1.This Act may be cited as the
Part D Equity for Low-Income Seniors
Act of 2007
.
2.Expediting
low-income subsidies under the Medicare prescription drug program
(a)Section 1860D–14 of the Social Security Act (42 U.S.C.
1395w–114) is amended by adding at the end the following new subsection:
(e)Expedited
application and eligibility process
(1)
(A)The Commissioner of
Social Security 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 subparagraph (B) for
information described in section 6103(l)(21) of the Internal Revenue Code of
1986. Such process shall be conducted in cooperation with the Secretary.
(B)Currently
eligible individualsThe
Commissioner of Social Security shall, as soon as practicable after
implementation of subparagraph (A), screen such individual for eligibility for
the low-income subsidy provided under this section through such a request to
the Secretary of the Treasury.
(2)Notification of
potentially eligible individualsUnder 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 Commissioner of Social Security shall send a notification that
the individual is likely eligible for low-income subsidies under this section.
Such notification shall include the following:
(A)Information on how to apply for such low-income
subsidies.
(B)Description of
the LIS benefitA description of the low-income subsidies
available under this section.
(C)Information on
State Health Insurance ProgramsInformation on—
(i)the State Health
Insurance Assistance Program for the State in which the individual is located;
and
(ii)how the
individual may contact such Program in order to obtain assistance regarding
enrollment and benefits under this part.
(D)An
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 under this section. Such form—
(i)shall not require
the submittal of additional documentation regarding income or assets;
(ii)shall permit the
appointment of a personal representative described in paragraph (4); and
(iii)shall allow for
the specification of a language (other than English) that is preferred by the
individual for subsequent communications with respect to the individual under
this part.
If a State
is doing its own outreach to low-income seniors regarding enrollment and
low-income subsidies under this part, such process shall be coordinated with
the State’s outreach effort.(3)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.
(4)Use of authorized
representativeUnder 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.
(5)Use of preferred
language in subsequent communicationsIn 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 Commissioner of
Social Security shall provide that subsequent communications to the individual
under this part shall be in such language.
(6)Nothing
in this subsection shall be construed as precluding the Commissioner of Social
Security or the Secretary from taking additional outreach efforts to enroll
eligible individuals under this part and to provide low-income subsidies to
eligible
individuals.
.
(b)Disclosure of
return information for purposes of determining individuals eligible for
subsidies under Medicare part D
(1)Subsection (l) of section 6103 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:
(21)Disclosure of
return information to carry out Medicare part D subsidies
(A)The Secretary shall,
upon written request from the Commissioner of Social Security under section
1860D–14(e)(1) of the Social Security Act, disclose to officers and employees
of the Social Security Administration return information of a taxpayer who
(according to the records of the Secretary) may be eligible for a subsidy under
section 1860D–14 of the Social Security Act. Such return information shall be
limited to—
(i)taxpayer identity information with respect
to such taxpayer,
(ii)the filing
status of such taxpayer,
(iii)the gross
income of such taxpayer,
(iv)such other
information relating to the liability of the taxpayer as is prescribed by the
Secretary by regulation as might indicate the eligibility of such taxpayer for
a subsidy under section 1860D–14 of the Social Security Act, and
(v)the taxable year
with respect to which the preceding information relates.
(B)Restriction on
use of disclosed informationReturn information disclosed under
this paragraph may be used by officers and employees of the Social Security
Administration only for the purposes of identifying eligible individuals for,
and, if applicable, administering—
(i)low-income
subsidies under section 1860D–14 of the Social Security Act, and
(ii)the Medicare
Savings Program implemented under clauses (i), (iii), and (iv) of section
1902(a)(10)(E) of such Act.
(C)Return
information may not be disclosed under this paragraph after the date that is
one year after the date of the enactment of this
paragraph.
.
(2)Paragraph (4) of section 6103(p) of the Internal
Revenue Code of 1986 is amended—
(A)by striking
(14) or (17)
in the matter preceding subparagraph (A) and
inserting (14), (17), or (21)
; and
(B)by striking
(15) or (17)
in subparagraph (F)(ii) and inserting (15),
(17), or (21)
.
3.Modification of
resource standards for determination of eligibility for low-income
subsidy
(a)Increasing the
alternative resource standardSection 1860D–14(a)(3)(E)(i) of the
Social Security Act (42 U.S.C. 1395w–114(a)(3)(E)(i)) is amended—
(1)in subclause (I),
by striking and
at the end;
(2)in subclause
(II)—
(A)by striking
a subsequent year
and inserting 2007
;
(B)by striking
in this subclause (or subclause (I)) for the previous year
and
inserting in subclause (I) for 2006
;
(C)by striking the
period at the end and inserting a semicolon; and
(D)by inserting
before the flush sentence at the end the following new subclauses:
(III)for 2008,
$27,500 (or $55,000 in the case of the combined value of the individual’s
assets or resources and the assets or resources of the individual’s spouse);
and
(IV)for a subsequent
year the dollar amounts specified in this subclause (or subclause (III)) for
the previous year increased by the annual percentage increase in the consumer
price index (all items; U.S. city average) as of September of such previous
year.
;
and
(3)in the flush
sentence at the end, by inserting or (IV)
after subclause
(II)
.
(b)Exemptions from
resourcesSection 1860D–14(a)(3) of the Social Security Act (42
U.S.C. 1395w–114(a)(3)) is amended—
(1)in subparagraph
(D), in the matter preceding clause (i), by inserting subject to the
additional exclusions provided under subparagraph (G)
before
)
;
(2)in subparagraph
(E)(i), in the matter preceding subclause (I), by inserting subject to
the additional exclusions provided under subparagraph (G)
before
)
; and
(3)by adding at the
end the following new subparagraph:
(G)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:
(i)No part of the value of any life insurance policy shall be
taken into account.
(ii)No in-kind contribution shall be taken into
account.
(iii)Pension or
retirement planNo balance in any pension or retirement plan
shall be taken into
account.
.
(c)The amendments made by this section shall take effect on the
date of enactment of this Act.
4.Indexing
deductible and cost-sharing above annual out-of-pocket threshold for
individuals with income below 150 percent of
poverty line
(a)Section 1860D–14(a)(4)(B) of the Social Security Act
(42 U.S.C. 1395w–114(a)(4)(B)) is amended—
(1)in clause (i), by
striking or
;
(2)in clause
(ii)—
(A)by striking
a subsequent year
and inserting 2008
;
(B)by striking
this clause (or clause (i)) for the previous year
and inserting
clause (i) for 2007
; and
(C)by striking
involved.
and inserting involved; and
;
(3)by adding after
clause (ii) the following new clause:
(iii)for 2008 and
each succeeding year, the amount determined under this subparagraph for the
previous year increased by the annual percentage increase in the consumer price
index (all items; U.S. city average) as of September of such previous
year.
;
and
(4)in the flush
sentence at the end, by striking clause (i) or (ii)
and
inserting clause (i), (ii), or (iii)
.
(b)Section
1860D–14(a) of the Social Security Act (42 U.S.C. 1395w–114(a)) is
amended–
(1)in paragraph
(1)(D)(iii), by striking exceed the copayment amount
and all
that follows through the period at the end and inserting “exceed—
(I)for 2006 and
2007, the copayment amount specified under section 1860D–2(b)(4)(A)(i)(I) for
the drug and year involved; and
(II)for 2008 and
each succeeding year, the amount determined under this subparagraph for the
previous year increased by the annual percentage increase in the consumer price
index (all items; U.S. city average) as of September of such previous
year.
;
and
(2)in paragraph
(2)(E), by striking exceed the copayment or coinsurance amount
and all that follows through the period at the end and inserting
“exceed—
(i)for 2006 and
2007, the copayment or coinsurance amount specified under section
1860D–2(b)(4)(A)(i)(I) for the drug and year involved; and
(ii)for 2008 and
each succeeding year, the amount determined under this clause for the previous
year increased by the annual percentage increase in the consumer price index
(all items; U.S. city average) as of September of such previous
year.
.
5.No impact on
eligibility for benefits under other programs
(a)Section 1860D–14(a)(3) of the Social Security Act (42
U.S.C. 1395w–114(a)(3)), as amended by section 3(c)(3), is amended—
(1)in subparagraph
(A), in the matter preceding clause (i), by striking subparagraph
(F)
and inserting subparagraphs (F) and (H)
; and
(2)by adding at the
end the following new subparagraph:
(H)No impact on
eligibility for benefits under other programsThe availability of
premium and cost-sharing subsidies under this section shall not be treated as
benefits or otherwise taken into account in determining an individual’s
eligibility for, or the amount of benefits under, any other Federal
program.
.
(b)The amendments made by this section shall take effect on the
date of enactment of this Act.