I 
109TH CONGRESS 
1ST SESSION H. R. 3954 
To amend the Social Security Act to protect Social Security cost-of-living 
adjustments (COLA). 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2005 
Ms. HERSETH (for herself, Mr. SCHIFF, Mr. FILNER, Mr. EMANUEL, Mr. 
HIGGINS, Mr. PALLONE, Mr. GRIJALVA, Mrs. TAUSCHER, Ms. MATSUI, 
Mr. VAN HOLLEN, Mr. BROWN of Ohio, Mr. DAVIS of Florida, Mr. 
BISHOP of Utah, Ms. BALDWIN, Mr. OLVER, Mr. WEXLER, Ms. SOLIS, 
Ms. KAPTUR, Mr. NADLER, Mr. MEEKS of New York, Mr. CONYERS, Mr. 
WAXMAN, Mr. BERRY, Ms. SCHAKOWSKY, Mr. GENE GREEN of Texas, 
Mr. LANTOS, Mr. MCDERMOTT, Mrs. MALONEY, Mr. MEEHAN, Mr. 
LARSON of Connecticut, Mrs. DAVIS of California, Mr. KILDEE, Mr. 
GEORGE MILLER of California, and Mr. ROSS) 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 sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Social Security Act to protect Social Security 
cost-of-living adjustments (COLA). 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Social Security COLA 
Protection Act of 2005’’.
SEC. 2. PROTECTION OF SOCIAL SECURITY COLA IN-
CREASES 
AGAINST 
EXCESSIVE 
MEDICARE 
PREMIUM INCREASES. 
(a) APPLICATION TO PART B PREMIUMS.—Section 
1839(f) of the Social Security Act (42 U.S.C. 1395r(f)) 
is amended— 
(1) by striking ‘‘(f) For any calendar year after 
1988’’ and inserting ‘‘(f)(1) For any calendar year 
after 1988 and before 2006’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) For any calendar year (beginning with 2006), 
if an individual 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 Retirement Act of 1974 
for November and December of the preceding year, if the 
monthly premium of the individual under this section for 
December of the preceding year and for January of the 
year involved is deducted from those benefits under section 
1840(a)(1) or section 1840(b)(1), and if the amount of 
the individual’s premium is not adjusted for January of 
the year involved under subsection (i), the monthly pre-
mium otherwise determined under this section for the indi-
vidual for that year shall not be increased pursuant to sub-
section (a)(3) to an amount that exceeds 25 percent of
the amount of the increase in such monthly benefits for 
that individual attributable to section 215(i).’’. 
(b) APPLICATION TO PART D PREMIUMS.— 
(1) IN GENERAL.—Section 1860D–13(a)(1) of 
such Act (42 U.S.C. 1395ww-113(a)(1)) is amend-
ed— 
(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 
COLA INCREASE.—For any calendar year, if an 
individual is entitled to monthly benefits under 
section 202 or 223 or to a monthly annuity 
under section 3(a), 4(a), or 4(f) of the Railroad 
Retirement Act of 1974 for November and De-
cember of the preceding year and was enrolled 
under a PDP plan or MA–PD plan for such 
months, the base beneficiary premium otherwise 
applied under this paragraph for the individual 
for months in that year shall be decreased by 
the amount (if any) by which the sum of the 
amounts described in the following clauses (i)
and (ii) exceeds 25 percent of the amount of 
the increase in such monthly benefits for that 
individual attributable to section 215(i): 
‘‘(i) PART D PREMIUM INCREASE FAC-
TOR.— 
‘‘(I) IN
GENERAL.—Except as 
provided in this clause, the amount of 
the increase (if any) in the adjusted 
national average monthly bid amount 
(as determined under subparagraph 
(B)(iii)) for a month in the year over 
such amount for a month in the pre-
ceding year. 
‘‘(II) NO APPLICATION TO FULL 
PREMIUM SUBSIDY INDIVIDUALS.—In 
the case of an individual enrolled for 
a premium subsidy under section 
1860D–14(a)(1), zero. 
‘‘(III) SPECIAL RULE FOR PAR-
TIAL
PREMIUM
SUBSIDY
INDIVID-
UALS.—In the case of an individual 
enrolled for a premium subsidy under 
section 1860D–14(a)(2), a percent of 
the increase described in subclause (I) 
equal to 100 percent minus the per-
cent applied based on the linear scale 
under such section. 
‘‘(ii) PART
B
PREMIUM
INCREASE 
FACTOR.—If the individual is enrolled for 
such months under part B— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the amount 
of the annual increase in premium ef-
fective for such year resulting from 
the application of section 1839(a)(3), 
as reduced (if any) under section 
1839(f)(2). 
‘‘(II) NO APPLICATION TO INDI-
VIDUALS PARTICIPATING IN MEDICARE 
SAVINGS PROGRAM.—In the case of an 
individual who is enrolled for medical 
assistance under title XIX for medi-
care cost-sharing described in section 
1905(p)(3)(A)(ii), zero.’’. 
(2) APPLICATION
UNDER
MEDICARE
ADVAN-
TAGE PROGRAM.—Section 1854(b)(2)(B) of such Act 
(42 U.S.C. 1395w-24(b)(2)(B)), as in effect as of 
January 1, 2006, relating to MA monthly prescrip-
tion drug beneficiary premium, is amended by in-
serting after ‘‘as adjusted under section 1860D–
13(a)(1)(B)’’ the following: ‘‘and section 1860D– 
13(a)(1)(F)’’. 
(3) PAYMENT FROM MEDICARE PRESCRIPTION 
DRUG ACCOUNT.—Section 1860D–16(b) of such Act 
(42 U.S.C. 1395w-116(b)) is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘and’’ at the end of 
subparagraph (C); 
(ii) by striking the period at the end 
of subparagraph (D) and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) payment under paragraph (5) of pre-
mium reductions effected under section 1860D– 
13(a)(1)(F).’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(5) PAYMENT
FOR
COLA
PROTECTION
PRE-
MIUM REDUCTIONS.— 
‘‘(A) IN
GENERAL.—In addition to pay-
ments provided under section 1860D–15 to a 
PDP sponsor or an MA organization, in the 
case of each part D eligible individual who is 
enrolled in a prescription drug plan offered by
such sponsor or an MA–PD plan offered by 
such organization and who has a premium re-
duced under section 1860D–13(a)(1)(F), the 
Secretary shall provide for payment to such 
sponsor or organization of an amount equiva-
lent to the amount of such premium reduction. 
‘‘(B) APPLICATION OF PROVISIONS.—The 
provisions of subsections (d) and (f) of section 
1860D–15 (relating to payment methods and 
disclosure of information) shall apply to pay-
ment under subparagraph (A) in the same man-
ner as they apply to payments under such sec-
tion.’’. 
(c) DISREGARD OF PREMIUM REDUCTIONS IN DE-
TERMINING DEDICATED REVENUES UNDER MMA COST 
CONTAINMENT.—Section 801(c)(3)(D) of the Medicare 
Prescription Drug, Improvement, and Modernization Act 
of 2003 (Public Law 108–173) is amended by adding at 
the end the following: ‘‘Such premiums shall also be deter-
mined without regard to any reductions effected under 
section 1839(f)(2) or 1860D–13(a)(1)(F) of such title.’’. 
(d) EFFECTIVE DATES.— 
(1) PART B PREMIUM.—The amendments made 
by subsection (a) apply to premiums for months be-
ginning with January 2006.
(2) PART D PREMIUM.—The amendments made 
by subsection (b) apply to premiums for months be-
ginning with January 2007. 
(3) MMA PROVISION.—The amendment made 
by subsection (c) shall take effect on the date of the 
enactment of this Act. 
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