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, 2008, relating to MA monthly prescrip-
tion drug beneficiary premium, is amended by in-
serting after ‘‘as adjusted under section 1860D– 
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bajohnson on PROD1PC69 with BILLS
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 
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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 2008. 
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(2) PART D PREMIUM.—The amendments made 
by subsection (b) apply to premiums for months be-
ginning with January 2008. 
(3) MMA PROVISION.—The amendment made 
by subsection (c) shall take effect on the date of the 
enactment of this Act. 
Æ 
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