II 

109TH CONGRESS 

2D SESSION S. 3647 

To amend title XVIII of the Social Security Act to waive the monthly 

beneficiary premium under a prescription drug plan or an MA–PD plan 

during months in which an individual enrolled in such a plan has a 

gap in prescription drug coverage. 

IN THE SENATE OF THE UNITED STATES 

JULY 12, 2006 

Mr. DORGAN (for himself, Mr. BINGAMAN, Ms. STABENOW, Mr. LAUTENBERG, 

Mr. JOHNSON, Ms. MIKULSKI, Mrs. CLINTON, Mr. MENENDEZ, and Mr. 

AKAKA) 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 waive 

the monthly beneficiary premium under a prescription 

drug plan or an MA–PD plan during months in which 

an individual enrolled in such a plan has a gap in prescription drug coverage. 

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 ‘‘Prescription for Fair5 ness Act of 2006’’. 


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1 SEC. 2. WAIVER OF MONTHLY BENEFICIARY PREMIUM DUR2 ING COVERAGE GAP. 

3 (a) IN GENERAL.—Section 1860D–13(a) of the So4 cial Security Act (42 U.S.C. 1395w–113(a)) is amended 

5 by adding at the end the following new paragraph: 

6 ‘‘(7) WAIVER OF MONTHLY BENEFICIARY PRE7 MIUM DURING COVERAGE GAP.— 

8 ‘‘(A) IN GENERAL.—During the period be9 ginning on the date of enactment of the Pre10 scription for Fairness Act of 2006 and ending 

11 on September 30, 2008, in the case of an indi12 vidual enrolled in a prescription drug plan or an 

13 MA–PD plan which does not provide any cov14 erage of benefits after the individual has 

15 reached the initial coverage limit under para16 graph (3) of section 1860D–2(b) and before the 

17 individual has reached the annual out-of-pocket 

18 threshold specified in paragraph (4)(B) of such 

19 section, the following rules shall apply: 

20 ‘‘(i) The individual is not responsible 

21 for payment of the monthly beneficiary 

22 premium (as computed under paragraph 

23 (2) and adjusted under paragraph (1)) 

24 under such a plan for any month during 

25 which such coverage is not provided. 


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1 ‘‘(ii) The Secretary shall provide for 

2 payment of such monthly beneficiary pre3 mium under such a plan on behalf of such 

4 an individual for any month described in 

5 clause (i). Such payment shall be made 

6 from the Medicare Prescription Drug Ac7 count. 

8 ‘‘(B) REFUND OF PREMIUMS PAID.—In the 

9 case of such an individual who pays the month10 ly beneficiary premium under such a plan for a 

11 month during which such coverage is not pro12 vided, the Secretary shall refund an amount 

13 equal to the premium paid. Such refund shall 

14 be made from such Account.’’. 

15 (b) CONFORMING AMENDMENTS.—Section 

16 1854(b)(1) of the Social Security Act (42 U.S.C. 1395w– 

17 24(b)(1)) is amended— 

18 (1) in subparagraph (A), by inserting ‘‘and, if 

19 applicable, the waiver under subparagraph (D)’’ 

20 after ‘‘subparagraph (C)’’; and 

21 (2) by adding at the end the following new sub22 paragraph: 

23 ‘‘(D) WAIVER OF MA MONTHLY PRESCRIP24 TION DRUG BENEFICIARY PREMIUM.—During 

25 the period beginning on the date of enactment 


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1 of the Prescription for Fairness Act of 2006 

2 and ending on September 30, 2008, the provi3 sions of section 1860D–13(a)(7) shall apply to 

4 the MA monthly prescription drug beneficiary 

5 premium in the same manner as they apply to 

6 the monthly beneficiary premium under such 

7 section.’’. 

8 SEC. 3. REDUCTION OF MEDICARE ADVANTAGE REGIONAL 

9 PLAN STABILIZATION FUND AMOUNT. 

10 (a) IN GENERAL.—Section 1858(e)(2) of the Social 

11 Security Act (42 U.S.C. 1395w–27a(e)(2)) is amended— 

12 (1) in subparagraph (A)(i), by striking ‘‘There 

13 shall’’ and inserting ‘‘Subject to subparagraph (E), 

14 there shall’’; and 

15 (2) by adding at the end the following new sub16 paragraph: 

17 ‘‘(E) REDUCTION IN INITIAL FUNDING TO

18 OFFSET COST OF WAIVER OF PRESCRIPTION

19 DRUG PREMIUM.—The Secretary shall reduce 

20 the amount available under subparagraph (A)(i) 

21 by an amount equal to the Secretary’s estimate 

22 of the increased expenditures from the Medicare 

23 Prescription Drug Account by reason of the 

24 amendments made by section 2 of the Prescrip25 tion for Fairness Act of 2006.’’. 


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

2 this section shall take effect as if included in the enact3 ment of section 221(c) of the Medicare Prescription Drug, 

4 Improvement, and Modernization Act of 2003 (Public Law 

5 108–173; 117 Stat. 2181). 

Æ 


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