A bill to amend title XIX of the Social Security Act to improve the qualified medicare beneficiary (QMB) and special low-income medicare beneficiary (SLMB) programs within the medicaid program.

Summary: Medicare Beneficiary Assistance Improvement Act of 2002 - Names the programs of benefits under the Medicaid program (title XIX of the Social Security Act (SSA)) that are commonly referred to as the "qualified Medicare beneficiary (QMB) program" and the "special low-income Medicare beneficiary (SLMB) program" as the Medicare Savings Programs.Amends SSA title XIX with respect to Medicare Savings Programs to: (1) increase the SLMB eligibility income level from 120 to 135 percent of the poverty line; (2) deem to be qualified Medicare beneficiaries in certain States individuals already receiving benefits under SSA title XVI (Supplemental Security Income) (SSI); (3) permit individual self-certification of income and use of a simplified QMB or SLMB application form; (4) provide for automatic reenrollment without need to reapply; (5) direct the Commissioner of Social Security to provide for QMB and SLMB outreach through local offices of the Social Security Administration; (6) eliminate the assets test; (7) prohibit estate recovery under QMB and SLMB; and (8) provide for three months retroactive eligibility with respect to Medicare cost-sharing for QMBs.Directs the Secretary of Health and Human Services (Secretary), the Secretary of the Treasury, and the Administrator of Social Security to enter into an arrangement for a demonstration project to identify Medicare beneficiaries who are likely, based on Internal Revenue Service (IRS) data, to qualify for benefits under the OMB or SLMB programs. Requires the Secretary to enter into a demonstration project to provide States with funds to use such information to do ex parte determinations or other methods for identifying and enrolling potentially eligible individuals.Requires the Commissioner of Social Security to send a notice and application for Medicaid benefits to individuals identified as likely to be eligible for QMB or SLMB benefits when notifying them that they are eligible for benefits under Medicare part A (Hospital Insurance) or B (Supplementary Medical Insurance).

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Medicare 
Beneficiary Assistance Improvement Act of 2002''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Renaming program to eliminate confusion.
Sec. 3. Expanding protections by increasing SLMB eligibility income 
                            level to 135 percent of poverty.
Sec. 4. Eliminating barriers to enrollment.
Sec. 5. Elimination of asset test.
Sec. 6. Improving assistance with out-of-pocket costs.
Sec. 7. Improving program information and coordination with State, 
                            local, and other partners.
Sec. 8. Notices to certain new medicare beneficiaries.

SEC. 2. RENAMING PROGRAM TO ELIMINATE CONFUSION.

    The programs of benefits for lower income medicare beneficiaries 
provided under section 1902(a)(10)(E) of the Social Security Act (42 
U.S.C. 1396a(a)(10)(E)) shall be known as the ``Medicare Savings 
Programs''.

SEC. 3. EXPANDING PROTECTIONS BY INCREASING SLMB ELIGIBILITY INCOME 
              LEVEL TO 135 PERCENT OF POVERTY.

    (a) In General.--Section 1902(a)(10)(E)(iii) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iii)) is amended by striking ``120 
percent in 1995 and years thereafter'' and inserting ``120 percent in 
1995 through 2002 and 135 percent in 2003 and years thereafter''.
    (b) Conforming Removal of QI-1 and QI-2 Provisions.--
            (1) Section 1902(a)(10)(E) of such Act (42 U.S.C. 
        1396a(a)(10)(E)) is further amended--
                    (A) by adding ``and'' at the end of clause (ii);
                    (B) by striking ``and'' at the end of clause (iii); 
                and
                    (C) by striking clause (iv).
            (2) Section 1933 of such Act (42 U.S.C. 1396u-3) is 
        repealed.
            (3) The amendments made by this subsection shall take 
        effect as of January 1, 2003.
    (c) Application of CHIP Enhanced Matching Rate for SLMB 
Assistance.--
            (1) In general.--Section 1905(b)(4) of such Act (42 U.S.C. 
        1396d(b)(4)) is amended by inserting ``or section 
        1902(a)(10)(E)(iii)'' after ``section 
        1902(a)(10)(A)(ii)(XVIII)''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to medical assistance for medicare cost-sharing for 
        months beginning with January 2003.

SEC. 4. ELIMINATING BARRIERS TO ENROLLMENT.

    (a) Automatic Eligibility for SSI Recipients in 209(b) States and 
SSI Criteria States.--Section 1905(p) of the Social Security Act (42 
U.S.C. 1396d(p)) is amended--
            (1) by redesignating paragraph (6) as paragraph (11); and
            (2) by adding at the end the following new paragraph:
    ``(6) In the case of a State which has elected treatment under 
section 1902(f) for aged, blind, and disabled individuals, individuals 
with respect to whom supplemental security income payments are being 
paid under title XVI are deemed for purposes of this title to be 
qualified medicare beneficiaries.''.
    (b) Self-Certification of Income.--Section 1905(p) of the Social 
Security Act (42 U.S.C. 1396d(p)), as amended by subsection (a), is 
further amended by inserting after paragraph (6) the following new 
paragraph:
    ``(7) In determining whether an individual qualifies as a qualified 
medicare beneficiary or is eligible for benefits under section 
1902(a)(10)(E)(iii), the State shall permit individuals to qualify on 
the basis of self-certifications of income without the need to provide 
additional documentation.''.
    (c) Automatic Reenrollment Without Need To Reapply.--
            (1) In general.--Section 1905(p) of the Social Security Act 
        (42 U.S.C. 1396d(p)), as amended by subsections (a) and (b), is 
        further amended by inserting after paragraph (7) the following 
        new paragraph:
    ``(8) In the case of an individual who has been determined to 
qualify as a qualified medicare beneficiary or to be eligible for 
benefits under section 1902(a)(10)(E)(iii), the individual shall be 
deemed to continue to be so qualified or eligible without the need for 
any annual or periodic application unless and until the individual 
notifies the State that the individual's eligibility conditions have 
changed so that the individual is no longer so qualified or 
eligible.''.
            (2) Conforming amendment.--Section 1902(e)(8) of the Social 
        Security Act (42 U.S.C. 1396a(e)(8)) is amended by striking the 
        second sentence.
    (d) Use of Simplified Application Process.--Section 1905(p) of the 
Social Security Act (42 U.S.C. 1396d(p)), as amended by subsections 
(a), (b), and (c), is further amended by inserting after paragraph (8) 
the following new paragraph:
    ``(9) A State shall permit individuals to apply to qualify as a 
qualified medicare beneficiary or for benefits under section 
1902(a)(10)(E)(iii) through the use of the simplified application form 
developed under section 1905(p)(5)(A) and shall permit such an 
application to be made over the telephone or by mail, without the need 
for an interview in person by the applicant or a representative of the 
applicant.''.
    (e) Role of Social Security Offices.--
            (1) Enrollment and provision of information at social 
        security offices.--Section 1905(p) of the Social Security Act 
        (42 U.S.C. 1396d(p)), as amended by subsections (a), (b), (c), 
        and (d) is further amended by inserting after paragraph (9) the 
        following new paragraph:
    ``(10) The Commissioner of Social Security shall provide, through 
local offices of the Social Security Administration--
            ``(A) for the enrollment under State plans under this title 
        for appropriate medicare cost-sharing benefits for individuals 
        who qualify as a qualified medicare beneficiary or for benefits 
        under section 1902(a)(10)(E)(iii); and
            ``(B) for providing oral and written notice of the 
        availability of such benefits.''.
            (2) Clarifying amendment.--Section 1902(a)(5) of such Act 
        (42 U.S.C. 1396a(a)(5)) is amended by inserting ``as provided 
        in section 1905(p)(10)'' after ``except''.
    (f) Outstationing of State Eligibility Workers at SSA Field 
Offices.--Section 1902(a)(55) of such Act (42 U.S.C. 1396a(a)(55)) is 
amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``subsection (a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI), 
        (a)(10)(A)(i)(VII), or (a)(10)(A)(ii)(IX)'' and inserting 
        ``paragraph (10)(A)(i)(IV), (10)(A)(i)(VI), (10)(A)(i)(VII), 
        (10)(A)(ii)(IX), or (10)(E)''; and
            (2) in subparagraph (A), by striking ``1905(1)(2)(B)'' and 
        inserting ``1905(l)(2)(B), and in the case of applications of 
        individuals for medical assistance under paragraph (10)(E), at 
        locations that include field offices of the Social Security 
        Administration''.

SEC. 5. ELIMINATION OF ASSET TEST.

    (a) In General.--Section 1905(p)(1) of the Social Security Act (42 
U.S.C. 1396d(p)(1)) is amended--
            (1) by adding ``and'' at the end of subparagraph (A);
            (2) by striking ``, and'' at the end of subparagraph (B) 
        and inserting a period; and
            (3) by striking subparagraph (C).
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to eligibility determinations for medicare cost-sharing furnished 
for periods beginning on or after January 1, 2003.

SEC. 6. IMPROVING ASSISTANCE WITH OUT-OF-POCKET COSTS.

    (a) Eliminating Application of Estate Recovery Provisions.--Section 
1917(b)(1)(B)(ii) of the Social Security Act (42 U.S.C. 
1396p(b)(1)(B)(ii)) is amended by inserting ``(but not including 
medical assistance for medicare cost-sharing or for benefits described 
in section 1902(a)(10)(E))'' before the period at the end.
    (b) Providing for 3-Months Retroactive Eligibility.--
            (1) In general.--Section 1905(a) of such Act (42 U.S.C. 
        1396d(a)) is amended, in the matter before paragraph (1), by 
        striking ``described in subsection (p)(1), if provided after 
        the month'' and inserting ``described in subsection (p)(1), if 
        provided in or after the third month before the month''.
            (2) Conforming amendments.--(A) The first sentence of 
        section 1902(e)(8) of such Act (42 U.S.C. 1396a(e)(8)), as 
        amended by section 4(c)(2), is amended by striking ``(8)'' and 
        the first sentence.
            (B) Section 1848(g)(3) of such Act (42 U.S.C. 1395w-
        4(g)(3)) is amended by adding at the end the following new 
        subparagraph:
                    ``(C) Treatment of retroactive eligibility.--In the 
                case of an individual who is determined to be eligible 
                for medical assistance described in subparagraph (A) 
                retroactively, the Secretary shall provide a process 
                whereby claims previously for services furnished during 
                the period of retroactive eligibility which were not 
                submitted in accordance with such subparagraph are 
                resubmitted and re-processed in accordance with such 
                subparagraph.''.

SEC. 7. IMPROVING PROGRAM INFORMATION AND COORDINATION WITH STATE, 
              LOCAL, AND OTHER PARTNERS.

    (a) Data Match Demonstration Project.--
            (1) In general.--The Secretary of Health and Human Services 
        (acting through the Administrator of the Centers for Medicare & 
        Medicaid Services), the Secretary of the Treasury, and the 
        Commissioner of Social Security shall enter into an arrangement 
        under which a demonstration is conducted, consistent with this 
        subsection, for the exchange between the Centers for Medicare & 
        Medicaid Services, the Internal Revenue Service, and the Social 
        Security Administration of information in order to identity 
        individuals who are medicare beneficiaries and who, based on 
        data from the Internal Revenue Service that (such as their not 
        filing tax returns or other appropriate filters) are likely to 
        be qualified medicare beneficiaries or individuals otherwise 
        eligible for medical assistance under section 1902(a)(10)(E) of 
        the Social Security Act (42 U.S.C. 1396a(a)(10)(E)).
            (2) Limitation on use of information.--Notwithstanding any 
        other provision of law, specific information on income or 
        related matters exchanged under paragraph (1) may be disclosed 
        only as required to carry out subsection (b) and for related 
        Federal and State outreach efforts.
            (3) Period.--The project under this subsection shall be for 
        an initial period of 3 years and may be extended for additional 
        periods (not to exceed 3 years each) after such an extension is 
        recommended in a report under subsection (d).
    (b) State Demonstration Grants.--
            (1) In general.--The Secretary of Health and Human Services 
        shall enter into a demonstration project with States (as 
        defined for purposes of title XIX of the Social Security Act 
        (42 U.S..C 1396 et seq.) to provide funds to States to use 
        information identified under subsection (a), and other 
        appropriate information, in order to do ex parte determinations 
        or other methods for identifying and enrolling individuals who 
        are potentially eligible to be qualified medicare beneficiaries 
or otherwise eligible for medical assistance described in section 
1902(a)(10)(E) of the Social Security Act (42 U.S.C. 1396a(a)(10)(E)).
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to the 
        Secretary of Health and Human Services for the purpose of 
        making grants under this subsection.
    (c) Additional CMS Funding for Outreach and Enrollment Projects.--
There are hereby appropriated, out of any funds in the Treasury not 
otherwise appropriated, to the Secretary of Health and Human Services 
through the Administrator of the Centers for Medicare & Medicaid 
Services, $100,000,000 which shall be used only for the purpose of 
providing grants to States to fund projects to improve outreach and 
increase enrollment in Medicare Savings Programs. Such projects may 
include cooperative grants and contracts with community groups and 
other groups (such as the Department of Veterans' Affairs and the 
Indian Health Service) to assist in the enrollment of eligible 
individuals.
    (d) Reports.--The Secretary of Health and Human Services shall 
submit to Congress periodic reports on the projects conducted under 
this section. Such reports shall include such recommendations for 
extension of such projects, and changes in laws based on based 
projects, as the Secretary deems appropriate.

SEC. 8. NOTICES TO CERTAIN NEW MEDICARE BENEFICIARIES.

    (a) SSA Notice.--At the time that the Commissioner of Social 
Security sends a notice to individuals that they have been determined 
to be eligible for benefits under part A or B of title XVIII of the 
Social Security Act (42 U.S.C. 1395 et seq., 1395j et seq.), the 
Commissioner shall send a notice and application for benefits under 
title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) to those 
individuals the Commissioner identifies as being likely to be eligible 
for benefits under clause (i), (ii), or (iii) of section 1902(a)(10)(E) 
of such Act (42 U.S.C. 1396a(a)(10)(E)). Such notice and application 
shall be accompanied by information on how to submit such an 
application and on where to obtain more information (including answers 
to questions) on the application process.
    (b) Including Information in Medicare & You Handbook.--The 
Secretary of Health and Human Services shall include in the annual 
handbook distributed under section 1804(a) of the Social Security Act 
(42 U.S.C. 1395b-2(a)) information on the availability of Medicare 
Savings Programs and a toll-free telephone number that medicare 
beneficiaries may use to obtain additional information about the 
program.