‘‘PAYMENT OF PREMIUMS 
‘‘SEC. 1860E–4. (a) PAYMENT OF MONTHLY PRE-
MIUM.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
for payment and collection of the monthly premium, 
determined under section 1860E–3(a) for the age of 
the individual involved, in the same manner as for 
payment of monthly premiums under section 1840, 
except that, for purposes of applying this section, 
any reference in such section to the Federal Supple-
mentary Medical Insurance Trust Fund is deemed a 
reference to the Trust Fund established under sec-
tion 1860E–5. 
‘‘(2) PERIOD OF PAYMENT.—In the case of an 
individual who participates in the program estab-
lished by this part, the monthly premium shall be 
payable for the period commencing with the first 
month of the individual’s coverage period and ending 
with the month in which the individual’s coverage 
under this part terminates. 
‘‘(b) APPLICATION OF CERTAIN PROVISIONS.—The 
provisions of section 1840 (other than subsection (h)) 
shall apply to premiums collected under this section in the 
same manner as they apply to premiums collected under 
part B, except that any reference in such section to the 
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Federal Supplementary Medical Insurance Trust Fund is 
deemed a reference to the Trust Fund established under 
section 1860E–5. 
‘‘MEDICARE FOR THE UNINSURED TRUST FUND 
‘‘SEC. 1860E–5. (a) ESTABLISHMENT
OF TRUST 
FUND.— 
‘‘(1) IN GENERAL.—There is hereby created on 
the books of the Treasury of the United States a 
trust fund to be known as the ‘Medicare for the Un-
insured Trust Fund’ (in this section referred to as 
the ‘Trust Fund’). The Trust Fund shall consist of 
such gifts and bequests as may be made as provided 
in section 201(i)(1) and such amounts as may be de-
posited in, or appropriated to, such fund as provided 
in this title. 
‘‘(2) PREMIUMS.—Premiums collected under 
section 1860E–3 and payable under section 1860E– 
4(a)(2) shall be transferred to the Trust Fund. 
‘‘(b) INCORPORATION OF PROVISIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
subsections (b) through (i) of section 1841 shall 
apply with respect to the Trust Fund and this part 
in the same manner as they apply with respect to 
the Federal Supplementary Medical Insurance Trust 
Fund and part B, respectively. 
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‘‘(2) MISCELLANEOUS REFERENCES.—In apply-
ing provisions of section 1841 under paragraph 
(1)— 
‘‘(A) any reference in such section to ‘this 
part’ is construed to refer to this part E; 
‘‘(B) any reference in section 1841(h) to 
section 1840(d) and in section 1841(i) to sec-
tions 1840(b)(1) and 1842(g) are deemed ref-
erences to comparable authority exercised under 
this part; and 
‘‘(C) payments may be made under section 
1841(g) to the Trust Funds under sections 
1817 and 1841 as reimbursement to such funds 
for payments they made for benefits provided 
under this part. 
‘‘OVERSIGHT AND ACCOUNTABILITY 
‘‘SEC. 1860E–6. (a) THROUGH ANNUAL REPORTS OF 
TRUSTEES.—The Board of Trustees of the Medicare for 
the Uninsured Trust Fund under section 1860E–5(b)(1) 
shall report on an annual basis to Congress concerning 
the status of the Trust Fund and the need for adjustments 
in the program under this part to maintain financial sol-
vency of the program under this part. 
‘‘(b) PERIODIC GAO REPORTS.—The Comptroller 
General of the United States shall periodically submit to 
Congress reports on the adequacy of the financing of cov-
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erage provided under this part. The Comptroller General 
shall include in such report such recommendations for ad-
justments in such financing and coverage as the Comp-
troller General deems appropriate in order to maintain fi-
nancial solvency of the program under this part. 
‘‘ADMINISTRATION AND MISCELLANEOUS 
‘‘SEC. 1860E–7. (a) TREATMENT FOR PURPOSES OF 
TITLE.—Except as otherwise provided in this part— 
‘‘(1) individuals enrolled under this part shall 
be treated for purposes of this title as though the in-
dividual were entitled to benefits under part A and 
enrolled under part B; and 
‘‘(2) benefits described in section 1860E–1 
shall be payable under this title to such individuals 
in the same manner as if such individuals were so 
entitled and enrolled. 
‘‘(b) NOT TREATED AS MEDICARE PROGRAM FOR 
PURPOSES OF MEDICAID PROGRAM.—For purposes of ap-
plying title XIX (including the provision of Medicare cost- 
sharing assistance under such title), an individual who is 
enrolled under this part shall not be treated as being enti-
tled to benefits under this title. 
‘‘(c) NOT TREATED AS MEDICARE PROGRAM FOR 
PURPOSES OF COBRA CONTINUATION PROVISIONS.—In 
applying a COBRA continuation provision (as defined in 
section 2791(d)(4) of the Public Health Service Act), any 
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reference to an entitlement to benefits under this title 
shall not be construed to include entitlement to benefits 
under this title pursuant to the operation of this part. 
‘‘(d) PAYMENT SCHEDULE.—The Secretary, with the 
assistance of the Medicare Payment Advisory Commission, 
shall develop and implement a payment schedule for bene-
fits provided under parts A and B pursuant to this part. 
To the extent feasible, such payment schedule shall be con-
sistent with comparable payment schedules and reimburse-
ment methodologies applied under parts A and B.’’. 
(b) CONFORMING AMENDMENTS TO SOCIAL SECU-
RITY ACT PROVISIONS.— 
(1) Section 201(i)(1) of the Social Security Act 
(42 U.S.C. 401(i)(1)) is amended by striking ‘‘or the 
Federal Supplementary Medical Insurance Trust 
Fund’’ and inserting ‘‘the Federal Supplementary 
Medical Insurance Trust Fund, and the Medicare 
for the Uninsured Trust Fund’’. 
(2) Section 201(g)(1)(A) of such Act (42 
U.S.C. 401(g)(1)(A)) is amended by striking ‘‘and 
the Federal Supplementary Medical Insurance Trust 
Fund established by title XVIII’’ and inserting ‘‘, 
the Federal Supplementary Medical Insurance Trust 
Fund, and the Medicare for the Uninsured Trust 
Fund established by title XVIII’’. 
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(3) Section 1820(i) of such Act (42 U.S.C. 
1395i–4(i)) is amended by striking ‘‘part D’’ and in-
serting ‘‘part F’’. 
(4) Section 1853 of such Act (42 U.S.C. 
1395w–23) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) ADJUSTMENT FOR PART E BENEFICIARIES.— 
In applying this section with respect to individuals entitled 
to benefits under part E, the Secretary shall provide for 
an appropriate adjustment in, for 2007, the annual MA 
capitation rate, and for years beginning with 2008, the 
payment amount determined under this section or section 
1858, as may be appropriate to reflect differences between 
the population served under such part and the population 
under parts A and B.’’. 
(5) Section 1860D–15(c)(1) of such Act (42 
U.S.C. 1395w–115(c)(1)) is amended by adding at 
the end the following new subparagraph: 
‘‘(E) ADJUSTMENT
FOR
PART
E
BENE-
FICIARIES.—In applying this section with re-
spect to individuals entitled to benefits under 
part E, the Secretary shall provide for an ap-
propriate adjustment in the payment amount 
determined under this section as may be appro-
priate to reflect differences between the popu-
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lation served under such part and the popu-
lation under parts A and B.’’. 
(c) OTHER CONFORMING AMENDMENTS.— 
(1) Section 602(2)(D)(ii) of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 
1162(2)) is amended by inserting ‘‘(not including an 
individual who is so entitled pursuant to enrollment 
under section 1860E–1 of such Act)’’ after ‘‘Social 
Security Act’’. 
(2) Section 2202(2)(D)(ii) of the Public Health 
Service Act (42 U.S.C. 300bb–2(2)(D)(ii)) is amend-
ed by inserting ‘‘(not including an individual who is 
so entitled pursuant to enrollment under section 
1860E–1 of such Act)’’ after ‘‘Social Security Act’’. 
(3) Section 4980B(f)(2)(B)(i)(V) of the Inter-
nal Revenue Code of 1986 is amended by inserting 
‘‘(not including an individual who is so entitled pur-
suant to enrollment under section 1860E–1 of such 
Act)’’ after ‘‘Social Security Act’’. 
SEC. 4. REFUNDABLE AND ADVANCEABLE INCOME TAX 
CREDIT FOR CERTAIN MEDICARE PREMIUMS 
FOR THE UNINSURED. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable personal credits) is amended 
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by redesignating section 36 as section 37 and by inserting 
after section 35 the following new section: 
‘‘SEC. 36. CERTAIN MEDICARE PREMIUMS FOR THE UNIN-
SURED. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to 
85 percent of the amount paid during such year as pre-
miums under part E of title XVIII of the Social Security 
Act for coverage of the taxpayer and the taxpayer’s spouse 
and dependents under such part. 
‘‘(b) COORDINATION WITH ADVANCE PAYMENT.— 
With respect to any taxable year, the amount which would 
(but for this subsection) be allowed as a credit under sub-
section (a) shall be reduced (but not below zero) by the 
aggregate amount paid on behalf of such taxpayer under 
section 7529 for such taxable year. 
‘‘(c) SPECIAL RULES.—Rules similar to the rules of 
paragraphs (2), (3), and (4) of section 35(g) and para-
graphs (2), (3), and (4) of section 21(e) shall apply for 
purposes of this section.’’. 
(b) ADVANCE PAYMENT OF CREDIT.—Chapter 77 of 
such Code (relating to miscellaneous provisions) is amend-
ed by adding at the end the following new section: 
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‘‘SEC. 7529. ADVANCE PAYMENT OF CREDIT FOR CERTAIN 
MEDICARE PREMIUMS FOR THE UNINSURED. 
‘‘(a) GENERAL RULE.—The Secretary shall establish 
a program for making payments on behalf of individuals 
enrolled under part E of title XVIII of the Social Security 
Act to the Secretary of Health and Human Services for 
premiums payable by such individuals under such part. 
‘‘(b) LIMITATION ON ADVANCE PAYMENTS DURING 
ANY TAXABLE YEAR.—The Secretary may make pay-
ments under subsection (a) only to the extent that the 
total amount of such payments made on behalf of any indi-
vidual during the taxable year does not exceed the amount 
allowable as a credit to such individual for such year under 
section 36 (determined without regard to subsection (b) 
thereof).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘or 
36’’ after ‘‘section 35’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by redesignating the 
item relating to section 36 as an item relating to 
section 37 and by inserting after the item relating 
to section 35 the following new item: 
‘‘Sec. 36.
Certain Medicare premiums for the uninsured.’’. 
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(3) The table of sections for chapter 77 of such 
Code is amended by adding at the end the following 
new item: 
‘‘Sec. 7529. Advance payment of credit for certain Medicare premiums for the 
uninsured.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
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