A bill to amend title XVIII of the Social Security Act to require wealthy beneficiaries to pay a greater share of their premiums under the Medicare prescription drug program.

Summary: Reforming an Entitlement through Premium Adjustments based on Income Resources (REPAIR) Act of 2007 - Amends part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act to require an income-related reduction in the part D premium subsidy.

 Declares that, in the case of an individual whose modified adjusted gross income exceeds a certain applicable threshold amount for a month after December 2008, the monthly amount of the part D premium subsidy shall be reduced (and the monthly beneficiary premium shall be increased) by the monthly adjustment amount determined according to a specified formula.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reforming an Entitlement through 
Premium Adjustments based on Income Resources (REPAIR) Act of 2007''.

SEC. 2. INCOME-RELATED REDUCTION IN PART D PREMIUM SUBSIDY.

    (a) Income-Related Reduction in Part D Premium Subsidy.--
            (1) In general.--Section 1860D-13(a) of the Social Security 
        Act (42 U.S.C. 1395w-113(a)) is amended by adding at the end 
        the following new paragraph:
            ``(7) Reduction in premium subsidy based on income.--
                    ``(A) In general.--In the case of an individual 
                whose modified adjusted gross income exceeds the 
                threshold amount applicable under paragraph (2) of 
                section 1839(i) (including application of paragraph (5) 
                of such section) for the calendar year, the monthly 
                amount of the premium subsidy applicable to the premium 
                under this section for a month after December 2008 
                shall be reduced (and the monthly beneficiary premium 
                shall be increased) by the monthly adjustment amount 
                specified in subparagraph (B).
                    ``(B) Monthly adjustment amount.--The monthly 
                adjustment amount specified in this subparagraph for an 
                individual for a month in a year is equal to the 
                product of--
                            ``(i) the quotient obtained by dividing--
                                    ``(I) the applicable percentage 
                                determined under paragraph (3)(C) of 
                                section 1839(i) (including application 
                                of paragraph (5) of such section) for 
                                the individual for the calendar year 
                                reduced by 25.5 percent; by
                                    ``(II) 25.5 percent; and
                            ``(ii) the base beneficiary premium (as 
                        computed under paragraph (2)).
                    ``(C) Modified adjusted gross income.--For purposes 
                of this paragraph, the term `modified adjusted gross 
                income' has the meaning given such term in subparagraph 
                (A) of section 1839(i)(4), determined for the taxable 
                year applicable under subparagraphs (B) and (C) of such 
                section.
                    ``(D) Determination by commissioner of social 
                security.--The Commissioner of Social Security shall 
                make any determination necessary to carry out the 
                income-related reduction in premium subsidy under this 
                paragraph.
                    ``(E) Procedures to assure correct income-related 
                reduction in premium subsidy.--
                            ``(i) Disclosure of base beneficiary 
                        premium.--Not later than September 15 of each 
                        year beginning with 2008, the Secretary shall 
                        disclose to the Commissioner of Social Security 
                        the amount of the base beneficiary premium (as 
                        computed under paragraph (2)) for the purpose 
                        of carrying out the income-related reduction in 
                        premium subsidy under this paragraph with 
                        respect to the following year.
                            ``(ii) Additional disclosure.--Not later 
                        than October 15 of each year beginning with 
                        2008, the Secretary shall disclose to the 
                        Commissioner of Social Security the following 
                        information for the purpose of carrying out the 
                        income-related reduction in premium subsidy 
                        under this paragraph with respect to the 
                        following year:
                                    ``(I) The modified adjusted gross 
                                income threshold applicable under 
                                paragraph (2) of section 1839(i) 
                                (including application of paragraph (5) 
                                of such section).
                                    ``(II) The applicable percentage 
                                determined under paragraph (3)(C) of 
                                section 1839(i) (including application 
                                of paragraph (5) of such section).
                                    ``(III) The monthly adjustment 
                                amount specified in subparagraph (B).
                                    ``(IV) Any other information the 
                                Commissioner of Social Security 
                                determines necessary to carry out the 
                                income-related reduction in premium 
                                subsidy under this paragraph.
                    ``(F) Rule of construction.--The formula used to 
                determine the monthly adjustment amount specified under 
                subparagraph (B) shall only be used for the purpose of 
                determining such monthly adjustment amount under such 
                subparagraph.''.
            (2) Collection of monthly adjustment amount.--Section 
        1860D-13(c) of the Social Security Act (42 U.S.C. 1395w-113(c)) 
        is amended--
                    (A) in paragraph (1), by striking ``(2) and (3)'' 
                and inserting ``(2), (3), and (4)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(4) Collection of monthly adjustment amount.--
                    ``(A) In general.--Notwithstanding any provision of 
                this subsection or section 1854(d)(2), subject to 
                subparagraph (B), the amount of the income-related 
                reduction in premium subsidy for an individual for a 
                month (as determined under subsection (a)(7)) shall be 
                paid through withholding from benefit payments in the 
                manner provided under section 1840.
                    ``(B) Agreements.--In the case where the monthly 
                benefit payments of an individual that are withheld 
                under subparagraph (A) are insufficient to pay the 
                amount described in such subparagraph, the Commissioner 
                of Social Security shall enter into agreements with the 
                Secretary, the Director of the Office of Personnel 
                Management, and the Railroad Retirement Board as 
                necessary in order to allow other agencies to collect 
                the amount described in subparagraph (A) that was not 
                withheld under such subparagraph.''.
    (b) Conforming Amendments.--
            (1) Medicare.--Part D of title XVIII of the Social Security 
        Act (42 U.S.C. 1395w-101 et seq.) is amended--
                    (A) in section 1860D-13(a)(1)--
                            (i) by redesignating subparagraph (F) as 
                        subparagraph (G);
                            (ii) in subparagraph (G), as redesignated 
                        by subparagraph (A), by striking ``(D) and 
                        (E)'' and inserting ``(D), (E), and (F)''; and
                            (iii) by inserting after subparagraph (E) 
                        the following new subparagraph:
                    ``(F) Increase based on income.--The monthly 
                beneficiary premium shall be increased pursuant to 
                paragraph (7).''; and
                    (B) in section 1860D-15(a)(1)(B), by striking 
                ``paragraph (1)(B)'' and inserting ``paragraphs (1)(B) 
                and (1)(F)''.
            (2) Internal revenue code.--Section 6103(l)(20) of the 
        Internal Revenue Code of 1986 (relating to disclosure of return 
        information to carry out Medicare part B premium subsidy 
        adjustment) is amended--
                    (A) in the heading, by striking ``part b premium 
                subsidy adjustment'' and inserting ``parts b and d 
                premium subsidy adjustments'';
                    (B) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        inserting ``or 1860D-13(a)(7)'' after 
                        ``1839(i)''; and
                            (ii) in clause (vii), by inserting after 
                        ``subsection (i) of such section'' the 
                        following: ``or under section 1860D-13(a)(7) of 
                        such Act'';
                    (C) in subparagraph (B)--
                            (i) by inserting ``or such section 1860D-
                        13(a)(7)'' before the period at the end;
                            (ii) as amended by clause (i), by inserting 
                        ``or for the purpose of resolving tax payer 
                        appeals with respect to any such premium 
                        adjustment'' before the period at the end; and
                            (iii) by adding at the end the following 
                        new sentence: ``Officers, employees, and 
                        contractors of the Social Security 
                        Administration may disclose such return 
                        information to officers, employees, and 
                        contractors of the Department of Health and 
                        Human Services, the Office of Personnel 
                        Management, the Railroad Retirement Board, the 
                        Department of Justice, and the courts of the 
                        United States to the extent necessary to carry 
                        out the purposes described in the preceding 
                        sentence.''; and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(C) Timing of disclosure.--Return information 
                shall be disclosed to officers, employees, and 
                contractors of the Social Security Administration under 
                subparagraph (A) not later than the date that is 90 
                days prior to the date on which the taxpayer first 
                becomes entitled to benefits under part A of title 
                XVIII of the Social Security Act or eligible to enroll 
                for benefits under part B of such title.''.