A bill to provide for additional outreach and education related to the Medicare program and to amend title XVIII of the Social Security Act to provide a special enrollment period for individuals who qualify for an income-related subsidy under the Medicare prescription drug program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Part D Outreach and 
Enrollment Enhancement Act of 2006''.

SEC. 2. OUTREACH AND EDUCATION FUNDING.

    (a) Medicare Outreach and Education by State Health Insurance 
Counseling Programs.--
            (1) Fiscal year 2006.--There are appropriated $13,500,000 
        to the Centers for Medicare & Medicaid Services to be used to 
        provide additional grants to State health insurance counseling 
        and assistance programs to conduct outreach and education 
        related to enrollment in the Medicare program under title XVIII 
        of the Social Security Act.
            (2) Additional funding for future outreach and education 
        efforts.--There are authorized to be appropriated for each of 
        fiscal years 2007, 2008, 2009, and 2010, an amount equal to $1 
        multiplied by the total number of individuals entitled to 
        benefits, or enrolled, under part A of title XVIII of the 
        Social Security Act, or enrolled under part B of such title 
        during the fiscal year (as determined by the Secretary of 
        Health and Human Services, based on the most recent available 
        data before the beginning of the fiscal year) to be used to 
        provide additional grants to State health insurance counseling 
        and assistance programs to conduct outreach and education 
        related to enrollment in such Medicare program.
    (b) Part D Outreach and Education.--
            (1) In general.--There are appropriated $6,300,000 to the 
        Centers for Medicare & Medicaid Services to be used to provide 
        funding to Area Agencies on Aging and Native American aging 
        programs to conduct outreach and education related to the 
        Medicare prescription drug program under part D of title XVIII 
        of the Social Security Act.
            (2) Transfer of funds through interagency agreement.--
                    (A) Transfer.--Subject to subparagraph (B), the 
                Administrator of the Centers for Medicare & Medicaid 
                Services shall transfer amounts provided under 
                paragraph (1) to the Administration on Aging under an 
                interagency agreement.
                    (B) Interagency agreement.--The interagency 
                agreement entered into under subparagraph (A) shall 
                establish guidelines with respect to the distribution 
                of amounts transferred under such subparagraph to Area 
                Agencies on Aging and Native American aging programs, 
                taking into account any variations in the population 
                served by such Agencies and such programs.
                    (C) Timing of interagency agreement and 
                distribution of funds.--
                            (i) Interagency agreement.--Not later than 
                        the date that is 60 days after the date of 
                        enactment of this Act, the Administrator of the 
                        Centers for Medicare & Medicaid Services shall 
                        enter into the interagency agreement described 
                        in subparagraph (A).
                            (ii) Distribution of funds.--Not later than 
                        the date that is 120 days after the date of 
                        enactment of this Act, the Administration on 
                        Aging shall distribute the amounts transferred 
                        under such interagency agreement.

SEC. 3. SPECIAL ENROLLMENT PERIOD FOR INDIVIDUALS ELIGIBLE FOR AN 
              INCOME-RELATED SUBSIDY.

    (a) Special Enrollment Period.--Section 1860D-1(b)(3) of the Social 
Security Act (42 U.S.C. 1395w-101(b)(3)) is amended by adding at the 
end the following new subparagraph:
                    ``(F) Application for low-income subsidy.--
                            ``(i) In general.--Subject to clause (iii), 
                        in the case of an applicable individual (as 
                        defined in clause (ii)).
                            ``(ii) Applicable individual defined.--For 
                        purposes of this subparagraph, the term 
                        `applicable individual' means a part D eligible 
                        individual who--
                                    ``(I) has an application for an 
                                income-related subsidy under section 
                                1860D-14 pending during the 
                                individual's initial enrollment period 
                                (as determined under paragraph (2)); 
                                and
                                    ``(II) does not receive 
                                notification of the approval or 
                                disapproval of such application prior 
                                to the end of such initial enrollment 
                                period.
                            ``(iii) Timing of special enrollment 
                        period.--The special enrollment period 
                        established under this subparagraph shall be 
                        for a period (not to exceed 30 days) beginning 
                        on the date the applicable individual receives 
                        the notification described in clause 
                        (ii)(II).''.
    (b) Waiver of Late Enrollment Penalty.--Section 1860D-13(b) of the 
Social Security Act (42 U.S.C. 1395w-113(b)) is amended by adding at 
the end the following new paragraph:
            ``(8) Waiver of penalty.--An applicable individual (as 
        defined in clause (ii) of section 1860D-1(b)(3)(F)) who enrolls 
        during the special enrollment period established under such 
        section shall not be subject to an increase in the monthly 
        beneficiary premium established under subsection (a) with 
        respect to months occurring prior to the date of such 
        enrollment.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 101(a) of the 
Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
(Public Law 108-173).

Summary: Medicare Part D Outreach and Enrollment Enhancement Act of 2006 - Authorizes and makes appropriations to the Centers for Medicare Medicaid Services for additional grants to state health insurance counseling and assistance (HICA) programs to conduct outreach and education related to enrollment in the Medicare program under title XVIII of the Social Security Act (SSA). Makes appropriations to the Centers for Medicare Medicaid Services to provide funding to Area Agencies on Aging and Native American aging programs to conduct outreach and education related to the Medicare prescription drug program under part D of SSA title XVIII. Amends SSA title XVIII part D to provide a special enrollment period for individuals who qualify for a low- income-related subsidy under the Medicare prescription drug program.