I
107TH CONGRESS
1ST SESSION
H. R. 1905
To amend title XVIII of the Social Security Act to assure access of Medicare
beneficiaries to prescription drug coverage through the NICE drug ben-
efit program.
IN THE HOUSE OF REPRESENTATIVES
MAY 17, 2001
Mr. MALONEY of Connecticut introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee
on Energy and Commerce, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To amend title XVIII of the Social Security Act to assure
access of Medicare beneficiaries to prescription drug cov-
erage through the NICE drug benefit program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘New Insurance Coverage Equity (NICE) Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. NICE drug benefit program.
‘‘PART D—NICE DRUG BENEFIT PROGRAM
‘‘Sec. 1860A. Establishment of NICE drug benefit program.
‘‘Sec. 1860B. Requirements for offering NICE drug benefit coverage.
‘‘Sec. 1860C. Enrollment process for NICE drug benefit coverage.
‘‘Sec. 1860D. Financial assistance to obtain NICE prescription drug cov-
erage
‘‘Sec. 1860E. NICE Board.
‘‘Sec. 1860F. NICE Trust Fund.
Sec. 3. Conforming changes to medigap.
Sec. 4. Provision of information on NICE drug benefit program under health
insurance information, counseling, and assistance grants.
SEC. 2. NICE DRUG BENEFIT PROGRAM.
Title XVIII of the Social Security Act (42 U.S.C.
1395 et seq.) is amended by redesignating part D as part
E and by inserting after part C the following new part:
‘‘PART D—NICE DRUG BENEFIT PROGRAM
‘‘ESTABLISHMENT OF NICE DRUG BENEFIT PROGRAM
‘‘SEC. 1860A. (a) IN GENERAL.—Under this part,
the NICE Board (established under section 1860E) shall
provide for a NICE drug benefit program under which—
‘‘(1) all eligible medicare beneficiaries shall be
provided access to NICE prescription drug coverage
(meeting the conditions of section 1860B) through
either enrollment in a Medicare+Choice plan, enroll-
ment in a NICE medicare supplemental policy, or
coverage under a group health plan; and
‘‘(2) there is financial assistance provided under
section 1860D for beneficiaries who voluntarily ob-
tain such coverage, with such assistance varying de-
pending upon the income of such beneficiaries.
‘‘(b) VOLUNTARY NATURE OF PROGRAM FOR ENTI-
TIES AND BENEFICIARIES.—Nothing in this part shall be
construed as requiring—
‘‘(1) an eligible medicare beneficiary to obtain
coverage under a plan or policy that provides NICE
prescription drug coverage;
‘‘(2) a Medicare+Choice organization to offer a
Medicare+Choice plan that provides NICE prescrip-
tion drug coverage; or
‘‘(3) an issuer of a medicare supplemental pol-
icy to issue a NICE medicare supplemental policy.
‘‘(c) 
PROVIDING
INFORMATION
TO
BENE-
FICIARIES.—
‘‘(1) IN
GENERAL.—The NICE Board shall
broadly disseminate information to eligible medicare
beneficiaries on the NICE drug benefit program
under this part, including information on the sanc-
tions for delayed enrollment under section 1860D(e).
‘‘(2) SIMILAR
TO
MEDICARE+CHOICE
ACTIVI-
TIES.—Such activities shall be similar to the activi-
ties performed under section 1851(d) (including the
approval of policy marketing materials).
‘‘(3) ARRANGEMENTS.—The NICE Board shall,
in cooperation with the Secretary, enter into such
arrangements as may be appropriate to disseminate
widely to eligible medicare beneficiaries information
about the NICE drug benefit program in connection
with materials distributed by the Secretary to medi-
care beneficiaries, including in the medicare hand-
book under section 1804 and in materials distrib-
uted under section 1851(d).
‘‘(d) 
ELIGIBLE
MEDICARE
BENEFICIARY
DE-
FINED.—For purposes of this part, the term ‘eligible
medicare beneficiary’ means an individual who is entitled
to benefits under part A and enrolled under part B.
‘‘REQUIREMENTS FOR OFFERING NICE DRUG BENEFIT
COVERAGE
‘‘SEC. 1860B. (a) REQUIREMENT FOR APPROVAL OF
NAIC MODEL REVISIONS.—
‘‘(1) IN GENERAL.—
‘‘(A) CONDITION
FOR
OFFERING
NICE
MEDICARE
SUPPLEMENTAL
POLICY.—On or
after the effective date of this provision, it is
unlawful to issue or sell a medicare supple-
mental policy (as defined in section 1882(g))
that provides coverage of outpatient prescrip-
tion drugs in a State unless—
‘‘(i) the State has adopted the Na-
tional Association of Insurance Commis-
sioners 
revisions 
under 
section