SECTION 1. FINDINGS.

    Congress makes the following findings:
            (1) Since 1988, three cost-sharing payment programs that 
        provide certain low-income elderly and disabled individuals 
        with financial assistance in covering Medicare beneficiary 
        costs have been established by law.
            (2) While eligibility for Medicare cost-sharing assistance 
        has expanded, and while the Social Security Administration, the 
        Health Care Financing Administration, and State agencies are 
        working cooperatively to identify and implement reforms to cure 
        the chronic deficiencies associated with the programs described 
        in paragraph (1), reports have shown that gaps in beneficiary 
        knowledge and deficiencies in program administration by Federal 
        and State agencies present persistent barriers to enrolling 
        eligible beneficiaries in such programs.
            (3) The financial plight of Social Security and Medicare 
        beneficiaries who experience critical income shifts due to the 
        death of a spouse is of particular concern. Statistics 
        furnished by the Social Security Administration show that 40 
        percent of nonmarried women (a category that includes widows) 
        rely on Social Security benefits for 90 percent of their income 
        in comparison to only 18 percent of married couples. Further, 
        nearly \1/4\ of nonmarried women rely on Social Security 
        retirement benefits as their sole source of income.
            (4) While current reform proposals concentrate on reaching 
        potential eligible beneficiaries upon initial enrollment in 
        Social Security or Medicare, the financial vulnerability of 
        widowed spouses can arise at any time after a senior has begun 
        to receive retirement benefits.

SEC. 2. DEMONSTRATION PROJECT.

    (a) Establishment.--
            (1) Outreach.--The Commissioner shall establish a 
        demonstration project to conduct outreach efforts to--
                    (A) identify individuals entitled to benefits under 
                the medicare program who may be eligible for medical 
                assistance for payment of the cost of medicare cost-
                sharing under the medicaid program pursuant to sections 
                1902(a)(10)(E) and 1933 of the Social Security Act (42 
                U.S.C. 1396a(a)(10)(E); 1396u-3); and
                    (B) notify such individuals of the availability of 
                such medical assistance under such sections.
            (2) Content of notice.--Any notice furnished under 
        paragraph (1) shall state that eligibility for medicare cost-
        sharing assistance under such sections is conditioned upon the 
        individual providing an accurate statement as to whether or not 
        the individual has tax-exempt income, and, if so, the amount of 
        such income and, in the case of an individual residing in a 
        State that imposes an asset test for such eligibility, the 
        amount of countable assets the individual has.
    (b) Coordination With States and Other Federal Agencies.--
            (1) Furnishing information to states.--In conducting the 
        demonstration project established under subsection (a), the 
        Commissioner shall furnish the appropriate agency of each State 
        with information consisting of the identity of individuals 
        residing in the State that the Commissioner determines are or 
        may be eligible for medical assistance for payment of the cost 
        of medicare cost-sharing under the medicaid program under 
        sections 1902(a)(10)(E) and 1933 of the Social Security Act, 
        and shall periodically update any such information as 
        appropriate.
            (2) Coordination with irs and hcfa.--Except as otherwise 
        prohibited by law, in conducting such demonstration project the 
        Commissioner, in cooperation with the Commissioner of the 
        Internal Revenue Service and the Administrator of the Health 
        Care Financing Administration, shall furnish the appropriate 
        agency of each State with available income and asset 
        information of individuals residing in the State who are or may 
        be eligible for the medical assistance described in paragraph 
        (1).
    (c) Duration.--The Commissioner shall conduct the demonstration 
project during the 1-year period beginning on October 1, 1998.
    (d) Report.--Not later than 6 months after the completion of the 
demonstration project, the Commissioner, after consultation with the 
Commissioner of the Internal Revenue Service and the Administrator of 
the Health Care Financing Administration, shall submit to Congress a 
report on the outreach efforts and results of such efforts under the 
project. The report may include any recommendations for legislative or 
administrative actions to further carry out the purpose of the project.
    (e) Definitions.--In this Act:
            (1) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of Social Security.
            (2) Medicaid program.--The term ``medicaid program'' means 
        the program of medical assistance established under title XIX 
        of the Social Security Act (42 U.S.C. 1396 et seq.).
            (3) Medicare program.--The term ``medicare program'' means 
        the health insurance program established under title XVIII of 
        the Social Security Act (42 U.S.C. 1395 et seq.).
    (f) Authorization of Appropriations.--From sums made available to 
the Social Security Administration for fiscal year 1999 to carry out 
research and demonstrations activities, not more than $5,000,000 may be 
obligated to carry out the demonstration project under this Act.
Directs the Commissioner of the Social Security Administration to establish a demonstration project to conduct outreach efforts to increase awareness of the availability of assistance under title XIX (Medicaid) of the Social Security Act to eligible low-income Medicare beneficiaries for Medicare cost-sharing. 
Authorizes appropriations.
A bill to direct the Commissioner of Social Security to establish a demonstration project to conduct outreach efforts to increase awareness of the availability of medicare costsharing assistance to eligible low-income medicare beneficiaries.