rebates related to the provision of qualified prescrip-
tion drug coverage.
‘‘(d) ENTITLEMENT.—This section constitutes budg-
et authority in advance of appropriations Acts and rep-
resents the obligation of the Federal Government to pro-
vide for the payment under this section of stop-loss bene-
fits described in subsection (a).
‘‘(e) INDEXING DOLLAR AMOUNTS.—For a year after
2000, each of the dollar amounts specified in this section
shall be increased by the same percentage as the percent-
age increase (if any) in per capita expenditures for pre-
scription drugs (as estimated by the Secretary based on
the best data available from the Bureau of Labor Statis-
tics) between July 1999 and July of the previous year,
except that any such increase which is not a multiple of
$10 shall be rounded to the nearest multiple of $10.
‘‘PART C—ACCESS TO PRESCRIPTION DRUG COVERAGE
UNDER MEDIGAP POLICIES
‘‘SEC. 2821. PERMITTING MEDICARE BENEFICIARIES TO AD-
JUST MEDIGAP COVERAGE.
‘‘(a) ALLOWING MEDICARE BENEFICIARIES PRO-
VIDED LOW-INCOME ASSISTANCE TO DROP PRESCRIP-
TION DRUG MEDIGAP COVERAGE.—
‘‘(1) IN GENERAL.—The issuer of a medicare
supplemental policy—
‘‘(A) may not deny or condition the
issuance or effectiveness of a medicare supple-
mental policy that has a benefit package classi-
fied as ‘A’, ‘B’, ‘C’, ‘D’, ‘E’, ‘F’, or ‘G’ (under
the standards established under subsection
(p)(2) of section 1882 of the Social Security
Act) and that is offered and is available for
issuance to new enrollees by such issuer;
‘‘(B) may not discriminate in the pricing
of such policy, because of health status, claims
experience, receipt of health care, or medical
condition; and
‘‘(C) may not impose an exclusion of bene-
fits based on a pre-existing condition under
such policy,
in the case of an individual described in paragraph
(2) who seeks to enroll under the policy not later
than 63 days after the date of the termination of en-
rollment described in such paragraph and who sub-
mits evidence of the date of termination or
disenrollment along with the application for such
medicare supplemental policy.
‘‘(2) INDIVIDUAL COVERED.—An individual de-
scribed in this paragraph is an individual who—
‘‘(A) is a low-income medicare beneficiary
(as defined in section 2802(b)) who is being
provided prescription drug assistance under
part A; and
‘‘(B) at the time the individual is first pro-
vided such assistance, was enrolled and termi-
nates enrollment in a medicare supplemental
policy which has a benefit package classified
as—
‘‘(I) ‘H’,
‘‘(II) ‘I’, or
‘‘(III) ‘J’,
under the standards referred to in paragraph (1)(A).
‘‘(b) ALLOWING MEDICARE BENEFICIARIES WHO
LOSE LOW-INCOME PRESCRIPTION DRUG ASSISTANCE TO
RESTORE MEDIGAP COVERAGE THAT INCLUDED PRE-
SCRIPTION DRUG COVERAGE.—
‘‘(1) IN GENERAL.—The issuer of a medicare
supplemental policy—
‘‘(A) may not deny or condition the
issuance or effectiveness of a medicare supple-
mental policy described in paragraph (3) that is
offered and is available for issuance to new en-
rollees by such issuer;
‘‘(B) may not discriminate in the pricing
of such policy, because of health status, claims
experience, receipt of health care, or medical
condition; and
‘‘(C) may not impose an exclusion of bene-
fits based on a pre-existing condition under
such policy,
in the case of an individual described in paragraph
(2) who seeks to enroll under the policy not later
than 63 days after the date of the termination of
prescription drug assistance described in such para-
graph and who submits evidence of the date of ter-
mination along with the application for such medi-
care supplemental policy.
‘‘(2) INDIVIDUAL COVERED.—An individual de-
scribed in this paragraph is an individual—
‘‘(A) who was described in paragraph
(4)(B) of section 1882(s) of the Social Security
Act and changed enrollment under paragraph
(4)(A); and
‘‘(B) whose prescription drug assistance
under part A of this title is terminated.
‘‘(3) POLICY DESCRIBED.—A medicare supple-
mental policy described in this paragraph is the
medicare supplemental policy described in paragraph
(4)(B) of section 1882(s) of the Social Security Act
from which the individual discontinued enrollment
under paragraph (4)(A) of such section.
‘‘(c) GUARANTEED ISSUE IN ANOTHER CASE.—
‘‘(1) IN GENERAL.—The issuer of a medicare
supplemental policy—
‘‘(A) may not deny or condition the
issuance or effectiveness of a medicare supple-
mental policy which has a benefit package clas-
sified as—
‘‘(i) ‘H’,
‘‘(ii) ‘I’, or
‘‘(iii) ‘J’,
under the standards referred to in subsection
(a)(1)(A) that is offered and is available for
issuance to new enrollees by such issuer;
‘‘(B) may not discriminate in the pricing
of such policy, because of health status, claims
experience, receipt of health care, or medical
condition; and
‘‘(C) subject to paragraph (2), may not im-
pose an exclusion of benefits based on a pre-ex-
isting condition under such policy;
in the case of an individual who is 65 years of age
or older and who seeks to enroll under the policy
during a 6-month open enrollment period specified
by the Secretary.
‘‘(2) The provisions of subparagraphs (B) and
(C) of paragraph (1) of section 1882(s) of the Social
Security Act shall apply with respect to paragraph
(1) in the same manner as they apply with respect
to paragraph (1)(A) of such section.
‘‘(d) ENFORCEMENT.—The provisions of subsections
(a) through (c) shall be enforced as though they were in-
cluded in section 1882(s) of the Social Security Act.
‘‘(e) DEFINITIONS.—For purposes of this section, the
term ‘medicare supplemental policy’ has the meaning
given such term in section 1882(g) of the Social Security
Act.’’.
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