I 

108TH CONGRESS 

2D SESSION H. R. 4910 

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

adjustments (COLA). 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2004 

Ms. HERSETH (for herself, Ms. PELOSI, Mr. STARK, Mr. MATSUI, Mr. RANGEL, Mr. MARKEY, Mr. LAMPSON, Mr. LANTOS, Mr. COSTELLO, Mr. 

RYAN of Ohio, Mr. CHANDLER, Mr. SANDLIN, Mrs. CHRISTENSEN, Mrs. 

CAPPS, Mr. MCNULTY, Mr. WAXMAN, Mr. SERRANO, Mr. GEORGE MILLER of California, Mr. DAVIS of Illinois, Mr. NEAL of Massachusetts, 

Mrs. MCCARTHY of New York, Mr. DOGGETT, Mr. MICHAUD, Ms. EDDIE

BERNICE JOHNSON of Texas, Mr. MCDERMOTT, Mr. BECERRA, Mr. 

RODRIGUEZ, Mr. KILDEE, Mr. LEWIS of Georgia, Mr. BROWN of Ohio, 

Mr. COOPER, Mrs. TAUSCHER, Mr. BERMAN, Mr. BOSWELL, Ms. MCCOLLUM, Mr. ALLEN, Mr. DEFAZIO, Mr. SANDERS, Mr. FILNER, Mr. GONZALEZ, Mr. MCGOVERN, Mrs. JONES of Ohio, Mr. JEFFERSON, Mr. 

CLAY, Mr. WEINER, Mr. NADLER, Ms. BERKLEY, Mr. ETHERIDGE, Ms. 

MILLENDER-MCDONALD, Mr. STRICKLAND, Mr. CROWLEY, Mr. DAVIS of 

Alabama, Ms. SOLIS, Mr. FARR, Mr. HINCHEY, Mr. GREEN of Texas, 

Mr. OLVER, Mr. KLECZKA, Mr. JOHN, Mr. TOWNS, Mr. ROSS, Mr. EDWARDS, Mr. DAVIS of Tennessee, Mr. MARSHALL, Mr. BISHOP of New 

York, Mrs. DAVIS of California, Mr. LUCAS of Kentucky, Ms. LORETTA

SANCHEZ of California, Mr. SCOTT of Virginia, Ms. WATSON, Mr. 

CAPUANO, Mr. FROST, Mr. OBEY, Ms. SCHAKOWSKY, Mr. BERRY, Mr. 

BISHOP of Georgia, Mr. RUPPERSBERGER, Mr. DAVIS of Florida, Mr. 

CUMMINGS, and Ms. JACKSON-LEE of Texas) introduced the following 

bill; which was referred to the Committee on Energy and Commerce, and 

in addition to the Committee on Ways and Means, 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 
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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 2004’’. 

6 SEC. 2. PROTECTION OF SOCIAL SECURITY COLA IN7 CREASES AGAINST EXCESSIVE MEDICARE 

8 PREMIUM INCREASES. 

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

10 1839(f) of the Social Security Act (42 U.S.C. 1395r(f)) 

11 is amended— 

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

13 1988’’ and inserting ‘‘(f)(1) For any calendar year 

14 after 1988 and before 2005’’; and 

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

16 paragraph: 

17 ‘‘(2) For any calendar year (beginning with 2005), 

18 if an individual is entitled to monthly benefits under sec19 tion 202 or 223 or to a monthly annuity under section 

20 3(a), 4(a), or 4(f) of the Railroad Retirement Act of 1974 

21 for November and December of the preceding year, if the 

22 monthly premium of the individual under this section for 
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1 December of the preceding year and for January of the 

2 year involved is deducted from those benefits under section 

3 1840(a)(1) or section 1840(b)(1), and if the amount of 

4 the individual’s premium is not adjusted for January of 

5 the year involved under subsection (i), the monthly pre6 mium otherwise determined under this section for the indi7 vidual for that year shall not be increased pursuant to sub8 section (a)(3) to an amount that exceeds 25 percent of 

9 the amount of the increase in such monthly benefits for 

10 that individual attributable to section 215(i).’’. 

11 (b) APPLICATION TO PART D PREMIUMS.— 

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

13 such Act (42 U.S.C. 1395ww–113(a)(1)) is amend14 ed— 

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

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

17 (B) by redesignating subparagraph (F) as 

18 subparagraph (G); and 

19 (C) by inserting after subparagraph (E) 

20 the following new subparagraph: 

21 ‘‘(F) PROTECTION OF SOCIAL SECURITY

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

23 individual is entitled to monthly benefits under 

24 section 202 or 223 or to a monthly annuity 

25 under section 3(a), 4(a), or 4(f) of the Railroad 
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1 Retirement Act of 1974 for November and De2 cember of the preceding year and was enrolled 

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

4 months, the base beneficiary premium otherwise 

5 applied under this paragraph for the individual 

6 for months in that year shall be decreased by 

7 the amount (if any) by which the sum of the 

8 amounts described in the following clauses (i) 

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

10 the increase in such monthly benefits for that 

11 individual attributable to section 215(i): 

12 ‘‘(i) PART D PREMIUM INCREASE FAC13 TOR.— 

14 ‘‘(I) IN GENERAL.—Except as 

15 provided in this clause, the amount of 

16 the increase (if any) in the adjusted 

17 national average monthly bid amount 

18 (as determined under subparagraph 

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

20 such amount for a month in the pre21 ceding year. 

22 ‘‘(II) NO APPLICATION TO FULL

23 PREMIUM SUBSIDY INDIVIDUALS.—In 

24 the case of an individual enrolled for 
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1 a premium subsidy under section 

2 1860D–14(a)(1), zero. 

3 ‘‘(III) SPECIAL RULE FOR PAR4 TIAL PREMIUM SUBSIDY INDIVID5 UALS.—In the case of an individual 

6 enrolled for a premium subsidy under 

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

8 the increase described in subclause (I) 

9 equal to 100 percent minus the per10 cent applied based on the linear scale 

11 under such section. 

12 ‘‘(ii) PART B PREMIUM INCREASE

13 FACTOR.—If the individual is enrolled for 

14 such months under part B— 

15 ‘‘(I) IN GENERAL.—Except as 

16 provided in subclause (II), the amount 

17 of the annual increase in premium ef18 fective for such year resulting from 

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

20 as reduced (if any) under section 

21 1839(f)(2). 

22 ‘‘(II) NO APPLICATION TO INDI23 VIDUALS PARTICIPATING IN MEDICARE

24 SAVINGS PROGRAM.—In the case of an 

25 individual who is enrolled for medical 
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1 assistance under title XIX for medi2 care cost-sharing described in section 

3 1905(p)(3)(A)(ii), zero.’’. 

4 (2) APPLICATION UNDER MEDICARE ADVAN5 TAGE PROGRAM.—Section 1854(b)(2)(B) of such Act 

6 (42 U.S.C. 1395w–24(b)(2)(B)), as in effect as of 

7 January 1, 2006, relating to MA monthly prescrip8 tion drug beneficiary premium, is amended by in9 serting after ‘‘as adjusted under section 1860D– 

10 13(a)(1)(B)’’ the following: ‘‘and section 1860D– 

11 13(a)(1)(F)’’. 

12 (3) PAYMENT FROM MEDICARE PRESCRIPTION

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

14 (42 U.S.C. 1395w–116(b)) is amended— 

15 (A) in paragraph (1)— 

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

17 subparagraph (C); 

18 (ii) by striking the period at the end 

19 of subparagraph (D) and inserting ‘‘; 

20 and’’; and 

21 (iii) by adding at the end the fol22 lowing new subparagraph: 

23 ‘‘(E) payment under paragraph (5) of pre24 mium reductions effected under section 1860D– 

25 13(a)(1)(F).’’; and 
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1 (B) by adding at the end the following new 

2 paragraph: 

3 ‘‘(5) PAYMENT FOR COLA PROTECTION PRE4 MIUM REDUCTIONS.— 

5 ‘‘(A) IN GENERAL.—In addition to pay6 ments provided under section 1860D–15 to a 

7 PDP sponsor or an MA organization, in the 

8 case of each part D eligible individual who is 

9 enrolled in a prescription drug plan offered by 

10 such sponsor or an MA–PD plan offered by 

11 such organization and who has a premium re12 duced under section 1860D–13(a)(1)(F), the 

13 Secretary shall provide for payment to such 

14 sponsor or organization of an amount equiva15 lent to the amount of such premium reduction. 

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

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

18 1860D–15 (relating to payment methods and 

19 disclosure of information) shall apply to pay20 ment under subparagraph (A) in the same man21 ner as they apply to payments under such sec22 tion.’’. 

23 (c) DISREGARD OF PREMIUM REDUCTIONS IN DE24 TERMINING DEDICATED REVENUES UNDER MMA COST

25 CONTAINMENT.—Section 801(c)(3)(D) of the Medicare 
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1 Prescription Drug, Improvement, and Modernization Act 

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

3 the end the following: ‘‘Such premiums shall also be deter4 mined without regard to any reductions effected under 

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

6 (d) EFFECTIVE DATES.— 

7 (1) PART B PREMIUM.—The amendments made 

8 by subsection (a) apply to premiums for months be9 ginning with January 2005. 

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

11 by subsection (b) apply to premiums for months be12 ginning with January 2007. 

13 (3) MMA PROVISION.—The amendment made 

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

15 enactment of this Act. 

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