‘‘(A)(i) eligible individuals within the 
meaning of section 1843; and 
‘‘(ii) in a coverage group or groups per-
mitted under section 1843 (as selected by the 
State and specified in the agreement); or 
‘‘(B) qualified medicare medicine bene-
ficiaries (as defined in subsection (e)(1)). 
‘‘(3) COVERAGE PERIOD.—The period of cov-
erage under this part of an individual enrolled under 
an agreement under this subsection shall be as fol-
lows: 
‘‘(A) INDIVIDUALS
ELIGIBLE
(AT
STATE 
OPTION) FOR PART B BUY-IN.—In the case of 
an individual described in subsection (a)(2)(A), 
the coverage period shall be the same period 
that applies (or would apply) pursuant to sec-
tion 1843(d). 
‘‘(B) QUALIFIED
MEDICARE
MEDICINE 
BENEFICIARIES.—In the case of an individual 
described in subsection (a)(2)(B)— 
‘‘(i) the coverage period shall begin on 
the latest of— 
‘‘(I) January 1, 2007; 
‘‘(II) the first day of the third 
month following the month in which
the State agreement is entered into; 
or 
‘‘(III) the first day of the first 
month following the month in which 
the 
individual 
satisfies 
section 
1860C(a); and 
‘‘(ii) the coverage period shall end on 
the last day of the month in which the in-
dividual is determined by the State to have 
become ineligible for medicare medicine 
cost-sharing. 
‘‘(4) ALTERNATIVE ENROLLMENT METHODS.— 
In the process of enrolling low-income individuals 
under this part, the Secretary shall use the system 
provided under section 154 of the Social Security 
Act Amendments of 1994 for newly eligible medicare 
beneficiaries and shall apply a similar system for 
other medicare beneficiaries. Such system shall use 
existing Federal government databases to identify 
eligibility. Such system shall not require that bene-
ficiaries apply for, or enroll through, State medicaid 
systems in order to obtain low-income assistance de-
scribed in this section.
‘‘(b) SPECIAL PART D ENROLLMENT OPPORTUNITY 
FOR INDIVIDUALS LOSING MEDICAID ELIGIBILITY.—In 
the case of an individual who— 
‘‘(1) satisfies section 1860C(a); and 
‘‘(2) loses eligibility for benefits under the State 
plan under title XIX after having been enrolled 
under such plan or having been determined eligible 
for such benefits; 
the Secretary shall provide an opportunity for enrollment 
under the program under this part during the period that 
begins on the date that such individual loses such eligi-
bility and ends on the date specified by the Secretary. 
‘‘(c) STATE OPTION TO BUY-IN DUALLY ELIGIBLE 
INDIVIDUALS.— 
‘‘(1) COVERAGE OF PREMIUMS AS MEDICAL AS-
SISTANCE.—For purposes of applying the second 
sentence of section 1905(a), any reference to pre-
miums under part B shall be considered to include 
a reference to premiums under this part. 
‘‘(2) STATE COMMITMENT TO CONTINUE PAR-
TICIPATION
IN
PART
D
AFTER
BENEFIT
LIMIT 
REACHED.—As a condition of additional funding to 
a State under subsection (d), the State, in its State 
plan under title XIX, shall provide that in the case 
of any individual whose eligibility for medical assist-
ance under title XIX is not limited to medicare cost- 
sharing and for whom the State elects to pay pre-
miums under this part pursuant to this section, the 
State will purchase all prescription medicines for 
such individual in accordance with the provisions of 
this part without regard to whether the benefit limit 
for such individual under section 1860B(b) has been 
reached. 
‘‘(3) MEDICARE COST-SHARING REQUIRED FOR 
QUALIFIED MEDICARE BENEFICIARIES.—In applying 
title XIX, the term ‘medicare cost-sharing’ (as de-
fined in section 1905(p)(3)) is deemed to include— 
‘‘(A) premiums under section 1860D; and 
‘‘(B) the difference between the amount 
that is paid under section 1860B and the 
amount that would be paid under such section 
if any reference to ‘80 percent’ in subsection 
(a)(2) of such section were deemed a reference 
to ‘100 percent’ (or, if the Secretary approves 
a higher percentage under such section, if such 
percentage were deemed to be 100 percent). 
‘‘(d) PAYMENT TO STATES FOR COVERAGE OF CER-
TAIN MEDICARE COST-SHARING.—
‘‘(1) IN GENERAL.—The Secretary shall provide 
for payment under this subsection to each State that 
provides for— 
‘‘(A) medicare cost-sharing described in 
section 1905(p)(3)(A)(ii) for individuals who 
would be qualified medicare beneficiaries de-
scribed in section 1905(p)(1) but for the fact 
that their income exceeds the income level es-
tablished by the State under section 1905(p)(2) 
and is at least 120 percent, but less than 135 
percent, of the official poverty line (referred to 
in such section) for a family of the size involved 
and who are not otherwise eligible for medical 
assistance under the State plan; and 
‘‘(B) medicare medicine cost-sharing (as 
defined in subsection (e)(2)) for qualified medi-
care medicine beneficiaries described in sub-
section (e)(1). 
‘‘(2) AMOUNT OF PAYMENT.—The amount of 
payment under paragraph (1) shall equal 100 per-
cent of the cost-sharing described in such paragraph, 
except that, in the case of an individual whose eligi-
bility for medical assistance under title XIX is not 
limited to medicare cost-sharing or medicare medi-
cine cost-sharing, the amount of payment under
paragraph (1)(B) shall be equal to the Federal med-
ical assistance percentage described in section 
1905(b)) of amounts as expended for such cost-shar-
ing. 
‘‘(3) METHOD
OF
PAYMENT; RELATION
TO 
OTHER
PAYMENTS.—Amounts shall be paid to 
States under this subsection in a manner similar to 
that provided under section 1903(d). Payments 
under this subsection shall be made in lieu of any 
payments that otherwise may be made for medical 
assistance 
provided 
under 
section 
1902(a)(10)(E)(iv). 
‘‘(4) TREATMENT OF TERRITORIES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), this subsection shall not apply to 
States other than the 50 States and the Dis-
trict of Columbia. 
‘‘(B) PAYMENTS.—In the case of a State 
(other than the 50 States and the District of 
Columbia) that develops and implements a plan 
of assistance for pharmaceuticals provided to 
low-income medicare beneficiaries, the Secretary 
shall provide for payment to the State in an 
amount that is reasonable in relation to the