461 
‘‘(2) REPORTING.—The Secretary shall imple-
ment procedures, consistent with generally accepted 
standards, to enable the Department of Health and 
Human Services to accept the electronic submission of 
data for purposes of— 
‘‘(A) effectiveness measurement using the 
health care measures developed pursuant to this 
section; and 
‘‘(B) reporting to the Secretary measures 
used to make value-based payments under this 
title. 
‘‘(f) CONTRACTS.—The Secretary, acting through the 
Agency for Healthcare Research and Quality, may contract 
with organizations to support the development and testing 
of health care measures meeting the standards established 
by the designated organization. 
‘‘(g) DISSEMINATION OF INFORMATION.—In order to 
make information on health care measures available to 
health care consumers, health professionals, public health of-
ficials, oversight organizations, researchers, and other ap-
propriate individuals and entities, the Secretary shall work 
with multi-stakeholder groups to provide for the dissemina-
tion of information developed pursuant to this title. 
‘‘(h) FUNDING.—For purposes of carrying out sub-
sections (a), (b), (c), and (d), including for expenses in-
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curred for the arrangement under subsection (a) with the 
designated organization, there is payable from the Federal 
Hospital Insurance Trust Fund (established under section 
1817) and the Federal Supplementary Medical Insurance 
Trust Fund (established under section 1841)— 
‘‘(1) for fiscal year 2008, $15,000,000, multiplied 
by the ratio of the total number of months in the year 
to the number of months (and portions of months) of 
such year during which the arrangement under sub-
section (a) is effective; and 
‘‘(2) for each of the fiscal years, 2009 through 
2012, $15,000,000.’’. 
SEC. 907. IMPROVEMENTS TO THE MEDIGAP PROGRAM. 
(a) 
IMPLEMENTATION
OF
NAIC 
RECOMMENDA-
TIONS.—The Secretary of Health and Human Services shall 
provide, under subsections (p)(1)(E) of section 1882 of the 
Social Security Act (42 U.S.C. 1395s), for implementation 
of the changes in the NAIC model law and regulations rec-
ommended by the National Association of Insurance Com-
missioners in its Model #651 (‘‘Model Regulation to Imple-
ment the NAIC Medicare Supplement Insurance Minimum 
Standards Model Act’’) on March 11, 2007, as modified to 
reflect the changes made under this Act. In carrying out 
the previous sentence, the benefit packages classified as ‘‘K’’ 
and ‘‘L’’ shall be eliminated and such NAIC recommenda-
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tions shall be treated as having been adopted by such Asso-
ciation as of January 1, 2008. 
(b) REQUIRED OFFERING OF A RANGE OF POLICIES.— 
(1) IN GENERAL.—Subsection (o) of such section 
is amended by adding at the end the following new 
paragraph: 
‘‘(4) In addition to the requirement of paragraph 
(2), the issuer of the policy must make available to 
the individual at least medicare supplemental policies 
with benefit packages classified as ‘C’ or ‘F’.’’. 
(2) EFFECTIVE DATE.—The amendment made by 
paragraph (1) shall apply to medicare supplemental 
policies issued on or after January 1, 2008. 
(c) REMOVAL OF NEW BENEFIT PACKAGES.—Such sec-
tion is further amended— 
(1) in subsection (o)(1), by striking ‘‘(p), (v), 
and (w)’’ and inserting ‘‘(p) and (v)’’; 
(2) in subsection (v)(3)(A)(i), by striking ‘‘or a 
benefit package described in subparagraph (A) or (B) 
of subsection (w)(2)’’; and 
(3) in subsection (w)— 
(A) by striking ‘‘POLICIES’’ and all that fol-
lows through ‘‘The Secretary’’ and inserting 
‘‘POLICIES.—The Secretary’’; 
(B) by striking the second sentence; and 
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(C) by striking paragraph (2). 
SEC. 908. IMPLEMENTATION FUNDING. 
For purposes of implementing the provisions of this 
Act (other than title X), the Secretary of Health and 
Human Services shall provide for the transfer, from the 
Federal Supplementary Medical Insurance Trust Fund es-
tablished under section 1841 of the Social Security Act (42 
U.S.C. 1395t), of $40,000,000 to the Centers for Medicare 
& Medicaid Services Program Management Account for fis-
cal year 2008. 
TITLE X—REVENUES 
SEC. 1001. INCREASE IN RATE OF EXCISE TAXES ON TO-
BACCO PRODUCTS AND CIGARETTE PAPERS 
AND TUBES. 
(a) SMALL CIGARETTES.—Paragraph (1) of section 
5701(b) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘$19.50 per thousand ($17 per thousand on 
cigarettes removed during 2000 or 2001)’’ and inserting 
‘‘$42 per thousand’’. 
(b) LARGE CIGARETTES.—Paragraph (2) of section 
5701(b) of such Code is amended by striking ‘‘$40.95 per 
thousand ($35.70 per thousand on cigarettes removed dur-
ing 2000 or 2001)’’ and inserting ‘‘$88.20 per thousand’’. 
(c) SMALL CIGARS.—Paragraph (1) of section 5701(a) 
of such Code is amended by striking ‘‘$1.828 cents per thou-
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sand ($1.594 cents per thousand on cigars removed during 
2000 or 2001)’’ and inserting ‘‘$42 per thousand’’. 
(d) LARGE CIGARS.—Paragraph (2) of section 5701(a) 
of such Code is amended— 
(1) by striking ‘‘20.719 percent (18.063 percent 
on cigars removed during 2000 or 2001)’’ and insert-
ing ‘‘44.63 percent’’, and 
(2) by striking ‘‘$48.75 per thousand ($42.50 per 
thousand on cigars removed during 2000 or 2001)’’ 
and inserting ‘‘$1 per cigar’’. 
(e) CIGARETTE PAPERS.—Subsection (c) of section 
5701 of such Code is amended by striking ‘‘1.22 cents (1.06 
cents on cigarette papers removed during 2000 or 2001)’’ 
and inserting ‘‘2.63 cents’’. 
(f) CIGARETTE TUBES.—Subsection (d) of section 5701 
of such Code is amended by striking ‘‘2.44 cents (2.13 cents 
on cigarette tubes removed during 2000 or 2001)’’ and in-
serting ‘‘5.26 cents’’. 
(g) SNUFF.—Paragraph (1) of section 5701(e) of such 
Code is amended by striking ‘‘58.5 cents (51 cents on snuff 
removed during 2000 or 2001)’’ and inserting ‘‘$1.26’’. 
(h) CHEWING TOBACCO.—Paragraph (2) of section 
5701(e) of such Code is amended by striking ‘‘19.5 cents 
(17 cents on chewing tobacco removed during 2000 or 
2001)’’ and inserting ‘‘42 cents’’. 
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(i) PIPE TOBACCO.—Subsection (f) of section 5701 of 
such Code is amended by striking ‘‘$1.0969 cents (95.67 
cents on pipe tobacco removed during 2000 or 2001)’’ and 
inserting ‘‘$2.36’’. 
(j) ROLL-YOUR-OWN TOBACCO.— 
(1) IN GENERAL.—Subsection (g) of section 5701 
of such Code is amended by striking ‘‘$1.0969 cents 
(95.67 cents on roll-your-own tobacco removed during 
2000 or 2001)’’ and inserting ‘‘$7.4667’’. 
(2) INCLUSION OF CIGAR TOBACCO.—Subsection 
(o) of section 5702 of such Code is amended by insert-
ing ‘‘or cigars, or for use as wrappers for making ci-
gars’’ before the period at the end. 
(k) EFFECTIVE DATE.—The amendments made by this 
section shall apply to articles removed after December 31, 
2007. 
(l) FLOOR STOCKS TAXES.— 
(1) IMPOSITION OF TAX.—On cigarettes manu-
factured in or imported into the United States which 
are removed before January 1, 2008, and held on such 
date for sale by any person, there is hereby imposed 
a tax in an amount equal to the excess of— 
(A) the tax which would be imposed under 
section 5701 of the Internal Revenue Code of 
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