‘‘(i) shall not require the submittal of 
additional documentation regarding income 
or assets; 
‘‘(ii) shall permit the appointment of 
a personal representative described in 
paragraph (5); and 
‘‘(iii) shall allow for the specification 
of a language (other than English) that is 
preferred by the individual for subsequent 
communications with respect to the indi-
vidual under this part. 
‘‘(E) INFORMATION ON SHIP.—Information 
on how the individual may contact the State 
Health Insurance Assistance Program (SHIP) 
for the State in which the individual is located 
in order to obtain assistance regarding enroll-
ment and benefits under this part. 
If a State is doing its own outreach to low-income 
seniors regarding enrollment and low-income sub-
sidies under this part, such process shall be coordi-
nated with the State’s outreach effort. 
‘‘(3) FOLLOW-UP COMMUNICATIONS.—If the in-
dividual does not respond to the letter described in 
paragraph (2) either by making an enrollment de-
scribed in paragraph (2)(C), completing an attesta-
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tion described in paragraph (2)(D), or declining ei-
ther or both, the Secretary shall make additional at-
tempts to contact the individual to obtain such an 
affirmative response. 
‘‘(4) HOLD-HARMLESS.—Under such process, if 
an individual in good faith and in the absence of 
fraud executes an attestation described in paragraph 
(2)(D) and is provided low-income subsidies under 
this section on the basis of such attestation, if the 
individual is subsequently found not eligible for such 
subsidies, there shall be no recovery made against 
the individual because of such subsidies improperly 
paid. 
‘‘(5) USE OF AUTHORIZED REPRESENTATIVE.— 
Under such process, with proper authorization 
(which may be part of the attestation form described 
in paragraph (2)(D)), an individual may authorize 
another individual to act as the individual’s personal 
representative with respect to communications under 
this part and the enrollment of the individual under 
a prescription drug plan (or MA–PD plan) and for 
low-income subsidies under this section. 
‘‘(6) USE OF PREFERRED LANGUAGE IN SUBSE-
QUENT COMMUNICATIONS.—In the case an attesta-
tion described in paragraph (2)(D) is completed and 
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in which a language other than English is specified 
under clause (iii) of such paragraph, the Secretary 
shall provide that subsequent communications to the 
individual under this part shall be in such language. 
‘‘(7) CONSTRUCTION.—Nothing in this sub-
section shall be construed as precluding the Sec-
retary from taking additional outreach efforts to en-
roll eligible individuals under this part and to pro-
vide low-income subsidies to eligible individuals.’’. 
(b) PRESCRIPTION DRUG PLANS REQUIRED TO PRO-
VIDE EXPEDITED LOW-INCOME SUBSIDY OPT-IN AS PART 
OF APPLICATIONS.— 
(1) 
IN
GENERAL.—Section 
1860D– 
1(b)(1)(B)(vi) of such Act (42 U.S.C. 1395w– 
101(b)(1)(B)(vi)) is amended by inserting before the 
period at the end the following: ‘‘, except that any 
application form distributed by a sponsor of a pre-
scription drug plan, or an organization offering an 
MA–PD plan, shall contain an option for a part D 
eligible individual to opt-in to the expedited process 
under section 1860D–14(e) for low-income assist-
ance subsidies under such section by requesting that 
the individual be screened for eligibility for such 
subsidy through a request to the Secretary of the 
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Treasury under section 6103(l)(21) of the Internal 
Revenue Code of 1986’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to application forms for 
plan years beginning with 2008. 
(c) DISCLOSURE
OF RETURN INFORMATION
FOR 
PURPOSES OF SCREENING INDIVIDUALS FOR ELIGIBILITY 
FOR LOW-INCOME SUBSIDIES UNDER MEDICARE.— 
(1) IN
GENERAL.—Subsection (l) of section 
6103 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
paragraph: 
‘‘(21) DISCLOSURE OF RETURN INFORMATION 
FOR
PURPOSES
OF
PROVIDING
LOW-INCOME
SUB-
SIDIES UNDER MEDICARE.— 
‘‘(A) RETURN INFORMATION FROM INTER-
NAL REVENUE SERVICE TO SOCIAL SECURITY 
ADMINISTRATION.—The Secretary, upon writ-
ten request from the Commissioner of Social 
Security under section 1860D–14(e)(1) of the 
Social Security Act, shall disclose to the Com-
missioner with respect to any taxpayer identi-
fied by the Commissioner— 
‘‘(i)(I) whether the adjusted gross in-
come, as modified in accordance with spec-
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ccoleman on PROD1PC71 with BILLS
ifications of the Secretary of Health and 
Human Services for purposes of carrying 
out such section, of such taxpayer and, if 
applicable, such taxpayer’s spouse, for the 
applicable year, exceeds the amounts speci-
fied by the Secretary of Health and 
Human Services in order to apply the 135 
and 150 percent poverty lines under such 
section, 
‘‘(II) the adjusted gross income (as 
determined under subclause (I)), in the 
case of a taxpayer with respect to which 
such adjusted gross income exceeds the 
amount so specified for applying the 135 
percent poverty line and does not exceed 
the amount so specified for applying the 
150 percent poverty line, 
‘‘(III) whether the return was a joint 
return for the applicable year, and 
‘‘(IV) the applicable year, or 
‘‘(ii) if applicable, the fact that there 
is no return filed for such taxpayer for the 
applicable year. 
‘‘(B) DEFINITION OF APPLICABLE YEAR.— 
For the purposes of this paragraph, the term 
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‘applicable year’ means the most recent taxable 
year for which information is available in the 
Internal Revenue Service’s taxpayer data infor-
mation systems, or, if there is no return filed 
for such taxpayer for such year, the prior tax-
able year. 
‘‘(C) RESTRICTION ON INDIVIDUALS FOR 
WHOM DISCLOSURE IS REQUESTED.—The Com-
missioner of Social Security shall only request 
information under this paragraph with respect 
to individuals who are described in subpara-
graph (C) of section 1860D–14(e)(1) of the So-
cial Security Act or who have requested that 
such request be made under subparagraph (B) 
of such section. 
‘‘(D) RETURN INFORMATION FROM SOCIAL 
SECURITY
ADMINISTRATION
TO
DEPARTMENT 
OF HEALTH AND HUMAN SERVICES.—The Com-
missioner of Social Security shall, upon written 
request from the Secretary of Health and 
Human Services, disclose to the Secretary of 
Health and Human Services the information 
described in clauses (i) and (ii) of subparagraph 
(A). 
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‘‘(E) PERMISSIVE
DISCLOSURE
TO
OFFI-
CERS, EMPLOYEES, AND
CONTRACTORS.—The 
information described in clauses (i) and (ii) of 
subparagraph (A) may be disclosed among offi-
cers, employees, and contractors of the Social 
Security Administration and the Department of 
Health and Human Services for the purposes 
described in subparagraph (F). 
‘‘(F) RESTRICTION ON USE OF DISCLOSED 
INFORMATION.—Return information disclosed 
under this paragraph may be used only for the 
purposes of identifying eligible individuals for, 
and administering— 
‘‘(i) low-income subsidies under sec-
tion 1860D–14 of the Social Security Act, 
and 
‘‘(ii) the Medicare Savings Program 
implemented under clauses (i), (iii), and 
(iv) of section 1902(a)(10)(E) of such Act. 
‘‘(G) TERMINATION OF DISCLOSURES FOR 
CERTAIN ELIGIBILITY DETERMINATIONS.—With 
respect to individuals who are described in sub-
paragraph (C) of section 1860D–14(e)(1) of the 
Social Security Act, return information may not 
be disclosed under this paragraph after the date 
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that is one year after the date of the enactment 
of this paragraph.’’. 
(2) CONFIDENTIALITY.—Paragraph (3) of sec-
tion 6103(a) of such Code is amended by striking 
‘‘or (20)’’ and inserting ‘‘(20), or (21)’’. 
(3) PROCEDURES
AND
RECORDKEEPING
RE-
LATED TO DISCLOSURES.—Paragraph (4) of section 
6103(p) of such Code is amended by striking ‘‘or 
(20)’’ each place it appears and inserting ‘‘(20), or 
(21)’’. 
(4) UNAUTHORIZED
DISCLOSURE
OR
INSPEC-
TION.—Paragraph (2) of section 7213(a) of such 
Code is amended by striking ‘‘or (20)’’ and inserting 
‘‘(20), or (21)’’. 
SEC. 204. MODIFICATION OF RESOURCE STANDARDS FOR 
DETERMINATION OF ELIGIBILITY FOR LOW- 
INCOME SUBSIDY; SIMPLIFICATION OF IN-
COME AND ASSET RULES. 
(a) INCREASING
THE RESOURCE STANDARD AP-
PLIED TO FULL LOW-INCOME SUBSIDY.—Subparagraph 
(D) of section 1860D–14(a)(3)(D) of the Social Security 
Act (42 U.S.C. 1395w–114(a)(3)) is amended— 
(1) in the heading, by striking ‘‘THREE TIMES’’; 
(2) in clause (i), by striking ‘‘and’’ at the end; 
(3) in clause (ii)— 
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ccoleman on PROD1PC71 with BILLS
(A) by striking ‘‘a subsequent year’’ and 
inserting ‘‘2007’’; 
(B) by striking ‘‘this clause for the pre-
vious year’’ and inserting ‘‘clause (i) for 2006’’; 
and 
(C) by inserting ‘‘(or clause (i))’’ after 
‘‘this clause’’; and 
(D) by striking the period at the end and 
inserting a semicolon; 
(4) by adding at the end the following new 
clauses: 
‘‘(iii) for 2008, six times the max-
imum amount of resources that an indi-
vidual may have and obtain benefits under 
such supplemental security income pro-
gram; and 
‘‘(iv) for a subsequent year the re-
source limitation established under this 
clause (or clause (iii)) for the previous year 
increased by the annual percentage in-
crease in the consumer price index (all 
items; U.S. city average) as of September 
of such previous year.’’; and 
(5) in the last sentence, by inserting ‘‘or (iv)’’ 
after ‘‘clause (ii)’’. 
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ccoleman on PROD1PC71 with BILLS
(b) 
INCREASING
THE
ALTERNATE
RESOURCE 
STANDARD.—Subparagraph (E)(i) of such section is 
amended— 
(1) by striking ‘‘and’’ at the end of subclause 
(I); 
(2) in subclause (II)— 
(A) by striking ‘‘a subsequent year’’ and 
inserting ‘‘2007’’; 
(B) by striking ‘‘in this subclause (or sub-
clause (I)) for the previous year’’ and inserting 
‘‘in subclause (I) for 2006’’; and 
(C) by striking the period at the end and 
inserting a semicolon; 
(3) by inserting after subclause (II) the fol-
lowing new subclauses: 
‘‘(III) for 2008, $27,500 (or 
$55,000 in the case of the combined 
value of the individual’s assets or re-
sources and the assets or resources of 
the individual’s spouse); and 
‘‘(IV) for a subsequent year the 
dollar amounts specified in this sub-
clause (or subclause (III)) for the pre-
vious year increased by the annual 
percentage increase in the consumer 
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ccoleman on PROD1PC71 with BILLS
price index (all items; U.S. city aver-
age) as of September of such previous 
year.’’; and 
(4) in the last sentence, by inserting ‘‘or (IV)’’ 
after ‘‘subclause (II)’’. 
(c) EXEMPTIONS FROM RESOURCES.—Such section 
is further amended— 
(1) in subparagraphs (D) and (E), by inserting 
‘‘, except as provided in subparagraph (G)’’ after 
‘‘supplemental security income program’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(G) ADDITIONAL EXCLUSIONS.—In deter-
mining the resources of an individual (and their 
eligible spouse, if any) under section 1613 for 
purposes of subparagraphs (D) and (E), the 
following additional exclusions shall apply for 
months beginning after the date of the enact-
ment of this subparagraph: 
‘‘(i) LIFE
INSURANCE
POLICY.—No 
part of the value of any life insurance pol-
icy shall be taken into account. 
‘‘(ii) 
PENSION
OR
RETIREMENT 
PLAN.—No balance in any pension or re-
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tirement plan shall be taken into ac-
count.’’. 
(d) NOT COUNTING IN-KIND SUPPORT AND MAINTE-
NANCE AS INCOME.—Such section is further amended in 
subparagraph (C)(i), by inserting ‘‘and except that sup-
port and maintenance furnished in kind shall not be count-
ed as income for months beginning after the date of the 
enactment of the Prescription Coverage Now Act of 2007’’ 
after ‘‘section 1902(r)(2)’’. 
SEC. 205. INDEXING DEDUCTIBLE AND COST-SHARING 
ABOVE ANNUAL OUT-OF-POCKET THRESHOLD 
FOR INDIVIDUALS WITH INCOME BELOW 150 
PERCENT OF POVERTY LINE. 
(a) 
INDEXING
DEDUCTIBLE.—Section 
1860D– 
14(a)(4)(B) of the Social Security Act (42 U.S.C. 1395w– 
114(a)(4)(B)) is amended— 
(1) in clause (i), by striking ‘‘or’’; 
(2) in clause (ii)— 
(A) by striking ‘‘a subsequent year’’ and 
inserting ‘‘2008’’; 
(B) by striking ‘‘this clause (or clause (i)) 
for the previous year’’ and inserting ‘‘clause (i) 
for 2007’’; and 
(C) by striking the period at the end and 
inserting ‘‘; and’’; 
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ccoleman on PROD1PC71 with BILLS
(3) by adding after clause (ii) the following new 
clause: 
‘‘(iii) for 2009 and each succeeding 
year, the amount determined under this 
subparagraph for the previous year in-
creased by the annual percentage increase 
in the consumer price index (all items; 
U.S. city average) as of September of such 
previous year.’’; and 
(4) in the last sentence, by striking ‘‘clause (i) 
or (ii)’’ and inserting ‘‘clause (i), (ii), or (iii)’’. 
(b) INDEXING
COST-SHARING.—Section 1860D– 
14(a) of the Social Security Act (42 U.S.C. 1395w– 
114(a)) is amended— 
(1) in paragraph (1)(D)(iii), by striking ‘‘exceed 
the copayment amount’’ and all that follows through 
the period at the end and inserting ‘‘exceed— 
‘‘(I) for 2006 and 2007, the co-
payment amount specified under sec-
tion 1860D–2(b)(4)(A)(i)(I) for the 
drug and year involved; and 
‘‘(II) for 2008 and each suc-
ceeding year, the amount determined 
under this subparagraph for the pre-
vious year increased by the annual 
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percentage increase in the consumer 
price index (all items; U.S. city aver-
age) as of September of such previous 
year.’’; and 
(2) in paragraph (2)(E), by striking ‘‘exceed 
the copayment or coinsurance amount’’ and all that 
follows through the period at the end and inserting 
‘‘exceed— 
‘‘(i) for 2006 and 2007, the copay-
ment or coinsurance amount specified 
under section 1860D–2(b)(4)(A)(i)(I) for 
the drug and year involved; and 
‘‘(ii) for 2008 and each succeeding 
year, the amount determined under this 
clause for the previous year increased by 
the annual percentage increase in the con-
sumer price index (all items; U.S. city av-
erage) as of September of such previous 
year.’’. 
SEC. 206. NO IMPACT ON ELIGIBILITY FOR BENEFITS 
UNDER OTHER PROGRAMS. 
(a) IN GENERAL.—Section 1860D–14(a)(3) of the 
Social Security Act (42 U.S.C. 1395w–114(a)(3)), as 
amended by section 204(c)(2), is amended— 
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(1) in subparagraph (A), in the matter pre-
ceding clause (i), by striking ‘‘subparagraph (F)’’ 
and inserting ‘‘subparagraphs (F) and (H)’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(H) NO
IMPACT
ON
ELIGIBILITY
FOR 
BENEFITS
UNDER
OTHER
PROGRAMS.—The 
availability of premium and cost-sharing sub-
sidies under this section shall not be treated as 
benefits or otherwise taken into account in de-
termining an individual’s eligibility for, or the 
amount of benefits under, any other Federal 
program.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to premium and cost-sharing 
subsidies for months beginning after the date of the enact-
ment of this Act. 
SEC. 207. SCREENING BY COMMISSIONER OF SOCIAL SECU-
RITY FOR ELIGIBILITY UNDER MEDICARE 
SAVINGS PROGRAMS. 
(a) IN GENERAL.—Section 1860D–14(a)(3)(B)(i) of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1395w– 
114(a)(3)(B)(i)) is amended by inserting after the first 
sentence the following: ‘‘As part of making an eligibility 
determination under the preceding sentence for an indi-
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vidual, the Commissioner shall make a determination of 
the individual’s eligibility for medical assistance for any 
Medicare cost-sharing described in section 1905(p)(3) 
and, if the individual is eligible for any such Medicare 
cost-sharing, transmit the data necessary to verify such 
eligibility to the appropriate State Medicaid agency.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to determinations made for 
months beginning after the date of the enactment of this 
Act. 
SEC. 208. SPECIAL ENROLLMENT PERIOD FOR SUBSIDY EL-
IGIBLE INDIVIDUALS. 
(a) IN GENERAL.—Section 1860D–1(b)(3) of the So-
cial Security Act (42 U.S.C. 1395w–101(b)(3)) is amend-
ed by adding at the end the following new subparagraph: 
‘‘(F) ELIGIBILITY FOR LOW-INCOME SUB-
SIDY.— 
‘‘(i) IN GENERAL.—In the case of an 
applicable subsidy eligible individual (as 
defined in clause (ii)), the special enroll-
ment period described in clause (iii). 
‘‘(ii) APPLICABLE SUBSIDY ELIGIBLE 
INDIVIDUAL
DEFINED.—For purposes of 
this subparagraph, the term ‘applicable 
subsidy eligible individual’ means a part D 
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eligible individual who is determined under 
subparagraph (B) of section 1860D– 
14(a)(3) to be a subsidy eligible individual 
(as defined in subparagraph (A) of such 
section), and includes such an individual 
who was enrolled in a prescription drug 
plan or an MA–PD plan on the date of 
such determination. 
‘‘(iii) SPECIAL ENROLLMENT PERIOD 
DESCRIBED.—The special enrollment pe-
riod described in this clause, with respect 
to an applicable subsidy eligible individual, 
is the 90-day period beginning on the date 
the individual receives notification that 
such individual has been determined under 
section 1860D–14(a)(3)(B) to be a subsidy 
eligible individual (as so defined).’’. 
(b) AUTOMATIC ENROLLMENT PROCESS FOR CER-
TAIN SUBSIDY ELIGIBLE INDIVIDUALS.—Section 1860D– 
1(b)(1) is amended by adding at the end the following new 
subparagraph: 
‘‘(D) SPECIAL RULE FOR SUBSIDY ELIGI-
BLE
INDIVIDUALS.—The process established 
under subparagraph (A) shall include, in the 
case of an applicable subsidy eligible individual 
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(as defined in clause (ii) of paragraph (3)(F)) 
who fails to enroll in a prescription drug plan 
or an MA–PD plan during the special enroll-
ment period described in clause (iii) of such 
paragraph applicable to such individual, a proc-
ess for the facilitated enrollment of the indi-
vidual in the prescription drug plan or MA–PD 
plan that is most appropriate for such indi-
vidual (as determined by the Secretary). Noth-
ing in the previous sentence shall prevent an in-
dividual described in such sentence from declin-
ing enrollment in a plan determined appropriate 
by the Secretary (or in the program under this 
part) or from changing such enrollment.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to subsidy determinations made 
for months beginning with January 2008. 
SEC. 209. WAIVER OF LATE ENROLLMENT PENALTY FOR 
SUBSIDY ELIGIBLE INDIVIDUALS. 
(a) IN GENERAL.—Section 1860D–13(b) of the So-
cial Security Act (42 U.S.C. 1395w–113(b)) is amended 
by adding at the end the following new paragraph: 
‘‘(8) WAIVER OF LATE ENROLLMENT PENALTY 
FOR SUBSIDY ELIGIBLE INDIVIDUALS.—In the case 
of a subsidy eligible individual (as defined in para-
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graph (3)(A) of section 1860D–14(a)) who is deter-
mined to be entitled to a subsidy in accordance with 
paragraph (1) or (2) of such section, there shall not 
be an increase under paragraph (1) in the monthly 
premium of such individual for any month in which 
such individual is determined to be so entitled.’’. 
(b) CONFORMING AMENDMENT.—Section 1860D– 
14(a)(1)(A) of such Act (42 U.S.C. 1395w–114(a)(1)(A)) 
is amended— 
(1) by striking ‘‘equal to—’’ and all that follows 
through ‘‘(i) 100 percent’’ and inserting ‘‘equal to 
100 percent’’; 
(2) by striking ‘‘; plus’’ and inserting a period; 
and 
(3) by striking clause (ii). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to premiums and subsidies for 
months beginning with January 2008. Nothing in this sec-
tion shall be construed as affecting the waiver of any late 
enrollment penalties for subsidy eligible individuals that 
may have been effected by administrative action for 
months before such month. 
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TITLE III—FRAUD AND ABUSE 
PROVISIONS 
SEC. 301. CRIMINAL PENALTY FOR FRAUD IN CONNECTION 
WITH ENROLLMENT UNDER AN MA PLAN OR 
PRESCRIPTION DRUG PLAN. 
(a) IN GENERAL.—Section 1857 of the Social Secu-
rity Act (42 U.S.C. 1395w–27) is amended by adding at 
the end the following new subsection: 
‘‘(j) CRIMINAL PENALTY FOR FRAUD IN CONNEC-
TION WITH ENROLLMENT UNDER AN MA PLAN OR PRE-
SCRIPTION DRUG PLAN.—Whoever knowingly and will-
fully— 
‘‘(1) defrauds an individual in connection with 
the enrollment (or nonenrollment) of the individual 
with a Medicare Advantage plan under this part or 
a prescription drug plan under part D; or 
‘‘(2) fraudulently or falsely represents an entity 
to be such a plan for purposes of inducing enroll-
ment in such entity; 
shall be fined under title 18, United States Code, or im-
prisoned not less than 3 years and not more than 10 years, 
or both.’’. 
(b) CONFORMING REFERENCE IN PART D.—Section 
1860D–12(b) of such Act (42 U.S.C. 1395w–112(b)) is 
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ccoleman on PROD1PC71 with BILLS
amended by adding at the end the following new para-
graph: 
‘‘(4) REFERENCE TO PENALTY FOR FRAUD IN 
CONNECTION
WITH
ENROLLMENT
UNDER
A
PRE-
SCRIPTION DRUG PLAN.—For provision imposing a 
criminal penalty for defrauding an individual in con-
nection with the enrollment of such individual under 
a prescription drug plan, see section 1857(j).’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to fraudulent acts and to fraud-
ulent or false representations made on or after the date 
of the enactment of this Act. 
SEC. 302. RECOURSE FOR SLAMMING PRACTICES. 
Section 1851 of the Social Security Act (42 U.S.C. 
1395w–21) is amended by adding at the end the following 
new subsection: 
‘‘(j) SANCTIONS AGAINST SLAMMING PRACTICES.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish procedures, consistent with this subsection and 
the complaint processes otherwise available, under 
which Medicare Advantage eligible individuals who 
have been enrolled into an MA–PD plan without 
their informed consent may file a complaint with the 
Secretary regarding such enrollment. Such a com-
plaint shall be signed and shall attest, under penalty 
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ccoleman on PROD1PC71 with BILLS
of perjury, as to the accuracy of the statements 
therein. 
‘‘(2) RESPONSE TO THE COMPLAINT.—If the 
Secretary finds that the complaint is justified by the 
facts in the case, the Secretary shall permit the indi-
vidual to be enrolled under the original Medicare fee- 
for-service program and the Medicare operated pre-
scription drug plan or under another MA plan in 
which the individual was previously enrolled. An in-
dividual who is dissatisfied with the Secretary’s deci-
sion on the complaint may have a hearing on the 
complaint before an administrative law judge in a 
manner similar to the manner in which such a hear-
ing is permitted under this title with respect to other 
determinations under this title.’’. 
SEC. 303. PROTECTION FROM LOSS OF EMPLOYMENT- 
BASED RETIREE HEALTH COVERAGE UPON 
ENROLLMENT 
FOR 
MEDICARE 
PRESCRIP-
TION DRUG BENEFIT DURING 2007. 
Section 1860D–22(a)(2) of the Social Security Act 
(42 U.S.C. 1395w–132(a)(2)) is amended by adding at the 
end the following new subparagraph: 
‘‘(D) PROTECTION
FROM
LOSS
OF
EM-
PLOYMENT-BASED COVERAGE.—The sponsor of 
the plan may not involuntarily discontinue cov-
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erage of an individual under a group health 
plan before January 1, 2008, based upon the 
individual’s decision to enroll in a prescription 
drug plan or an MA–PD plan under this part.’’. 
SEC. 304. REQUIRED APPLICATION OF INTERMEDIATE 
SANCTIONS TO PROTECT AGAINST FRAUD 
AND ABUSE. 
(a) IN GENERAL.—Section 1860D–12(b)(3)(E) of 
the Social Security Act (42 U.S.C. 1395w–112(b)(3)(E)) 
is amended by inserting ‘‘and the reference to ‘may pro-
vide’ in section 1857(g)(1) is deemed a reference to ‘shall 
provide’ ’’ after ‘‘this part’’. 
(b) APPLICATION
TO
MA–PD PLANS.—Section 
1857(g)(1) of such Act (42 U.S.C. 1395w–27(g)(1)) is 
amended by inserting ‘‘(or in the case of an MA–PD plan 
or a prescription drug plan under part D, the Secretary 
shall provide)’’ after ‘‘may provide’’. 
SEC. 305. REPEAL OF SPECIAL WAIVER AUTHORITY FOR 
STATE LICENSURE. 
Subsection (d) of section 423.410 of title 42, Code 
of Federal Regulations, is repealed, and the Secretary of 
Health and Human Services has no authority to provide 
for a waiver of a State licensure requirement described 
in 
such 
subsection 
except 
pursuant 
to 
section 
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1855(a)(2)(B) of the Social Security Act (42 U.S.C. 
1395w–25(a)(2)(B)). 
TITLE IV—RELATION TO SOCIAL 
SECURITY BENEFITS 
SEC. 401. PROTECTION OF SOCIAL SECURITY BENEFITS 
AGAINST DECREASE DUE TO PART D MEDI-
CARE PREMIUM INCREASES. 
(a) PROTECTION AGAINST DECREASE IN SOCIAL SE-
CURITY BENEFITS.— 
(1) APPLICATION TO ENROLLEES IN PRESCRIP-
TION DRUG PLANS.—Section 1860D–13(a)(1) of the 
Social Security Act (42 U.S.C. 1395ww–113(a)(1)) 
is amended— 
(A) in subparagraph (F), by striking ‘‘(D) 
and (E),’’ and inserting ‘‘(D), (E), and (F),’’; 
(B) by redesignating subparagraph (F) as 
subparagraph (G); and 
(C) by inserting after subparagraph (E) 
the following new subparagraph: 
‘‘(F) PROTECTION
OF
SOCIAL
SECURITY 
BENEFITS.—For any calendar year, if an indi-
vidual is entitled to monthly benefits under sec-
tion 202 or 223 or to a monthly annuity under 
section 3(a), 4(a), or 4(f) of the Railroad Re-
tirement Act of 1974 for November and Decem-
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