(3) SAME BENEFITS.—
(A) IN
GENERAL.—With respect to cov-
erage under such program of such qualifying
low-income seniors, subject to subparagraph
(B), the terms and conditions of coverage (in-
cluding enrollment fees, deductibles, co-pay-
ments and other cost-sharing, and scope and
conditions of prescription drug coverage) shall
be the same as for other individuals 65 years of
age or older receiving assistance under such
program.
(B) TREATMENT OF CONDITIONS RELATED
TO INCOME.—In applying subparagraph (A), if
the program provides that enrollment fees,
deductibles, and other terms and conditions
under such program vary based on income of
individuals, the expansion under the grant may
continue to vary such fees, deductibles, and
other terms and conditions with respect to
qualifying low-income seniors based on their in-
come but only in a manner that reasonably re-
flects their higher income levels.
(4) APPLICATION.—The State has submitted to
the Secretary an application containing such infor-
mation and in such form and manner as the Sec-
retary may require to carry out the demonstration
project.
(c) SELECTION AMONG QUALIFYING STATES.—In se-
lecting the 3 States among those States that qualify to
receive a grant under this section, the Secretary shall give
priority to—
(1) one State based on its receiving the highest
level of payments from the Federal government
under its State medicaid program; and
(2) another State based on its being in the low-
est quartile of such payment level.
(d) PAYMENTS.—
(1) IN GENERAL.—Under a grant to a State
under the demonstration project, subject to para-
graph (2), the Secretary shall pay to the State the
additional costs incurred by the State in its existing
State low-income senior prescription drug assistance
program in providing assistance to qualifying low-in-
come seniors under the demonstration project.
(2) LIMITATION.—In no case shall the total of
the payments made under paragraph (1) to all
States exceed the total amount appropriated to carry
out this section. Payments under paragraph (1)
shall be reduced pro rata to the extent necessary to
comply with the previous sentence.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated $150,000,000 for fiscal
year 2000 to carry out this section. The amounts appro-
priated to carry out this section shall be available for obli-
gation through fiscal year 2002.
(f) DEFINITIONS.—For purposes of this section:
(1) EXISTING STATE LOW-INCOME SENIOR PRE-
SCRIPTION DRUG ASSISTANCE PROGRAM.—The term
‘‘existing State low-income senior prescription drug
assistance program’’ means a program that, as of
June 1, 1999, is operated and funded by a State
and that provides assistance for the purchase of pre-
scription drugs to individuals 65 years of age or
older who meet applicable income and resource
standards established under the program and who
are not eligible for medical assistance with respect to
prescription drugs under the State medicaid pro-
gram.
(2) QUALIFYING
LOW-INCOME
SENIOR.—The
term ‘‘qualifying low-income senior’’ means, with re-
spect to a State, a resident of the State who—
(A) is 65 years of age or older;
(B) does not qualify for medical assistance
with respect to prescription drugs under the
State medicaid program; and
(C) would be qualified for assistance under
the existing State low-income senior prescrip-
tion drug assistance program (as in effect on
June 1, 1999) if the individual’s income were
reduced by $5,000.
(3) DEMONSTRATION
PROJECT.—The term
‘‘demonstration project’’ means the demonstration
project conducted under this section.
(4) GRANT.—The term ‘‘grant’’ includes a co-
operative agreement.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(6) STATE
MEDICAID
PROGRAM.—The term
‘‘State medicaid program’’ means a State plan under
title XIX of the Social Security Act.
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