tice, or confirmation from an official Medicare hot-
line. 
(c) PAYMENTS TO PHARMACISTS.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services shall reimburse pharmacists, to the 
extent that such pharmacists are not otherwise reim-
bursed by States or plans, for the costs incurred in 
complying with the requirements under subsection 
(a), including acquisition costs, dispensing costs, and 
other overhead costs. Such payments shall be made 
in a timely manner from the Medicare Prescription 
Drug Account under section 1860D–16 of the Social 
Security Act (42 U.S.C. 1395w–116) and shall be 
deemed to be payments from such Account under 
subsection (b) of such section. 
(2) RETROACTIVE APPLICATION TO BEGINNING 
OF 2006.—The costs incurred by a pharmacy which 
may be reimbursed under paragraph (1) shall in-
clude costs incurred during the period beginning on 
January 1, 2006, and before the date of enactment 
of this Act. 
(d) RECOVERY OF COSTS FROM PLANS BY SEC-
RETARY NOT PHARMACIES.—The Secretary of Health and 
Human Services shall establish a process for recovering 
the costs described in subsection (c)(1) from prescription
drug plans (as defined in section 1860D–1(a)(3)(C) of the 
Social Security Act (42 U.S.C. 1394w–101(a)(3)(C))) and 
MA–PD plans (as defined in section 1860D–41(a)(14) of 
such Act (42 U.S.C. 1395w–151(a)(14))) if the Secretary 
determines that such plans should have incurred such 
costs. Amounts recovered pursuant to the preceding sen-
tence shall be deposited in the Medicare Prescription Drug 
Account described in subsection (c)(1). 
SEC. 4. IDENTIFYING FULL-BENEFIT DUAL ELIGIBLE INDI-
VIDUALS IN DATA RECORDS. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services and a prescription drug plan or an MA– 
PD plan shall clearly identify all full-benefit dual eligible 
individuals (as defined in section 1935(c)(6) of the Social 
Security Act (42 U.S.C. 1396u–5(c)(6))) and reflect the 
low-income subsidy status of such individual for each cal-
ender year (beginning with 2006) in every data record file 
used to enroll or adjudicate claims for such individuals. 
(b) ENROLLMENT.—For each calendar year (begin-
ning with 2006) and for each Medicaid beneficiary who 
is a full-benefit dual eligible individual (as so defined), the 
Secretary of Health and Human Services shall— 
(1) identify in the Medicare enrollment data-
base that such individual has dual eligible status
that has been verified with a State, including the 
District of Columbia; and 
(2) ensure that such dual eligible status is re-
flected in each data file necessary to ensure that 
such status is transmitted to a prescription drug 
plan or an MA–PD plan when the Secretary certifies 
the enrollment of such an individual in a plan. 
(c) DEFINITION OF MA–PD PLAN AND PRESCRIP-
TION DRUG PLAN.—For purposes of this section, the 
terms ‘‘MA–PD plan’’ and ‘‘prescription drug plan’’ have 
the meaning given such terms in sections 1860D– 
1(a)(3)(C) and 1860D–41(a)(14) of the Social Security 
Act (42 U.S.C. 1395w–101(a)(3)(C); 1395w–151(a)(14)), 
respectively. 
SEC. 5. PROHIBITION ON CONDITIONING MEDICAID ELIGI-
BILITY FOR INDIVIDUALS ENROLLED IN CER-
TAIN 
CREDITABLE 
PRESCRIPTION 
DRUG 
COVERAGE ON ENROLLMENT IN THE MEDI-
CARE PART D DRUG PROGRAM. 
(a) IN GENERAL.—Section 1935 of the Social Secu-
rity Act (42 U.S.C. 1396v) is amended by adding at the 
end the following: 
‘‘(f) PROHIBITION ON CONDITIONING ELIGIBILITY 
FOR MEDICAL ASSISTANCE FOR INDIVIDUALS ENROLLED 
IN CERTAIN CREDITABLE PRESCRIPTION DRUG COV-
ERAGE ON ENROLLMENT IN MEDICARE PRESCRIPTION 
DRUG BENEFIT.— 
‘‘(1) IN GENERAL.—A State shall not condition 
eligibility for medical assistance under the State 
plan for a part D eligible individual (as defined in 
section 1860D–1(a)(3)(A)) who is enrolled in cred-
itable prescription drug coverage described in any of 
subparagraphs (C) through (H) of section 1860D– 
13(b)(4) on the individual’s enrollment in a prescrip-
tion drug plan under part D of title XVIII or an 
MA–PD plan under part C of such title. 
‘‘(2) COORDINATION OF BENEFITS WITH PART 
D FOR OTHER INDIVIDUALS.—Nothing in this sub-
section shall be construed as prohibiting a State 
from coordinating medical assistance under the 
State plan with benefits under part D of title XVIII 
for individuals not described in paragraph (1).’’. 
(b) NULLIFICATION OF STATE PLAN AMENDMENTS, 
REDETERMINATION OF ELIGIBILITY.—In the case of a 
State that, as of the date of enactment of this Act, has 
an approved amendment to its State plan under title XIX 
of the Social Security Act with a provision that conflicts 
with section 1935(f) of such Act (as added by subsection 
(a)), such provision is, as of such date of enactment, null 
and void. The State shall redetermine any applications for
medical assistance that have been denied solely on the 
basis of the application of such a State plan amendment 
not later than 90 days after the date of enactment of this 
Act. 
SEC. 6. ENSURING THAT FULL-BENEFIT DUAL ELIGIBLE IN-
DIVIDUALS ARE NOT OVERCHARGED. 
(a) IN GENERAL.—Section 1860D–14 of the Social 
Security Act (42 U.S.C. 1395w–114) is amended— 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) ENSURING FULL-BENEFIT DUAL ELIGIBLE IN-
DIVIDUALS ARE NOT OVERCHARGED.— 
‘‘(1) IN
GENERAL.—The Secretary shall, as 
soon a possible after the date of enactment of this 
subsection, establish processes for the following: 
‘‘(A) 
TRACKING
INAPPROPRIATE
PAY-
MENTS.—The Secretary shall track full-benefit 
dual eligible individuals enrolled in a prescrip-
tion drug plan or an MA–PD plan to determine 
whether such individuals were inappropriately 
subject under the plan to a deductible or cost- 
sharing that is greater than is required under 
section 1860D–14.