SEC. 2. LIMITING MEDICARE PART B LATE ENROLLMENT 
PENALTY TO 15 PERCENT AND TWICE THE 
PERIOD OF NO ENROLLMENT. 
(a) IN GENERAL.—The first sentence of section 
1839(b) of the Social Security Act (42 U.S.C. 1395r(b)) 
is amended by striking ‘‘10 percent of the monthly pre-
mium so determined for each full 12 months’’ and insert-
ing ‘‘15 percent of the monthly premium so determined 
for premiums paid during a period equal to twice the num-
ber of months in each of the full periods of 12 months’’. 
(b) CONFORMING AMENDMENTS.—Section 1818 of 
the Social Security Act (42 U.S.C. 1395i–2) is amended— 
(1) in subsection (c)(6), by striking ‘‘and shall 
only apply to premiums paid during a period equal 
to twice the number of months in the full 12-month 
periods described in that section and’’; and 
(2) in subsection (g)(2)(B), by striking ‘‘by sub-
stituting’’ and all that follows and inserting the fol-
lowing: ‘‘by substituting ‘section 1818 (without any 
increase resulting from the application of section 
1839(b) to such section 1818)’ for ‘section 1839 
(without any increase under subsection (b) there-
of)’.’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to premiums paid for months 
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beginning after the end of the 90-day period begin-
ning on the date of the enactment of this Act. 
(2) CLARIFICATION.—In applying these amend-
ments, months (before, during, or after the month in 
which this Act is enacted) in which an individual 
was or is required to pay an increased premium shall 
be taken into account in determining the month in 
which the premium will no longer be subject to an 
increase. 
SEC. 3. EXCLUSION OF PERIODS OF COBRA, RETIREE, AND 
VA COVERAGE FROM MEDICARE PART B 
LATE ENROLLMENT PENALTY. 
(a) IN GENERAL.—The second sentence of section 
1839(b) of the Social Security Act (42 U.S.C. 1395r(b)) 
is amended— 
(1) by striking ‘‘by reason of the individual’s 
(or the individual’s spouse’s) current employment’’; 
and 
(2) by inserting ‘‘or months for which the indi-
vidual can demonstrate that the individual had cov-
erage under chapter 17 of title 38, United States 
Code’’ before the period at the end. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to premiums paid for months 
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beginning after the end of the 90-day period beginning 
on the date of the enactment of this Act. 
SEC. 4. SPECIAL ENROLLMENT PERIOD FOR INDIVIDUALS 
WHOSE COBRA OR RETIREE COVERAGE TER-
MINATES. 
(a) IN GENERAL.—Section 1837(i) of the Social Se-
curity Act (42 U.S.C. 1395p(i)) is amended— 
(1) in the first sentence of paragraph (1), by 
striking ‘‘by reason of the individual’s (or the indi-
vidual’s spouse’s) current employment status’’ in 
subparagraph (A); 
(2) in the first sentence of paragraph (2) by 
striking ‘‘by reason of the individual’s (or the indi-
vidual’s spouse’s) current employment status’’ each 
place it appears in subparagraphs (B) and (C); and 
(3) in paragraph (3)(A) by striking ‘‘by reason 
of current employment status’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to terminations of coverage oc-
curring after the end of the 90-day period beginning on 
the date of the enactment of this Act. 
Æ 
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