‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this part, an individual’s coverage under the 
program under this part shall be effective for the pe-
riod provided in section 1838, as if that section ap-
plied to the program under this part. 
‘‘(2) PART D COVERAGE TERMINATED BY TER-
MINATION OF COVERAGE UNDER PARTS A AND B.— 
In addition to the causes of termination specified in 
section 1838, an individual’s coverage under this 
part shall be terminated if the individual retains cov-
erage under neither the program under part A nor 
the program under part B, effective on the effective 
date of termination of coverage under part A or (if 
later) under part B. 
‘‘PREMIUMS 
‘‘SEC. 1860D. (a) ANNUAL ESTABLISHMENT
OF 
MONTHLY PREMIUM RATES.— 
‘‘(1) IN GENERAL.—The Secretary shall, during 
September of 2006 and of each succeeding year, de-
termine and promulgate a monthly premium rate for 
the succeeding year in accordance with the provi-
sions of this subsection. 
‘‘(2) INITIAL PREMIUMS.—For months in 2007, 
the monthly premium rate under this subsection 
shall be—
‘‘(A) $25, in the case of premiums paid by 
an individual enrolled in the program under this 
part; and 
‘‘(B) $32, in the case of premiums paid for 
such an individual by a former employer (as de-
fined in section 1860H(f)(2)). 
‘‘(3) SUBSEQUENT YEARS.— 
‘‘(A) IN GENERAL.—For months in a year 
after 2007, the monthly premium under this 
subsection shall be (subject to subparagraph 
(B)) the monthly premium (computed under 
this subsection without regard to subparagraph 
(B)) for the previous year increased by the an-
nual percentage increase in average per capita 
aggregate expenditures for covered outpatient 
medicines in the United States for medicare 
beneficiaries, as estimated and published by the 
Secretary in September before the year and for 
the year involved. 
‘‘(B) ROUNDING.—The monthly premium 
determined under subparagraph (A) shall be 
rounded to the nearest multiple of 10 cents if 
it is not a multiple of 10 cents. 
‘‘(C) PUBLICATION
OF
ASSUMPTIONS.— 
The Secretary shall publish, together with the
promulgation of the monthly premium rates 
under this paragraph, a statement setting forth 
the actuarial assumptions and bases employed 
in arriving at the monthly premium under sub-
paragraph (A). 
‘‘(b) PAYMENT OF PREMIUMS.— 
‘‘(1) PAYMENTS BY DEDUCTION FROM SOCIAL 
SECURITY, RAILROAD
RETIREMENT
BENEFITS, OR 
BENEFITS ADMINISTERED BY OPM.— 
‘‘(A) DEDUCTION
FROM
BENEFITS.—In 
the case of an individual who is entitled to or 
receiving benefits as described in subsection (a), 
(b), or (d) of section 1840, premiums payable 
under this part shall be collected by deduction 
from such benefits at the same time and in the 
same manner as premiums payable under part 
B are collected pursuant to section 1840. 
‘‘(B) TRANSFERS TO PRESCRIPTION MEDI-
CINE INSURANCE ACCOUNT.—The Secretary of 
the Treasury shall, from time to time, but not 
less often than quarterly, transfer premiums 
collected pursuant to subparagraph (A) to the 
Prescription Medicine Insurance Account from 
the appropriate funds and accounts described in 
subsections (a)(2), (b)(2), and (d)(2) of section
1840, on the basis of the certifications de-
scribed in such subsections. The amounts of 
such transfers shall be appropriately adjusted 
to the extent that prior transfers were too great 
or too small. 
‘‘(2) DIRECT PAYMENTS TO SECRETARY.— 
‘‘(A) 
ADDITIONAL
PAYMENT
BY
EN-
ROLLEE.—An individual to whom paragraph 
(1) applies (other than an individual receiving 
benefits as described in section 1840(d)) and 
who estimates that the amount that will be 
available for deduction under such paragraph 
for any premium payment period will be less 
than the amount of the monthly premiums for 
such period may (under regulations) pay to the 
Secretary the estimated balance, or such great-
er portion of the monthly premium as the indi-
vidual chooses. 
‘‘(B) PAYMENTS BY OTHER ENROLLEES.— 
An individual enrolled in the insurance program 
under this part with respect to whom none of 
the preceding provisions of this subsection ap-
plies (or to whom section 1840(c) applies) shall 
pay premiums to the Secretary at such times
and in such manner as the Secretary shall by 
regulations prescribe. 
‘‘(C) DEPOSIT
OF
PREMIUMS.—Amounts 
paid to the Secretary under this paragraph 
shall be deposited in the Treasury to the credit 
of the Prescription Medicine Insurance Account 
in the Supplementary Medical Insurance Trust 
Fund. 
‘‘(c) CERTAIN
LOW-INCOME
INDIVIDUALS.—For 
rules concerning premiums for certain low-income individ-
uals, see section 1860E. 
‘‘SPECIAL ELIGIBILITY, ENROLLMENT, AND COPAYMENT 
RULES FOR LOW-INCOME INDIVIDUALS 
‘‘SEC. 1860E. (a) STATE AGREEMENTS FOR COV-
ERAGE.— 
‘‘(1) IN GENERAL.—The Secretary shall, at the 
request of a State, enter into an agreement with the 
State under which all individuals described in para-
graph (2) are enrolled in the program under this 
part, without regard to whether any such individual 
has previously declined the opportunity to enroll in 
such program. 
‘‘(2) ELIGIBILITY GROUPS.—The individuals de-
scribed in this paragraph, for purposes of paragraph 
(1), are individuals who satisfy section 1860C(a) 
and who are—