To amend title XVIII of the Social Security Act to improve implementation of the Medicare prescription drug benefit.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Accountability, Bargaining, 
and Compassion for Part D (ABC for D) Act''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) employees and volunteers of the Social Security 
        Administration (SSA), Area Agencies on Aging (AAA), and the 
        State Health Insurance Assistance Program (SHIP), who have gone 
        above and beyond expectations, should be commended for making 
        great strides in outreach and education for the Medicare part D 
        prescription drug program;
            (2) the Centers for Medicare & Medicaid Services (CMS) 
        should be encouraged to empower their outreach partners to 
        share time and space in order to create (within existing office 
        spaces) ``one-stop locations'' at which seniors can receive 
        counseling on the low-income subsidy application, as well as 
        plan selection, under such program;
            (3) decision-making at the local level relating to outreach 
        and education for such program should be encouraged; and
            (4) if empowered by Centers for Medicare & Medicaid 
        Services, personnel from the Social Security Administration, 
        Area Agencies on Aging, and the State Health Insurance 
        Assistance Program will be able to coordinate better their 
        efforts and therefore better serve seniors under such program.

SEC. 3. REQUIRING REGISTRATION OF PDP SPONSORS OFFERING PRESCRIPTION 
              DRUG PLANS WITH STATE INSURANCE DEPARTMENT IN EACH STATE 
              IN WHICH A PLAN IS OFFERED.

    (a) In General.--Section 1860D-12(a) of the Social Security Act (42 
U.S.C. 1395w-112(a)) is amended by adding at the end the following new 
paragraph:
            ``(4) Registration in each state in which prescription drug 
        plan is offered.--The sponsor is registered with the State 
        insurance department in each State in which it offers a 
        prescription drug plan under this part. Such registration shall 
        consist of submitting to such department the following:
                    ``(A) A certified copy of the sponsor's charter or 
                deed of settlement.
                    ``(B) A statement including the name of the 
                sponsor, the place where it is located; and the amount 
                of its capital.
                    ``(C) A copy of its last annual report, if such a 
                report was written.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to prescription drug plans offered on or after January 1, 2007.

SEC. 4. IMPROVEMENTS IN MEDICARE PRESCRIPTION DRUG ENROLLMENT PROCESS.

    (a) Extended Period of Open Enrollment During All of 2006 for 
Prescription Drug Plans and MA Plans Without Late Enrollment Penalty.--
Section 1851(e)(3)(B) of the Social Security Act (42 U.S.C. 1395w-
21(e)(3)(B)) is amended--
            (1) in clause (iii), by striking ``May 15, 2006'' and 
        inserting ``December 31, 2006''; and
            (2) by adding at the end the following new sentence: ``An 
        individual making an election during the period beginning on 
        November 15, 2006, and ending on December 31, 2006, shall 
        specify whether the election is to be effective with respect to 
        2006 or with respect to 2007 (or both).''.
    (b) Providing Period of Time Before Effectiveness of Elections and 
Changes of Elections for Prescription Drug Plans and MA Plans.--
            (1) For initial enrollment period.--Section 1851(f)(1) of 
        such Act (42 U.S.C. 1395w-21(f)(1)) is amended--
                    (A) by striking ``except'' and all that follows 
                through ``retroactive coverage.'' and inserting 
                ``except as follows:''; and
                    (B) by adding at the end the following new 
                subparagraphs:
                    ``(A) Except as the Secretary may provide 
                (consistent with section 1838 and subparagraph (B)) in 
                order to prevent retroactive coverage.
                    ``(B) Except such an election of coverage shall 
                take effect not earlier than the date that is 14 days 
                after the date on which such election is made.''.
            (2) For continuous enrollment periods.--Section 1851(f)(2) 
        of such Act (42 U.S.C. 1395w-21(f)(2)) is amended by striking 
        ``following the date'' and inserting ``that begins at least 14 
        days after the date''.
            (3) Change in annual, coordinated election period to allow 
        for delay in effectiveness.--Section 1851(e)(3)(B)(iv) of such 
        Act (42 U.S.C. 1395w-21(e)(3)(B)(iv)) is amended by striking 
        ``December 31'' and inserting ``December 15''.
            (4) For special enrollment periods.--Section 1851(f)(4) of 
        such Act (42 U.S.C. 1395w-21(f)(4)) is amended by inserting 
        before the period at the end the following: ``and providing 
        adequate notice to providers affected by such an election or 
        change in election''.
            (5) Effective dates.--
                    (A) Initial and continuous enrollment periods.--The 
                amendments made by paragraphs (1) and (2) shall not 
                apply--
                            (i) to elections of coverage made before 
                        the date of the enactment of this Act; and
                            (ii) to elections of coverage made during 
                        the month in which this Act is enacted if such 
                        date of enactment is within the last 14 days of 
                        such month.
                    (B) Annual, coordinated enrollment periods.--The 
                amendment made by paragraph (3) shall apply to annual, 
                coordinated election periods beginning on or after 
                November 15, 2006.
                    (C) Special enrollment periods.--The amendment made 
                by paragraph (4) shall apply with respect to such 
                special enrollment periods (beginning after the date of 
                the enactment of this Act) as the Secretary of Health 
                and Human Services shall specify.

SEC. 5. AUTHORIZING FEDERAL NEGOTIATION OF FAIR PRICES FOR MEDICARE 
              PRESCRIPTION DRUGS ON BEHALF OF MEDICARE BENEFICIARIES.

    Section 1860D-11 of the Social Security Act (42 U.S.C. 1395-111) is 
amended by striking subsection (i) (relating to noninterference) and by 
inserting the following:
    ``(i) Authority to Negotiate Prices With Manufacturers.--In order 
to ensure that beneficiaries enrolled under prescription drug plans and 
MA-PD plans pay the lowest possible price, the Secretary shall have 
authority similar to that of the Secretary of Veterans Affairs, 
Secretary of Defense, and the heads of other Federal agencies and 
departments that purchase prescription drugs in bulk to negotiate 
contracts with manufacturers of covered part D drugs, consistent with 
the requirements and in furtherance of the goals of providing quality 
care and containing costs under this part.''.

SEC. 6. INCREASED FUNDING FOR STATE HEALTH INSURANCE COUNSELING 
              PROGRAMS AND SOCIAL SECURITY REGIONAL OFFICES FOR 
              MEDICARE PART D ENROLLMENT.

    (a) SHIP Counseling.--In addition to any amounts otherwise 
appropriated, there are appropriated out of any funds in the Treasury 
not otherwise appropriated $100,000,000 for fiscal year 2006 to the 
Secretary of Health and Human Services for grants to States under 
section 4360 of the Omnibus Reconciliation Act of 1990 for the purpose 
of providing outreach and information counseling and assistance with 
respect to enrollment of part D eligible individuals (as defined in 
section 1860D-1(a)(3) of the Social Security Act) under prescription 
drug plans and MA-PD plans under title XVIII of the Social Security 
Act. Funds appropriated under the preceding sentence shall remain 
available until expended.
    (b) SSA Regional Office Outreach.--In addition to any amounts 
otherwise appropriated, there are appropriated out of any funds in the 
Treasury not otherwise appropriated $100,000,000 for fiscal year 2006 
to the Administrator of Social Security for the purposes of continuing 
outreach and education efforts for the purpose of providing outreach 
and education by regional offices of the Social Security Administration 
with respect to enrollment of part D eligible individuals under 
prescription drug plans and MA-PD plans under title XVIII of the Social 
Security Act. Funds appropriated under the preceding sentence shall 
remain available until expended.
    (c) Offset.--Notwithstanding any other provision of law, the amount 
of funds available for obligation under section 1858(e)(2)(A)(i) of the 
Social Security Act (42 U.S.C. 1395w-27a(e)(2)(A)(i)) are hereby 
reduced by the amount of funds appropriated under subsections (a) and 
(b).

Summary: Medicare Accountability, Bargaining, and Compassion for Part D Act - Expresses the sense of Congress with respect to outreach and education for the prescription drug program under Medicare part D . Amends title XVIII (Medicare) of the Social Security Act to: (1) require registration with state insurance departments of prescription drug plan sponsors in each state in which they offer a prescription drug plan. And (2) revise requirements for the Medicare prescription drug enrollment process. Authorizes the Secretary of Health and Human Services to negotiate contracts with manufacturers of covered part D drugs in order to ensure that beneficiaries pay the lowest possible price. Provides for increased funding for state health insurance counseling programs and Social Security regional offices for part D enrollment.