I 
109TH CONGRESS 
2D SESSION 
H. R. 5969 
To amend part D of title XVIII of the Social Security Act to assist low- 
income individuals in obtaining subsidized prescription drug coverage 
under the Medicare prescription drug program by expediting the applica-
tion and qualification process, by increasing the maximum permissible 
resource level for eligibility for such subsidies, and by waiving any late 
enrollment penalty for the first 24 uncovered months. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2006 
Mr. DOGGETT (for himself, Mr. RANGEL, Mr. STARK, Mr. HOYER, Mr. CLY-
BURN, Mr. LARSON of Connecticut, Mr. MCDERMOTT, Mr. LEWIS of 
Georgia, Mr. NEAL of Massachusetts, Mr. MCNULTY, Mr. BECERRA, 
Mrs. JONES of Ohio, Mr. EMANUEL, Mr. ABERCROMBIE, Mr. ACKERMAN, 
Mr. ALLEN, Mr. ANDREWS, Mr. BACA, Ms. BALDWIN, Mr. BERMAN, Mr. 
BERRY, Mr. BISHOP of Georgia, Mr. BISHOP of New York, Ms. CORRINE 
BROWN of Florida, Mr. BROWN of Ohio, Mr. BUTTERFIELD, Mrs. CAPPS, 
Mr. CAPUANO, Mr. CARDOZA, Ms. CARSON, Mrs. CHRISTENSEN, Mr. 
CLAY, Mr. CLEAVER, Mr. CONYERS, Mr. COSTELLO, Mr. CROWLEY, Mr. 
CUELLAR, Mr. CUMMINGS, Mr. DAVIS of Alabama, Mr. DAVIS of Illinois, 
Ms. DEGETTE, Mr. DELAHUNT, Ms. DELAURO, Mr. DICKS, Mr. DOYLE, 
Mr. EDWARDS, Mr. ENGEL, Mr. FARR, Mr. FATTAH, Mr. FILNER, Mr. 
FRANK of Massachusetts, Mr. GONZALEZ, Mr. GORDON, Mr. AL GREEN 
of Texas, Mr. GENE GREEN of Texas, Mr. GRIJALVA, Mr. GUTIERREZ, 
Ms. HARMAN, Mr. HASTINGS of Florida, Mr. HIGGINS, Mr. HINCHEY, 
Mr. HINOJOSA, Mr. HONDA, Mr. INSLEE, Mr. ISRAEL, Mr. JACKSON of 
Illinois, Ms. JACKSON-LEE of Texas, Ms. EDDIE BERNICE JOHNSON of 
Texas, Ms. KAPTUR, Mr. KENNEDY of Rhode Island, Mr. KILDEE, Ms. 
KILPATRICK of Michigan, Mr. KUCINICH, Mr. LANGEVIN, Ms. LEE, Mrs. 
LOWEY, Mrs. MALONEY, Ms. MATSUI, Ms. MCCOLLUM of Minnesota, Mr. 
MCGOVERN, Ms. MCKINNEY, Mr. MEEHAN, Mr. MEEK of Florida, Mr. 
MEEKS of New York, Ms. MILLENDER-MCDONALD, Mr. MILLER of 
North Carolina, Mr. GEORGE MILLER of California, Mr. MOLLOHAN, Ms. 
MOORE of Wisconsin, Mr. MORAN of Virginia, Mr. NADLER, Mrs. 
NAPOLITANO, Ms. NORTON, Mr. OBERSTAR, Mr. OLVER, Mr. ORTIZ, Mr. 
OWENS, Mr. PALLONE, Mr. PASCRELL, Mr. PASTOR, Mr. PAYNE, Mr. 
PRICE of North Carolina, Mr. REYES, Ms. ROYBAL-ALLARD, Mr. RUSH, 
Mr. RYAN of Ohio, Ms. LINDA T. SA´NCHEZ of California, Ms. LORETTA 
SANCHEZ of California, Mr. SANDERS, Ms. SCHAKOWSKY, Ms. SCHWARTZ 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
of Pennsylvania, Mr. SCOTT of Virginia, Mr. SCOTT of Georgia, Mr. 
SERRANO, Ms. SLAUGHTER, Ms. SOLIS, Mr. THOMPSON of Mississippi, 
Mr. TIERNEY, Mr. TOWNS, Mr. UDALL of New Mexico, Mr. VAN 
HOLLEN, Ms. VELA´ZQUEZ, Ms. WASSERMAN SCHULTZ, Ms. WATERS, 
Ms. WATSON, Mr. WATT, Mr. WAXMAN, Mr. WEINER, Mr. WEXLER, Ms. 
WOOLSEY, Mr. WU, and Mr. WYNN) 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 provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend part D of title XVIII of the Social Security 
Act to assist low-income individuals in obtaining sub-
sidized prescription drug coverage under the Medicare 
prescription drug program by expediting the application 
and qualification process, by increasing the maximum 
permissible resource level for eligibility for such sub-
sidies, and by waiving any late enrollment penalty for 
the first 24 uncovered months. 
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 ‘‘Prescription Coverage 
Now Act of 2006’’. 
SEC. 2. EXPEDITING LOW-INCOME SUBSIDIES UNDER THE 
MEDICARE PRESCRIPTION DRUG PROGRAM. 
(a) IN GENERAL.—Section 1860D–14 of the Social 
Security Act (42 U.S.C. 1395w–114) is amended by add-
ing at the end the following new subsection: 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
‘‘(e) EXPEDITED APPLICATION
AND ELIGIBILITY 
PROCESS.— 
‘‘(1) EXPEDITED PROCESS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide for an expedited process under this sub-
section for the qualification for low-income as-
sistance under this section through a request by 
the Secretary to the Secretary of the Treasury 
as provided in subparagraphs (B) and (C) for 
information sufficient to identify whether the 
individual involved is likely eligible for subsidies 
under this section based on such information 
and the amount of premium and cost-sharing 
subsidies for which they would qualify based on 
such information. Such process shall be con-
ducted in cooperation with the Commissioner of 
Social Security. 
‘‘(B) OPT IN FOR NEWLY ELIGIBLE INDI-
VIDUALS.—Not later than 60 days after the 
date of the enactment of this subsection, the 
Secretary shall ensure that, as part of the 
Medicare enrollment process, enrolling individ-
uals— 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
‘‘(i) receive information describing the 
low-income subsidy provided under this 
section; and 
‘‘(ii) are provided the opportunity to 
opt-in to the expedited process described in 
this subsection by giving consent for the 
Secretary to screen the beneficiary for eli-
gibility for such subsidy through a request 
to the Secretary of the Treasury under sec-
tion 6103(l)(7) of the Internal Revenue 
Code of 1986. 
‘‘(C) TRANSITION FOR CURRENTLY ELIGI-
BLE INDIVIDUALS.—In the case of any part D 
eligible individual to which subparagraph (B) 
did not apply at the time of such individual’s 
enrollment, the Secretary shall, as soon as prac-
ticable after implementation of subparagraph 
(B), request in writing that the Secretary of the 
Treasury 
disclose, 
pursuant 
to 
section 
6103(l)(21) of the Internal Revenue Code of 
1986, whether such individual has either filed 
no income tax return or whether such individ-
ual’s income tax return indicates likely eligi-
bility for the low-income subsidy provided under 
this section. 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
‘‘(2) NOTIFICATION OF POTENTIALLY ELIGIBLE 
INDIVIDUALS.—Under such process, in the case of 
each individual identified under paragraph (1) who 
has not otherwise applied for, or been determined el-
igible for, benefits under this section (or who has ap-
plied for and been determined ineligible for such 
benefits based only on excess resources), the Sec-
retary shall send them a letter (using basic, uncom-
plicated language) containing the following: 
‘‘(A) ELIGIBILITY.—A statement that, 
based on the information obtained under para-
graph (1), the individual is likely eligible for 
low-income subsidies under this section. 
‘‘(B) AMOUNT OF SUBSIDIES.—A descrip-
tion of the amount of premium and cost-sharing 
subsidies under this section for which the indi-
vidual would likely be eligible based on such in-
formation. 
‘‘(C) 
ENROLLMENT
OPPORTUNITY.—In 
case the individual is not enrolled in a prescrip-
tion drug plan or MA–PD plan— 
‘‘(i) a statement that— 
‘‘(I) the individual has the oppor-
tunity to enroll in a prescription drug 
plan or MA–PD plan for benefits 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
under this part, but is not required to 
be so enrolled; and 
‘‘(II) if the individual has cred-
itable prescription drug coverage, the 
individual need not so enroll; 
‘‘(ii) a list of the prescription drug 
plans and MA–PD plans in which the indi-
vidual is eligible to enroll; 
‘‘(iii) an enrollment form that may be 
used to enroll in such a plan by mail and 
that provides that if the individual wishes 
to enroll but does not designate a plan, the 
Secretary is authorized to enroll the indi-
vidual in such a prescription drug plan se-
lected by the Secretary; and 
‘‘(iv) a statement that the individual 
may also enroll online or by telephone, but, 
in order to qualify for low-income sub-
sidies, the individual must complete the at-
testation described in subparagraph (D) or 
otherwise apply for such subsidies. 
‘‘(D) ATTESTATION.—A one-page applica-
tion form that provides for a signed attestation, 
under penalty of law, as to the amount of in-
come and assets of the individual and con-
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
stitutes an application for the low-income sub-
sidies described in subparagraph (B). Such 
form— 
‘‘(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 (6); and 
‘‘(iii) may provide for the specification 
of a language (other than English) that is 
preferred for subsequent communications 
with respect to the individual 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. 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
‘‘(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-
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 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 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
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 
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) TRANSITIONAL DISCLOSURE OF RETURN INFOR-
MATION
FOR PURPOSES
OF PROVIDING 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) TRANSITIONAL DISCLOSURE OF RETURN 
INFORMATION FOR PURPOSES OF PROVIDING LOW- 
INCOME SUBSIDIES UNDER MEDICARE.— 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
‘‘(A) IN GENERAL.—The Secretary, upon 
written request from the Secretary of Health 
and Human Services under section 1860D– 
14(e)(1) of the Social Security Act for an indi-
vidual described in subparagraph (C) of such 
section, shall disclose to officers and employees 
of the Department of Health and Human Serv-
ices and the Social Security Administration 
with respect to a taxpayer for the applicable 
year— 
‘‘(i)(I) whether the adjusted gross in-
come, as modified in accordance with spec-
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 as indicating likely eligi-
bility for the low-income subsidy provided 
under section 1860D–14 of such Act, 
‘‘(II) whether the return was a joint 
return, and 
‘‘(III) the applicable year, or 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
‘‘(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 
‘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 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. 
‘‘(D) TERMINATION.—Return information 
may not be disclosed under this paragraph after 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
the date 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. 3. INCREASE IN PERMITTED RESOURCES TO OBTAIN 
LOW-INCOME SUBSIDIES. 
(a) INCREASE IN RESOURCE LIMITS.—Subparagraph 
(E) of section 1860D–14(a)(3) of the Social Security Act 
(42 U.S.C. 1395ww–114(a)(3)) is amended— 
(1) in subclause (I), by striking ‘‘for 2006’’ and 
inserting ‘‘for months in 2006 before the first day 
of the first month beginning after the date of the en-
actment of the Prescription Drug Now Act of 2006’’ 
and by striking ‘‘and’’ at the end; 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
(2) by redesignating subclause (II) as subclause 
(III); 
(3) by inserting after subclause (I) the fol-
lowing new subclause: 
‘‘(II) for months in 2006 begin-
ning with the first month that begins 
after the date of the enactment of the 
Prescription Drug Now Act of 2006, 
$50,000 (or $100,000 in the case of 
the combined value of the individual’s 
assets or resources and the assets or 
resources of the individual’s spouse); 
and’’; and 
(4) in the last sentence, by striking ‘‘subclause 
(II)’’ and inserting ‘‘subclause (III)’’. 
(b) NOT COUNTING VALUE OF LIFE INSURANCE AS 
RESOURCE.—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) EXCLUSION OF LIFE INSURANCE IN 
RESOURCES.—For purposes of subparagraphs 
(D) and (E), the value of a life insurance policy 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS
shall not be counted as a resource for months 
beginning after the date of the enactment of 
this subparagraph.’’. 
SEC. 4. WAIVER OF LATE ENROLLMENT PENALTY FOR SUB-
SIDY ELIGIBLE INDIVIDUALS FOR FIRST 24 
MONTHS OF NON-ENROLLMENT. 
Section 1860D–13(b)(3)(B) of the Social Security 
Act (42 U.S.C. 1395w–113(b)(3)(B)) is amended by in-
serting before the period at the end the following: ‘‘, except 
that in the case of a subsidy eligible individual (as defined 
in section 1860D–14(a)(3)(A)) the first 24 uncovered 
months shall not be counted’’. 
Æ 
VerDate Aug 31 2005 
22:00 Aug 03, 2006
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6301
E:\BILLS\H5969.IH
H5969
rwilkins on PROD1PC63 with BILLS