A bill to amend title XVIII of the Social Security Act to expedite the application and eligibility process for low-income subsidies under the Medicare prescription drug program and to revise the resource standards used to determine eligibility for an income-related subsidy, and for other purposes.

Summary: Part D Equity for Low-Income Seniors Act of 2007 - Amends part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act to direct the Commissioner of Social Security to provide for an expedited process for the qualification for low-income assistance through a request to the Secretary of the Treasury for tax return and other information.

Increases the alternative resource standard for determination of eligibility for a low-income subsidy for 2008, indexed for inflation for succeeding years.

Requires indexing of deductibles and cost-sharing above the annual out-of-pocket threshold for individuals with income below 150% of the poverty line.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Part D Equity for Low-Income Seniors 
Act of 2007''.

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

    (a) In General.--Section 1860D-14 of the Social Security Act (42 
U.S.C. 1395w-114) is amended by adding at the end the following new 
subsection:
    ``(e) Expedited Application and Eligibility Process.--
            ``(1) Expedited process.--
                    ``(A) In general.--The 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 individuals.--The 
                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 individuals.--
        Under such process, in the case of each individual identified 
        under paragraph (1) who has not otherwise applied for, or been 
        determined eligible for, benefits under this section (or who 
        has applied for and been determined ineligible for such 
        benefits based only on excess resources), the 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) Application information.--Information on how 
                to apply for such low-income subsidies.
                    ``(B) Description of the lis benefit.--A 
                description of the low-income subsidies available under 
                this section.
                    ``(C) Information on state health insurance 
                programs.--Information 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) Attestation.--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) Hold-harmless.--Under such process, if an individual 
        in good faith and in the absence of fraud executes an 
        attestation described in paragraph (2)(D) and is provided low-
        income subsidies under this section on the basis of such 
        attestation, if the individual is subsequently found not 
        eligible for such subsidies, there shall be no recovery made 
        against the individual because of such subsidies improperly 
        paid.
            ``(4) Use of authorized representative.--Under such 
        process, with proper authorization (which may be part of the 
        attestation form described in paragraph (2)(D)), an individual 
        may authorize another individual to act as the individual's 
        personal representative with respect to communications under 
        this part and the enrollment of the individual under a 
        prescription drug plan (or MA-PD plan) and for low-income 
        subsidies under this section.
            ``(5) Use of preferred language in subsequent 
        communications.--In the case an attestation described in 
        paragraph (2)(D) is completed and in which a language other 
        than English is specified under clause (iii) of such paragraph, 
        the Commissioner of Social Security shall provide that 
        subsequent communications to the individual under this part 
        shall be in such language.
            ``(6) Construction.--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) In general.--Subsection (l) of section 6103 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(21) Disclosure of return information to carry out 
        medicare part d subsidies.--
                    ``(A) In general.--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 
                information.--Return 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) Termination.--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) Conforming amendments.--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)''.

SEC. 3. MODIFICATION OF RESOURCE STANDARDS FOR DETERMINATION OF 
              ELIGIBILITY FOR LOW-INCOME SUBSIDY.

    (a) Increasing the Alternative Resource Standard.--Section 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 Resources.--Section 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) Additional exclusions.--In determining the 
                resources of an individual (and their eligible spouse, 
                if any) under section 1613 for purposes of 
                subparagraphs (D) and (E) the following additional 
                exclusions shall apply:
                            ``(i) Life insurance policy.--No part of 
                        the value of any life insurance policy shall be 
                        taken into account.
                            ``(ii) In-kind contributions.--No in-kind 
                        contribution shall be taken into account.
                            ``(iii) Pension or retirement plan.--No 
                        balance in any pension or retirement plan shall 
                        be taken into account.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act.

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

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

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

    (a) In General.--Section 1860D-14(a)(3) of the Social Security Act 
(42 U.S.C. 1395w-114(a)(3)), as amended by section 3(c)(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 programs.--The availability of premium and cost-
                sharing subsidies under this section shall not be 
                treated as benefits or otherwise taken into account in 
                determining an individual's eligibility for, or the 
                amount of benefits under, any other Federal program.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act.