programs designed to provide services to individuals 65 
years of age or older and people with disabilities. The 
Commissioner of Social Security shall make such forms 
available at local offices of the Social Security Administra-
tion. 
‘‘(d) STATE RESPONSE
AND APPLICATION PROC-
ESS.— 
‘‘(1) IN GENERAL.—In the case of an applica-
tion transmitted under subsection (b)(6), the State 
agency responsible for determinations of eligibility 
for benefits under the State’s Medicare Savings Pro-
gram— 
‘‘(A) shall make a determination on the 
application within 30 days of the date of its re-
ceipt; and 
‘‘(B) shall notify the applicant of the de-
termination within 10 days after it is made. 
‘‘(2) USE OF SIMPLIFIED APPLICATION PROC-
ESS.—In the case of an application other than an 
application transmitted under subsection (b)(6), a 
State plan under title XIX shall provide that an ap-
plication for benefits under the Medicare Savings 
Program may be made over the Internet, by tele-
phone, or by mail, without the need for an interview 
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in person by the applicant or a representative of the 
applicant. 
‘‘(e) EXPEDITED APPLICATION
AND ELIGIBILITY 
PROCESS.— 
‘‘(1) EXPEDITED PROCESS.— 
‘‘(A) IN GENERAL.—As part of the expe-
dited process for obtaining benefits under the 
Medicare Savings Program, the Secretary shall 
through a request to the Secretary of the 
Treasury to obtain information sufficient to 
identify whether the individual involved is likely 
eligible for such benefits based on such infor-
mation and the type of assistance under the 
Medicare Savings Program for which they 
would qualify based on such information. Such 
process shall be conducted 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— 
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‘‘(i) receive information describing the 
Medicare Savings Program provided under 
this section; and 
‘‘(ii) are provided the opportunity to 
opt-in to the expedited process described in 
this subsection by requesting that the 
Commissioner of Social Security screen the 
individual involved for eligibility for the 
Medicare Savings Program through a re-
quest to the Secretary of the Treasury 
under section 6103(l)(21) of the Internal 
Revenue Code of 1986. 
‘‘(C) TRANSITION FOR CURRENTLY ELIGI-
BLE INDIVIDUALS.—In the case of any Medi-
care Savings Program eligible individual to 
which subparagraph (B) did not apply at the 
time of such individual’s enrollment, the Sec-
retary shall, not later than 60 days after the 
date of the implementation of subparagraph 
(B), request that the Commissioner of Social 
Security screen such individual for eligibility for 
the Medicare Savings Program provided under 
this section through a request to the Secretary 
of the Treasury under section 6103(l)(21) of 
the Internal Revenue Code of 1986. 
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‘‘(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 the Medicare Savings Pro-
gram (or who has applied for and been determined 
ineligible for such benefits based only on standards 
in effect before January 1, 2008), the Secretary 
shall send them a letter (using basic, uncomplicated 
language) containing the following: 
‘‘(A) ELIGIBILITY.—A statement that, 
based on the information obtained under proc-
ess under this section, the individual is likely el-
igible for benefits under the Medicare Savings 
Program. 
‘‘(B) AMOUNT
OF
ASSISTANCE.—A de-
scription of the amount of assistance under 
such program for which the individual would 
likely be eligible based on such information. 
‘‘(C) 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-
stitutes an application for the benefits under 
the Medicare Savings Program. Such form— 
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‘‘(i) shall not require the submittal of 
additional documentation regarding income 
or assets; and 
‘‘(ii) shall allow for the specification 
of a language (other than English) that is 
preferred by the individual for subsequent 
communications with respect to the indi-
vidual under this title and title XIX. 
‘‘(D) 
INFORMATION
ON
OUTREACH 
GROUPS.—Information on how the individual 
may contact the a State outreach effort or 
other groups that receive grants from the Sec-
retary to conduct outreach to individuals to re-
ceive benefits under the Medicare Savings Pro-
gram. 
‘‘(3) FOLLOW-UP COMMUNICATIONS.—If the in-
dividual does not respond to the letter described in 
paragraph (2) by completing an attestation de-
scribed in paragraph (2)(C) or declining to do so, 
the Secretary shall make additional attempts to con-
tact the individual to obtain such an affirmative re-
sponse. 
‘‘(4) HOLD-HARMLESS.—Under such process, if 
an individual in good faith and in the absence of 
fraud executes an attestation described in paragraph 
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(2)(C) and is provided benefits under the Medicare 
Savings Program on the basis of such attestation, if 
the individual is subsequently found not eligible for 
such benefits, there shall be no recovery made 
against the individual because of such benefits im-
properly paid. 
‘‘(5) USE OF PREFERRED LANGUAGE IN SUBSE-
QUENT COMMUNICATIONS.—In the case an attesta-
tion described in paragraph (2)(C) is completed and 
in which a language other than English is specified 
under clause (ii) of such paragraph, the Secretary 
shall provide that subsequent communications to the 
individual under this subsection shall be in such lan-
guage. 
‘‘(6) 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 the Medicare Savings 
Program. 
‘‘(f) ELECTRONIC COMMUNICATION BETWEEN SO-
CIAL SECURITY AND STATE MEDICAID AGENCIES AND 
THE SECRETARY.— 
‘‘(1) NOTICE
BY
SOCIAL
SECURITY
TO
SEC-
RETARY AND STATE MEDICAID AGENCIES.—In the 
case of a determination of eligibility of an individual 
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under section 1860D–14(a)(3)(B)(i) by the Commis-
sioner of Social Security, the Commissioner shall 
provide for notice, preferably in electronic form, to 
the Secretary and to State medicaid agency under 
title XIX of such determination for purposes of ena-
bling the individual to automatically qualify for ben-
efits under the Medicare Savings Program under 
such 
title 
through 
the 
operation 
of 
section 
1905(p)(8). 
‘‘(2) NOTICE BY STATES TO SECRETARY.—In 
the case that the State determines that an individual 
is a qualified medicare beneficiary or a specified low- 
income medicare beneficiary under title XIX, the 
State shall provide for notice, preferably in elec-
tronic form, to the Secretary of such determination 
for purposes of enabling the individual to automati-
cally qualify for low-income subsidies under section 
1860D–14 
through 
the 
operation 
of 
section 
1905(a)(3)(G). 
‘‘(3) DEADLINE.—Each State (as defined for 
purposes of title XIX) and the Secretary shall estab-
lish the notification process described in this sub-
section not later than 1 year after the date of the 
enactment of this section.’’. 
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(2) DISCLOSURE
OF
RETURN
INFORMATION 
FOR
PURPOSES
OF
SCREENING
INDIVIDUALS
FOR 
ELIGIBILITY FOR BENEFITS UNDER THE MEDICARE 
SAVINGS PROGRAM.— 
(A) IN GENERAL.—Subsection (l) of sec-
tion 6103 of the Internal Revenue Code of 1986 
is amended by adding at the end the following 
new paragraph: 
‘‘(21) DISCLOSURE OF RETURN INFORMATION 
FOR
PURPOSES
OF
PROVIDING
BENEFITS
UNDER 
THE MEDICARE SAVINGS PROGRAM.— 
‘‘(A) RETURN INFORMATION FROM INTER-
NAL REVENUE SERVICE TO SOCIAL SECURITY 
ADMINISTRATION.—The Secretary, upon writ-
ten request from the Commissioner of Social 
Security under section 1809(e)(1)(A) of the So-
cial Security Act, shall disclose to the Commis-
sioner with respect to any taxpayer identified by 
the Commissioner— 
‘‘(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 
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applicable year, exceeds the amounts speci-
fied by the Secretary of Health and 
Human Services in order to apply the 135 
and 150 percent poverty lines under sec-
tion 
1905(p) 
and 
section 
1902(a)(10)(E)(ii) of such Act; 
‘‘(II) the adjusted gross income (as 
determined under subclause (I)), in the 
case of a taxpayer with respect to which 
such adjusted gross income exceeds the 
amount so specified for applying the 135 
percent poverty line and does not exceed 
the amount so specified for applying the 
150 percent poverty line; 
‘‘(III) whether the return was a joint 
return for the applicable year; and 
‘‘(IV) the applicable year; or 
‘‘(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-
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mation systems, or, if there is no return filed 
for such taxpayer for such year, the prior tax-
able year. 
‘‘(C) RESTRICTION ON INDIVIDUALS FOR 
WHOM DISCLOSURE IS REQUESTED.—The Com-
missioner of Social Security shall only request 
information under this paragraph with respect 
to individuals who have requested that such re-
quest be made under section 1809(e) of the So-
cial Security Act. 
‘‘(D) RETURN INFORMATION FROM SOCIAL 
SECURITY
ADMINISTRATION
TO
DEPARTMENT 
OF HEALTH AND HUMAN SERVICES.—The Com-
missioner of Social Security shall, upon written 
request from the Secretary of Health and 
Human Services, disclose to the Secretary of 
Health and Human Services the information 
described in clauses (i) and (ii) of subparagraph 
(A). 
‘‘(E) PERMISSIVE
DISCLOSURE
TO
OFFI-
CERS, EMPLOYEES, AND
CONTRACTORS.—The 
information described in clauses (i) and (ii) of 
subparagraph (A) may be disclosed among offi-
cers, employees, and contractors of the Social 
Security Administration and the Department of 
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Health and Human Services for the purposes 
described in subparagraph (F). 
‘‘(F) 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) and (ii) of 
section 1902(a)(10)(E) of such Act.’’. 
(B) CONFIDENTIALITY.—Paragraph (3) of 
section 6103(a) of such Code is amended by 
striking ‘‘or (20)’’ and inserting ‘‘(20), or 
(21)’’. 
(C) PROCEDURES AND RECORD KEEPING 
RELATED TO DISCLOSURES.—Paragraph (4) of 
section 6103(p) of such Code is amended by 
striking ‘‘or (20)’’ each place it appears and in-
serting ‘‘(20), or (21)’’. 
(D) UNAUTHORIZED DISCLOSURE OR IN-
SPECTION.—Paragraph (2) of section 7213(a) 
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of such Code is amended by striking ‘‘or (20)’’ 
and inserting ‘‘(20), or (21)’’. 
(b) TWO-WAY DEEMING BETWEEN MEDICARE SAV-
INGS PROGRAM AND LOW-INCOME SUBSIDY PROGRAM.— 
(1) MEDICARE
SAVINGS
PROGRAM.—Section 
1905(p) of the Social Security Act (42 U.S.C. 
1396d(p)), as amended by sections 4(a) and 5(a), is 
amended— 
(A) by redesignating paragraph (8) as 
paragraph (9); and 
(B) by inserting after paragraph (7) the 
following new paragraph: 
‘‘(8) An individual who has been determined eligible 
for premium and cost-sharing subsidies under— 
‘‘(A) section 1860D–14(a)(1) is deemed, for 
purposes of this title and without the need to file 
any additional application, to be a qualified medicare 
beneficiary for purposes of this title; or 
‘‘(B) section 1860D–14(a)(2) is deemed, for 
purposes of this title and without the need to file 
any additional application, to qualify for medical as-
sistance as a specified low-income medicare bene-
ficiary (described in section 1902(a)(10)(E)(iii)).’’. 
(2) LOW-INCOME SUBSIDY PROGRAM.—Section 
1860D–14(a)(3) of such Act (42 U.S.C. 1395w– 
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104(a)(3)) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(G) DEEMED
TREATMENT
FOR
QUALI-
FIED
MEDICARE
BENEFICIARIES
AND
SPECI-
FIED
LOW-INCOME
MEDICARE
BENE-
FICIARIES.— 
‘‘(i) QMBS ELIGIBLE FOR FULL SUB-
SIDY.—A part D eligible individual who 
has been determined for purposes of title 
XIX to be a qualified medicare beneficiary 
is deemed, for purposes of this part and 
without the need to file any additional ap-
plication, to be a subsidy eligible individual 
described in paragraph (1). 
‘‘(ii) SLMBS ELIGIBLE FOR PARTIAL 
SUBSIDY.—A part D eligible individual 
who has been determined to be a specified 
low-income medicare beneficiary (as de-
fined in section 1905(p)(1)) and who is not 
described in paragraph (1) is deemed, for 
purposes of this part and without the need 
to file any additional application, to be a 
subsidy eligible individual who is not de-
scribed in paragraph (1).’’. 
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(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to eligibility for 
months beginning on or after January 2008. 
(c) IMPROVEMENTS
IN ELECTRONIC COMMUNICA-
TION BETWEEN SOCIAL SECURITY, STATE MEDICAID 
AGENCIES, AND
THE
SECRETARY
OF
HEALTH
AND 
HUMAN SERVICES.— 
(1) IN
GENERAL.—Not later than two years 
after the date of the enactment of this Act, the 
Commissioner of Social Security, the Secretary of 
Health and Human Services, and the directors of 
State Medicaid agencies shall implement improve-
ments to the electronic data transfer system by 
which they communicate directly and electronically 
with each other with respect to individuals who have 
enrolled for benefits under any part of the Medicare 
Savings Program in order to ensure that each of 
them has exactly the same list of beneficiaries who 
are signed up for the Medicare Savings Program. 
(2) INCREASED
ADMINISTRATIVE
MATCH.—In 
order to implement paragraph (1)— 
(A) the Medicaid administrative match 
under section 1903(a)(7) of the Social Security 
Act shall be increased to 75 percent with re-
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spect to expenditures made in carrying out such 
paragraph; and 
(B) there is appropriated to the Commis-
sioner of Social Security and the Secretary of 
Health and Human Services, from any amounts 
in the Treasury not otherwise appropriated, 
$2,000,000 each for each of fiscal years 2008 
and 2009 to implement paragraph (1). 
(3) USE OF SYSTEM.—After the implementation 
of the improvements to the electronic data transfer 
system under paragraph (1), the Commissioner of 
Social Security, State Medicaid agencies, and the 
Secretary of Health and Human Services shall pri-
marily use this system for the Commissioner and the 
Secretary to inform the State Medicaid agencies to 
enroll a beneficiary for the Medicare Savings Pro-
gram. 
(d) IMPROVED COORDINATION WITH STATE, LOCAL, 
AND OTHER PARTNERS.— 
(1) STATE GRANTS.— 
(A) 
IN
GENERAL.—The 
Secretary 
of 
Health and Human Services shall enter into 
contracts with States (as defined for purposes 
of title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.) to provide funds to States 
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to use information identified under subsection 
(c), and other appropriate information, in order 
to do ex parte determinations or utilize other 
methods for identifying and enrolling individ-
uals who are potentially— 
(i) eligible for benefits under the 
Medicare Savings Program (under sections 
1905(p) of the Social Security Act, 42 
U.S.C. 1396d(p)); or 
(ii) entitled to a premium or cost- 
sharing subsidy under section 1860D–14 
of such Act (42 U.S.C. 1395w–114). 
(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated such sums as may be necessary to the 
Secretary of Health and Human Services for 
the purpose of making contracts under this 
paragraph. 
(2) FUNDING OF STATE HEALTH INSURANCE 
COUNSELING AND SIMILAR PROGRAMS.— 
(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—In addition to any other funds author-
ized to be appropriated, there are authorized to 
be appropriated $3,000,000 for each of cal-
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