II 

Calendar No. 656 

108TH CONGRESS 

2D SESSION S. 2694 

To amend title XVIII of the Social Security Act to provide for the automatic 

enrollment of medicaid beneficiaries for prescription drug benefits under 

part D of such title, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 20, 2004 

Mr. BINGAMAN introduced the following bill; which was read the first time 

JULY 21, 2004 

Read the second time and placed on the calendar 

A BILL 

To amend title XVIII of the Social Security Act to provide 

for the automatic enrollment of medicaid beneficiaries 

for prescription drug benefits under part D of such title, 

and for other purposes. 

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 Assurance 

5 of Rx Transitional Assistance Act of 2004’’. 
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1 SEC. 2. AUTOMATIC ENROLLMENT OF MEDICAID BENE2 FICIARIES ELIGIBLE FOR MEDICARE PRE3 SCRIPTION DRUG BENEFITS. 

4 (a) AUTOMATIC ENROLLMENT OF BENEFICIARIES

5 RECEIVING MEDICAL ASSISTANCE FOR MEDICARE COST6 SHARING UNDER MEDICAID.—Section 1860D– 

7 14(a)(3)(B)(v) (42 U.S.C. 1395w–114(a)(3)(B)(v)) is 

8 amended to read as follows: 

9 ‘‘(v) TREATMENT OF MEDICAID BENE10 FICIARIES.—Subject to subparagraph (F), 

11 the Secretary shall provide that part D eli12 gible individuals who are— 

13 ‘‘(I) full-benefit dual eligible indi14 viduals (as defined in section 

15 1935(c)(6)) or who are recipients of 

16 supplemental security income benefits 

17 under title XVI shall be treated as 

18 subsidy eligible individuals described 

19 in paragraph (1); and 

20 ‘‘(II) not described in subclause 

21 (I), but who are determined for pur22 poses of the State plan under title 

23 XIX to be eligible for medical assist24 ance under clause (i), (iii), or (iv) of 

25 section 1902(a)(10)(E), shall be treat26 ed as being determined to be subsidy 
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1 eligible individuals described in para2 graph (1).’’. 

3 (b) ASSURANCE OF TRANSITIONAL ASSISTANCE

4 UNDER DRUG DISCOUNT CARD PROGRAM.— 

5 (1) IN GENERAL.—Section 1860D–31(b)(2)(A) 

6 of the Social Security Act (42 U.S.C. 1395w– 

7 141(b)(2)(A)) is amended by adding at the end the 

8 following new sentence: ‘‘Subject to subparagraph 

9 (B), each discount card eligible individual who is de10 scribed in section 1860D–14(a)(3)(B)(v) shall be 

11 considered to be a transitional assistance eligible in12 dividual.’’. 

13 (2) AUTOMATIC ENROLLMENT OF MEDICAID

14 BENEFICIARIES.—Section 1860D–31(c)(1) of the 

15 Social Security Act (42 U.S.C. 1395w–141(c)(1)) is 

16 amended by adding at the end the following new 

17 subparagraph: 

18 ‘‘(F) AUTOMATIC ENROLLMENT OF CER19 TAIN BENEFICIARIES.— 

20 ‘‘(i) IN GENERAL.—Subject to clause 

21 (ii), the Secretary shall— 

22 ‘‘(I) enroll each discount card eli23 gible individual who is described in 

24 section 1860D–14(a)(3)(B)(v), but 

25 who has not enrolled in an endorsed 
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1 discount card program as of August 

2 15, 2004, in an endorsed discount 

3 card program selected by the Sec4 retary that serves residents of the 

5 State in which the individual resides; 

6 and 

7 ‘‘(II) notwithstanding paragraphs 

8 (2) and (3) of subsection (f), auto9 matically determine that such indi10 vidual is a transitional assistance eli11 gible individual (including whether 

12 such individual is a special transi13 tional assistance eligible individual) 

14 without requiring any self-certification 

15 or subjecting such individual to any 

16 verification under such paragraphs. 

17 ‘‘(ii) OPT-OUT.—The Secretary shall 

18 not enroll an individual under clause (i) if 

19 the individual notifies the Secretary that 

20 such individual does not wish to be en21 rolled and be determined to be a transi22 tional assistance eligible individual under 

23 such clause before the individual is so en24 rolled.’’. 
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1 (3) NOTICE OF ELIGIBILITY FOR TRANSITIONAL

2 ASSISTANCE.—Section 1860D–31(d) of the Social 

3 Security Act (42 U.S.C. 1395w–141(d)) is amended 

4 by adding at the end the following new paragraph: 

5 ‘‘(4) NOTICE OF ELIGIBILITY TO MEDICAID

6 BENEFICIARIES.—Not later than July 15, 2004, 

7 each State or the Secretary (at the option of each 

8 State) shall mail to each discount card eligible indi9 vidual who is described in section 1860D– 

10 14(a)(3)(B)(v), but who has not enrolled in an en11 dorsed discount card program as of July 1, 2004, a 

12 notice stating that— 

13 ‘‘(A) such individual is eligible to enroll in 

14 an endorsed discount card program and to re15 ceive transitional assistance under subsection 

16 (g); 

17 ‘‘(B) if such individual does not enroll be18 fore August 15, 2004, such individual will auto19 matically be enrolled in an endorsed discount 

20 card program selected by the Secretary unless 

21 the individual notifies the Secretary that such 

22 individual does not wish to be so enrolled; 

23 ‘‘(C) if the individual is enrolled in an en24 dorsed discount card program during 2004, the 

25 individual will be permitted to change enroll-
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1 ment under subsection (c)(1)(C)(ii) for 2005; 

2 and 

3 ‘‘(D) there is no obligation to use the en4 dorsed discount card program or transitional 

5 assistance when purchasing prescription 

6 drugs.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall take effect as if included in the enact9 ment of section 101 of the Medicare Prescription Drug, 

10 Improvement, and Modernization Act of 2003 (Public Law 

11 108–173; 117 Stat. 2071). 

Calendar No. 656 

108TH CONGRESS 

2D SESSION S. 2694 

A BILL 

To amend title XVIII of the Social Security Act to 

part D of such title, and for other purposes. beneficiaries for prescription drug benefits under provide for the automatic enrollment of medicaid 

JULY 21, 2004 

Read the second time and placed on the calendar