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surance Minimum Standards Model Act’’) on March 11, 
2007, as modified to reflect the changes made under this 
Act. In carrying out the previous sentence, the benefit 
packages classified as ‘‘K’’ and ‘‘L’’ shall be eliminated 
and such NAIC recommendations shall be treated as hav-
ing been adopted by such Association as of January 1, 
2008. 
(b) REQUIRED OFFERING OF A RANGE OF POLI-
CIES.— 
(1) IN GENERAL.—Subsection (o) of such sec-
tion is amended by adding at the end the following 
new paragraph: 
‘‘(4) In addition to the requirement of para-
graph (2), the issuer of the policy must make avail-
able to the individual at least medicare supplemental 
policies with benefit packages classified as ‘C’ or 
‘F’.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to medicare supple-
mental policies issued on or after January 1, 2008. 
(c) REMOVAL OF NEW BENEFIT PACKAGES.—Such 
section is further amended— 
(1) in subsection (o)(1), by striking ‘‘(p), (v), 
and (w)’’ and inserting ‘‘(p) and (v)’’; 
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(2) in subsection (v)(3)(A)(i), by striking ‘‘or a 
benefit package described in subparagraph (A) or 
(B) of subsection (w)(2)’’; and 
(3) in subsection (w)— 
(A) by striking ‘‘POLICIES’’ and all that 
follows through ‘‘The Secretary’’ and inserting 
‘‘POLICIES.—The Secretary’’; 
(B) by striking the second sentence; and 
(C) by striking paragraph (2). 
SEC. 908. IMPLEMENTATION FUNDING. 
For purposes of implementing the provisions of this 
Act (other than title X), the Secretary of Health and 
Human Services shall provide for the transfer, from the 
Federal Supplementary Medical Insurance Trust Fund es-
tablished under section 1841 of the Social Security Act 
(42 U.S.C. 1395t), of $40,000,000 to the Centers for 
Medicare & Medicaid Services Program Management Ac-
count for fiscal year 2008. 
SEC. 909. ACCESS TO DATA ON PRESCRIPTION DRUG PLANS 
AND MEDICARE ADVANTAGE PLANS. 
(a) IN GENERAL.—Section 1875 of the Social Secu-
rity Act (42 U.S.C. 1395ll) is amended— 
(1) in the heading, by inserting ‘‘TO CONGRESS; 
PROVIDING INFORMATION TO CONGRESSIONAL SUP-
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PORT AGENCIES’’ after ‘‘AND RECOMMENDATIONS’’; 
and 
(2) by adding at the end the following new sub-
section: 
‘‘(c) PROVIDING INFORMATION TO CONGRESSIONAL 
SUPPORT AGENCIES.— 
‘‘(1) IN GENERAL.—Notwithstanding any provi-
sion under part D that limits the use of prescription 
drug data collected under such part, upon the re-
quest of a Congressional support agency, the Sec-
retary shall provide such agency with information 
submitted to, or compiled by, the Secretary under 
part D (subject to the restriction on disclosure under 
paragraph (2)), including— 
‘‘(A) only with respect to Congressional 
support agencies that make official baseline 
spending projections, conduct oversight studies 
mandated by Congress, or make official rec-
ommendations on the program under this title 
to Congress— 
‘‘(i) aggregate negotiated prices for 
drugs covered under prescription drug 
plans and MA–PD plans; 
‘‘(ii) negotiated rebates, discounts, 
and other price concessions by drug and by 
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contract or plan (as reported under section 
1860D–2(d)(2)); 
‘‘(iii) bid information (described in 
section 1860D–11(b)(2)(C)) submitted by 
such plans; 
‘‘(iv) data or a representative sample 
of data regarding drug claims and other 
data submitted under section 1860D– 
15(c)(1)(C) (as determined necessary and 
appropriate by the Congressional support 
agency to carry out the legislatively man-
dated duties of the agency); 
‘‘(v) the amount of reinsurance pay-
ments paid under section 1860D–15(a)(2), 
provided at the plan level; and 
‘‘(vi) the amount of any adjustments 
of payments made under subparagraph (B) 
or (C) of section 1860D–15(e)(2), provided 
at the plan level aggregate negotiated 
prices for drugs covered under prescription 
drug plans and MA–PD plans; and 
‘‘(B) access to drug event data submitted 
by 
such 
plans 
under 
section 
1860D– 
15(d)(2)(A), except, with respect to data that 
reveals prices negotiated with drug manufactur-
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ers, such data shall only be available to Con-
gressional support agencies that make official 
baseline spending projections, conduct oversight 
studies mandated by Congress, or make official 
recommendations on the program under this 
title to Congress. 
‘‘(2) RESTRICTION ON DATA DISCLOSURE.— 
‘‘(A) IN
GENERAL.—Data provided to a 
Congressional support agency under this sub-
section shall not be disclosed, reported, or re-
leased in identifiable form. 
‘‘(B) IDENTIFIABLE FORM.—For purposes 
of subparagraph (A), the term ‘identifiable 
form’ means any representation of information 
that permits identification of a specific prescrip-
tion drug plan, MA–PD plan, pharmacy benefit 
manager, drug manufacturer, drug wholesaler, 
or individual enrolled in a prescription drug 
plan or an MA–PD plan under part D. 
‘‘(3) TIMING.—The Secretary shall release data 
under this subsection in a timeframe that enables 
Congressional support agencies to complete congres-
sional requests. 
‘‘(4) USE OF THE DATA PROVIDED.—Data pro-
vided to a Congressional support agency under this 
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subsection shall only be used by such agency for car-
rying out the functions and activities of the agency 
mandated by Congress. 
‘‘(5) CONFIDENTIALITY.—The Secretary shall 
establish safeguards to protect the confidentiality of 
data released under this subsection. Such safeguards 
shall not provide for greater disclosure than is per-
mitted under any of the following: 
‘‘(A) The Federal regulations (concerning 
the privacy of individually identifiable health in-
formation) promulgated under section 264(c) of 
the Health Insurance Portability and Account-
ability Act of 1996. 
‘‘(B) Section 552 or 552a of title 5, United 
States Code, with regard to the privacy of indi-
vidually identifiable beneficiary health informa-
tion. 
‘‘(6) DEFINITIONS.—In this subsection: 
‘‘(A) CONGRESSIONAL
SUPPORT
AGEN-
CY.—The term ‘Congressional support agency’ 
means— 
‘‘(i) the Medicare Payment Advisory 
Commission; 
‘‘(ii) the Government Accountability 
Office; and 
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‘‘(iii) the Congressional Budget Office. 
‘‘(B) MA–PD
PLAN.—The term ‘MA–PD 
plan’ has the meaning given such term in sec-
tion 1860D–1(a)(3)(C). 
‘‘(C) PRESCRIPTION
DRUG
PLAN.—The 
term ‘prescription drug plan’ has the meaning 
given such term in section 1860D–41(a)(14).’’. 
(b) CONFORMING AMENDMENT.—Section 1805(b)(2) 
of the Social Security Act (42 U.S.C. 1395b–6(b)(2)) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(D) PART D.—Specifically, the Commis-
sion shall review payment policies with respect 
to the Voluntary Prescription Drug Benefit 
Program under part D, including— 
‘‘(i) the factors affecting expenditures; 
‘‘(ii) payment methodologies; and 
‘‘(iii) their relationship to access and 
quality of care for Medicare beneficiaries.’’. 
SEC. 910. ABSTINENCE EDUCATION. 
Section 510 of the Social Security Act (42 U.S.C. 
710) is amended to read as follows: 
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‘‘SEC. 510. SEPARATE PROGRAM FOR ABSTINENCE EDU-
CATION. 
‘‘(a) IN GENERAL.—For the purpose described in 
subsection (b), the Secretary shall, for fiscal year 2008 
and fiscal year 2009, allot to each State which has trans-
mitted an application for the fiscal year under section 
505(a) an amount equal to the product of— 
‘‘(1) the amount appropriated in subsection (d) 
for the fiscal year; and 
‘‘(2) the percentage determined for the State 
under section 502(c)(1)(B)(ii). 
‘‘(b) PURPOSE OF ALLOTMENT.— 
‘‘(1) PURPOSE.—The purpose of an allotment 
under subsection (a) to a State is to enable the 
State to provide abstinence education, and where ap-
propriate, mentoring, counseling, and adult super-
vision to promote abstinence from sexual activity, 
with a focus on those groups which are most likely 
to bear children out-of-wedlock. 
‘‘(2) DEFINITION; STATE
OPTION.—For pur-
poses of this section, the term ‘abstinence education’ 
has, at the option of each State receiving an allot-
ment under subsection (a), the meaning given such 
term in subparagraph (A), or the meaning given 
such term in subparagraph (B), as follows: 
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‘‘(A) Such term means a medically and sci-
entifically accurate educational or motivational 
program which— 
‘‘(i) has as its exclusive purpose, 
teaching the social, psychological, and 
health gains to be realized by abstaining 
from sexual activity; 
‘‘(ii) teaches abstinence from sexual 
activity outside marriage as the expected 
standard for all school age children; 
‘‘(iii) teaches that abstinence from 
sexual activity is the only certain way to 
avoid out-of-wedlock pregnancy, sexually 
transmitted diseases, and other associated 
health problems; 
‘‘(iv) teaches that a mutually faithful 
monogamous relationship in context of 
marriage is the expected standard of 
human sexual activity; 
‘‘(v) teaches that sexual activity out-
side of the context of marriage is likely to 
have harmful psychological and physical ef-
fects; 
‘‘(vi) teaches that bearing children 
out-of-wedlock is likely to have harmful 
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consequences for the child, the child’s par-
ents, and society; 
‘‘(vii) teaches young people how to re-
ject sexual advances and how alcohol and 
drug use increases vulnerability to sexual 
advances; and 
‘‘(viii) teaches the importance of at-
taining self-sufficiency before engaging in 
sexual activity. 
‘‘(B) Such term means a medically and sci-
entifically accurate educational or motivational 
program which promotes abstinence and edu-
cates those who are currently sexually active or 
at risk of sexual activity about additional meth-
ods to prevent unintended pregnancy or reduce 
other health risks. 
‘‘(3) CERTAIN REQUIREMENTS.— 
‘‘(A) LIMITATION REGARDING INACCURATE 
INFORMATION.—None of the funds made avail-
able under this section may be used to provide 
abstinence education that includes information 
that is medically and scientifically inaccurate. 
For purposes of this section, the term ‘medi-
cally and scientifically inaccurate’ means infor-
mation that is unsupported or contradicted by 
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a preponderance of peer-reviewed research by 
leading medical, psychological, psychiatric, and 
public health publications, organizations and 
agencies. 
‘‘(B) EFFECTIVENESS
REGARDING
CER-
TAIN MATTERS.—None of the funds made avail-
able under this section may be used for a pro-
gram unless the program is based on a model 
that has been demonstrated to be effective in 
preventing unintended pregnancy, or in reduc-
ing the transmission of a sexually transmitted 
disease, including the human immunodeficiency 
virus. The preceding sentence does not apply to 
any program that was approved and funded 
under this section on or before September 30, 
2007. 
‘‘(c) APPLICABILITY OF CERTAIN SECTIONS.— 
‘‘(1) REQUIREMENTS.—Sections 503, 507, and 
508 apply to allotments under subsection (a) to the 
same extent and in the same manner as such sec-
tions apply to allotments under section 502(c). 
‘‘(2) DISCRETION
OF
SECRETARY.—Sections 
505 and 506 apply to allotments under subsection 
(a) to the extent determined by the Secretary to be 
appropriate. 
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‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of allotments under subsection (a), there is au-
thorized to be appropriated $50,000,000 for each of fiscal 
years 2008 and 2009.’’. 
TITLE X—REVENUES 
SEC. 1001. INCREASE IN RATE OF EXCISE TAXES ON TO-
BACCO PRODUCTS AND CIGARETTE PAPERS 
AND TUBES. 
(a) SMALL CIGARETTES.—Paragraph (1) of section 
5701(b) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘$19.50 per thousand ($17 per thousand on 
cigarettes removed during 2000 or 2001)’’ and inserting 
‘‘$42 per thousand’’. 
(b) LARGE CIGARETTES.—Paragraph (2) of section 
5701(b) of such Code is amended by striking ‘‘$40.95 per 
thousand ($35.70 per thousand on cigarettes removed 
during 2000 or 2001)’’ and inserting ‘‘$88.20 per thou-
sand’’. 
(c) SMALL
CIGARS.—Paragraph (1) of section 
5701(a) of such Code is amended by striking ‘‘$1.828 
cents per thousand ($1.594 cents per thousand on cigars 
removed during 2000 or 2001)’’ and inserting ‘‘$42 per 
thousand’’. 
(d) LARGE
CIGARS.—Paragraph (2) of section 
5701(a) of such Code is amended— 
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(1) by striking ‘‘20.719 percent (18.063 percent 
on cigars removed during 2000 or 2001)’’ and in-
serting ‘‘40 percent (33 percent on cigars removed 
after December 31, 2007, and before October 1, 
2013)’’, and 
(2) by striking ‘‘$48.75 per thousand ($42.50 
per thousand on cigars removed during 2000 or 
2001)’’ and inserting ‘‘$1 per cigar’’. 
(e) CIGARETTE PAPERS.—Subsection (c) of section 
5701 of such Code is amended by striking ‘‘1.22 cents 
(1.06 cents on cigarette papers removed during 2000 or 
2001)’’ and inserting ‘‘2.63 cents’’. 
(f) CIGARETTE TUBES.—Subsection (d) of section 
5701 of such Code is amended by striking ‘‘2.44 cents 
(2.13 cents on cigarette tubes removed during 2000 or 
2001)’’ and inserting ‘‘5.26 cents’’. 
(g) SNUFF.—Paragraph (1) of section 5701(e) of 
such Code is amended by striking ‘‘58.5 cents (51 cents 
on snuff removed during 2000 or 2001)’’ and inserting 
‘‘$1.26’’. 
(h) CHEWING TOBACCO.—Paragraph (2) of section 
5701(e) of such Code is amended by striking ‘‘19.5 cents 
(17 cents on chewing tobacco removed during 2000 or 
2001)’’ and inserting ‘‘42 cents’’. 
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(i) PIPE TOBACCO.—Subsection (f) of section 5701 
of such Code is amended by striking ‘‘$1.0969 cents 
(95.67 cents on pipe tobacco removed during 2000 or 
2001)’’ and inserting ‘‘$2.36’’. 
(j) ROLL-YOUR-OWN TOBACCO.— 
(1) IN
GENERAL.—Subsection (g) of section 
5701 of such Code is amended by striking ‘‘$1.0969 
cents (95.67 cents on roll-your-own tobacco removed 
during 2000 or 2001)’’ and inserting ‘‘$7.4667’’. 
(2) INCLUSION
OF
CIGAR
TOBACCO.—Sub-
section (o) of section 5702 of such Code is amended 
by inserting ‘‘or cigars, or for use as wrappers for 
making cigars’’ before the period at the end. 
(k) EFFECTIVE DATE.—The amendments made by 
this section shall apply to articles removed after December 
31, 2007. 
(l) FLOOR STOCKS TAXES.— 
(1) IMPOSITION OF TAX.—On cigarettes manu-
factured in or imported into the United States which 
are removed before January 1, 2008, and held on 
such date for sale by any person, there is hereby im-
posed a tax in an amount equal to the excess of— 
(A) the tax which would be imposed under 
section 5701 of the Internal Revenue Code of 
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1986 on the article if the article had been re-
moved on such date, over 
(B) the prior tax (if any) imposed under 
section 5701 of such Code on such article. 
(2) AUTHORITY TO EXEMPT CIGARETTES HELD 
IN VENDING MACHINES.—To the extent provided in 
regulations prescribed by the Secretary, no tax shall 
be imposed by paragraph (1) on cigarettes held for 
retail sale on January 1, 2008, by any person in any 
vending machine. If the Secretary provides such a 
benefit with respect to any person, the Secretary 
may reduce the $500 amount in paragraph (3) with 
respect to such person. 
(3) CREDIT AGAINST TAX.—Each person shall 
be allowed as a credit against the taxes imposed by 
paragraph (1) an amount equal to $500. Such credit 
shall not exceed the amount of taxes imposed by 
paragraph (1) for which such person is liable. 
(4) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
(A) LIABILITY FOR TAX.—A person hold-
ing cigarettes on January 1, 2008, to which any 
tax imposed by paragraph (1) applies shall be 
liable for such tax. 
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(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such 
manner as the Secretary shall prescribe by reg-
ulations. 
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore April 14, 2008. 
(5) ARTICLES IN FOREIGN TRADE ZONES.—- 
Notwithstanding the Act of June 18, 1934 (48 Stat. 
998, 19 U.S.C. 81a) and any other provision of law, 
any article which is located in a foreign trade zone 
on January 1, 2008, shall be subject to the tax im-
posed by paragraph (1) if— 
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with re-
spect to such article before such date pursuant 
to a request made under the 1st proviso of sec-
tion 3(a) of such Act, or 
(B) such article is held on such date under 
the supervision of a customs officer pursuant to 
the 2d proviso of such section 3(a). 
(6) DEFINITIONS.—For purposes of this sub-
section— 
(A) IN GENERAL.—Terms used in this sub-
section which are also used in section 5702 of 
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