II 

109TH CONGRESS 

2D SESSION S. 3764 

To amend title XVIII of the Social Security Act to eliminate the coverage 

gap under the Medicare part D prescription drug program. 

IN THE SENATE OF THE UNITED STATES 

JULY 31, 2006 

Mr. LAUTENBERG introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend title XVIII of the Social Security Act to eliminate 

the coverage gap under the Medicare part D prescription 

drug program. 

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 Part D Cov5 erage Gap Elimination Act of 2006’’. 

6 SEC. 2. ELIMINATION OF MEDICARE PART D COVERAGE 

7 GAP. 

8 (a) ELIMINATION OF COVERAGE GAP.— 

9 (1) IN GENERAL.— 


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•S 3764 IS

1 (A) IN GENERAL.—Paragraph (3) of sec2 tion 1860D–2(b) of the Social Security Act (42 

3 U.S.C. 1395w–102(b)) is repealed. 

4 (B) REVISION OF BENEFIT STRUCTURE.— 

5 Section 1860D–2(b)(2)(A) of such Act (42 

6 U.S.C. 1395w–102(b)(2)(A)) is amended by 

7 striking ‘‘and up to the initial coverage limit 

8 under paragraph (3)’’ and inserting ‘‘and up to 

9 the point at which the annual out-of-pocket 

10 threshold is reached under paragraph (4)’’ in 

11 the matter preceding clause (i). 

12 (2) CONFORMING AMENDMENTS.— 

13 (A) SUPPLEMENTAL PRESCRIPTION DRUG

14 COVERAGE.—Section 1860D–2(a)(2)(A)(i)(I) of 

15 such Act (42 U.S.C. 1395w–102(a)(2)(A)(i)(I)) 

16 is amended— 

17 (i) by striking ‘‘deductible,’’ and in18 serting ‘‘deductible or’’; 

19 (ii) by striking ‘‘, or an increase in 

20 the initial coverage limit’’; and 

21 (iii) by striking ‘‘or increase’’. 

22 (B) CATASTROPHIC.—Section 1860D– 

23 2(b)(4)(C)(i) of such Act (42 U.S.C. 1395w– 

24 102(b)(4)(C)(i)) is amended— 


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•S 3764 IS

1 (i) by striking ‘‘paragraph (1),’’ and 

2 inserting ‘‘paragraph (1) or’’; and 

3 (ii) by striking ‘‘and for amounts for 

4 which benefits are not provided because of 

5 the application of the initial coverage limit 

6 described in paragraph (3),’’. 

7 (C) ALTERNATIVE PRESCRIPTION DRUG

8 COVERAGE.—Section 1860D–2(c)(1)(C) of such 

9 Act (42 U.S.C. 1395w–102(c)(1)(C)) is amend10 ed— 

11 (i) in the heading by striking ‘‘INITIAL

12 COVERAGE LIMIT’’ and inserting ‘‘OUT-OF13 POCKET THRESHOLD’’; and 

14 (ii) by striking ‘‘the initial coverage 

15 limit under subsection (b)(3)’’ each place it 

16 appears and inserting ‘‘the out-of-pocket 

17 threshold under subsection (b)(4)’’. 

18 (D) ACCESS TO NEGOTIATED PRICES.— 

19 Section 1860D–2(d)(1)(A) of such Act (42 

20 U.S.C. 1395w–102(d)(1)(A)) is amended by 

21 striking ‘‘or an initial coverage limit (described 

22 in subsection (b)(3))’’. 

23 (E) CLAIMS INFORMATION.—Section 

24 1860D–4(a)(4)(B)(i) of such Act (42 U.S.C. 

25 1395w–104(a)(4)(B)(i)) is amended by striking 


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•S 3764 IS

1 ‘‘relation to—’’ and all that follows through 

2 ‘‘the annual’’ and inserting ‘‘relation to the an3 nual’’. 

4 (F) LOW-INCOME SUBSIDIES.—Section 

5 1860D–14(a) of such Act (42 U.S.C. 1395w– 

6 114(a)) is amended by striking subparagraph 

7 (C) of paragraphs (1) and (2). 

8 (G) DEFINITION.—Section 1860D– 

9 41(a)(6) of such Act (42 U.S.C. 1395w– 

10 151(a)(6)) is repealed. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall take effect on January 1, 2007. 

Æ 


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