</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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</metadata>
	<form>
		<distribution-code display="yes">I</distribution-code>
		<congress>110th CONGRESS</congress>
		<session>1st Session</session>
		<legis-num>H. R. 3025</legis-num>
		<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber>
		<action>
			<action-date date="20070712">July 12, 2007</action-date>
			<action-desc><sponsor name-id="D000399">Mr. Doggett</sponsor> (for
			 himself, <cosponsor name-id="A000022">Mr. Ackerman</cosponsor>,
			 <cosponsor name-id="A000357">Mr. Allen</cosponsor>,
			 <cosponsor name-id="B000287">Mr. Becerra</cosponsor>,
			 <cosponsor name-id="B000410">Mr. Berman</cosponsor>,
			 <cosponsor name-id="C001036">Mrs. Capps</cosponsor>,
			 <cosponsor name-id="C001068">Mr. Cohen</cosponsor>,
			 <cosponsor name-id="D000096">Mr. Davis of Illinois</cosponsor>,
			 <cosponsor name-id="D000216">Ms. DeLauro</cosponsor>,
			 <cosponsor name-id="J000126">Ms. Eddie Bernice Johnson of Texas</cosponsor>,
			 <cosponsor name-id="E000288">Mr. Ellison</cosponsor>,
			 <cosponsor name-id="E000287">Mr. Emanuel</cosponsor>,
			 <cosponsor name-id="E000179">Mr. Engel</cosponsor>,
			 <cosponsor name-id="F000339">Mr. Frank of Massachusetts</cosponsor>,
			 <cosponsor name-id="G000553">Mr. Al Green of Texas</cosponsor>,
			 <cosponsor name-id="G000551">Mr. Grijalva</cosponsor>,
			 <cosponsor name-id="G000535">Mr. Gutierrez</cosponsor>,
			 <cosponsor name-id="H000627">Mr. Hinchey</cosponsor>,
			 <cosponsor name-id="J000032">Ms. Jackson-Lee of Texas</cosponsor>,
			 <cosponsor name-id="K000009">Ms. Kaptur</cosponsor>,
			 <cosponsor name-id="K000113">Mr. Kennedy</cosponsor>,
			 <cosponsor name-id="L000557">Mr. Larson of Connecticut</cosponsor>,
			 <cosponsor name-id="L000287">Mr. Lewis of Georgia</cosponsor>,
			 <cosponsor name-id="L000480">Mrs. Lowey</cosponsor>,
			 <cosponsor name-id="M000087">Mrs. Maloney of New York</cosponsor>,
			 <cosponsor name-id="M001163">Ms. Matsui</cosponsor>,
			 <cosponsor name-id="M001143">Ms. McCollum of Minnesota</cosponsor>,
			 <cosponsor name-id="M000404">Mr. McDermott</cosponsor>,
			 <cosponsor name-id="M000312">Mr. McGovern</cosponsor>,
			 <cosponsor name-id="M000590">Mr. McNulty</cosponsor>,
			 <cosponsor name-id="M001149">Mr. Michaud</cosponsor>,
			 <cosponsor name-id="M001160">Ms. Moore of Wisconsin</cosponsor>,
			 <cosponsor name-id="M000933">Mr. Moran of Virginia</cosponsor>,
			 <cosponsor name-id="N000002">Mr. Nadler</cosponsor>,
			 <cosponsor name-id="N000015">Mr. Neal of Massachusetts</cosponsor>,
			 <cosponsor name-id="N000147">Ms. Norton</cosponsor>,
			 <cosponsor name-id="O000107">Mr. Ortiz</cosponsor>,
			 <cosponsor name-id="R000576">Mr. Ruppersberger</cosponsor>,
			 <cosponsor name-id="S001145">Ms. Schakowsky</cosponsor>,
			 <cosponsor name-id="S000185">Mr. Scott of Virginia</cosponsor>,
			 <cosponsor name-id="S000810">Mr. Stark</cosponsor>,
			 <cosponsor name-id="W000792">Mr. Weiner</cosponsor>, and
			 <cosponsor name-id="W000784">Mr. Wynn</cosponsor>) introduced the following
			 bill; which was referred to the <committee-name committee-id="HIF00">Committee
			 on Energy and Commerce</committee-name>, and in addition to the Committee on
			 <committee-name committee-id="HWM00">Ways and Means</committee-name>, 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</action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title>To amend title XVIII of the Social Security Act to
		  provide comprehensive improvements to the Medicare Prescription Drug Program,
		  and for other purposes.</official-title>
	</form>
	<legis-body id="H42A7694EE0F24A4BA215CA3C89CAD02F" style="OLC">
		<section display-inline="no-display-inline" id="H26C80D90BC46435FAAFFE9EFA7B38989" section-type="section-one"><enum>1.</enum><header>Short title; table of
			 contents</header>
			<subsection id="H375047BA4B4041DBB8F9F1D0239FB2E3"><enum>(a)</enum><header>Short
			 title</header><text display-inline="yes-display-inline">This Act may be cited
			 as the <quote><short-title>Medicare Prescription Drug
			 Savings for Our Seniors (Medicare Prescription Drug SOS) Act of
			 2007</short-title></quote>.</text>
			</subsection><subsection id="H538B4ABB64A94884A90036A9AA3117A7"><enum>(b)</enum><header>Table of
			 contents</header><text>The table of contents of this Act is as follows:</text>
				<toc container-level="legis-body-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
					<toc-entry idref="H26C80D90BC46435FAAFFE9EFA7B38989" level="section">Sec. 1. Short title; table of contents.</toc-entry>
					<toc-entry idref="HE8D23C4669C244B2A1736E43045FEC26" level="title">Title I—Medicare Operated Prescription Drug Plan
				Option</toc-entry>
					<toc-entry idref="H0AD9B180076B49F892FE58DC4DE62876" level="section">Sec. 101. Establishment of Medicare operated prescription drug
				plan option.</toc-entry>
					<toc-entry idref="HD3A2A67A344B4933A86E6158F176DD77" level="title">Title II—Medicaid and Low-Income Improvements</toc-entry>
					<toc-entry idref="HB71424950D10467A9F8BBCC740BA04F6" level="section">Sec. 201. Change in base used in computing State clawback
				provision.</toc-entry>
					<toc-entry idref="HE1F8D00827BD407989074DDCFCFDE1" level="section">Sec. 202. Elimination of part D cost-sharing for certain
				non-institutionalized full-benefit dual eligible individuals.</toc-entry>
					<toc-entry idref="H35A207DC50D043FD8D076494DD7EAD44" level="section">Sec. 203. Expediting low-income subsidies under the Medicare
				Prescription Drug Program.</toc-entry>
					<toc-entry idref="HCD8F90BE1E2E49DE8B4CDCED86BD87C5" level="section">Sec. 204. Modification of resource standards for determination
				of eligibility for low-income subsidy; simplification of income and asset
				rules.</toc-entry>
					<toc-entry idref="H8C105A38CF2340ADB7B07685EF3F183" level="section">Sec. 205. Indexing deductible and cost-sharing above annual
				out-of-pocket threshold for individuals with income below
				<enum-in-header>150</enum-in-header> percent of poverty line.</toc-entry>
					<toc-entry idref="H6B2B0E1573D1493DBBE38FE1763286A2" level="section">Sec. 206. No impact on eligibility for benefits under other
				programs.</toc-entry>
					<toc-entry idref="H251A48F9F8274019AC005275B96728A0" level="section">Sec. 207. Screening by Commissioner of Social Security for
				eligibility under Medicare savings programs.</toc-entry>
					<toc-entry idref="HA00FE21AE3C44413A22B50CA1E5EDF18" level="section">Sec. 208. Special enrollment period for subsidy eligible
				individuals.</toc-entry>
					<toc-entry idref="HB0E1FB99D4FE4DD695577261843F6F49" level="section">Sec. 209. Waiver of late enrollment penalty for subsidy
				eligible individuals.</toc-entry>
					<toc-entry idref="H995B01B09DB14B5DB6BB1C043F82A92" level="title">Title III—Fraud and Abuse Provisions</toc-entry>
					<toc-entry idref="HF731FC737FC0491E9F64DD6C3488F098" level="section">Sec. 301. Criminal penalty for fraud in connection with
				enrollment under an MA plan or prescription drug plan.</toc-entry>
					<toc-entry idref="HE1FE0924FBC945A49306E3A1BA90C0FA" level="section">Sec. 302. Recourse for slamming practices.</toc-entry>
					<toc-entry idref="HA22DB9D6BC0C44EF90EEB264E52146B4" level="section">Sec. 303. Protection from loss of employment-based retiree
				health coverage upon enrollment for Medicare prescription drug benefit during
				2007.</toc-entry>
					<toc-entry idref="H04BCCA4D813A4506BC4717E6853EA431" level="section">Sec. 304. Required application of intermediate sanctions to
				protect against fraud and abuse.</toc-entry>
					<toc-entry idref="H4DE96D2888264C2E8EA2A5D980C4BB15" level="section">Sec. 305. Repeal of special waiver authority for State
				licensure.</toc-entry>
					<toc-entry idref="H3DCFFD1CD679438DA128A4D6CB98E3A8" level="title">Title IV—Relation to Social Security Benefits</toc-entry>
					<toc-entry idref="H95EF60CC24CF45BC0053FAE5E1DE4716" level="section">Sec. 401. Protection of Social Security benefits against
				decrease due to part D Medicare premium increases.</toc-entry>
					<toc-entry idref="H2C89D83558B349DAAA9E743EA909D42" level="title">Title V—Beneficiary Protection Provisions</toc-entry>
					<toc-entry idref="HC193F70CE82F411790EF9633D4FA4357" level="section">Sec. 501. Suspension of late enrollment penalties; allowing
				one-time change in plan during first year of enrollment.</toc-entry>
					<toc-entry idref="H0C001C952F2C4F3E82A86C0060DDCD97" level="section">Sec. 502. Counting expenditures under State drug assistance
				programs against true out-of-pocket costs.</toc-entry>
					<toc-entry idref="H826F5CD2ACC6438BA272DD90B505EBD4" level="section">Sec. 503. Price disclosure.</toc-entry>
					<toc-entry idref="H737A811518CD44B8A630AA25FAB08C5" level="section">Sec. 504. Removal of covered part D drugs from the prescription
				drug plan formulary.</toc-entry>
					<toc-entry idref="HB0252CCDBC554CBDB0A9007CA9584EB7" level="section">Sec. 505. Special treatment under Medicare part D for drugs in
				6 specified therapeutic categories.</toc-entry>
					<toc-entry idref="H87A8E139B02F4EEDBBC4CBACB8D694F" level="section">Sec. 506. Removal of exclusion of benzodiazepines from required
				coverage under the Medicare Prescription Drug Program.</toc-entry>
					<toc-entry idref="HA33E76A1B5E74FA78846DCE907AD6ECF" level="section">Sec. 507. Standardized forms and procedures for
				reconsiderations and appeals.</toc-entry>
					<toc-entry idref="H9D19101A407F471AAEED5BE3FB9F9D36" level="section">Sec. 508. Elimination of MA Regional Stabilization Fund (Slush
				Fund); elimination of certain MA overpayments.</toc-entry>
					<toc-entry idref="H5EBF4F84772B4A5FAC00E84785E78F2C" level="section">Sec. 509. Beneficiary complaints.</toc-entry>
					<toc-entry idref="HB0A108EF660C4191B900FD8FF6CE589E" level="section">Sec. 510. Fill of drugs for dual eligibles.</toc-entry>
					<toc-entry idref="H481E214D954144E1B308CD7A4D6E168" level="title">Title W—Fair and Speedy Treatment of Medicare Prescription Drug
				Claims</toc-entry>
					<toc-entry idref="H59D5E118D1814E94AB3B4773FCF12DFF" level="section">Sec. 601. Prompt payment by Medicare prescription drug plans
				and MA–PD plans under part D.</toc-entry>
					<toc-entry idref="HC89DFDC428E8494CBD9134CE86942E97" level="section">Sec. 602. Restriction on co-branding.</toc-entry>
					<toc-entry idref="H2CB7391E362045B497F5C51BFC634580" level="section">Sec. 603. Provision of medication therapy management services
				under part D.</toc-entry>
				</toc>
			</subsection></section><title id="HE8D23C4669C244B2A1736E43045FEC26"><enum>I</enum><header>Medicare Operated
			 Prescription Drug Plan Option</header>
			<section id="H0AD9B180076B49F892FE58DC4DE62876"><enum>101.</enum><header>Establishment
			 of Medicare operated prescription drug plan option</header>
				<subsection id="HD5FF67ABEDF04E66B06547B2F2A4B400"><enum>(a)</enum><header>In
			 general</header><text>Subpart 2 of part D of the <act-name parsable-cite="SSA">Social Security Act</act-name> is amended by inserting
			 after section 1860D–11 the following new section:</text>
					<quoted-block act-name="Social" id="H220E13DC20C1480780C7DEDCFE4D20" style="traditional"><section id="H1759CFDCA38E408399415E2D9917F243"><enum>1860D–11A.</enum><header>Medicare operated prescription drug plan
		  option</header><subsection commented="no" display-inline="yes-display-inline" id="HE5512C5D04A347059BE682469082478E"><enum>(a)</enum><header>In
				general</header><text>Notwithstanding any other provision of this part, for
				each year (beginning with 2008), in addition to any plans offered under section
				1860D–11, the Secretary shall offer one or more Medicare operated prescription
				drug plans (as defined in subsection (c)) with a service area that consists of
				the entire United States and shall enter into negotiations with pharmaceutical
				manufacturers to reduce the purchase cost of covered part D drugs for eligible
				part D individuals in accordance with subsection (b).</text>
							</subsection><subsection id="H672813AB918F4C40A831858E21A0FC70"><enum>(b)</enum><header>Negotiations</header>
								<paragraph id="HA2C8949F2E414E33A93F7F7F4759D132"><enum>(1)</enum><header>In
				general</header><text display-inline="yes-display-inline">Notwithstanding
				section 1860D–11(i), for purposes of offering a Medicare operated prescription
				drug plan under this section, the Secretary shall negotiate with pharmaceutical
				manufacturers with respect to the purchase price (including discounts, rebates,
				and other price concessions) that of covered part D drugs and shall encourage
				the use of more affordable therapeutic equivalents to the extent such practices
				do not override medical necessity as determined by the prescribing physician.
				To the extent practicable and consistent with the previous sentence, the
				Secretary shall implement strategies similar to those used by other Federal
				purchasers of prescription drugs, and other strategies, to reduce the purchase
				cost of covered part D drugs.</text>
								</paragraph><paragraph id="H04A55DA962884B48B96797484F6ED1F4"><enum>(2)</enum><header>Permitting
				application of some or all of savings to reduction in coverage
				gap</header><text display-inline="yes-display-inline">Notwithstanding any other
				provision of this part, the Secretary may increase the initial coverage limit
				under section 1860D–2(b)(3) for a year, but only with respect to the Medicare
				operated prescription drug plan, by an amount not to exceed the actuarial value
				of the reductions in expenditures during such year resulting from the
				application of paragraph (1).</text>
								</paragraph></subsection><subsection id="HA157CFA4E5C544DC9234DA3330F0BDFE"><enum>(c)</enum><header>Medicare
				operated prescription drug plan defined</header><text>For purposes of this
				part, the term <term>Medicare operated prescription drug plan</term> means a
				prescription drug plan that offers qualified prescription drug coverage and
				access to negotiated prices described in section 1860D–2(a)(1)(A). Such a plan
				may offer supplemental prescription drug coverage in the same manner as other
				qualified prescription drug coverage offered by other prescription drug
				plans.</text>
							</subsection><subsection id="H770124173CD74EFB8CB878F7CA817FE6"><enum>(d)</enum><header>Monthly
				beneficiary premium</header>
								<paragraph id="H94DFCED6DCB34AED93FC48B195757FE0"><enum>(1)</enum><header>Qualified
				prescription drug coverage</header><text>The monthly beneficiary premium for
				qualified prescription drug coverage and access to negotiated prices described
				in section 1860D–2(a)(1)(A) to be charged under a Medicare operated
				prescription drug plan shall be uniform nationally. Such premium for months in
				a year shall be based on the average monthly per capita actuarial cost of
				offering the Medicare operated prescription drug plan for the year involved,
				including administrative expenses, as determined by the Secretary and as
				certified by the chief actuary of the Centers for Medicare &amp; Medicaid
				Services.</text>
								</paragraph><paragraph id="H9ABF4153DF7D458D9BA5AD2E807DC9B3"><enum>(2)</enum><header>Supplemental
				prescription drug coverage</header><text>Insofar as a Medicare operated
				prescription drug plan offers supplemental prescription drug coverage, the
				Secretary may adjust the amount of the premium charged under paragraph
				(1).</text>
								</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H4D855EA4E08941CAA9DCF2720A40085"><enum>(b)</enum><header>Auto-enrollment
			 of subsidy eligible individuals in Medicare operated prescription drug
			 plan</header><text display-inline="yes-display-inline">Section 1860D–1(b)(1)(C)
			 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-101">42 U.S.C. 1395w–101(b)(1)(C)</external-xref>) is amended—</text>
					<paragraph id="H72B633E2CF3043C1B257CE1FCBCC4B76"><enum>(1)</enum><text>by designating the
			 matter beginning with <quote>The process established </quote> as a clause (i)
			 with the heading <quote><header-in-text level="clause" style="OLC">Auto-enrollment for dual eligibles and other subsidy eligible
			 individuals</header-in-text></quote>;</text>
					</paragraph><paragraph id="HF4FA314AF2F5497085BDD64EEE57B195"><enum>(2)</enum><text>by inserting
			 <quote>or who is a subsidy eligible individual</quote> after <quote>section
			 1935(c)(6))</quote>;</text>
					</paragraph><paragraph id="H1DEE02B979254AA094FE4FACD370612"><enum>(3)</enum><text>by
			 striking <quote>for the enrollment in</quote> and all that follows through
			 <quote>in the PDP region.</quote> and inserting <quote>for the enrollment in
			 the Medicare operated prescription drug plan (as defined in section
			 1860D–11A(c)). </quote>; and</text>
					</paragraph><paragraph id="H71AE39C9DEB241030011ABA11142C755"><enum>(4)</enum><text>by adding at the
			 end the following new clauses:</text>
						<quoted-block display-inline="no-display-inline" id="H11C064F1E90D400186E53DCC53D42D5B" style="OLC">
							<clause id="HEED85789875144339C869B3E91EDA15B"><enum>(ii)</enum><header>Application in
				case of premium increases or plan discontinuation</header><text display-inline="yes-display-inline">The process under subparagraph (A) shall
				also provide for enrollment described in clause (i) in the case of such an
				individual who is enrolled in a prescription drug plan that has a monthly
				beneficiary premium that does not exceed the premium assistance available under
				section 1860D–14(a)(1)(A)) if such plan is discontinued or the premium under
				such plan is increased so it exceeds such available premium assistance.</text>
							</clause><clause id="HBCDC4381DF094ACD811062A212288FDD"><enum>(iii)</enum><header>Notice</header>
								<subclause id="H429F1274ADC64074AC193EA713EF98A"><enum>(I)</enum><header>In
				general</header><text display-inline="yes-display-inline">The Secretary shall
				provide for notice to each individual auto-enrolled under clause (i) or (ii)
				that the individual has the right and the opportunity to select another
				prescription drug plan (or MA–PD plan) through which to obtain prescription
				drug coverage.</text>
								</subclause><subclause id="H6AEC70F2E54B45169D87CA6EB1AB5D1E"><enum>(II)</enum><header>Additional
				notice</header><text>In the case of an individual described in clause (ii),
				both the sponsor of the plan in which the individual is enrolled and the
				Secretary shall provide notice to the individual that enrollment in the plan
				will be discontinued or have a premium above the benchmark and, as a result,
				the individual will be enrolled in the Medicare operated prescription drug plan
				for the following year unless the individual affirmatively acts
				otherwise.</text>
								</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="H9457759B2D0B4695B0F708EC2B51BB1D"><enum>(c)</enum><header>Application of
			 monthly premium for premium subsidy purposes</header><text display-inline="yes-display-inline">Section 1860D–14(b)(1) of such Act (42
			 U.S.C. 1395ww–114(b)(1)) is amended by striking <quote>the amount specified in
			 paragraph (3)</quote> and inserting <quote>the greater of the amount specified
			 in paragraph (3) or the monthly premium amount specified in section
			 1860D–11A(d)(1)</quote>.</text>
				</subsection><subsection id="H6F6DAC9DE9A84276AF72285F9CD436E6"><enum>(d)</enum><header>Conforming
			 amendments, including elimination of unnecessary plan requirement and fallback
			 plan provisions</header>
					<paragraph id="H3BB3FB65F456419BA137F4EF9720AAB"><enum>(1)</enum><text>Section 1860D–3 of
			 such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-103">42 U.S.C. 1395w–103</external-xref>) is repealed.</text>
					</paragraph><paragraph id="H0C4FBF33B49D4766AEF834770000A244"><enum>(2)</enum><text>Section 1860D–11
			 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-111">42 U.S.C. 1395w–111</external-xref>) is amended—</text>
						<subparagraph id="HADD07C0019F944690093D119E2961700"><enum>(A)</enum><text>by striking
			 subsection (f), (g), and (h); and</text>
						</subparagraph><subparagraph id="HBE66B46038A84117AD6221F5CB481100"><enum>(B)</enum><text>in subsection (i),
			 by inserting <quote>except as provided in section 1860D–11A(b),</quote> after
			 <quote>in carrying out this part,</quote>.</text>
						</subparagraph></paragraph><paragraph id="H256A98BD9721414E938403CBC92F8771"><enum>(3)</enum><text>Section
			 1860D–12(b) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-112">42 U.S.C. 1395w–112(b)</external-xref>) is amended by striking
			 paragraph (2).</text>
					</paragraph><paragraph id="H333F67A5CB6A460988AEADA3BCE3EAC7"><enum>(4)</enum><text>Section
			 1860D–13(c) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113(c)</external-xref>) is amended by striking
			 paragraph (3).</text>
					</paragraph><paragraph id="HAB25227841C540E88027AC4066A52539"><enum>(5)</enum><text>Section 1860D–15
			 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115</external-xref>) is amended by striking subsection (g).</text>
					</paragraph><paragraph id="HD23E956B6AAB400EBA6900F7BC519FD"><enum>(6)</enum><text>Section
			 1860D–16(b)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-116">42 U.S.C. 1395w–116(b)(1)</external-xref>) is amended by striking
			 subparagraph (B) and inserting the following:</text>
						<quoted-block display-inline="no-display-inline" id="H757D2E27ADCA41658510C8B9BA3DB1F" style="OLC">
							<subparagraph id="H38CFDAECF52046AAAD9BE60019B74D00"><enum>(B)</enum><text>payments for
				expenses incurred with respect to the operation of Medicare operated
				prescription drug plans under section
				1860D–11A.</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H16553A407EC0476C8E15615400CEF1A2"><enum>(7)</enum><text>Section
			 1860D–41(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww-141">42 U.S.C. 1395ww–141(a)</external-xref>) is amended by striking
			 paragraph (5) and inserting the following:</text>
						<quoted-block display-inline="no-display-inline" id="H67A8A1D122854E28A1A41E7DFCC9ADA9" style="OLC">
							<paragraph display-inline="no-display-inline" id="H0604BC04D51E49B19C7B63FEA5D2DAC"><enum>(5)</enum><header>Medicare operated
				prescription drug plan</header><text>The term <term>Medicare operated
				prescription drug plan</term> has the meaning given such term in section
				1860D–11A(c).</text>
							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H5FA1F37121944D62BD37FF26817BE08C"><enum>(8)</enum><text>Section
			 1860D–42(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-142">42 U.S.C. 1395w–142(a)</external-xref>) is amended by striking
			 <quote>, including section 1860D–3(a)(1),</quote>.</text>
					</paragraph></subsection><subsection id="HF0495BC0D7284631AA1E0652D740619B"><enum>(e)</enum><header>Effective
			 date</header><text>The amendments made by this section shall take effect on the
			 date of the enactment of this Act and shall apply to enrollments effective for
			 periods occurring on or after January 1, 2008.</text>
				</subsection></section></title><title id="HD3A2A67A344B4933A86E6158F176DD77"><enum>II</enum><header>Medicaid and
			 Low-Income Improvements</header>
			<section id="HB71424950D10467A9F8BBCC740BA04F6"><enum>201.</enum><header>Change in base
			 used in computing State clawback provision</header>
				<subsection id="H2DE82EDF94B941548E004D10E5B7D3E0"><enum>(a)</enum><header>In
			 general</header><text>Section 1935(c) of the Social Security Act (42 U.S.C.
			 1936u–5(c)) is amended—</text>
					<paragraph id="HC666D8331DA2440BB163DFD4088CF51E"><enum>(1)</enum><text>in paragraph
			 (2)(A)(ii), by inserting <quote>, subject to paragraph (7),</quote> after
			 <quote>increased for each year (</quote>;</text>
					</paragraph><paragraph id="HB3C1A35EB2214FB28F904BCDA581D6FF"><enum>(2)</enum><text>in paragraph (3),
			 by inserting <quote>Subject to paragraph (7)—</quote> after
			 <quote><header-in-text level="paragraph" style="OLC">dual eligible
			 individuals.—</header-in-text></quote> in the matter before subparagraph (A);
			 and</text>
					</paragraph><paragraph id="H57E94A8306244D5D9CE6DC9FDAB6342"><enum>(3)</enum><text>by
			 adding at the end the following new paragraph:</text>
						<quoted-block display-inline="no-display-inline" id="H4435658BDED74B3AA2A0A92DC9139122" style="OLC">
							<paragraph id="H2C2AED7BFF2A470FACFCD64595C2FEB1"><enum>(7)</enum><header>Use of 2005 as
				base</header><text>This subsection shall be applied by substituting
				<quote>2005</quote> for <quote>2003</quote> each place it appears in paragraph
				(3) if such substitution results in a reduced amount under paragraph (1)(A) of
				this subsection and, in the case of such substitution, the reference in
				paragraph (2)(A)(ii) to <quote>2004</quote> is deemed a reference to
				<quote>2006.</quote></text>
							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="HCC303F139B9446F7BA2865E512EC6C11"><enum>(b)</enum><header>Effective
			 date</header><text>The amendment made by subsection (a) shall apply to payments
			 for calendar quarters beginning on or after January 1, 2008.</text>
				</subsection></section><section display-inline="no-display-inline" id="HE1F8D00827BD407989074DDCFCFDE1" section-type="subsequent-section"><enum>202.</enum><header>Elimination of part
			 D cost-sharing for certain non-institutionalized full-benefit dual eligible
			 individuals</header>
				<subsection id="H1A1DE0DF03DA44319072964C9280ABDE"><enum>(a)</enum><header>In
			 general</header><text>Section 1860D–14(a)(1)(D)(i) of the Social Security Act
			 (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)(1)(D)(i)</external-xref>) is amended—</text>
					<paragraph id="H71BCA18FB59C414590B941ED3DBAF501"><enum>(1)</enum><text>in the heading, by
			 striking <quote><header-in-text level="clause" style="OLC">Institutionalized
			 individuals</header-in-text>.—In</quote> and
			 inserting</text>
						<quoted-block display-inline="yes-display-inline" id="H5A64B65771F540359EFF883D4B6CB1E0" style="OLC">
							<text><header-in-text level="clause" style="OLC">Elimination of cost-sharing for certain full-benefit dual eligible
			 individuals</header-in-text>.—</text><subclause id="H57DD3C283EBB405EB5AF96FF5EBB25B8"><enum>(I)</enum><header>Institutionalized
				individuals</header><text>In</text>
							</subclause><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</paragraph><paragraph id="HCBA2AF56A56F477C0003E73B59F26605"><enum>(2)</enum><text>by adding at the
			 end the following new subclauses:</text>
						<quoted-block display-inline="no-display-inline" id="H2411E13F733542A80096C5E750DF6F2F" style="OLC">
							<subclause id="HEA5149CEA6214631B93D6053116BE6A4"><enum>(II)</enum><header>Certain other
				individuals</header><text>In the case of an individual who is a full-benefit
				dual eligible individual and who is a resident of a facility described in
				subclause (III) or who is receiving home and community-based services in a home
				setting provided under a home and community-based waiver approved for the State
				under section 1915 or 1115, the elimination of any beneficiary coinsurance
				described in section 1860D–2(b)(2) (for all amounts through the total amount of
				expenditures at which benefits are available under section
				1860D–2(b)(4)).</text>
							</subclause><subclause id="HE5EC5D42BE134573A7A67BA94270551E"><enum>(III)</enum><header>Facility
				described</header><text>For purposes of subclause (II), a facility described in
				this subclause is an assisted living facility or a resident care program
				facility (as such terms are defined by the Secretary), a board and care
				facility (as defined in section 1903(q)(4)(B)), or any other facility that is
				licensed or certified by the State involved and is determined appropriate by
				the Secretary, such as a community mental health center that meets the
				requirements of section 1913(c) of the Public Health Service Act, a psychiatric
				health facility, a mental health rehabilitation center, and a mental
				retardation developmental disability
				facility.</text>
							</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="H44C1F170DC19412AB759EAC1B41600A2"><enum>(b)</enum><header>Effective
			 date</header><text>The amendments made by subsection (a) shall apply to drugs
			 dispensed on or after the date of the enactment of this Act.</text>
				</subsection></section><section display-inline="no-display-inline" id="H35A207DC50D043FD8D076494DD7EAD44" section-type="subsequent-section"><enum>203.</enum><header>Expediting
			 low-income subsidies under the Medicare Prescription Drug Program</header>
				<subsection id="HD494A26FB81649EEA3DAACB5359B22F6"><enum>(a)</enum><header>In
			 general</header><text>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:</text>
					<quoted-block display-inline="no-display-inline" id="HCF9AA952DFFC4DB395502797342EF735" style="OLC">
						<subsection id="HB576DF6432F34D5582258763A025CEA3"><enum>(e)</enum><header>Expedited
				application and eligibility process</header>
							<paragraph id="H56F9CA21749940EA8BADF3CCF6A2DB0"><enum>(1)</enum><header>Expedited
				process</header>
								<subparagraph id="H092792A31D5946EDBA75CBAEECCE557"><enum>(A)</enum><header>In
				general</header><text display-inline="yes-display-inline">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.</text>
								</subparagraph><subparagraph id="H84C8E4A668214281B639ADD1208900C8"><enum>(B)</enum><header>Opt in for newly
				eligible individuals</header><text>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—</text>
									<clause id="HD26452C6669C48B6B7965B48B6F7E393"><enum>(i)</enum><text>receive
				information describing the low-income subsidy provided under this section;
				and</text>
									</clause><clause id="H25C4FBD621EF46D4B2843084E75AF2"><enum>(ii)</enum><text display-inline="yes-display-inline">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
				<external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(l)(21)</external-xref> of the Internal Revenue Code of 1986.</text>
									</clause></subparagraph><subparagraph id="HBDB060120B464A7FACEC1149EC286418"><enum>(C)</enum><header>Transition for
				currently eligible individuals</header><text display-inline="yes-display-inline">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 <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(l)(21)</external-xref> of the Internal Revenue Code of 1986.</text>
								</subparagraph></paragraph><paragraph id="H7A244419C7CE417900DCC458789E2159"><enum>(2)</enum><header>Notification of
				potentially eligible individuals</header><text display-inline="yes-display-inline">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:</text>
								<subparagraph id="HF3A95E26854740A089008C5708CCC6D7"><enum>(A)</enum><header>Eligibility</header><text>A
				statement that, based on the information obtained under paragraph (1), the
				individual is likely eligible for low-income subsidies under this
				section.</text>
								</subparagraph><subparagraph id="H953B79D72DE24FA4917420933D7FD67D"><enum>(B)</enum><header>Amount of
				subsidies</header><text>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.</text>
								</subparagraph><subparagraph id="HA3E12DEDFEDB4F74AEC852163C41801"><enum>(C)</enum><header>Enrollment
				opportunity</header><text>In case the individual is not enrolled in a
				prescription drug plan or MA–PD plan—</text>
									<clause id="H7014F60A26AA41B58C7F06F075003013"><enum>(i)</enum><text>a
				statement that—</text>
										<subclause id="HA1F642C6005D4E709243DC5C5BF3402E"><enum>(I)</enum><text>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</text>
										</subclause><subclause id="HC069EFD50A76470EB4D200A756EB1052"><enum>(II)</enum><text>if the individual
				has creditable prescription drug coverage, the individual need not so
				enroll;</text>
										</subclause></clause><clause id="H0A4597CBD423468A96347CE2A74B63B4"><enum>(ii)</enum><text>a
				list of the prescription drug plans and MA–PD plans in which the individual is
				eligible to enroll;</text>
									</clause><clause id="HCD0FEBC18B664C55895C75F88B932CA"><enum>(iii)</enum><text>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</text>
									</clause><clause id="H3348302245B44AB9874E2D37F5F36A0"><enum>(iv)</enum><text>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.</text>
									</clause></subparagraph><subparagraph id="H9BBC7E681E5F4FB59D41B288D73E0740"><enum>(D)</enum><header>Attestation</header><text>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—</text>
									<clause id="H48F263758E17498985AD32E97B5290A6"><enum>(i)</enum><text>shall not require
				the submittal of additional documentation regarding income or assets;</text>
									</clause><clause id="H977A2DA0638944CD00D00FF32F3B274"><enum>(ii)</enum><text>shall permit the
				appointment of a personal representative described in paragraph (5); and</text>
									</clause><clause id="H50F736ED775B49BF9B41588C7B8F3D44"><enum>(iii)</enum><text>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.</text>
									</clause></subparagraph><subparagraph id="HEE8CF5A8E6204115B8B77E7DB99F029F"><enum>(E)</enum><header>Information on
				SHIP</header><text>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.</text>
								</subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="HAD5C95DEDBD6410AADFBE488AED2B87C"><enum>(3)</enum><header>Follow-up
				communications</header><text display-inline="yes-display-inline">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.</text>
							</paragraph><paragraph id="H09C9D45980124D12AE048E42ECA1858"><enum>(4)</enum><header>Hold-harmless</header><text>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.</text>
							</paragraph><paragraph id="H8185961186734D57BE7D20B03EC4C92E"><enum>(5)</enum><header>Use of
				authorized representative</header><text>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.</text>
							</paragraph><paragraph id="H0DE09C9A4D174622B2647768B1447BB"><enum>(6)</enum><header>Use of preferred
				language in subsequent communications</header><text>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.</text>
							</paragraph><paragraph id="H898BC46F89E144DDAF92D31E8FF1BD23"><enum>(7)</enum><header>Construction</header><text>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.</text>
							</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H05DEFF947D4A4417A6E4A73EA202DDBC"><enum>(b)</enum><header>Prescription
			 drug plans required To provide expedited low-income subsidy opt-In as part of
			 applications</header>
					<paragraph id="H51170069E763490CB7155D0440F90010"><enum>(1)</enum><header>In
			 general</header><text>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: <quote>, 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 <external-xref legal-doc="usc" parsable-cite="usc/26/6103">section 6103(l)(21)</external-xref> of the Internal Revenue Code of 1986</quote>.</text>
					</paragraph><paragraph id="H2AE1DA11EC394CBAB306DDF863225850"><enum>(2)</enum><header>Effective
			 date</header><text display-inline="yes-display-inline">The amendment made by
			 paragraph (1) shall apply to application forms for plan years beginning with
			 2008.</text>
					</paragraph></subsection><subsection id="H594BB021B1A84130B6529745E9362508"><enum>(c)</enum><header>Disclosure of
			 return information for purposes of screening individuals for eligibility for
			 low-income subsidies under Medicare</header>
					<paragraph id="HD08963A500564F6A9340C409A0F455E"><enum>(1)</enum><header>In
			 general</header><text>Subsection (l) of section 6103 of the Internal Revenue
			 Code of 1986 is amended by adding at the end the following new
			 paragraph:</text>
						<quoted-block display-inline="no-display-inline" id="H0BB23F9F0F0D40A6B2F57D4E155C81D9" style="OLC">
							<paragraph id="H4C074BCCC9A44B029896CC192B8E91F7"><enum>(21)</enum><header>Disclosure of
				return information for purposes of providing low-income subsidies under
				Medicare</header>
								<subparagraph id="H77EF51EC0BB342B38DAA15D29C991950"><enum>(A)</enum><header>Return
				information from Internal Revenue Service to Social Security
				Administration</header><text display-inline="yes-display-inline">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—</text>
									<clause id="HCB15CDDD40E84E3AB15BC3E005542EDF"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="HA3BCBBBE0A4946968F7EC42B5E292E94"><enum>(I)</enum><text display-inline="yes-display-inline">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,</text>
										</subclause><subclause id="HC7F2C9AFEA1B46EFB5105CF57134F7BC" indent="up1"><enum>(II)</enum><text>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,</text>
										</subclause><subclause id="H472ADBEF6682471DB4F8A977CE53C019" indent="up1"><enum>(III)</enum><text>whether the return was a joint return
				for the applicable year, and</text>
										</subclause><subclause id="H8CE035BCFBC3439D8CB31DCBE95831D" indent="up1"><enum>(IV)</enum><text>the applicable year, or</text>
										</subclause></clause><clause id="H1B4A81ED8F9D4CA1B1F1F4C9CB016DA9"><enum>(ii)</enum><text>if applicable,
				the fact that there is no return filed for such taxpayer for the applicable
				year.</text>
									</clause></subparagraph><subparagraph id="H0197AECD73C54C2FA8A4B05BB20CD08"><enum>(B)</enum><header>Definition of
				applicable year</header><text>For the purposes of this paragraph, the term
				<term>applicable year</term> 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.</text>
								</subparagraph><subparagraph id="HC5980B5505494767AE6F57D0CB3C87A2"><enum>(C)</enum><header>Restriction on
				individuals for whom disclosure is requested</header><text display-inline="yes-display-inline">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.</text>
								</subparagraph><subparagraph id="HB0784E615BAA48C8996D15E271300D5"><enum>(D)</enum><header>Return
				information from Social Security Administration to Department of Health and
				Human Services</header><text>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).</text>
								</subparagraph><subparagraph id="HC46224E32F794DE9B92721E7802E801B"><enum>(E)</enum><header>Permissive
				disclosure to officers, employees, and contractors</header><text>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).</text>
								</subparagraph><subparagraph id="H55ADAAA4627F4BF1B639F1762D99E2EC"><enum>(F)</enum><header>Restriction on
				use of disclosed information</header><text display-inline="yes-display-inline">Return information disclosed under this
				paragraph may be used only for the purposes of identifying eligible individuals
				for, and administering—</text>
									<clause id="H9E250F31FEDD42098D00F12DAE151108"><enum>(i)</enum><text>low-income
				subsidies under section 1860D–14 of the Social Security Act, and</text>
									</clause><clause id="HDFBED965EA454E3796FAFD41359FF96C"><enum>(ii)</enum><text>the Medicare
				Savings Program implemented under clauses (i), (iii), and (iv) of section
				1902(a)(10)(E) of such Act.</text>
									</clause></subparagraph><subparagraph id="H827AA79A1A054F5AABCDFD02FB835CE9"><enum>(G)</enum><header>Termination of
				disclosures for certain eligibility determinations</header><text>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.</text>
								</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H3F87867A534A4350B1C4BFBDF1D87CFD"><enum>(2)</enum><header>Confidentiality</header><text>Paragraph
			 (3) of section 6103(a) of such Code is amended by striking <quote>or
			 (20)</quote> and inserting <quote>(20), or (21)</quote>.</text>
					</paragraph><paragraph id="HB49E6D5696074CB3A300F01E4262BBBC"><enum>(3)</enum><header>Procedures and
			 recordkeeping related to disclosures</header><text>Paragraph (4) of section
			 6103(p) of such Code is amended by striking <quote>or (20)</quote> each place
			 it appears and inserting <quote>(20), or (21)</quote>.</text>
					</paragraph><paragraph id="H3E3A324F48D64BDF8747B96E4EA500BE"><enum>(4)</enum><header>Unauthorized
			 disclosure or inspection</header><text>Paragraph (2) of section 7213(a) of such
			 Code is amended by striking <quote>or (20)</quote> and inserting <quote>(20),
			 or (21)</quote>.</text>
					</paragraph></subsection></section><section display-inline="no-display-inline" id="HCD8F90BE1E2E49DE8B4CDCED86BD87C5" section-type="subsequent-section"><enum>204.</enum><header>Modification of
			 resource standards for determination of eligibility for low-income subsidy;
			 simplification of income and asset rules</header>
				<subsection display-inline="no-display-inline" id="H3906246482F444C99E73822EE2783DE5"><enum>(a)</enum><header>Increasing the
			 resource standard applied to full low-income subsidy</header><text>Subparagraph
			 (D) of section 1860D–14(a)(3)(D) of the Social Security Act (42 U.S.C.
			 1395w–114(a)(3)) is amended—</text>
					<paragraph id="H4385B23E4A2B418E8324538109060000"><enum>(1)</enum><text>in the heading, by
			 striking <quote><header-in-text level="subparagraph" style="OLC">three
			 times</header-in-text></quote>;</text>
					</paragraph><paragraph id="H402251085ACC4AADB0FE79CB6365CD75"><enum>(2)</enum><text>in clause (i), by
			 striking <quote>and</quote> at the end;</text>
					</paragraph><paragraph id="H8046C4AC289544B8AB423F4CB421EC6C"><enum>(3)</enum><text>in clause
			 (ii)—</text>
						<subparagraph id="H2A936DCF478F4115B8D0C5C0B4C80063"><enum>(A)</enum><text>by striking
			 <quote>a subsequent year</quote> and inserting <quote>2007</quote>;</text>
						</subparagraph><subparagraph id="H4A61254FD7AF406785E6D1686335254C"><enum>(B)</enum><text>by striking
			 <quote>this clause for the previous year</quote> and inserting <quote>clause
			 (i) for 2006</quote>; and</text>
						</subparagraph><subparagraph id="HA096C6906E6B4BDA95F7C67170DCD64B"><enum>(C)</enum><text>by inserting
			 <quote>(or clause (i))</quote> after <quote>this clause</quote>; and</text>
						</subparagraph><subparagraph id="H573D3787A3D54EDA85B15BFA601FB6CF"><enum>(D)</enum><text>by striking the
			 period at the end and inserting a semicolon;</text>
						</subparagraph></paragraph><paragraph id="H33B2E53358574F96A7F78F3381E706B8"><enum>(4)</enum><text>by adding at the
			 end the following new clauses:</text>
						<quoted-block display-inline="no-display-inline" id="H11E45940EECF43BE8F468BF98080775D" style="OLC">
							<clause id="HF83CA84BF6B7448EBD8DC26F25024DEC"><enum>(iii)</enum><text display-inline="yes-display-inline">for 2008, six times the maximum amount of
				resources that an individual may have and obtain benefits under such
				supplemental security income program; and</text>
							</clause><clause id="H5C4C51CB6DBE42F187B5CA9C3DBD448"><enum>(iv)</enum><text>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.</text>
							</clause><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H7859A2A5F9E442C6B7D289380040415E"><enum>(5)</enum><text>in the last
			 sentence, by inserting <quote>or (iv)</quote> after <quote>clause
			 (ii)</quote>.</text>
					</paragraph></subsection><subsection id="HB2CFAA8921584E9B8FFAD03DA9B6B719"><enum>(b)</enum><header>Increasing the
			 alternate resource standard</header><text display-inline="yes-display-inline">Subparagraph (E)(i) of such section is
			 amended—</text>
					<paragraph id="H659E692AA5944F59B64D95CE0687D7D3"><enum>(1)</enum><text>by striking
			 <quote>and</quote> at the end of subclause (I);</text>
					</paragraph><paragraph id="H2CC3320094FF46718F6D3E332E121B71"><enum>(2)</enum><text>in subclause
			 (II)—</text>
						<subparagraph id="H3951FD8F60B24264B0EEEF654C5ACAF"><enum>(A)</enum><text>by striking
			 <quote>a subsequent year</quote> and inserting <quote>2007</quote>;</text>
						</subparagraph><subparagraph id="H7E8F25EEC626493DBBDA078050D4A8F1"><enum>(B)</enum><text>by striking
			 <quote>in this subclause (or subclause (I)) for the previous year</quote> and
			 inserting <quote>in subclause (I) for 2006</quote>; and</text>
						</subparagraph><subparagraph id="HE836CCD1BE5144528C258F563EF118C2"><enum>(C)</enum><text>by striking the
			 period at the end and inserting a semicolon;</text>
						</subparagraph></paragraph><paragraph id="HE7FDFFEEC31A41FAB718BDD0D4A84C56"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subclause (II) the
			 following new subclauses:</text>
						<quoted-block display-inline="no-display-inline" id="HB50383AC528343C09B7331BE0940F0C9" style="OLC">
							<subclause id="H78FFCBFCDF9A47BE91491E8C3FB485BE"><enum>(III)</enum><text>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</text>
							</subclause><subclause id="H64E6FE486C8A441BB000764856980836"><enum>(IV)</enum><text>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.</text>
							</subclause><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</paragraph><paragraph id="HF4B9F92F112A4D4FAF4EA31CE47DEC56"><enum>(4)</enum><text>in the last
			 sentence, by inserting <quote>or (IV)</quote> after <quote>subclause
			 (II)</quote>.</text>
					</paragraph></subsection><subsection id="HBA89836F8F494AABA4D05C6330BED1B5"><enum>(c)</enum><header>Exemptions from
			 resources</header><text>Such section is further amended—</text>
					<paragraph id="H2263E41604F2441B85F2E471418D3CD4"><enum>(1)</enum><text>in subparagraphs
			 (D) and (E), by inserting <quote>, except as provided in subparagraph
			 (G)</quote> after <quote>supplemental security income program</quote>;
			 and</text>
					</paragraph><paragraph id="HD4993E8765B94DD9992100D4EB572641"><enum>(2)</enum><text>by adding at the
			 end the following new subparagraph:</text>
						<quoted-block display-inline="no-display-inline" id="H32CDA51A866B4021BEB6EB6EF4D9EEF4" style="OLC">
							<subparagraph id="H1849E3D5BF54446583924B4EC789B982"><enum>(G)</enum><header>Additional
				exclusions</header><text display-inline="yes-display-inline">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:</text>
								<clause id="HFF0CAEF0B1074FADAE0019A9974FBE6F"><enum>(i)</enum><header>Life insurance
				policy</header><text>No part of the value of any life insurance policy shall be
				taken into account.</text>
								</clause><clause id="HC449934A19C940DB0047EA582BD2DB61"><enum>(ii)</enum><header>Pension or
				retirement plan</header><text display-inline="yes-display-inline">No balance in
				any pension or retirement plan shall be taken into
				account.</text>
								</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="HFD17224D90614F2BBBF78836BAE33D37"><enum>(d)</enum><header>Not counting
			 in-kind support and maintenance as income</header><text>Such section is further
			 amended in subparagraph (C)(i), by inserting <quote>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</quote> after <quote>section 1902(r)(2)</quote>.</text>
				</subsection></section><section display-inline="no-display-inline" id="H8C105A38CF2340ADB7B07685EF3F183" section-type="subsequent-section"><enum>205.</enum><header>Indexing deductible
			 and cost-sharing above annual out-of-pocket threshold for individuals with
			 income below <enum-in-header>150</enum-in-header> percent of poverty
			 line</header>
				<subsection id="H8D256E683F3940A38EACBCD4E927E0F5"><enum>(a)</enum><header>Indexing
			 deductible</header><text>Section 1860D–14(a)(4)(B) of the Social Security Act
			 (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)(4)(B)</external-xref>) is amended—</text>
					<paragraph id="H048A67FAE4394294B1A5C2DEED47BF50"><enum>(1)</enum><text>in clause (i), by
			 striking <quote>or</quote>;</text>
					</paragraph><paragraph id="HDB581CD73B964FFEA4B5941FB4D29B25"><enum>(2)</enum><text>in clause
			 (ii)—</text>
						<subparagraph id="H58F05904A26541ACA077F1ABB0330082"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>a subsequent
			 year</quote> and inserting <quote>2008</quote>;</text>
						</subparagraph><subparagraph id="H59A1FD3EACA449EC006BF1FBBDC943B5"><enum>(B)</enum><text>by striking
			 <quote>this clause (or clause (i)) for the previous year</quote> and inserting
			 <quote>clause (i) for 2007</quote>; and</text>
						</subparagraph><subparagraph id="HBD983B974BB3463EB7EE54D5D6524E39"><enum>(C)</enum><text>by striking the
			 period at the end and inserting <quote>; and</quote>;</text>
						</subparagraph></paragraph><paragraph id="H216B7F043C49436382CE8F3DE095F9E"><enum>(3)</enum><text>by
			 adding after clause (ii) the following new clause:</text>
						<quoted-block display-inline="no-display-inline" id="H3AB8AB7B57264973B6009CC44043E677" style="OLC">
							<clause id="H2E034B0A2E2F48C39176D6573E5B9B33"><enum>(iii)</enum><text display-inline="yes-display-inline">for 2009 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.</text>
							</clause><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H1E7B02DF419E47898138C8B5D2ADF1FB"><enum>(4)</enum><text>in the last
			 sentence, by striking <quote>clause (i) or (ii)</quote> and inserting
			 <quote>clause (i), (ii), or (iii)</quote>.</text>
					</paragraph></subsection><subsection id="H6D1CBB350C5147298637A4768F007D07"><enum>(b)</enum><header>Indexing
			 cost-sharing</header><text display-inline="yes-display-inline">Section
			 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>) is
			 amended—</text>
					<paragraph id="H18CCD2CBBE9548528D00BA35A7798DE1"><enum>(1)</enum><text>in paragraph
			 (1)(D)(iii), by striking <quote>exceed the copayment amount</quote> and all
			 that follows through the period at the end and inserting “exceed—</text>
						<quoted-block display-inline="no-display-inline" id="HCB195561B6F54F9185C3C9C023C43890" style="OLC">
							<subclause id="H50093839C79E4A6C00D8C4A65811CFC"><enum>(I)</enum><text display-inline="yes-display-inline">for 2006 and 2007, the copayment amount
				specified under section 1860D–2(b)(4)(A)(i)(I) for the drug and year involved;
				and</text>
							</subclause><subclause id="H51A8808BE65A489590F8800BDB1E7A4"><enum>(II)</enum><text display-inline="yes-display-inline">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.</text>
							</subclause><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H4DF424FD81594A5E94D79517CB39E98D"><enum>(2)</enum><text>in paragraph
			 (2)(E), by striking <quote>exceed the copayment or coinsurance amount</quote>
			 and all that follows through the period at the end and inserting
			 “exceed—</text>
						<quoted-block display-inline="no-display-inline" id="HDC923BDC3BA340859E75BBD882922EC" style="OLC">
							<clause id="H90AAF4390583413C002398A4D889B260"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
							</clause><clause id="H80406A36EC0D47AEB2050050D42D174"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text>
							</clause><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection></section><section display-inline="no-display-inline" id="H6B2B0E1573D1493DBBE38FE1763286A2" section-type="subsequent-section"><enum>206.</enum><header>No impact on
			 eligibility for benefits under other programs</header>
				<subsection id="HC5073F7670E94DEEA3A256A47BD16100"><enum>(a)</enum><header>In
			 general</header><text>Section 1860D–14(a)(3) of the Social Security Act (42
			 U.S.C. 1395w–114(a)(3)), as amended by section 204(c)(2), is amended—</text>
					<paragraph id="H3ACAFB06A65743D791CC922E92871D64"><enum>(1)</enum><text>in subparagraph
			 (A), in the matter preceding clause (i), by striking <quote>subparagraph
			 (F)</quote> and inserting <quote>subparagraphs (F) and (H)</quote>; and</text>
					</paragraph><paragraph id="HC70FF56378914E31A95659341BA9C0D3"><enum>(2)</enum><text>by adding at the
			 end the following new subparagraph:</text>
						<quoted-block display-inline="no-display-inline" id="H15602A4C84214BD48E4097B523E6C9A8" style="OLC">
							<subparagraph commented="no" id="H0F2AE6944C36437300D379E47B9F7DCA"><enum>(H)</enum><header>No impact on
				eligibility for benefits under other programs</header><text>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.</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="H09613392BCCC4ABB9DAA040003C7C089"><enum>(b)</enum><header>Effective
			 date</header><text display-inline="yes-display-inline">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.</text>
				</subsection></section><section display-inline="no-display-inline" id="H251A48F9F8274019AC005275B96728A0" section-type="subsequent-section"><enum>207.</enum><header>Screening by
			 Commissioner of Social Security for eligibility under Medicare savings
			 programs</header>
				<subsection id="HB64AFDC69BF849B3A4C7689159DF751"><enum>(a)</enum><header>In
			 general</header><text>Section 1860D–14(a)(3)(B)(i) of the Social Security Act
			 (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)(3)(B)(i)</external-xref>) is amended by inserting after the first
			 sentence the following: <quote>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.</quote>.</text>
				</subsection><subsection commented="no" display-inline="no-display-inline" id="H9033F36812D64B8CA63EFDBE63117061"><enum>(b)</enum><header>Effective
			 date</header><text display-inline="yes-display-inline">The amendment made by
			 subsection (a) shall apply to determinations made for months beginning after
			 the date of the enactment of this Act.</text>
				</subsection></section><section display-inline="no-display-inline" id="HA00FE21AE3C44413A22B50CA1E5EDF18" section-type="subsequent-section"><enum>208.</enum><header>Special enrollment
			 period for subsidy eligible individuals</header>
				<subsection id="HB0A6511256A14A9393CDCF40F36B2785"><enum>(a)</enum><header>In
			 general</header><text>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:</text>
					<quoted-block display-inline="no-display-inline" id="HD379AB0DD39F4DC3A99351FFE13B6BB" style="OLC">
						<subparagraph commented="no" id="H8C705479694148DD9EE62CF119D95701"><enum>(F)</enum><header>Eligibility for
				low-income subsidy</header>
							<clause commented="no" id="H900BFA2858E6496EB72F259CD6DFC6F0"><enum>(i)</enum><header>In
				general</header><text>In the case of an applicable subsidy eligible individual
				(as defined in clause (ii)), the special enrollment period described in clause
				(iii).</text>
							</clause><clause commented="no" id="H4379F0C4F0FD4B958C49320038EDEA3"><enum>(ii)</enum><header>Applicable
				subsidy eligible individual defined</header><text>For purposes of this
				subparagraph, the term <term>applicable subsidy eligible individual</term>
				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.</text>
							</clause><clause commented="no" id="H21794A94A8724BC783F6AC85C98FA344"><enum>(iii)</enum><header>Special
				enrollment period described</header><text>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).</text>
							</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="HAC51671D59B34C76846E73ABC332E931"><enum>(b)</enum><header>Automatic
			 enrollment process for certain subsidy eligible
			 individuals</header><text>Section 1860D–1(b)(1) is amended by adding at the end
			 the following new subparagraph:</text>
					<quoted-block display-inline="no-display-inline" id="H57D56CFDAF474501AEC0478592EDB943" style="OLC">
						<subparagraph commented="no" id="H9CE9AD3C567A4ADB9D3B7C24ED376B16"><enum>(D)</enum><header>Special rule for
				subsidy eligible individuals</header><text>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.</text>
						</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H3431229EB8D04B059F4E414FAA041E48"><enum>(c)</enum><header>Effective
			 date</header><text>The amendments made by this section shall apply to subsidy
			 determinations made for months beginning with January 2008.</text>
				</subsection></section><section display-inline="no-display-inline" id="HB0E1FB99D4FE4DD695577261843F6F49" section-type="subsequent-section"><enum>209.</enum><header>Waiver of late
			 enrollment penalty for subsidy eligible individuals</header>
				<subsection id="H3B369172908C4E67BA18543FE97BE22"><enum>(a)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 1860D–13(b)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113(b)</external-xref>) is amended by adding at the
			 end the following new paragraph:</text>
					<quoted-block display-inline="no-display-inline" id="H30444C51A463459980C8C4A72FB853CD" style="OLC">
						<paragraph id="HB002EF5E28744B08AD8F330005436C7C"><enum>(8)</enum><header>Waiver of late
				enrollment penalty for subsidy eligible individuals</header><text>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.</text>
						</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H2FEECBA5EE8F4BA7AF6B70A36CBE44B"><enum>(b)</enum><header>Conforming
			 amendment</header><text>Section 1860D–14(a)(1)(A) of such Act (42 U.S.C.
			 1395w–114(a)(1)(A)) is amended—</text>
					<paragraph id="H5B2863B3842C4AB6BC85478FF3100064"><enum>(1)</enum><text>by striking
			 <quote>equal to—</quote> and all that follows through <quote>(i) 100
			 percent</quote> and inserting <quote>equal to 100 percent</quote>;</text>
					</paragraph><paragraph id="H0DA569A812914D48AC16BA006DBBA8D"><enum>(2)</enum><text>by
			 striking <quote>; plus</quote> and inserting a period; and</text>
					</paragraph><paragraph id="HD2EF3C8D416E43CBB2BF6746DFDE8082"><enum>(3)</enum><text>by striking clause
			 (ii).</text>
					</paragraph></subsection><subsection id="HD0D5A30CA62245DEB2D9989274F91FEB"><enum>(c)</enum><header>Effective
			 date</header><text display-inline="yes-display-inline">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.</text>
				</subsection></section></title><title id="H995B01B09DB14B5DB6BB1C043F82A92"><enum>III</enum><header>Fraud and Abuse
			 Provisions</header>
			<section id="HF731FC737FC0491E9F64DD6C3488F098"><enum>301.</enum><header>Criminal
			 penalty for fraud in connection with enrollment under an MA plan or
			 prescription drug plan</header>
				<subsection id="H6E3DDFDBC62041D2B84C2C69C75B552F"><enum>(a)</enum><header>In
			 general</header><text>Section 1857 of the Social Security Act (42 U.S.C.
			 1395w–27) is amended by adding at the end the following new subsection:</text>
					<quoted-block display-inline="no-display-inline" id="H2B3F0BAE8D6049C482738BCC314DA426" style="OLC">
						<subsection id="H47F80CD810334B540020130195009279"><enum>(j)</enum><header>Criminal penalty
				for fraud in connection with enrollment under an MA plan or prescription drug
				plan</header><text display-inline="yes-display-inline">Whoever knowingly and
				willfully—</text>
							<paragraph id="H37D4EE3391704E5385D9CDF6686F6600"><enum>(1)</enum><text>defrauds an
				individual in connection with the enrollment (or nonenrollment) of the
				individual with a Medicare Advantage plan under this part or a prescription
				drug plan under part D; or</text>
							</paragraph><paragraph id="H1EB1DFFB469F4263B082FF142896AD23"><enum>(2)</enum><text>fraudulently or
				falsely represents an entity to be such a plan for purposes of inducing
				enrollment in such entity;</text>
							</paragraph><continuation-text continuation-text-level="subsection">shall be
				fined under title 18, United States Code, or imprisoned not less than 3 years
				and not more than 10 years, or
				both.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H39835F3E70ED4C9998AB9431E3A449D"><enum>(b)</enum><header>Conforming
			 reference in part D</header><text>Section 1860D–12(b) of such Act (42 U.S.C.
			 1395w–112(b)) is amended by adding at the end the following new
			 paragraph:</text>
					<quoted-block display-inline="no-display-inline" id="HBE6DA7E0E7B84CD8973935F1A3072DF" style="OLC">
						<paragraph id="HD0F18F4DFC1F4DD49BB5B17E18DA1E87"><enum>(4)</enum><header>Reference to
				penalty for fraud in connection with enrollment under a prescription drug
				plan</header><text display-inline="yes-display-inline">For provision imposing a
				criminal penalty for defrauding an individual in connection with the enrollment
				of such individual under a prescription drug plan, see section
				1857(j).</text>
						</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H29C5FB7008BC464AAE03B8F13F337FA9"><enum>(c)</enum><header>Effective
			 date</header><text>The amendment made by subsection (a) shall apply to
			 fraudulent acts and to fraudulent or false representations made on or after the
			 date of the enactment of this Act.</text>
				</subsection></section><section id="HE1FE0924FBC945A49306E3A1BA90C0FA"><enum>302.</enum><header>Recourse for
			 slamming practices</header><text display-inline="no-display-inline">Section
			 1851 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-21">42 U.S.C. 1395w–21</external-xref>) is amended by adding at
			 the end the following new subsection:</text>
				<quoted-block display-inline="no-display-inline" id="HE9411669BF8347FFB9BF00A2ED5C2B8C" style="OLC">
					<subsection id="H5181F1A9DE2B4367A1F85200E8207FA8"><enum>(j)</enum><header>Sanctions
				against slamming practices</header>
						<paragraph id="H7DF717501DD840F29DA89BC0EE559688"><enum>(1)</enum><header>In
				general</header><text display-inline="yes-display-inline">The Secretary shall
				establish procedures, consistent with this subsection and the complaint
				processes otherwise available, under which Medicare Advantage eligible
				individuals who have been enrolled into an MA–PD plan without their informed
				consent may file a complaint with the Secretary regarding such enrollment. Such
				a complaint shall be signed and shall attest, under penalty of perjury, as to
				the accuracy of the statements therein.</text>
						</paragraph><paragraph id="H2F2B3ED0BAFA4EC091E201421F35421C"><enum>(2)</enum><header>Response to the
				complaint</header><text>If the Secretary finds that the complaint is justified
				by the facts in the case, the Secretary shall permit the individual to be
				enrolled under the original Medicare fee-for-service program and the Medicare
				operated prescription drug plan or under another MA plan in which the
				individual was previously enrolled. An individual who is dissatisfied with the
				Secretary’s decision on the complaint may have a hearing on the complaint
				before an administrative law judge in a manner similar to the manner in which
				such a hearing is permitted under this title with respect to other
				determinations under this
				title.</text>
						</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
			</section><section id="HA22DB9D6BC0C44EF90EEB264E52146B4"><enum>303.</enum><header>Protection from
			 loss of employment-based retiree health coverage upon enrollment for Medicare
			 prescription drug benefit during 2007</header><text display-inline="no-display-inline">Section 1860D–22(a)(2) of the Social
			 Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-132">42 U.S.C. 1395w–132(a)(2)</external-xref>) is amended by adding at the end the
			 following new subparagraph:</text>
				<quoted-block display-inline="no-display-inline" id="H0BB3A7870DC4471AB9CACE5E206EF048" style="OLC">
					<subparagraph id="HB5B2C712D2074C56B0F677A651221900"><enum>(D)</enum><header>Protection from
				loss of employment-based coverage</header><text>The sponsor of the plan may not
				involuntarily discontinue coverage of an individual under a group health plan
				before January 1, 2008, based upon the individual’s decision to enroll in a
				prescription drug plan or an MA–PD plan under this
				part.</text>
					</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
			</section><section id="H04BCCA4D813A4506BC4717E6853EA431"><enum>304.</enum><header>Required
			 application of intermediate sanctions to protect against fraud and
			 abuse</header>
				<subsection id="H5A252D08B88E4EFA9902D3122B413D32"><enum>(a)</enum><header>In
			 general</header><text>Section 1860D–12(b)(3)(E) of the Social Security Act (42
			 U.S.C. 1395w–112(b)(3)(E)) is amended by inserting <quote>and the reference to
			 <quote>may provide</quote> in section 1857(g)(1) is deemed a reference to
			 <quote>shall provide</quote></quote> after <quote>this part</quote>.</text>
				</subsection><subsection id="H8C2FD5FA89104601A5CE7EA6EA210473"><enum>(b)</enum><header>Application to
			 MA–PD plans</header><text>Section 1857(g)(1) of such Act (42 U.S.C.
			 1395w–27(g)(1)) is amended by inserting <quote>(or in the case of an MA–PD plan
			 or a prescription drug plan under part D, the Secretary shall provide)</quote>
			 after <quote>may provide</quote>.</text>
				</subsection></section><section id="H4DE96D2888264C2E8EA2A5D980C4BB15"><enum>305.</enum><header>Repeal of
			 special waiver authority for State licensure</header><text display-inline="no-display-inline">Subsection (d) of section 423.410 of title
			 42, Code of Federal Regulations, is repealed, and the Secretary of Health and
			 Human Services has no authority to provide for a waiver of a State licensure
			 requirement described in such subsection except pursuant to section
			 1855(a)(2)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-25">42 U.S.C. 1395w–25(a)(2)(B)</external-xref>).</text>
			</section></title><title id="H3DCFFD1CD679438DA128A4D6CB98E3A8"><enum>IV</enum><header>Relation to
			 Social Security Benefits</header>
			<section id="H95EF60CC24CF45BC0053FAE5E1DE4716"><enum>401.</enum><header>Protection of
			 Social Security benefits against decrease due to part D medicare premium
			 increases</header>
				<subsection id="H3FC03AC8DB1849B3BB7BF33D6002FF9"><enum>(a)</enum><header>Protection
			 against decrease in Social Security benefits</header>
					<paragraph id="HAC2DA98CA6F44831BF92C1BD822C2595"><enum>(1)</enum><header>Application to
			 enrollees in prescription drug plans</header><text>Section 1860D–13(a)(1) of
			 the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww-113">42 U.S.C. 1395ww–113(a)(1)</external-xref>) is amended—</text>
						<subparagraph id="H699C57F3FF5D41C9B74059AA23C55299"><enum>(A)</enum><text>in subparagraph
			 (F), by striking <quote>(D) and (E),</quote> and inserting <quote>(D), (E), and
			 (F),</quote>;</text>
						</subparagraph><subparagraph id="H930933022CEA4E36A8F794C5A91D0869"><enum>(B)</enum><text>by redesignating
			 subparagraph (F) as subparagraph (G); and</text>
						</subparagraph><subparagraph id="HEA9726454BB8419ABFE7D840AD30AEFD"><enum>(C)</enum><text>by inserting after
			 subparagraph (E) the following new subparagraph:</text>
							<quoted-block id="HFFED0763AB874D4897B5DB1786BDD5D">
								<subparagraph id="H8472425C2C2C4EB98FB4AC1FB0063A1"><enum>(F)</enum><header>Protection of
				Social Security benefits</header><text>For any calendar year, if an individual
				is entitled to monthly benefits under section 202 or 223 or to a monthly
				annuity under section 3(a), 4(a), or 4(f) of the Railroad Retirement Act of
				1974 for November and December of the preceding year and was enrolled under a
				prescription drug plan or MA–PD plan for such months, the base beneficiary
				premium otherwise applied under this paragraph for the individual for months in
				that year shall be decreased by the amount (if any) by which the sum of the
				amounts described in the following clauses (i) and (ii) exceeds the amount of
				the increase in such monthly benefits for that individual attributable to
				section 215(i):</text>
									<clause id="HAA684FE44E87453CA0CB5CFED5ECA9C7"><enum>(i)</enum><header>Part D premium
				increase factor</header>
										<subclause id="HD336D2A3720645B082836E77774E2B97"><enum>(I)</enum><header>In
				general</header><text>Except as provided in this clause, the amount of the
				increase (if any) in the adjusted national average monthly bid amount (as
				determined under subparagraph (B)(iii)) for a month in the year over such
				amount for a month in the preceding year.</text>
										</subclause><subclause id="HE42DA7F9BF2B4777A1BAE694EEF49662"><enum>(II)</enum><header>No application
				to full premium subsidy individuals</header><text>In the case of an individual
				enrolled for a premium subsidy under section 1860D–14(a)(1), zero.</text>
										</subclause><subclause id="H9D4AB6856B744421A7F38DA436456F00"><enum>(III)</enum><header>Special rule
				for partial premium subsidy individuals</header><text>In the case of an
				individual enrolled for a premium subsidy under section 1860D–14(a)(2), a
				percent of the increase described in subclause (I) equal to 100 percent minus
				the percent applied based on the linear scale under such section.</text>
										</subclause></clause><clause id="HA1CC3E1CD5C94954B17BEB51CACB58C6"><enum>(ii)</enum><header>Part B premium
				increase factor</header><text>If the individual is enrolled for such months
				under part B—</text>
										<subclause id="HAED248BE96224E5BAE995714B0C2D16F"><enum>(I)</enum><header>In
				general</header><text>Except as provided in subclause (II), the amount of the
				annual increase in premium effective for such year resulting from the
				application of section 1839(a)(3), as reduced (if any) under section
				1839(f).</text>
										</subclause><subclause id="H1B05D762EA4345B68FDB4C97E1C89913"><enum>(II)</enum><header>No application
				to individuals participating in medicare savings program</header><text>In the
				case of an individual who is enrolled for medical assistance under title XIX
				for Medicare cost-sharing described in section 1905(p)(3)(A)(ii),
				zero.</text>
										</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph><paragraph id="H8C4DD60B28754D7BB86D7BCA02773225"><enum>(2)</enum><header>Application
			 under Medicare Advantage program</header><text>Section 1854(b)(2)(B) of such
			 Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-24">42 U.S.C. 1395w–24(b)(2)(B)</external-xref>), as in effect as of January 1, 2006, relating
			 to MA monthly prescription drug beneficiary premium, is amended by inserting
			 after <quote>as adjusted under section 1860D–13(a)(1)(B)</quote> the following:
			 <quote>and section 1860D–13(a)(1)(F)</quote>.</text>
					</paragraph><paragraph id="H51B54ED134DE4CEF939DDCA0D53C4FD1"><enum>(3)</enum><header>Payment from
			 medicare prescription drug account</header><text>Section 1860D–16(b) of such
			 Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-116">42 U.S.C. 1395w–116(b)</external-xref>) is amended—</text>
						<subparagraph id="H7B0E5FA1C33241D9877BF5A7BEE476F9"><enum>(A)</enum><text>in paragraph (1),
			 as amended by section 101(c)(5)—</text>
							<clause id="H2E5D56AD0AE6490FBBC645B1D7534F02"><enum>(i)</enum><text>by
			 striking <quote>and</quote> at the end of subparagraph (D);</text>
							</clause><clause id="HBA6366719E0145628BBA3790BB332839"><enum>(ii)</enum><text>by
			 striking the period at the end of subparagraph (E) and inserting <quote>;
			 and</quote>; and</text>
							</clause><clause id="HFFB72EA53C15426681EAD71430DB0421"><enum>(iii)</enum><text>by
			 adding at the end the following new subparagraph:</text>
								<quoted-block id="H8E9C99CCC76C40A5A506FBEDB7796524">
									<subparagraph id="HFA2C3F1FEA9348EC85034044644DFCD0"><enum>(F)</enum><text>payment under
				paragraph (5) of premium reductions effected under section
				1860D–13(a)(1)(F).</text>
									</subparagraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
							</clause></subparagraph><subparagraph id="H7C332404BEEB4A4083AEEAEB55ECA86"><enum>(B)</enum><text>by adding at the
			 end the following new paragraph:</text>
							<quoted-block id="H70670FD68F06441DA65FD5C0755719B">
								<paragraph id="HE6142010D76B499F949DFA0735CF4403"><enum>(5)</enum><header>Payment for
				Social Security benefit protection premium reductions</header>
									<subparagraph id="HA0C9841E994A492C8100EE10BEC38210"><enum>(A)</enum><header>In
				general</header><text>In addition to payments provided under section 1860D–15
				to a PDP sponsor or an MA organization, in the case of each part D eligible
				individual who is enrolled in a prescription drug plan offered by such sponsor
				or an MA–PD plan offered by such organization and who has a premium reduced
				under section 1860D–13(a)(1)(F), the Secretary shall provide for payment to
				such sponsor or organization of an amount equivalent to the amount of such
				premium reduction.</text>
									</subparagraph><subparagraph id="H1EA8E4ECDE474DEBB437575DCDEA1104"><enum>(B)</enum><header>Application of
				provisions</header><text>The provisions of subsections (d) and (f) of section
				1860D–15 (relating to payment methods and disclosure of information) shall
				apply to payment under subparagraph (A) in the same manner as they apply to
				payments under such
				section.</text>
									</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph></subsection><subsection id="H3D0CD88D9C194CD7873B4693BF207CC9"><enum>(b)</enum><header>Disregard of
			 premium reductions in determining dedicated revenues under MMA cost
			 containment</header><text>Section 801(c)(3)(D) of the Medicare Prescription
			 Drug, Improvement, and Modernization Act of 2003 (<external-xref legal-doc="public-law" parsable-cite="pl/108/173">Public Law 108–173</external-xref>) is
			 amended by adding at the end the following: <quote>Such premiums shall also be
			 determined without regard to any reductions effected under section 1839(f) or
			 1860D–13(a)(1)(F) of such title.</quote>.</text>
				</subsection><subsection id="H930704F3E9C74BC1B4F3C00559BC246"><enum>(c)</enum><header>Effective
			 dates</header>
					<paragraph id="H42117A17A9C7407D9F89EBE858009CD5"><enum>(1)</enum><header>Part D
			 premium</header><text>The amendments made by subsection (a) apply to premiums
			 for months beginning with January 2008.</text>
					</paragraph><paragraph id="H87C8EF3B08904C63B9F9FB16B8CE3AD"><enum>(2)</enum><header>MMA
			 provision</header><text>The amendment made by subsection (b) shall take effect
			 on the date of the enactment of this Act.</text>
					</paragraph></subsection></section></title><title id="H2C89D83558B349DAAA9E743EA909D42"><enum>V</enum><header>Beneficiary
			 Protection Provisions</header>
			<section display-inline="no-display-inline" id="HC193F70CE82F411790EF9633D4FA4357" section-type="subsequent-section"><enum>501.</enum><header>Suspension of late
			 enrollment penalties; allowing one-time change in plan during first year of
			 enrollment</header>
				<subsection id="H998DC322232447669066BA61DA006419"><enum>(a)</enum><header>No late
			 enrollment penalties for months before January 2008</header><text>Section
			 1860D–13(b)(3)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113(b)(3)(B)</external-xref>) is
			 amended by inserting <quote>(after December 2007)</quote> after <quote>any
			 month</quote>.</text>
				</subsection><subsection id="HB02870B008AC4AACB2EE9892BAE82182"><enum>(b)</enum><header>Change in plan
			 during first year of enrollment and during first 3 months of subsequent years
			 of enrollment</header><text>Section 1860D–1(b)(1) of such Act (42 U.S.C.
			 1395w–101(b)(1)), as amended by section 208(b), is further amended—</text>
					<paragraph id="HFF73BF2FF0824CC3B14F4833CE6C7703"><enum>(1)</enum><text>in subparagraph
			 (B)(iii)—</text>
						<subparagraph id="HF0032453EA734302A33F63F8C13613AE"><enum>(A)</enum><text>by inserting
			 <quote>and subparagraph (F) of this paragraph</quote> after <quote>of this
			 subsection</quote>; and</text>
						</subparagraph><subparagraph id="H3A80E8B97214450D958B50BBBA00CA29"><enum>(B)</enum><text>by striking
			 <quote>subparagraphs (B) and (C) of paragraph (2)</quote> and inserting
			 <quote>paragraph (2)(B)</quote>; and</text>
						</subparagraph></paragraph><paragraph id="H448EB8BB4C434383BFCA08D67143E104"><enum>(2)</enum><text>by adding at the
			 end the following new subparagraphs:</text>
						<quoted-block display-inline="no-display-inline" id="HF2014177E3054C449BEB942199B7C3C1" style="OLC">
							<subparagraph id="H7A9C786C62FB43A2BBC7C890D28C072C"><enum>(E)</enum><header>Change in
				prescription drug plan allowed during first year of enrollment</header>
								<clause id="H4EF38FA9E20B43F38920E36DE3F2F100"><enum>(i)</enum><header>In
				general</header><text>Subject to clause (ii), at any time during the 12-month
				period beginning with the first month in which a part D eligible individual is
				enrolled in a prescription drug plan under this part, the individual may change
				the prescription drug plan in which the individual is enrolled.</text>
								</clause><clause id="H90086D706E9A42BB89E25C6DA15F12C4"><enum>(ii)</enum><header>Limitation of
				one change during period</header><text>An individual may exercise the right
				under clause (i) only once during such 12-month period and the exercise of such
				right shall be in addition to the exercise of any other rights to change such
				an enrollment during such period.</text>
								</clause></subparagraph><subparagraph id="H9C7DE4B3E90E40F183D0734D1116C3D"><enum>(F)</enum><header>Change in
				prescription drug plan allowed during first 3 months of subsequent years of
				enrollment</header><text>In applying section 1851(e)(2)(C) under subparagraph
				(B)(iii), the change of election described in such section may only be a change
				in the prescription drug plan in which the individual is
				enrolled.</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection></section><section id="H0C001C952F2C4F3E82A86C0060DDCD97"><enum>502.</enum><header>Counting
			 expenditures under State drug assistance programs against true out-of-pocket
			 costs</header><text display-inline="no-display-inline">Section
			 1860D–2(b)(4)(C)(ii) of the <act-name parsable-cite="SSA">Social Security
			 Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(b)(4)(C)(ii)</external-xref>) is amended by inserting
			 <quote>, AIDS Drug Assistance Program, or other State drug assistance
			 program</quote> after <quote>State Pharmaceutical Assistance
			 Program</quote>.</text>
			</section><section id="H826F5CD2ACC6438BA272DD90B505EBD4"><enum>503.</enum><header>Price
			 disclosure</header>
				<subsection id="H5E79C1C9113B4FB69900DDB26859D0F6"><enum>(a)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 1860D–2(d)(2)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(d)(2)</external-xref>) is amended—</text>
					<paragraph id="H71D0FAFC87D840F79BC3485120D75796"><enum>(1)</enum><text>in the first
			 sentence, by striking <quote>which are passed through</quote> and all that
			 follows through <quote>other dispensers</quote>;</text>
					</paragraph><paragraph id="H738870DFDE854504AF73A4A9C0F37102"><enum>(2)</enum><text>in the second
			 sentence, by inserting <quote>do not</quote> before <quote>apply</quote>;
			 and</text>
					</paragraph><paragraph id="H4851438267F84ECE8E3346A09CD77C17"><enum>(3)</enum><text>in the second
			 sentence, by inserting before the period at the end the following: <quote>and
			 the Secretary shall make the information described in the previous sentence
			 available to the public</quote>.</text>
					</paragraph></subsection><subsection id="H034CCA3B651B4E0B82B8745BFA8EB12B"><enum>(b)</enum><header>Conforming
			 amendment</header><text>Section 1927(b)(3)(D) of such Act (42 U.S.C.
			 1396r–8(b)(3)(D)) is amended by striking the last sentence.</text>
				</subsection></section><section commented="no" display-inline="no-display-inline" id="H737A811518CD44B8A630AA25FAB08C5"><enum>504.</enum><header>Removal of
			 covered part D drugs from the prescription drug plan formulary</header><text display-inline="no-display-inline">Section 1860D–4(b)(3)(E) of the Social
			 Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-104">42 U.S.C. 1395w–104(b)(3)(E)</external-xref>) is amended to read as
			 follows:</text>
				<quoted-block display-inline="no-display-inline" id="HB167527CDC124D928B205926C0027CD" style="OLC">
					<subparagraph commented="no" display-inline="no-display-inline" id="H695A3F92EEC94070BE4CBE361BDA8C5C"><enum>(E)</enum><header>Removing drug
				from formulary or changing preferred or tier status of drug</header>
						<clause commented="no" display-inline="no-display-inline" id="H9004F3C2A16D45B79B3CD832EF53762D"><enum>(i)</enum><header>Limitation on
				removal or change</header><text>Beginning with 2008, except as provided in
				clause (iii), the PDP sponsor of a prescription drug plan may not—</text>
							<subclause id="H29401517DBF446EC83019675BAD394B"><enum>(I)</enum><text>remove a covered
				part D drug from the plan formulary;</text>
							</subclause><subclause id="H9A50B3226C7949C492D29F42A8321077"><enum>(II)</enum><text>change the
				preferred or tiered cost-sharing status of such a drug to a status less
				favorable to an enrollee; or</text>
							</subclause><subclause id="H4BF255866ECC46599E3F98F8373752AD"><enum>(III)</enum><text>introduce a
				barrier, such as step therapy, prior authorization, or quantity limitation, to
				access to covered part D drugs,</text>
							</subclause><continuation-text continuation-text-level="clause">unless
				advance notice under clause (ii) of such removal, change, or introduction has
				been provided and unless such removal, change, or introduction is only
				effective beginning on January 1 of the year following the year in which such
				notice is provided.</continuation-text></clause><clause commented="no" display-inline="no-display-inline" id="HCB1CA9C77E3046389EEE73683C052314"><enum>(ii)</enum><header>Notice</header><text>The
				notice under this clause is an appropriate notice (such as under subsection
				(a)(3)) to the Secretary, affected enrollees, physicians, pharmacies, and
				pharmacists during the period beginning on September 1 and ending on October 31
				of a year. Such notice shall ensure that such information is made available
				prior to the annual, coordinated open election period described in section
				1851(e)(3)(B)(iii), as applied under section 1860D–1(b)(1)(B)(iii).</text>
						</clause><clause id="H92C45698453E4AD2000013DE9BCF221"><enum>(iii)</enum><header>Exception</header><text>Clause
				(i) shall not apply to a covered part D drug—</text>
							<subclause id="H63E77A86111744398165EFD16B9D27D3"><enum>(I)</enum><text>if it has been
				determined to be unsafe by the Food and Drug Administration; and</text>
							</subclause><subclause id="HC91DD061948844099793F19CFC013867"><enum>(II)</enum><text>if, during a plan
				year, the drug changes from being a single source drug to a multiple source
				drug (as defined in section 1927(k)), and the prescription drug plan covers
				another bioequivalent multiple source drug at the same or lower cost-sharing to
				enrolled
				individuals.</text>
							</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
			</section><section display-inline="no-display-inline" id="HB0252CCDBC554CBDB0A9007CA9584EB7" section-type="subsequent-section"><enum>505.</enum><header>Special treatment
			 under Medicare part D for drugs in 6 specified therapeutic categories</header>
				<subsection id="HAF9146166D064AE8A444A9AD563228AE"><enum>(a)</enum><header>Medicare part D
			 formularies required To cover all drugs in 6 specified therapeutic
			 categories</header>
					<paragraph id="HA1B1B981302E4CF6A814CCF5508DFDF8"><enum>(1)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 1860D–4(b)(3)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-104">42 U.S.C. 1395w–104(b)(3)</external-xref>) is amended—</text>
						<subparagraph id="H631E59770B9B4DBBA9319717CFD3F76C"><enum>(A)</enum><text>in subparagraph
			 (C)(i), by inserting <quote>, except as provided in subparagraph (G),</quote>
			 after <quote>although</quote>; and</text>
						</subparagraph><subparagraph id="H029FE41E9128434F92177C921974DB5E"><enum>(B)</enum><text>by inserting after
			 subparagraph (F) the following new subparagraph:</text>
							<quoted-block display-inline="no-display-inline" id="H2B5229B6D8C34EFD83BEC99CD36B473" style="OLC">
								<subparagraph id="H51C3125F1CDB4361956604DEC969E4C9"><enum>(G)</enum><header>Required
				inclusion of drugs in certain therapeutic categories and classes</header>
									<clause id="HB05FA393B6D442C087FCCEC3FAC1EA3"><enum>(i)</enum><header>Requirement</header><text>The
				formulary must include, subject to clause (iii), all or substantially all drugs
				in each of the following therapeutic categories of covered part D drugs:</text>
										<subclause id="HA0031CD6B74840AEBAF84650058B4FA1"><enum>(I)</enum><text>Immunosuppresessants.</text>
										</subclause><subclause id="H8686C897B9124D2599534E76093BB2AE"><enum>(II)</enum><text>Antidepressants.</text>
										</subclause><subclause id="H006FB86499C34C9E914848A525CD0829"><enum>(III)</enum><text>Antipsychotics.</text>
										</subclause><subclause id="H730DCFEE1C3546D3A8F8D14EE51BAED"><enum>(IV)</enum><text>Anticonvulsants.</text>
										</subclause><subclause id="H1BF2B84A0651434600A6460218F5428D"><enum>(V)</enum><text>Antiretrovials.</text>
										</subclause><subclause id="HC3592EF289554B3688CECAEE54DF1671"><enum>(VI)</enum><text>Antineoplastics.</text>
										</subclause></clause><clause id="H08AD5FDABC4E4E4CA07DBAEBA824BD9"><enum>(ii)</enum><header>Coverage of all
				unique dosage forms</header><text display-inline="yes-display-inline">To meet
				the requirement under clause (i), the formulary must include all covered part D
				drugs and unique dosages and forms of such drugs in the categories specified in
				such clause, except for—</text>
										<subclause id="H441EC5C687F14906A7A79F564202C8EE"><enum>(I)</enum><text>multi-source
				brands of the identical molecular structure;</text>
										</subclause><subclause id="H0EA37E37D5BA4CD494D76E10CCF82C9"><enum>(II)</enum><text>extended release
				products in the case that the immediate release product involved is included on
				the formulary;</text>
										</subclause><subclause id="H72A2FE712E694E23B218AC59E4F7F348"><enum>(III)</enum><text>products that
				have the same active ingredient; and</text>
										</subclause><subclause id="H0082DDAFA95B4DD1A015150063004372"><enum>(IV)</enum><text>dosage forms that
				do not provide a unique route of administration, such as tablets and
				capsules.</text>
										</subclause></clause><clause id="H330FF703E344450DA1AC0433000049F4"><enum>(iii)</enum><header>Application to
				new FDA-approved drugs</header><text display-inline="yes-display-inline">In the
				case of a drug that becomes a covered part D drug and that is included in a
				category specified in clause (i), clause (i) shall apply to such drug 30 days
				after the drug has been placed on the market. Nothing in the previous sentence
				shall be construed as preventing a pharmacy and therapeutic committee from
				advising a PDP sponsor of a prescription drug plan on the clinical
				appropriateness of formulary management practices and policies related to new
				drugs in such categories.</text>
									</clause><clause id="HFA2FB399777143989C3088B40000CCA0"><enum>(iv)</enum><header>Utilization
				management tools not permitted</header><text display-inline="yes-display-inline">A PDP sponsor of a prescription drug plan
				may not apply a utilization management tool, such as prior authorization or
				step therapy, to a drug required under clause (i) to be included on the
				formulary.</text>
									</clause><clause id="H9E3B2C627A1142159B169FCF1D6FA033"><enum>(v)</enum><header>Rules of
				construction</header>
										<subclause id="H9C01077115F74122A300435D5C49E608"><enum>(I)</enum><header>Issuance of
				guidance or regulations to establish formulary or utilization management
				requirements permitted</header><text>Nothing in this subparagraph shall be
				construed as prohibiting the Secretary from issuing guidance or regulations to
				establish formulary or utilization management requirements under this section
				for any category or class of covered part D drugs if such guidance or
				regulations are consistent with the requirements of this subparagraph.</text>
										</subclause><subclause id="H045791E0441149EBA5D76CDD54271F60"><enum>(II)</enum><header>Additional
				therapeutic categories permitted</header><text>Nothing in this subparagraph
				shall be construed as prohibiting the Secretary from including any additional
				therapeutic category or class of covered part D drugs under clause (i) for
				purposes of this
				subparagraph.</text>
										</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph><paragraph id="HA58272CF3C614061B48698D5953508EA"><enum>(2)</enum><header>Effective
			 date</header><text>The amendments made by paragraph (1) shall apply to plan
			 years beginning on or after January 1, 2008.</text>
					</paragraph></subsection><subsection id="H1889140CC8904F459878D81CC527E88"><enum>(b)</enum><header>Special
			 requirements for coverage determinations, reconsiderations, and appeals for
			 drugs included in specified therapeutic categories</header>
					<paragraph id="H5787F50CC262440FBF97CC83A2E74B01"><enum>(1)</enum><header>In
			 general</header><text>Section 1860D–4(g) of the Social Security Act (42 U.S.C.
			 1395w–104(g)) is amended by adding at the end the following new
			 paragraph:</text>
						<quoted-block display-inline="no-display-inline" id="HB5E6FA4FB82247A3A1F1544C7B934CE4" style="OLC">
							<paragraph id="HAF19400A874F4A41A38535A94B99FF4"><enum>(3)</enum><header>Reconsideration
				of determinations related to drugs included in specified therapeutic categories
				conducted by Independent Review Entity</header><text>With respect to a part D
				eligible individual enrolled in a prescription drug plan, in the case of a
				determination under this subsection that denies such individual coverage (in
				whole or in part) of a drug in a category specified in subsection (b)(3)(G)(i),
				the individual may request that the reconsideration of such determination
				authorized under section 1852(g)(2) (as applied by paragraph (1)) be conducted
				by the independent, outside entity described in paragraph (4) of section
				1852(g) in accordance with the procedures for an expedited reconsideration
				under paragraph (3) of such section.</text>
							</paragraph><paragraph display-inline="no-display-inline" id="HD3FE384A8BE14872A3F06D06AD5809BA"><enum>(4)</enum><header>Required
				coverage of drugs included in specified therapeutic categories during
				determinations, reconsiderations, and appeals</header><text>If a part D
				eligible individual enrolled in a prescription drug plan offered by a PDP
				sponsor requests a redetermination or reconsideration under this subsection (or
				an appeal under subsection (h)) with respect to an utilization management
				requirement or denial of coverage (in whole or in part) of a drug in a category
				specified in subsection (b)(3)(G)(i), such sponsor shall provide such
				individual with coverage of such drug as prescribed during the pendency of such
				redetermination, reconsideration, or appeal until 60 days after the date of
				receipt of a written notification of—</text>
								<subparagraph id="H67DBE0DBAF47464D87B3535192EC6E61"><enum>(A)</enum><text display-inline="yes-display-inline">in the case that the individual does not
				request a reconsideration or appeal, the determination on such
				redetermination;</text>
								</subparagraph><subparagraph id="HCC1F91F3E9444F828CE5D58B853542DC"><enum>(B)</enum><text>in the case that
				the individual requests a reconsideration but not an appeal, the determination
				on such reconsideration; or</text>
								</subparagraph><subparagraph id="H343154D125C94970A9467B36632C3865"><enum>(C)</enum><text>in the case that
				the individual requests an appeal, the determination on such appeal or the
				dismissal of the appeal;</text>
								</subparagraph><continuation-text continuation-text-level="paragraph">except
				that in no case shall such coverage end before the end of the period in which
				an individual may file an appeal with respect to the determination
				involved.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H5774EB66EB1444A08D229058CB379DB1"><enum>(2)</enum><header>Effective
			 date</header><text>The amendment made by paragraph (1) shall apply to requests
			 for redeterminations, reconsiderations, and appeal hearings made on or after
			 the effective date described in subsection (a)(2).</text>
					</paragraph></subsection><subsection id="H39B185D9BAFE44E9BEB321CFDA9F67E7"><enum>(c)</enum><header>Reporting
			 requirements for drugs included in specified therapeutic categories</header>
					<paragraph id="H8385DC5109E446B4BD6B40EFD649F0B"><enum>(1)</enum><header>In
			 general</header><text>Section 1860D–4(b) of the Social Security Act (42 U.S.C.
			 1395w–104(b)) is amended by adding at the end the following new
			 paragraph:</text>
						<quoted-block display-inline="no-display-inline" id="H855D7463D2CB40BDA17CD01325B3FBB7" style="OLC">
							<paragraph id="HB12426BBC86646DBB3257255F4D7C703"><enum>(4)</enum><header>Reporting
				requirements for drugs included in specified therapeutic categories</header>
								<subparagraph id="HE4E3832B98894C91A05BEDC405EB9401"><enum>(A)</enum><header>Reports by PDP
				sponsors</header><text display-inline="yes-display-inline">A PDP sponsor
				offering a prescription drug plan shall submit to the Secretary (in a form and
				manner specified by the Secretary), with respect to drugs in a category of
				covered part D drugs specified in subsection (b)(3)(G)(i), information on the
				number of favorable and unfavorable decisions under the plan relating to
				coverage determinations, redeterminations, reconsiderations, appeals, and
				enrollee requests for exceptions to formulary policies for such drugs.</text>
								</subparagraph><subparagraph id="HE52D7C0ECBD649E6BD6472EDDC10D29F"><enum>(B)</enum><header>Report to
				Congress</header><text>The Secretary shall submit an annual report to Congress
				summarizing the information submitted under subparagraph (A) and shall publish
				each report in the Federal
				Register.</text>
								</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="H20BE26C9EF5A457C8052D0B037CC9606"><enum>(2)</enum><header>Effective
			 date</header><text>The amendment made by paragraph (1) shall apply to
			 prescription drug plans and MA plans for plan years beginning on or after the
			 effective date described in subsection (a)(2).</text>
					</paragraph></subsection></section><section id="H87A8E139B02F4EEDBBC4CBACB8D694F" section-type="subsequent-section"><enum>506.</enum><header>Removal of exclusion
			 of benzodiazepines from required coverage under the Medicare Prescription Drug
			 Program</header>
				<subsection id="H6E683A0B5E804530BCC587F7C59FCE00"><enum>(a)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 1860D–2(e)(2)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(e)(2)</external-xref>) is amended—</text>
					<paragraph id="H17E99E52F7044F8EA8A7399514D49CF"><enum>(1)</enum><text>by
			 striking <quote>subparagraph (E)</quote> and inserting <quote>subparagraphs (E)
			 and (J)</quote>; and</text>
					</paragraph><paragraph id="H389F206456C24C6D9DCD7D8DEFDB65EF"><enum>(2)</enum><text>by inserting
			 <quote>and benzodiazepines</quote> after <quote>smoking cessation
			 agents</quote>.</text>
					</paragraph></subsection><subsection id="H73451DEE7338444BBE0062731EA25FC7"><enum>(b)</enum><header>Review of
			 benzodiazepine prescription policies To assure appropriateness and To avoid
			 abuse</header><text display-inline="yes-display-inline">The Secretary of Health
			 and Human Services shall review the policies of Medicare prescription drug
			 plans (and MA–PD plans) under parts C and D of title XVIII of the Social
			 Security Act regarding the filling of prescriptions for benzodiazepine to
			 ensure that these policies are consistent with accepted clinical guidelines,
			 are appropriate to individual health histories, and are designed to minimize
			 long term use, guard against over-prescribing, and prevent patient
			 abuse.</text>
				</subsection><subsection id="H5EF55A57963B495CA4E35C2123760068"><enum>(c)</enum><header>Development by
			 medicare quality improvement organizations of educational guidelines for
			 physicians regarding prescribing of benzodiazepines</header><text display-inline="yes-display-inline">The Secretary of Health and Human Services
			 shall provide, in contracts entered into with Medicare quality improvement
			 organizations under part B of title XI of the Social Security Act, for the
			 development by such organizations of appropriate educational guidelines for
			 physicians regarding the prescribing of benzodiazepines.</text>
				</subsection><subsection id="H99AEAD66BD5648D9A1798F849934CCC6"><enum>(d)</enum><header>Effective
			 date</header><text display-inline="yes-display-inline">The amendments made by
			 subsection (a) shall apply to contract years beginning on or after January 1,
			 2008.</text>
				</subsection></section><section id="HA33E76A1B5E74FA78846DCE907AD6ECF"><enum>507.</enum><header>Standardized
			 forms and procedures for reconsiderations and appeals</header>
				<subsection id="H27633ADD5A484F8D937DEE00ADCBCD"><enum>(a)</enum><header>In
			 general</header><text>Section 1860D–4 of the Social Security Act (42 U.S.C.
			 1395w–104) is amended by adding at the end the following new subsection:</text>
					<quoted-block display-inline="no-display-inline" id="HFCD7166F84784965BB4B2C4C5CF97044" style="OLC">
						<subsection id="HC52373EC05434ECF9F16A034DF8625D8"><enum>(l)</enum><header>Standardized
				forms and procedures for reconsiderations and appeals</header>
							<paragraph id="H5D1B7BBA537843D193E609DEA3D0C242"><enum>(1)</enum><header>Standard
				enrollee notice</header><text>The Secretary shall develop a standard notice to
				be distributed by a prescription drug plan (or an MA–PD plan) to an enrollee
				when a covered part D drug prescribed for the enrollee is not covered, or the
				coverage of such drug is otherwise restricted, by the plan.</text>
							</paragraph><paragraph id="H796EC239BD954F7991078D8826532255"><enum>(2)</enum><header>Standardized
				process for reconsiderations and appeals</header><text>The Secretary shall
				require prescription drug plans and MA–PD plans to follow the same standardized
				process for reconsiderations and redeterminations under subsections (g) and
				(h). Such process shall require that determinations regarding medical necessity
				are based on professional medical judgement, the medical condition of the
				enrollee, the treating physician's recommendation, and other medical
				evidence.</text>
							</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H83FC5CCF951749D199E6F27B598CEC8D"><enum>(b)</enum><header>Effective
			 date</header><text>The Secretary of Health and Human Services shall provide for
			 the standard notice and the standardized process, and the application of such
			 notice and process, under the amendment made by subsection (a) by not later
			 than January 1, 2008.</text>
				</subsection></section><section id="H9D19101A407F471AAEED5BE3FB9F9D36"><enum>508.</enum><header>Elimination of
			 MA Regional Stabilization Fund (Slush Fund); elimination of certain MA
			 overpayments</header>
				<subsection id="HABF47F65172A4E94B4B6D2C4FB70A350"><enum>(a)</enum><header>Elimination of
			 slush fund</header>
					<paragraph id="H29ACF0E23BAB4602826052DC54D45774"><enum>(1)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Subsection (e) of
			 section 1858 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-27a">42 U.S.C. 1395w–27a</external-xref>) is
			 repealed.</text>
					</paragraph><paragraph id="HFDCEBFDA720E45AC9B306CDC1CAD8EEB"><enum>(2)</enum><header>Conforming
			 amendment</header><text display-inline="yes-display-inline">Section 1858(f)(1)
			 of the Social Security Act (42 U.S.C. 1395w–27a(f)(1)) is amended by striking
			 <quote>subject to subsection (e),</quote>.</text>
					</paragraph><paragraph id="HF2B719FF426C4514BFAF516DE0236A"><enum>(3)</enum><header>Effective
			 date</header><text display-inline="yes-display-inline">The amendments made by
			 this subsection shall take effect as if included in the enactment of section
			 221(c) of the Medicare Prescription Drug, Improvement, and Modernization Act of
			 2003 (<external-xref legal-doc="public-law" parsable-cite="pl/108/173">Public Law 108–173</external-xref>; 117 Stat. 2181).</text>
					</paragraph></subsection><subsection display-inline="no-display-inline" id="HC10F8A8724034BE6AA8101BCC789F7B3"><enum>(b)</enum><header>Elimination of
			 certain Medicare Advantage overpayments</header>
					<paragraph id="H51CE5737B6AC47EEBC7837871165D578"><enum>(1)</enum><header>In
			 general</header><text>Section 1853(a)(1)(C)(ii) of the
			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
			 1395w–23(a)(1)(C)(ii)), as added by section 5301 of the Deficit Reduction Act
			 of 2005, is amended—</text>
						<subparagraph id="HB7D940530237497E8963CE665DCEADED"><enum>(A)</enum><text>in the heading, by
			 striking <quote><header-in-text level="clause" style="OLC">during phase-out of
			 budget neutrality factor</header-in-text></quote>;</text>
						</subparagraph><subparagraph id="H5EDF31E883184B87882D037495F57D17"><enum>(B)</enum><text>in the matter
			 preceding subclause (I), by striking <quote>through 2010</quote> and inserting
			 <quote>and subsequent years</quote>; and</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4393562BAF95425193C565CA0791AAF"><enum>(C)</enum><text>in subclause (II),
			 by striking <quote>only for 2008, 2009, and 2010</quote> and inserting
			 <quote>for 2008 and subsequent years</quote>.</text>
						</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5CDEB880AB74742A63359ABCE131734"><enum>(2)</enum><header>Effective
			 date</header><text>The amendments made by this subsection shall take effect as
			 if included in the enactment of section 5301 of the Deficit Reduction Act of
			 2005.</text>
					</paragraph></subsection></section><section id="H5EBF4F84772B4A5FAC00E84785E78F2C"><enum>509.</enum><header>Beneficiary
			 complaints</header>
				<subsection id="H4A300BBA43BE4ADCA94B06CC804C4206"><enum>(a)</enum><header>In
			 general</header><text>Section 1860D–4(a) of the Social Security Act (42 U.S.C.
			 1395w–104(a)) is amended by adding at the end the following new
			 paragraph:</text>
					<quoted-block display-inline="no-display-inline" id="H40AAFB664ADC497D0019CF23FE37202B" style="OLC">
						<paragraph id="H0DB5C8E26DF34C518DBBD4945800FD6B"><enum>(5)</enum><header>Beneficiary
				complaints</header>
							<subparagraph id="HEC9C8EFEA91F41588E62512B7E83237C"><enum>(A)</enum><header>Complaint
				log</header><text>The Secretary shall keep record of all complaints received at
				1–800–MEDICARE and at any regional office of the Centers for Medicare &amp;
				Medicaid Services from (or on behalf of) a beneficiary concerning prescription
				drug plans and MA–PD plans. Complaints shall be recorded even if the
				beneficiary does not explicitly identify the concern (or concerns) as a
				complaint, and even if the beneficiary is subsequently referred to the plan for
				complaint resolution. The Secretary shall publicly report statistical data on
				such complaints, including the type of complaint, whether the complaint was
				resolved, and the time taken to resolve the complaint.</text>
							</subparagraph><subparagraph id="H7481975B60EB4807BBDD08BBBBE41419"><enum>(B)</enum><header>Plan response to
				complaints</header><text display-inline="yes-display-inline">If the Secretary
				receives such a beneficiary complaint regarding such a plan and refers the
				complaint to such plan for investigation and resolution by the plan, the plan
				shall report back to the Secretary on a timely basis on the resolution of the
				complaint. The Secretary shall record such information in the beneficiary’s
				record and include data on timeliness of plan’s response in public
				reports.</text>
							</subparagraph><subparagraph commented="no" id="HBFC74ACAE17A4D2394039FADC2C414D6"><enum>(C)</enum><header>Report to
				Congress</header><text>The Secretary shall annually report to Congress
				regarding complaints compiled under this
				paragraph.</text>
							</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H547482AAAEF947998E1B615D8375A669"><enum>(b)</enum><header>Effective
			 date</header><text>The amendment made by subsection (a) shall apply to contract
			 years beginning on or after the date of the enactment of this Act.</text>
				</subsection></section><section id="HB0A108EF660C4191B900FD8FF6CE589E"><enum>510.</enum><header>Fill of drugs
			 for dual eligibles</header>
				<subsection id="HE5E23345EAD540A000CB00A16115A761"><enum>(a)</enum><header>In
			 general</header><text>Section 1860D–4(g) of the Social Security Act (42 U.S.C.
			 1395w–104(g)) is amended by adding at the end the following new
			 paragraph:</text>
					<quoted-block display-inline="no-display-inline" id="H94483D0BDF83410EB8407605BFF35F2" style="OLC">
						<paragraph id="H7D15311981144970B3452CCB766C50BC"><enum>(3)</enum><header>Fill of drugs
				for full-benefit dual eligible individuals</header><text display-inline="yes-display-inline">In the case of a reconsideration under
				paragraph (1) or an exception under paragraph (2) sought with respect to a
				covered part D drug on behalf of a full-benefit dual eligible individual (as
				defined in section 1935(c)(6)), the PDP sponsor shall provide for coverage of
				the drug (or treatment of the drug as a preferred drug under a tiered
				formulary) pending disposition of the reconsideration or
				exception.</text>
						</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H424B13455F2A4997A913F41F5584FA8F"><enum>(b)</enum><header>Effective
			 date</header><text display-inline="yes-display-inline">The amendment made by
			 subsection (a) shall apply to contract years beginning on or after the date of
			 the enactment of this Act.</text>
				</subsection></section></title><title id="H481E214D954144E1B308CD7A4D6E168"><enum>W</enum><header>Fair
			 and Speedy Treatment of Medicare Prescription Drug Claims</header>
			<section id="H59D5E118D1814E94AB3B4773FCF12DFF"><enum>601.</enum><header>Prompt payment
			 by Medicare prescription drug plans and MA–PD plans under part D</header>
				<subsection id="H2E074B4084C1419493D7E656F973EC5C"><enum>(a)</enum><header>Application to
			 prescription drug plans</header><text>Section 1860D–12(b) of the Social
			 Security Act (42 U.S.C. 1395w–112 (b)), as amended by section 301(b), is
			 amended by adding at the end the following new paragraph:</text>
					<quoted-block id="HC14F4B796A484383A5B31FFF11F69DB2" style="OLC">
						<paragraph id="H8BAB3ABF16924A4EA981D454615F76B"><enum>(5)</enum><header>Prompt payment of
				clean claims</header>
							<subparagraph id="H0542B4D3549347A4BE2F9F14009B0825"><enum>(A)</enum><header>Prompt
				payment</header><text>Each contract entered into with a PDP sponsor under this
				subsection with respect to a prescription drug plan offered by such sponsor
				shall provide that payment shall be issued, mailed, or otherwise transmitted
				with respect to all clean claims submitted under this part within the
				applicable number of calendar days after the date on which the claim is
				received.</text>
							</subparagraph><subparagraph id="H2B605F8CE17D4F61847001385BF343B2"><enum>(B)</enum><header>Definitions</header><text>In
				this paragraph:</text>
								<clause id="H71A5312549834BBBA37C3D00BFFBEE"><enum>(i)</enum><header>Clean
				claim</header><text>The term <term>clean claim</term> means a claim, with
				respect to a covered part D drug, that has no apparent defect or impropriety
				(including any lack of any required substantiating documentation) or particular
				circumstance requiring special treatment that prevents timely payment from
				being made on the claim under this part.</text>
								</clause><clause id="HCBC091AA1E4D48ADA8DF5CB125C12505"><enum>(ii)</enum><header>Applicable
				number of calendar days</header><text>The term <term>applicable number of
				calendar days</term> means—</text>
									<subclause id="HD7BF3AD48DA445D49E89ADD2ED770062"><enum>(I)</enum><text>with respect to
				claims submitted electronically, 14 calendar days; and</text>
									</subclause><subclause id="H063DBFF2ADE643B6AE3CAD63EE30B210"><enum>(II)</enum><text>with respect to
				claims submitted otherwise, 30 calendar days.</text>
									</subclause></clause></subparagraph><subparagraph id="H406228B81B4F42BFB55D8DBED2612541"><enum>(C)</enum><header>Interest
				payment</header><text>If payment is not issued, mailed, or otherwise
				transmitted within the applicable number of calendar days (as defined in
				subparagraph (B)) after a clean claim is received, interest shall be paid at a
				rate used for purposes of <external-xref legal-doc="usc" parsable-cite="usc/31/3902">section 3902(a)</external-xref> of title 31, United States Code
				(relating to interest penalties for failure to make prompt payments), for the
				period beginning on the day after the required payment date and ending on the
				date on which payment is made.</text>
							</subparagraph><subparagraph id="H6C69E766386B40E1936189F90677D877"><enum>(D)</enum><header>Procedures
				involving claims</header>
								<clause id="HC2951CB220FB45BAA99E50D046ABD16B"><enum>(i)</enum><header>Claims deemed to
				be clean claims</header>
									<subclause id="H2BB129A1A09641BA9195108E4DD1F0F4"><enum>(I)</enum><header>In
				general</header><text>A claim for a covered part D drug shall be deemed to be a
				clean claim for purposes of this paragraph if the PDP sponsor involved does not
				provide a notification of deficiency to the claimant by the 10th day that
				begins after the date on which the claim is submitted.</text>
									</subclause><subclause commented="no" id="HEF19797BE5C7444184CDE4BB86206FD7"><enum>(II)</enum><header>Notification of
				deficiency</header><text>For purposes of subclause (II), the term
				<term>notification of deficiency</term> means a notification that specifies all
				defects or improprieties in the claim involved and that lists all additional
				information or documents necessary for the proper processing and payment of the
				claim.</text>
									</subclause></clause><clause id="HDCB89B1967E7484B001F5B7F3FF5D325"><enum>(ii)</enum><header>Payment of
				clean portions of claims</header><text>A PDP sponsor shall, as appropriate, pay
				any portion of a claim for a covered part D drug that would be a clean claim
				but for a defect or impropriety in a separate portion of the claim in
				accordance with subparagraph (A).</text>
								</clause><clause id="H8A1BE2BFCCC44897B6466982A000F9F2"><enum>(iii)</enum><header>Obligation to
				pay</header><text>A claim for a covered part D drug submitted to a PDP sponsor
				that is not paid or contested by the provider within the applicable number of
				calendar days (as defined in subparagraph (B)) shall be deemed to be a clean
				claim and shall be paid by the PDP sponsor in accordance with subparagraph
				(A).</text>
								</clause><clause id="H70DCB69DF17F4C099419A62D5275951E"><enum>(iv)</enum><header>Date of payment
				of claim</header><text>Payment of a clean claim under subparagraph (A) is
				considered to have been made on the date on which full payment is received by
				the provider.</text>
								</clause></subparagraph><subparagraph id="HA1B9A83EBB2F434880F5BBC6BF96A326"><enum>(E)</enum><header>Electronic
				transfer of funds</header><text>A PDP sponsor shall pay all clean claims
				submitted electronically by an electronic funds transfer
				mechanism.</text>
							</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H9CE2D224D0324AA2B46C7248D0C0E150"><enum>(b)</enum><header>Application to
			 MA–PD plans</header><text>Section 1857(f) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-27">42 U.S.C. 1395w–27</external-xref>) is
			 amended by adding at the end the following new paragraph:</text>
					<quoted-block id="HBAFCFC9802B5419C95EDD9F868691B61" style="OLC">
						<paragraph id="H875F26E06D1646009B1EEC58EC92A76D"><enum>(3)</enum><header>Incorporation of
				certain prescription drug plan contract requirements</header><text>The
				provisions of section 1860D–12(b)(5) shall apply to contracts with a Medicare
				Advantage Organization in the same manner as they apply to contracts with a PDP
				sponsor offering a prescription drug plan under part
				D.</text>
						</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H62C7A24D38584A22A4D1CB34DE80E5E5"><enum>(c)</enum><header>Effective
			 date</header><text>The amendments made by this section shall apply to contracts
			 entered into or renewed on or after the date of the enactment of this
			 Act.</text>
				</subsection></section><section id="HC89DFDC428E8494CBD9134CE86942E97"><enum>602.</enum><header>Restriction on
			 co-branding</header>
				<subsection id="H545227FE41254F3995C92CF2BC16E800"><enum>(a)</enum><header>In
			 general</header><text>Section 1860D–4(b)(2)(A) of the Social Security Act (42
			 U.S.C. 1395w–104(b)(2)(A)) is amended by adding at the end the following new
			 sentences: <quote>It is unlawful for a PDP sponsor of a prescription drug plan
			 to display on such a card the name, brand, or trademark of any
			 pharmacy.</quote></text>
				</subsection><subsection id="HC100F63A197E408CBD3448000078FD2E"><enum>(b)</enum><header>Effective
			 date</header><text>With respect to cards dispensed before, on, or after the
			 date of the enactment of this Act, the amendment made by this section shall
			 apply to such cards on and after the date that is 90 days after such date of
			 enactment. Any card dispensed before such date that is 90 days after the date
			 of enactment that violates the second sentence of section 1860D–4(b)(2)(A) of
			 the Social Security Act, as added by subsection (a), shall be reissued by such
			 90-day date.</text>
				</subsection></section><section commented="no" display-inline="no-display-inline" id="H2CB7391E362045B497F5C51BFC634580"><enum>603.</enum><header>Provision of
			 medication therapy management services under part D</header>
				<subsection commented="no" display-inline="no-display-inline" id="HB671089A56EC4D05A4542F9EED83E178"><enum>(a)</enum><header>Provision of
			 Medication Therapy Management Services under part D</header>
					<paragraph commented="no" display-inline="no-display-inline" id="H0506D4574BFD464AB73C4C7B253485F2"><enum>(1)</enum><header>In
			 general</header><text display-inline="yes-display-inline">Section 1860D–4(c)(2)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-104">42 U.S.C. 1395w–104(c)(2)</external-xref>) is amended—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="H5901529ECC2045EFB642AFB5030730E9"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
							<clause commented="no" display-inline="no-display-inline" id="H1B4692C7B0B84814A2179869046C9CF2"><enum>(i)</enum><text display-inline="yes-display-inline">in clause (i)—</text>
								<subclause commented="no" display-inline="no-display-inline" id="H7A0CDF0A6603475C83171032F98FFB6"><enum>(I)</enum><text display-inline="yes-display-inline">by inserting <quote>or other health care
			 provider with advanced training in medication management</quote> after
			 <quote>furnished by a pharmacist</quote>; and</text>
								</subclause><subclause commented="no" display-inline="no-display-inline" id="H374D18972E02494B99931221836CCE5"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>targeted beneficiaries
			 described in clause (ii)</quote> and inserting <quote>targeted beneficiaries
			 specified under clause (ii)</quote></text>
								</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H8712A3CB7C78459EB600B78245A0EB85"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking clause (ii) and inserting the
			 following:</text>
								<quoted-block display-inline="no-display-inline" id="H51BC0AF539EF448FB1E0A08100A1B7DB" style="OLC">
									<clause commented="no" display-inline="no-display-inline" id="HF28BF80161034E02B7F318D8F28D6794"><enum>(ii)</enum><header>Targeted
				beneficiaries</header><text display-inline="yes-display-inline">The Secretary
				shall specify the population of part D eligible individuals appropriate for
				services under a medication therapy management program based on the following
				characteristics:</text>
										<subclause commented="no" display-inline="no-display-inline" id="H6502CDF7014D4375A4B2A486B44006B8"><enum>(I)</enum><text display-inline="yes-display-inline">Having a disease state in which
				evidence-based medicine has demonstrated the benefit of medication therapy
				management intervention based on objective outcome measures.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="H1A7BC508B7994AC79EEFE193551737AC"><enum>(II)</enum><text display-inline="yes-display-inline">Taking multiple covered part D drugs or
				having a disease state in which a complex combination medication regimen is
				utilized.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="HF8B97CDDCABD43BC80ECDFF3D5822"><enum>(III)</enum><text display-inline="yes-display-inline">Being identified as likely to incur annual
				costs for covered part D drugs that exceed a level specified by the Secretary
				or where acute or chronic decompensation of disease would likely increase
				expenditures under the Federal Hospital Insurance Trust Fund or the Federal
				Supplementary Medical Insurance Trust Fund under sections 1817 and 1841,
				respectively, such as through the requirement of emergency care or acute
				hospitalization.</text>
										</subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block>
							</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HED5E97281C534520BC7C165504BAB3C"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (B) and inserting
			 the following:</text>
							<quoted-block display-inline="no-display-inline" id="HA10D8FFE76754BBB0031E7ACC537938F" style="OLC">
								<subparagraph commented="no" display-inline="no-display-inline" id="H6CD1D9F477444E33B68B90A6D541B4F6"><enum>(B)</enum><header>Elements</header>
									<clause commented="no" display-inline="no-display-inline" id="H3DA70D51D8B4481D93583070E4AA96C5"><enum>(i)</enum><header>Minimum defined
				package of services</header><text display-inline="yes-display-inline">The
				Secretary shall specify a minimum defined package of medication therapy
				management services that shall be provided to each enrollee. Such package shall
				be based on the following considerations:</text>
										<subclause commented="no" display-inline="no-display-inline" id="H863A89A3988247EE95E921CA9DFAD4DB"><enum>(I)</enum><text display-inline="yes-display-inline">Performing necessary assessments of the
				health status of each enrollee.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="HE17131A21A1743DF93BDB8894FE22C44"><enum>(II)</enum><text display-inline="yes-display-inline">Providing medication therapy review to
				identify, resolve, and prevent medication-related problems, including adverse
				events.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="H09A7601BE31C46438B78C4F500755107"><enum>(III)</enum><text display-inline="yes-display-inline">Increasing enrollee understanding to
				promote the appropriate use of medications by enrollees and to reduce the risk
				of potential adverse events associated with medications, through beneficiary
				and family education, counseling, and other appropriate means.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="HD7E93CA4608C4FB6AC33B7CF72FE02AC"><enum>(IV)</enum><text display-inline="yes-display-inline">Increasing enrollee adherence with
				prescription medication regimens through medication refill reminders, special
				packaging, and other compliance programs and other appropriate means.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="HBE1141D32D6D4419B239443C08F7DCE6"><enum>(V)</enum><text display-inline="yes-display-inline">Promoting detection of adverse drug events
				and patterns of overuse and underuse of prescription drugs.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="HE5DFB88937A84DA3A979AF5B863C8EE6"><enum>(VI)</enum><text display-inline="yes-display-inline">Developing a medication action plan which
				may alter the medication regimen, when permitted by the State licensing
				authority. This information should be provided to, or accessible by, the
				primary health care provider of the enrollee.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="H4FC03EBA35A34C75A08044CB4949DA34"><enum>(VII)</enum><text display-inline="yes-display-inline">Monitoring and evaluating the response to
				therapy and evaluating the safety and effectiveness of the therapy, which may
				include laboratory assessment.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="H083338E6163D4B30A5E01CFA5B87EBB"><enum>(VIII)</enum><text display-inline="yes-display-inline">Providing disease-specific medication
				therapy management services when appropriate.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="HF3F9CEF4712D4A42855EB7066F499780"><enum>(IX)</enum><text display-inline="yes-display-inline">Coordinating and integrating medication
				therapy management services within the broader scope of health care management
				services being provided to each enrollee.</text>
										</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H2318A0E5DC0B40EA8600D7E89006DAF5"><enum>(ii)</enum><header>Delivery of
				services</header>
										<subclause commented="no" display-inline="no-display-inline" id="HDD929D345E894D9CB7763C24CE3D7D8D"><enum>(I)</enum><header>Personal
				delivery</header><text display-inline="yes-display-inline">To the extent
				feasible, face-to-face interaction shall be the preferred method of delivery of
				medication therapy management services.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="H5DA28D0B34B24AF6AC11B7EF46884CC1"><enum>(II)</enum><header>Individualized</header><text display-inline="yes-display-inline">Such services shall be patient-specific and
				individualized and shall be provided directly to the patient by a pharmacist or
				other health care provider with advanced training in medication
				management.</text>
										</subclause><subclause commented="no" display-inline="no-display-inline" id="HE9BD5823E0BF4C6BBC4CE2EEDB9F308"><enum>(III)</enum><header>Distinct from
				other activities</header><text display-inline="yes-display-inline">Such
				services shall be distinct from any activities related to formulary development
				and use, generalized patient education and information activities, and any
				population-focused quality assurance measures for medication use.</text>
										</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HAAD2BFDA90CC4605878B9F93F43BF9EF"><enum>(iii)</enum><header>Opportunity to
				identify patients in need of medication therapy management
				services</header><text display-inline="yes-display-inline">The program shall
				provide opportunities for health care providers to identify patients who should
				receive medication therapy management
				services.</text>
									</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAFCD04AEFF854CEC83F2195F0331BF8F"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subparagraph (E) and inserting
			 the following:</text>
							<quoted-block display-inline="no-display-inline" id="H3C532371CEA94FD3878C004247E6C66C" style="OLC">
								<subparagraph commented="no" display-inline="no-display-inline" id="H86094A361AD2454598A2C1DB7948ECD"><enum>(E)</enum><header>Pharmacy
				fees</header>
									<clause commented="no" display-inline="no-display-inline" id="HCF363A9C6D324DB89BE2767518DD8578"><enum>(i)</enum><header>In
				general</header><text display-inline="yes-display-inline">The PDP sponsor of a
				prescription drug plan shall pay pharmacists and others providing services
				under the medication therapy management program under this paragraph based on
				the time and intensity of services provided to enrollees.</text>
									</clause><clause commented="no" display-inline="no-display-inline" id="H222083218EBE447CA174BFD165BBA21C"><enum>(ii)</enum><header>Submission
				along with plan information</header><text display-inline="yes-display-inline">Each such sponsor shall disclose to the
				Secretary upon request the amount of any such payments and shall submit a
				description of how such payments are calculated along with the information
				submitted under section 1860D–11(b). Such description shall be submitted at the
				same time and in a similar manner to the manner in which the information
				described in paragraph (2) of such section is
				submitted.</text>
									</clause></subparagraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7179571275594A7EBE7F2EE8FEE31500"><enum>(D)</enum><text display-inline="yes-display-inline">by adding at the end the following new
			 subparagraph:</text>
							<quoted-block display-inline="no-display-inline" id="H412A133044CE48F2BF9D35A5B81B7B30" style="OLC">
								<subparagraph commented="no" display-inline="no-display-inline" id="H543F129CDB2846C892344023C519C848"><enum>(F)</enum><header>Pharmacy access
				requirements</header><text display-inline="yes-display-inline">The PDP sponsor
				of a prescription drug plan shall secure the participation in its network of a
				sufficient number of retail pharmacies to assure that enrollees have the option
				of obtaining services under the medication therapy management program under
				this paragraph directly from community-based retail
				pharmacies.</text>
								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
						</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H57F3F9D37E34496DA6F8BA6304006B5C"><enum>(2)</enum><header>Effective
			 date</header><text display-inline="yes-display-inline">The amendments made by
			 this subsection shall apply to medication therapy management services provided
			 on or after January 1, 2008.</text>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEB0A93012B774589967689F695389F43"><enum>(b)</enum><header>Medication
			 therapy management demonstration program</header><text display-inline="yes-display-inline">Section 1860D–4(c) of the Social Security
			 Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-104">42 U.S.C. 1395w–104(c)</external-xref>) is amended by adding at the end the following new
			 paragraph:</text>
					<quoted-block display-inline="no-display-inline" id="H552D9DC6F1AF4978AAC7274B00E89E3E" style="OLC">
						<paragraph commented="no" display-inline="no-display-inline" id="HEA4CA08728554F5FAA76C4D1F19EB0EA"><enum>(3)</enum><header>Community-based
				medication therapy management demonstration program</header>
							<subparagraph commented="no" display-inline="no-display-inline" id="H5B0064F3EEA74A9BB83B84CD1603429D"><enum>(A)</enum><header>Establishment</header>
								<clause commented="no" display-inline="no-display-inline" id="H288312A2D5364B07B74669960034F91F"><enum>(i)</enum><header>In
				general</header><text display-inline="yes-display-inline">By not later than
				January 1, 2008, the Secretary shall establish a 2-year demonstration program,
				based on the recommendations of the Best Practices Commission established under
				subparagraph (B), with both PDP sponsors of prescription drug plans and
				Medicare Advantage Organizations offering MA–PD plans, to examine the impact of
				medication therapy management furnished by a pharmacist in a community-based or
				ambulatory-based setting on quality of care, spending under this part, and
				patient health.</text>
								</clause><clause commented="no" display-inline="no-display-inline" id="HF18625DAFB5645A4903CA64C2E8991ED"><enum>(ii)</enum><header>Sites</header>
									<subclause commented="no" display-inline="no-display-inline" id="HFE3626758D0C47EA91BB94A991360399"><enum>(I)</enum><header>In
				general</header><text display-inline="yes-display-inline">Subject to subclause
				(II), the Secretary shall designate not less than 10 PDP sponsors of
				prescription drug plans or Medicare Advantage Organizations offering MA–PD
				plans, none of which provide prescription drug coverage under such plans in the
				same PDP or MA region, respectively, to conduct the demonstration program under
				this paragraph.</text>
									</subclause><subclause commented="no" display-inline="no-display-inline" id="H9C3BA3C9FCFE47648603984606F3CE08"><enum>(II)</enum><header>Designation
				consistent with recommendations of best practices commission</header><text display-inline="yes-display-inline">The Secretary shall ensure that the
				designation of sites under subclause (I) is consistent with the recommendations
				of the Best Practices Commission under subparagraph (B)(ii).</text>
									</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H555A5932F37A459D8700F52F04D5BFE1"><enum>(B)</enum><header>Best practices
				commission</header>
								<clause commented="no" display-inline="no-display-inline" id="H143DFBA3D6904067B100E3F0B931FA54"><enum>(i)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary shall establish a Best
				Practices Commission composed of representatives from pharmacy organizations,
				health care organizations, beneficiary advocates, chronic disease groups, and
				other stakeholders (as determined appropriate by the Secretary) for the purpose
				of developing a best practices model for medication therapy management.</text>
								</clause><clause commented="no" display-inline="no-display-inline" id="HBD6A08CA31D544A18DFFCF2344FE2D30"><enum>(ii)</enum><header>Recommendations</header><text display-inline="yes-display-inline">The Commission shall submit to the
				Secretary recommendations on the following:</text>
									<subclause commented="no" display-inline="no-display-inline" id="HB2228CBC71384CE2A62F7043597335A2"><enum>(I)</enum><text display-inline="yes-display-inline">The minimum number of enrollees that should
				be included in the demonstration program, and at each demonstration program
				site, to determine the impact of medication therapy management furnished by a
				pharmacist in a community-based setting on quality of care, spending under this
				part, and patient health.</text>
									</subclause><subclause commented="no" display-inline="no-display-inline" id="H847A72CEA78145EBB7F9198E5518C5C5"><enum>(II)</enum><text display-inline="yes-display-inline">The number of urban and rural sites that
				should be included in the demonstration program to ensure that prescription
				drug plans and MA–PD plans offered in urban and rural areas are adequately
				represented.</text>
									</subclause><subclause commented="no" display-inline="no-display-inline" id="H52F865D3464443A19F7DE4EF25A19076"><enum>(III)</enum><text display-inline="yes-display-inline">A best practices model for medication
				therapy management to be implemented under the demonstration program under this
				paragraph.</text>
									</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC71A3241E5D04A3CA5C3BA9F0075C41D"><enum>(C)</enum><header>Reports</header>
								<clause commented="no" display-inline="no-display-inline" id="H108775F353B4400EB0D86C8CA2300DE"><enum>(i)</enum><header>Interim
				report</header><text display-inline="yes-display-inline">Not later than 1 year
				after the commencement of the demonstration program, the Secretary shall submit
				to Congress an interim report on such program.</text>
								</clause><clause commented="no" display-inline="no-display-inline" id="HA3585096D15749D4AA81DF6843E33FC8"><enum>(ii)</enum><header>Final
				report</header><text display-inline="yes-display-inline">Not later than 6
				months after the completion of the demonstration program, the Secretary shall
				submit to Congress a final report on such program, together with
				recommendations for such legislation and administrative action as the Secretary
				determines appropriate.</text>
								</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC706CD51CF1A4249B99429D2A002D92"><enum>(D)</enum><header>Waiver
				authority</header><text display-inline="yes-display-inline">The Secretary may
				waive such requirements of titles XI and XVIII as may be necessary for the
				purpose of carrying out the demonstration program under this
				paragraph.</text>
							</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection></section></title></legis-body>
</bill>


