I 

109TH CONGRESS 

2D SESSION H. R. 4796 

To amend title XVIII of the Social Security Act to improve implementation 

of the Medicare prescription drug benefit. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 16, 2006 

Mr. MORAN of Kansas (for himself, Mr. JONES of North Carolina, and Mrs. 

EMERSON) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy 

and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title XVIII of the Social Security Act to improve 

implementation of the Medicare prescription drug benefit. 

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 ‘‘Medicare Account5 ability, Bargaining, and Compassion for Part D (ABC for 

6 D) Act’’. 

7 SEC. 2. SENSE OF CONGRESS. 

8 It is the sense of Congress that— 


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1 (1) employees and volunteers of the Social Se2 curity Administration (SSA), Area Agencies on 

3 Aging (AAA), and the State Health Insurance As4 sistance Program (SHIP), who have gone above and 

5 beyond expectations, should be commended for mak6 ing great strides in outreach and education for the 

7 Medicare part D prescription drug program; 

8 (2) the Centers for Medicare & Medicaid Serv9 ices (CMS) should be encouraged to empower their 

10 outreach partners to share time and space in order 

11 to create (within existing office spaces) ‘‘one-stop lo12 cations’’ at which seniors can receive counseling on 

13 the low-income subsidy application, as well as plan 

14 selection, under such program; 

15 (3) decision-making at the local level relating to 

16 outreach and education for such program should be 

17 encouraged; and 

18 (4) if empowered by Centers for Medicare & 

19 Medicaid Services, personnel from the Social Secu20 rity Administration, Area Agencies on Aging, and 

21 the State Health Insurance Assistance Program will 

22 be able to coordinate better their efforts and there23 fore better serve seniors under such program. 


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1 SEC. 3. REQUIRING REGISTRATION OF PDP SPONSORS OF2 FERING PRESCRIPTION DRUG PLANS WITH 

3 STATE INSURANCE DEPARTMENT IN EACH 

4 STATE IN WHICH A PLAN IS OFFERED. 

5 (a) IN GENERAL.—Section 1860D–12(a) of the So6 cial Security Act (42 U.S.C. 1395w–112(a)) is amended 

7 by adding at the end the following new paragraph: 

8 ‘‘(4) REGISTRATION IN EACH STATE IN WHICH

9 PRESCRIPTION DRUG PLAN IS OFFERED.—The spon10 sor is registered with the State insurance depart11 ment in each State in which it offers a prescription 

12 drug plan under this part. Such registration shall 

13 consist of submitting to such department the fol14 lowing: 

15 ‘‘(A) A certified copy of the sponsor’s char16 ter or deed of settlement. 

17 ‘‘(B) A statement including the name of 

18 the sponsor, the place where it is located; and 

19 the amount of its capital. 

20 ‘‘(C) A copy of its last annual report, if 

21 such a report was written.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 subsection (a) shall apply to prescription drug plans of24 fered on or after January 1, 2007. 


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1 SEC. 4. IMPROVEMENTS IN MEDICARE PRESCRIPTION 

2 DRUG ENROLLMENT PROCESS. 

3 (a) EXTENDED PERIOD OF OPEN ENROLLMENT

4 DURING ALL OF 2006 FOR PRESCRIPTION DRUG PLANS

5 AND MA PLANS WITHOUT LATE ENROLLMENT PEN6 ALTY.—Section 1851(e)(3)(B) of the Social Security Act 

7 (42 U.S.C. 1395w–21(e)(3)(B)) is amended— 

8 (1) in clause (iii), by striking ‘‘May 15, 2006’’ 

9 and inserting ‘‘December 31, 2006’’; and 

10 (2) by adding at the end the following new sen11 tence: ‘‘An individual making an election during the 

12 period beginning on November 15, 2006, and ending 

13 on December 31, 2006, shall specify whether the 

14 election is to be effective with respect to 2006 or 

15 with respect to 2007 (or both).’’. 

16 (b) PROVIDING PERIOD OF TIME BEFORE EFFEC17 TIVENESS OF ELECTIONS AND CHANGES OF ELECTIONS

18 FOR PRESCRIPTION DRUG PLANS AND MA PLANS.— 

19 (1) FOR INITIAL ENROLLMENT PERIOD.—Sec20 tion 1851(f)(1) of such Act (42 U.S.C. 1395w– 

21 21(f)(1)) is amended— 

22 (A) by striking ‘‘except’’ and all that fol23 lows through ‘‘retroactive coverage.’’ and insert24 ing ‘‘except as follows:’’; and 

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

26 subparagraphs: 


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1 ‘‘(A) Except as the Secretary may provide 

2 (consistent with section 1838 and subparagraph 

3 (B)) in order to prevent retroactive coverage. 

4 ‘‘(B) Except such an election of coverage 

5 shall take effect not earlier than the date that 

6 is 14 days after the date on which such election 

7 is made.’’. 

8 (2) FOR CONTINUOUS ENROLLMENT PERI9 ODS.—Section 1851(f)(2) of such Act (42 U.S.C. 

10 1395w–21(f)(2)) is amended by striking ‘‘following 

11 the date’’ and inserting ‘‘that begins at least 14 

12 days after the date’’. 

13 (3) CHANGE IN ANNUAL, COORDINATED ELEC14 TION PERIOD TO ALLOW FOR DELAY IN EFFECTIVE15 NESS.—Section 1851(e)(3)(B)(iv) of such Act (42 

16 U.S.C. 1395w–21(e)(3)(B)(iv)) is amended by strik17 ing ‘‘December 31’’ and inserting ‘‘December 15’’. 

18 (4) FOR SPECIAL ENROLLMENT PERIODS.—Sec19 tion 1851(f)(4) of such Act (42 U.S.C. 1395w– 

20 21(f)(4)) is amended by inserting before the period 

21 at the end the following: ‘‘and providing adequate 

22 notice to providers affected by such an election or 

23 change in election’’. 

24 (5) EFFECTIVE DATES.— 


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1 (A) INITIAL AND CONTINUOUS ENROLL2 MENT PERIODS.—The amendments made by 

3 paragraphs (1) and (2) shall not apply— 

4 (i) to elections of coverage made be5 fore the date of the enactment of this Act; 

6 and 

7 (ii) to elections of coverage made dur8 ing the month in which this Act is enacted 

9 if such date of enactment is within the last 

10 14 days of such month. 

11 (B) ANNUAL, COORDINATED ENROLLMENT

12 PERIODS.—The amendment made by paragraph 

13 (3) shall apply to annual, coordinated election 

14 periods beginning on or after November 15, 

15 2006. 

16 (C) SPECIAL ENROLLMENT PERIODS.—The 

17 amendment made by paragraph (4) shall apply 

18 with respect to such special enrollment periods 

19 (beginning after the date of the enactment of 

20 this Act) as the Secretary of Health and 

21 Human Services shall specify. 


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1 SEC. 5. AUTHORIZING FEDERAL NEGOTIATION OF FAIR 

2 PRICES FOR MEDICARE PRESCRIPTION 

3 DRUGS ON BEHALF OF MEDICARE BENE4 FICIARIES. 

5 Section 1860D–11 of the Social Security Act (42 

6 U.S.C. 1395–111) is amended by striking subsection (i) 

7 (relating to noninterference) and by inserting the fol8 lowing: 

9 ‘‘(i) AUTHORITY TO NEGOTIATE PRICES WITH MAN10 UFACTURERS.—In order to ensure that beneficiaries en11 rolled under prescription drug plans and MA–PD plans 

12 pay the lowest possible price, the Secretary shall have au13 thority similar to that of the Secretary of Veterans Affairs, 

14 Secretary of Defense, and the heads of other Federal 

15 agencies and departments that purchase prescription 

16 drugs in bulk to negotiate contracts with manufacturers 

17 of covered part D drugs, consistent with the requirements 

18 and in furtherance of the goals of providing quality care 

19 and containing costs under this part.’’. 

20 SEC. 6. INCREASED FUNDING FOR STATE HEALTH INSUR21 ANCE COUNSELING PROGRAMS AND SOCIAL 

22 SECURITY REGIONAL OFFICES FOR MEDI23 CARE PART D ENROLLMENT. 

24 (a) SHIP COUNSELING.—In addition to any amounts 

25 otherwise appropriated, there are appropriated out of any 

26 funds in the Treasury not otherwise appropriated 


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1 $100,000,000 for fiscal year 2006 to the Secretary of 

2 Health and Human Services for grants to States under 

3 section 4360 of the Omnibus Reconciliation Act of 1990 

4 for the purpose of providing outreach and information 

5 counseling and assistance with respect to enrollment of 

6 part D eligible individuals (as defined in section 1860D– 

7 1(a)(3) of the Social Security Act) under prescription drug 

8 plans and MA–PD plans under title XVIII of the Social 

9 Security Act. Funds appropriated under the preceding 

10 sentence shall remain available until expended. 

11 (b) SSA REGIONAL OFFICE OUTREACH.—In addition 

12 to any amounts otherwise appropriated, there are appro13 priated out of any funds in the Treasury not otherwise 

14 appropriated $100,000,000 for fiscal year 2006 to the Ad15 ministrator of Social Security for the purposes of con16 tinuing outreach and education efforts for the purpose of 

17 providing outreach and education by regional offices of the 

18 Social Security Administration with respect to enrollment 

19 of part D eligible individuals under prescription drug 

20 plans and MA–PD plans under title XVIII of the Social 

21 Security Act. Funds appropriated under the preceding 

22 sentence shall remain available until expended. 

23 (c) OFFSET.—Notwithstanding any other provision of 

24 law, the amount of funds available for obligation under 

25 section 1858(e)(2)(A)(i) of the Social Security Act (42 


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1 U.S.C. 1395w–27a(e)(2)(A)(i)) are hereby reduced by the 

2 amount of funds appropriated under subsections (a) and 

3 (b). 

Æ 


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