II 

109TH CONGRESS 

1ST SESSION S. 1795 

To amend the Social Security Act to protect Social Security cost-of-living 

adjustments (COLA). 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 29, 2005 

Mr. JOHNSON (for himself, Ms. CANTWELL, Mr. LEAHY, Mr. CORZINE, Mrs. 

MURRAY, Mr. SALAZAR, Mr. REED, and Ms. MIKULSKI) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Social Security Act to protect Social Security 

cost-of-living adjustments (COLA). 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Social Security COLA 

5 Protection Act of 2005’’. 
2 

•S 1795 IS

1 SEC. 2. PROTECTION OF SOCIAL SECURITY COLA IN2 CREASES AGAINST EXCESSIVE MEDICARE 

3 PREMIUM INCREASES. 

4 (a) APPLICATION TO PART B PREMIUMS.—Section 

5 1839(f) of the Social Security Act (42 U.S.C. 1395r(f)) 

6 is amended— 

7 (1) by striking ‘‘(f) For any calendar year after 

8 1988’’ and inserting ‘‘(f)(1) For any calendar year 

9 after 1988 and before 2006’’; and 

10 (2) by adding at the end the following new 

11 paragraph: 

12 ‘‘(2) For any calendar year (beginning with 

13 2006), if an individual is entitled to monthly benefits 

14 under section 202 or 223 or to a monthly annuity 

15 under section 3(a), 4(a), or 4(f) of the Railroad Re16 tirement Act of 1974 for November and December 

17 of the preceding year, if the monthly premium of the 

18 individual under this section for December of the 

19 preceding year and for January of the year involved 

20 is deducted from those benefits under section 

21 1840(a)(1) or section 1840(b)(1), and if the amount 

22 of the individual’s premium is not adjusted for Jan23 uary of the year involved under subsection (i), the 

24 monthly premium otherwise determined under this 

25 section for the individual for that year shall not be 

26 increased pursuant to subsection (a)(3) to an 
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•S 1795 IS

1 amount that exceeds 25 percent of the amount of 

2 the increase in such monthly benefits for that indi3 vidual attributable to section 215(i).’’. 

4 (b) APPLICATION TO PART D PREMIUMS.— 

5 (1) IN GENERAL.—Section 1860D–13(a)(1) of 

6 such Act (42 U.S.C. 1395w–113(a)(1)) is amend7 ed— 

8 (A) in subparagraph (F), by striking ‘‘(D) 

9 and (E)’’, and inserting ‘‘(D), (E), and (F),’’; 

10 (B) by redesignating subparagraph (F) as 

11 subparagraph (G); and 

12 (C) by inserting after subparagraph (E) 

13 the following new subparagraph: 

14 ‘‘(F) PROTECTION OF SOCIAL SECURITY

15 COLA INCREASE.—For any calendar year, if an 

16 individual is entitled to monthly benefits under 

17 section 202 or 223 or to a monthly annuity 

18 under section 3(a), 4(a), or 4(f) of the Railroad 

19 Retirement Act of 1974 for November and De20 cember of the preceding year and was enrolled 

21 under a PDP plan or MA–PD plan for such 

22 months, the base beneficiary premium otherwise 

23 applied under this paragraph for the individual 

24 for months in that year shall be decreased by 

25 the amount (if any) by which the sum of the 
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1 amounts described in the following clauses (i) 

2 and (ii) exceeds 25 percent of the amount of 

3 the increase in such monthly benefits for that 

4 individual attributable to section 215(i): 

5 ‘‘(i) PART D PREMIUM INCREASE FAC6 TOR.— 

7 ‘‘(I) IN GENERAL.—Except as 

8 provided in this clause, the amount of 

9 the increase (if any) in the adjusted 

10 national average monthly bid amount 

11 (as determined under subparagraph 

12 (B)(iii)) for a month in the year over 

13 such amount for a month in the pre14 ceding year. 

15 ‘‘(II) NO APPLICATION TO FULL

16 PREMIUM SUBSIDY INDIVIDUALS.—In 

17 the case of an individual enrolled for 

18 a premium subsidy under section 

19 1860D–14(a)(1), zero. 

20 ‘‘(III) SPECIAL RULE FOR PAR21 TIAL PREMIUM SUBSIDY INDIVID22 UALS.—In the case of an individual 

23 enrolled for a premium subsidy under 

24 section 1860D–14(a)(2), a percent of 

25 the increase described in subclause (I) 
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1 equal to 100 percent minus the per2 cent applied based on the linear scale 

3 under such section. 

4 ‘‘(ii) PART B PREMIUM INCREASE

5 FACTOR.—If the individual is enrolled for 

6 such months under part B— 

7 ‘‘(I) IN GENERAL.—Except as 

8 provided in subclause (II), the amount 

9 of the annual increase in premium ef10 fective for such year resulting from 

11 the application of section 1839(a)(3), 

12 as reduced (if any) under section 

13 1839(f)(2). 

14 ‘‘(II) NO APPLICATION TO INDI15 VIDUALS PARTICIPATING IN MEDICARE

16 SAVINGS PROGRAM.—In the case of an 

17 individual who is enrolled for medical 

18 assistance under title XIX for Medi19 care cost-sharing described in section 

20 1905(p)(3)(A)(ii), zero.’’. 

21 (2) APPLICATION UNDER MEDICARE ADVAN22 TAGE PROGRAM.—Section 1854(b)(2)(B) of such Act 

23 (42 U.S.C. 1395w–24(b)(2)(B)), as in effect as of 

24 January 1, 2006, relating to MA monthly prescrip25 tion drug beneficiary premium, is amended by in-
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1 serting after ‘‘as adjusted under section 1860D– 

2 13(a)(1)(B)’’ the following: ‘‘and section 1860D– 

3 13(a)(1)(F)’’. 

4 (3) PAYMENT FROM MEDICARE PRESCRIPTION

5 DRUG ACCOUNT.—Section 1860D–16(b) of such Act 

6 (42 U.S.C. 1395w–116(b)) is amended— 

7 (A) in paragraph (1)— 

8 (i) by striking ‘‘and’’ at the end of 

9 subparagraph (C); 

10 (ii) by striking the period at the end 

11 of subparagraph (D) and inserting ‘‘; 

12 and’’; and 

13 (iii) by adding at the end the fol14 lowing new subparagraph: 

15 ‘‘(E) payment under paragraph (5) of pre16 mium reductions effected under section 1860D– 

17 13(a)(1)(F).’’; and 

18 (B) by adding at the end the following new 

19 paragraph: 

20 ‘‘(5) PAYMENT FOR COLA PROTECTION PRE21 MIUM REDUCTIONS.— 

22 ‘‘(A) IN GENERAL.—In addition to pay23 ments provided under section 1860D–15 to a 

24 PDP sponsor or an MA organization, in the 

25 case of each part D eligible individual who is 
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1 enrolled in a prescription drug plan offered by 

2 such sponsor or an MA–PD plan offered by 

3 such organization and who has a premium re4 duced under section 1860D–13(a)(1)(F), the 

5 Secretary shall provide for payment to such 

6 sponsor or organization of an amount equiva7 lent to the amount of such premium reduction. 

8 ‘‘(B) APPLICATION OF PROVISIONS.—The 

9 provisions of subsections (d) and (f) of section 

10 1860D–15 (relating to payment methods and 

11 disclosure of information) shall apply to pay12 ment under subparagraph (A) in the same man13 ner as they apply to payments under such sec14 tion.’’. 

15 (c) DISREGARD OF PREMIUM REDUCTIONS IN DE16 TERMINING DEDICATED REVENUES UNDER MMA COST

17 CONTAINMENT.—Section 801(c)(3)(D) of the Medicare 

18 Prescription Drug, Improvement, and Modernization Act 

19 of 2003 (Public Law 108–173) is amended by adding at 

20 the end the following: ‘‘Such premiums shall also be deter21 mined without regard to any reductions effected under 

22 section 1839(f)(2) or 1860D–13(a)(1)(F) of such title.’’. 

23 (d) EFFECTIVE DATES.— 
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1 (1) PART B PREMIUM.—The amendments made 

2 by subsection (a) apply to premiums for months be3 ginning with January 2006. 

4 (2) PART D PREMIUM.—The amendments made 

5 by subsection (b) apply to premiums for months be6 ginning with January 2007. 

7 (3) MMA PROVISION.—The amendment made 

8 by subsection (c) shall take effect on the date of the 

9 enactment of this Act. 

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