I 
110TH CONGRESS 
1ST SESSION H. R. 1536 
To amend part D of title XVIII of the Social Security Act to assist low- 
income individuals in obtaining subsidized prescription drug coverage 
under the Medicare prescription drug program by expediting the applica-
tion and qualification process and by revising the resource standards 
used to determine eligibility for such subsidies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 15, 2007 
Mr. DOGGETT (for himself, Mr. ABERCROMBIE, Mr. ACKERMAN, Mr. ALLEN, 
Mr. ANDREWS, Mr. BACA, Mr. BECERRA, Ms. BERKLEY, Mr. BERMAN, 
Mr. BERRY, Mr. BISHOP of Georgia, Mr. BISHOP of New York, Mr. 
BLUMENAUER, Ms. CORRINE BROWN of Florida, Mr. BUTTERFIELD, 
Mrs. CAPPS, Mr. CAPUANO, Mr. CARDOZA, Ms. CARSON, Ms. CASTOR, 
Mr. CHANDLER, Mrs. CHRISTENSEN, Ms. CLARKE, Mr. CLAY, Mr. 
CLEAVER, Mr. CLYBURN, Mr. COHEN, Mr. CONYERS, Mr. COSTELLO, 
Mr. COURTNEY, Mr. CROWLEY, Mr. CUELLAR, Mr. CUMMINGS, Mr. 
DAVIS of Alabama, Mr. DAVIS of Illinois, Mrs. DAVIS of California, Mr. 
DEFAZIO, Ms. DEGETTE, Mr. DELAHUNT, Ms. DELAURO, Mr. DOYLE, 
Mr. EDWARDS, Mr. ELLISON, Mr. EMANUEL, Mr. ENGEL, Mr. 
FALEOMAVAEGA, Mr. FARR, Mr. FATTAH, Mr. FILNER, Mr. FRANK of 
Massachusetts, Mr. GONZALEZ, Mr. GORDON of Tennessee, Mr. AL 
GREEN of Texas, Mr. GENE GREEN of Texas, Mr. GRIJALVA, Mr. 
GUTIERREZ, Mr. HARE, Mr. HASTINGS of Florida, Ms. HERSETH, Mr. 
HIGGINS, Mr. HINCHEY, Mr. HINOJOSA, Ms. HIRONO, Mr. HONDA, Mr. 
INSLEE, Mr. ISRAEL, Mr. JACKSON of Illinois, Ms. JACKSON-LEE of 
Texas, Mr. JEFFERSON, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. 
JOHNSON of Georgia, Mrs. JONES of Ohio, Mr. KANJORSKI, Ms. KAP-
TUR, Mr. KENNEDY, Mr. KILDEE, Ms. KILPATRICK, Mr. KLEIN of Flor-
ida, Mr. KUCINICH, Mr. LANGEVIN, Mr. LANTOS, Mr. LARSON of Con-
necticut, Ms. LEE, Mr. LEVIN, Mr. LEWIS of Georgia, Mr. LIPINSKI, 
Mrs. LOWEY, Mr. LYNCH, Mrs. MALONEY of New York, Ms. MATSUI, 
Ms. MCCOLLUM of Minnesota, Mr. MCDERMOTT, Mr. MCGOVERN, Mr. 
MCNULTY, Mr. MEEHAN, Mr. MEEK of Florida, Mr. MEEKS of New 
York, Mr. MICHAUD, Ms. MILLENDER-MCDONALD, Mr. MILLER of North 
Carolina, Mr. GEORGE MILLER of California, Mr. MOORE of Kansas, Ms. 
MOORE of Wisconsin, Mr. MORAN of Virginia, Mr. NADLER, Mrs. 
NAPOLITANO, Mr. NEAL of Massachusetts, Ms. NORTON, Mr. OBERSTAR, 
Mr. OLVER, Mr. ORTIZ, Mr. PASCRELL, Mr. PASTOR, Mr. PAYNE, Mr. 
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POMEROY, Mr. PRICE of North Carolina, Mr. RANGEL, Mr. RODRIGUEZ, 
Mr. ROSS, Mr. ROTHMAN, Ms. ROYBAL-ALLARD, Mr. RUSH, Mr. RYAN 
of Ohio, Ms. LINDA T. SA´NCHEZ of California, Ms. LORETTA SANCHEZ 
of California, Mr. SARBANES, Ms. SCHAKOWSKY, Mr. SCHIFF, Ms. 
SCHWARTZ, Mr. SCOTT of Virginia, Mr. SCOTT of Georgia, Mr. SERRANO, 
Mr. SHERMAN, Mr. SIRES, Ms. SLAUGHTER, Ms. SOLIS, Mr. STARK, Mr. 
STUPAK, Ms. SUTTON, Mr. THOMPSON of Mississippi, Mr. TIERNEY, Mr. 
TOWNS, Mr. UDALL of New Mexico, Mr. VAN HOLLEN, Ms. VELA´ZQUEZ, 
Ms. WASSERMAN SCHULTZ, Ms. WATERS, Ms. WATSON, Mr. WATT, Mr. 
WAXMAN, Mr. WEINER, Mr. WELCH of Vermont, Mr. WEXLER, Ms. 
WOOLSEY, Mr. WU, Mr. WYNN, Mr. YARMUTH, and Mr. LOEBSACK) in-
troduced the following bill; which was referred to the Committee on En-
ergy and Commerce, and in addition to the Committee on Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend part D of title XVIII of the Social Security 
Act to assist low-income individuals in obtaining sub-
sidized prescription drug coverage under the Medicare 
prescription drug program by expediting the application 
and qualification process and by revising the resource 
standards used to determine eligibility for such subsidies, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Prescription Coverage Now Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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Sec. 2. Expediting low-income subsidies under the Medicare prescription drug 
program. 
Sec. 3. Modification of resource standards for determination of eligibility for 
low-income subsidy; simplification of income and asset rules. 
Sec. 4. Indexing deductible and cost-sharing above annual out-of-pocket thresh-
old for individuals with income below 150 percent of poverty 
line. 
Sec. 5. No impact on eligibility for benefits under other programs. 
Sec. 6. Screening by Commissioner of Social Security for eligibility under Medi-
care savings programs. 
Sec. 7. Special enrollment period for subsidy eligible individuals. 
Sec. 8. Waiver of late enrollment penalty for subsidy eligible individuals. 
SEC. 2. EXPEDITING LOW-INCOME SUBSIDIES UNDER THE 
MEDICARE PRESCRIPTION DRUG PROGRAM. 
(a) IN GENERAL.—Section 1860D–14 of the Social 
Security Act (42 U.S.C. 1395w–114) is amended by add-
ing at the end the following new subsection: 
‘‘(e) EXPEDITED APPLICATION
AND ELIGIBILITY 
PROCESS.— 
‘‘(1) EXPEDITED PROCESS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide for an expedited process under this sub-
section for the qualification for low-income as-
sistance under this section through a request to 
the Secretary of the Treasury as provided in 
subparagraphs (B) and (C) for information suf-
ficient to identify whether the individual in-
volved is likely eligible for subsidies under this 
section based on such information and the 
amount of premium and cost-sharing subsidies 
for which they would qualify based on such in-
formation. Such process shall be conducted in 
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cooperation with the Commissioner of Social 
Security. 
‘‘(B) OPT IN FOR NEWLY ELIGIBLE INDI-
VIDUALS.—Not later than 60 days after the 
date of the enactment of this subsection, the 
Secretary shall ensure that, as part of the 
Medicare enrollment process, enrolling individ-
uals— 
‘‘(i) receive information describing the 
low-income subsidy provided under this 
section; and 
‘‘(ii) are provided the opportunity to 
opt-in to the expedited process described in 
this subsection by requesting that the 
Commissioner of Social Security screen the 
individual involved for eligibility for such 
subsidy through a request to the Secretary 
of the Treasury under section 6103(l)(21) 
of the Internal Revenue Code of 1986. 
‘‘(C) TRANSITION FOR CURRENTLY ELIGI-
BLE INDIVIDUALS.—In the case of any part D 
eligible individual to which subparagraph (B) 
did not apply at the time of such individual’s 
enrollment, the Secretary shall, not later than 
60 days after the date of the implementation of 
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subparagraph (B), request that the Commis-
sioner of Social Security screen such individual 
for eligibility for the low-income subsidy pro-
vided under this section through a request to 
the Secretary of the Treasury under section 
6103(l)(21) of the Internal Revenue Code of 
1986. 
‘‘(2) NOTIFICATION OF POTENTIALLY ELIGIBLE 
INDIVIDUALS.—Under such process, in the case of 
each individual identified under paragraph (1) who 
has not otherwise applied for, or been determined el-
igible for, benefits under this section (or who has ap-
plied for and been determined ineligible for such 
benefits based only on excess resources), the Sec-
retary shall send them a letter (using basic, uncom-
plicated language) containing the following: 
‘‘(A) ELIGIBILITY.—A statement that, 
based on the information obtained under para-
graph (1), the individual is likely eligible for 
low-income subsidies under this section. 
‘‘(B) AMOUNT OF SUBSIDIES.—A descrip-
tion of the amount of premium and cost-sharing 
subsidies under this section for which the indi-
vidual would likely be eligible based on such in-
formation. 
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‘‘(C) 
ENROLLMENT
OPPORTUNITY.—In 
case the individual is not enrolled in a prescrip-
tion drug plan or MA–PD plan— 
‘‘(i) a statement that— 
‘‘(I) the individual has the oppor-
tunity to enroll in a prescription drug 
plan or MA–PD plan for benefits 
under this part, but is not required to 
be so enrolled; and 
‘‘(II) if the individual has cred-
itable prescription drug coverage, the 
individual need not so enroll; 
‘‘(ii) a list of the prescription drug 
plans and MA–PD plans in which the indi-
vidual is eligible to enroll; 
‘‘(iii) an enrollment form that may be 
used to enroll in such a plan by mail and 
that provides that if the individual wishes 
to enroll but does not designate a plan, the 
Secretary is authorized to enroll the indi-
vidual in such a prescription drug plan se-
lected by the Secretary; and 
‘‘(iv) a statement that the individual 
may also enroll online or by telephone, but, 
in order to qualify for low-income sub-
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sidies, the individual must complete the at-
testation described in subparagraph (D) or 
otherwise apply for such subsidies. 
‘‘(D) ATTESTATION.—A one-page applica-
tion form that provides for a signed attestation, 
under penalty of law, as to the amount of in-
come and assets of the individual and con-
stitutes an application for the low-income sub-
sidies described in subparagraph (B). Such 
form— 
‘‘(i) shall not require the submittal of 
additional documentation regarding income 
or assets; 
‘‘(ii) shall permit the appointment of 
a personal representative described in 
paragraph (5); and 
‘‘(iii) shall allow for the specification 
of a language (other than English) that is 
preferred by the individual for subsequent 
communications with respect to the indi-
vidual under this part. 
‘‘(E) INFORMATION ON SHIP.—Information 
on how the individual may contact the State 
Health Insurance Assistance Program (SHIP) 
for the State in which the individual is located 
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in order to obtain assistance regarding enroll-
ment and benefits under this part. 
If a State is doing its own outreach to low-income 
seniors regarding enrollment and low-income sub-
sidies under this part, such process shall be coordi-
nated with the State’s outreach effort. 
‘‘(3) FOLLOW-UP COMMUNICATIONS.—If the in-
dividual does not respond to the letter described in 
paragraph (2) either by making an enrollment de-
scribed in paragraph (2)(C), completing an attesta-
tion described in paragraph (2)(D), or declining ei-
ther or both, the Secretary shall make additional at-
tempts to contact the individual to obtain such an 
affirmative response. 
‘‘(4) HOLD-HARMLESS.—Under such process, if 
an individual in good faith and in the absence of 
fraud executes an attestation described in paragraph 
(2)(D) and is provided low-income subsidies under 
this section on the basis of such attestation, if the 
individual is subsequently found not eligible for such 
subsidies, there shall be no recovery made against 
the individual because of such subsidies improperly 
paid. 
‘‘(5) USE OF AUTHORIZED REPRESENTATIVE.— 
Under such process, with proper authorization 
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(which may be part of the attestation form described 
in paragraph (2)(D)), an individual may authorize 
another individual to act as the individual’s personal 
representative with respect to communications under 
this part and the enrollment of the individual under 
a prescription drug plan (or MA–PD plan) and for 
low-income subsidies under this section. 
‘‘(6) USE OF PREFERRED LANGUAGE IN SUBSE-
QUENT COMMUNICATIONS.—In the case an attesta-
tion described in paragraph (2)(D) is completed and 
in which a language other than English is specified 
under clause (iii) of such paragraph, the Secretary 
shall provide that subsequent communications to the 
individual under this part shall be in such language. 
‘‘(7) CONSTRUCTION.—Nothing in this sub-
section shall be construed as precluding the Sec-
retary from taking additional outreach efforts to en-
roll eligible individuals under this part and to pro-
vide low-income subsidies to eligible individuals.’’. 
(b) PRESCRIPTION DRUG PLANS REQUIRED TO PRO-
VIDE EXPEDITED LOW-INCOME SUBSIDY OPT-IN AS PART 
OF APPLICATIONS.— 
(1) 
IN
GENERAL.—Section 
1860D– 
1(b)(1)(B)(vi) of such Act (42 U.S.C. 1395w– 
101(b)(1)(B)(vi)) is amended by inserting before the 
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period at the end the following: ‘‘, except that any 
application form distributed by a sponsor of a pre-
scription drug plan, or an organization offering an 
MA–PD plan, shall contain an option for a part D 
eligible individual to opt-in to the expedited process 
under section 1860D–14(e) for low-income assist-
ance subsidies under such section by requesting that 
the individual be screened for eligibility for such 
subsidy through a request to the Secretary of the 
Treasury under section 6103(l)(21) of the Internal 
Revenue Code of 1986’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to application forms for 
plan years beginning with 2008. 
(c) DISCLOSURE
OF RETURN INFORMATION
FOR 
PURPOSES OF SCREENING INDIVIDUALS FOR ELIGIBILITY 
FOR LOW-INCOME SUBSIDIES UNDER MEDICARE.— 
(1) IN
GENERAL.—Subsection (l) of section 
6103 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
paragraph: 
‘‘(21) DISCLOSURE OF RETURN INFORMATION 
FOR
PURPOSES
OF
PROVIDING
LOW-INCOME
SUB-
SIDIES UNDER MEDICARE.— 
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‘‘(A) RETURN INFORMATION FROM INTER-
NAL REVENUE SERVICE TO SOCIAL SECURITY 
ADMINISTRATION.—The Secretary, upon writ-
ten request from the Commissioner of Social 
Security under section 1860D–14(e)(1) of the 
Social Security Act, shall disclose to the Com-
missioner with respect to any taxpayer identi-
fied by the Commissioner— 
‘‘(i)(I) whether the adjusted gross in-
come, as modified in accordance with spec-
ifications of the Secretary of Health and 
Human Services for purposes of carrying 
out such section, of such taxpayer and, if 
applicable, such taxpayer’s spouse, for the 
applicable year, exceeds the amounts speci-
fied by the Secretary of Health and 
Human Services in order to apply the 135 
and 150 percent poverty lines under such 
section, 
‘‘(II) the adjusted gross income (as 
determined under subclause (I)), in the 
case of a taxpayer with respect to which 
such adjusted gross income exceeds the 
amount so specified for applying the 135 
percent poverty line and does not exceed 
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the amount so specified for applying the 
150 percent poverty line, 
‘‘(III) whether the return was a joint 
return for the applicable year, and 
‘‘(IV) the applicable year, or 
‘‘(ii) if applicable, the fact that there 
is no return filed for such taxpayer for the 
applicable year. 
‘‘(B) DEFINITION OF APPLICABLE YEAR.— 
For the purposes of this paragraph, the term 
‘applicable year’ means the most recent taxable 
year for which information is available in the 
Internal Revenue Service’s taxpayer data infor-
mation systems, or, if there is no return filed 
for such taxpayer for such year, the prior tax-
able year. 
‘‘(C) RESTRICTION ON INDIVIDUALS FOR 
WHOM DISCLOSURE IS REQUESTED.—The Com-
missioner of Social Security shall only request 
information under this paragraph with respect 
to individuals who are described in subpara-
graph (C) of section 1860D–14(e)(1) of the So-
cial Security Act or who have requested that 
such request be made under subparagraph (B) 
of such section. 
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‘‘(D) RETURN INFORMATION FROM SOCIAL 
SECURITY
ADMINISTRATION
TO
DEPARTMENT 
OF HEALTH AND HUMAN SERVICES.—The Com-
missioner of Social Security shall, upon written 
request from the Secretary of Health and 
Human Services, disclose to the Secretary of 
Health and Human Services the information 
described in clauses (i) and (ii) of subparagraph 
(A). 
‘‘(E) PERMISSIVE
DISCLOSURE
TO
OFFI-
CERS, EMPLOYEES, AND
CONTRACTORS.—The 
information described in clauses (i) and (ii) of 
subparagraph (A) may be disclosed among offi-
cers, employees, and contractors of the Social 
Security Administration and the Department of 
Health and Human Services for the purposes 
described in subparagraph (F). 
‘‘(F) RESTRICTION ON USE OF DISCLOSED 
INFORMATION.—Return information disclosed 
under this paragraph may be used only for the 
purposes of identifying eligible individuals for, 
and administering— 
‘‘(i) low-income subsidies under sec-
tion 1860D–14 of the Social Security Act, 
and 
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‘‘(ii) the Medicare Savings Program 
implemented under clauses (i), (iii), and 
(iv) of section 1902(a)(10)(E) of such Act. 
‘‘(G) TERMINATION OF DISCLOSURES FOR 
CERTAIN ELIGIBILITY DETERMINATIONS.—With 
respect to individuals who are described in sub-
paragraph (C) of section 1860D–14(e)(1) of the 
Social Security Act, return information may not 
be disclosed under this paragraph after the date 
that is one year after the date of the enactment 
of this paragraph.’’. 
(2) CONFIDENTIALITY.—Paragraph (3) of sec-
tion 6103(a) of such Code is amended by striking 
‘‘or (20)’’ and inserting ‘‘(20), or (21)’’. 
(3) PROCEDURES
AND
RECORDKEEPING
RE-
LATED TO DISCLOSURES.—Paragraph (4) of section 
6103(p) of such Code is amended by striking ‘‘or 
(20)’’ each place it appears and inserting ‘‘(20), or 
(21)’’. 
(4) UNAUTHORIZED
DISCLOSURE
OR
INSPEC-
TION.—Paragraph (2) of section 7213(a) of such 
Code is amended by striking ‘‘or (20)’’ and inserting 
‘‘(20), or (21)’’. 
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SEC. 3. MODIFICATION OF RESOURCE STANDARDS FOR DE-
TERMINATION OF ELIGIBILITY FOR LOW-IN-
COME SUBSIDY; SIMPLIFICATION OF INCOME 
AND ASSET RULES. 
(a) INCREASING
THE RESOURCE STANDARD AP-
PLIED TO FULL LOW-INCOME SUBSIDY.—Subparagraph 
(D) of section 1860D–14(a)(3)(D) of the Social Security 
Act (42 U.S.C. 1395w–114(a)(3)) is amended— 
(1) in the heading, by striking ‘‘THREE TIMES’’; 
(2) in clause (i), by striking ‘‘and’’ at the end; 
(3) in clause (ii)— 
(A) by striking ‘‘a subsequent year’’ and 
inserting ‘‘2007’’; 
(B) by striking ‘‘this clause for the pre-
vious year’’ and inserting ‘‘clause (i) for 2006’’; 
and 
(C) by inserting ‘‘(or clause (i))’’ after 
‘‘this clause’’; and 
(D) by striking the period at the end and 
inserting a semicolon; 
(4) by adding at the end the following new 
clauses: 
‘‘(iii) for 2008, six times the max-
imum amount of resources that an indi-
vidual may have and obtain benefits under 
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such supplemental security income pro-
gram; and 
‘‘(iv) for a subsequent year the re-
source limitation established under this 
clause (or clause (iii)) for the previous year 
increased by the annual percentage in-
crease in the consumer price index (all 
items; U.S. city average) as of September 
of such previous year.’’; and 
(5) in the last sentence, by inserting ‘‘or (iv)’’ 
after ‘‘clause (ii)’’. 
(b) 
INCREASING
THE
ALTERNATE
RESOURCE 
STANDARD.—Subparagraph (E)(i) of such section is 
amended— 
(1) by striking ‘‘and’’ at the end of subclause 
(I); 
(2) in subclause (II)— 
(A) by striking ‘‘a subsequent year’’ and 
inserting ‘‘2007’’; 
(B) by striking ‘‘in this subclause (or sub-
clause (I)) for the previous year’’ and inserting 
‘‘in subclause (I) for 2006’’; and 
(C) by striking the period at the end and 
inserting a semicolon; 
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(3) by inserting after subclause (II) the fol-
lowing new subclauses: 
‘‘(III) for 2008, $27,500 (or 
$55,000 in the case of the combined 
value of the individual’s assets or re-
sources and the assets or resources of 
the individual’s spouse); and 
‘‘(IV) for a subsequent year the 
dollar amounts specified in this sub-
clause (or subclause (III)) for the pre-
vious year increased by the annual 
percentage increase in the consumer 
price index (all items; U.S. city aver-
age) as of September of such previous 
year.’’; and 
(4) in the last sentence, by inserting ‘‘or (IV)’’ 
after ‘‘subclause (II)’’. 
(c) EXEMPTIONS FROM RESOURCES.—Such section 
is further amended— 
(1) in subparagraphs (D) and (E), by inserting 
‘‘, except as provided in subparagraph (G)’’ after 
‘‘supplemental security income program’’; and 
(2) by adding at the end the following new sub-
paragraph: 
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‘‘(G) ADDITIONAL EXCLUSIONS.—In deter-
mining the resources of an individual (and their 
eligible spouse, if any) under section 1613 for 
purposes of subparagraphs (D) and (E), the 
following additional exclusions shall apply for 
months beginning after the date of the enact-
ment of this subparagraph: 
‘‘(i) LIFE
INSURANCE
POLICY.—No 
part of the value of any life insurance pol-
icy shall be taken into account. 
‘‘(ii) 
PENSION
OR
RETIREMENT 
PLAN.—No balance in any pension or re-
tirement plan shall be taken into ac-
count.’’. 
(d) NOT COUNTING IN-KIND SUPPORT AND MAINTE-
NANCE AS INCOME.—Such section is further amended in 
subparagraph (C)(i), by inserting ‘‘and except that sup-
port and maintenance furnished in kind shall not be count-
ed as income for months beginning after the date of the 
enactment of the Prescription Coverage Now Act of 2007’’ 
after ‘‘section 1902(r)(2)’’. 
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SEC. 4. INDEXING DEDUCTIBLE AND COST-SHARING ABOVE 
ANNUAL OUT-OF-POCKET THRESHOLD FOR 
INDIVIDUALS WITH INCOME BELOW 150 PER-
CENT OF POVERTY LINE. 
(a) 
INDEXING
DEDUCTIBLE.—Section 
1860D– 
14(a)(4)(B) of the Social Security Act (42 U.S.C. 1395w– 
114(a)(4)(B)) is amended— 
(1) in clause (i), by striking ‘‘or’’; 
(2) in clause (ii)— 
(A) by striking ‘‘a subsequent year’’ and 
inserting ‘‘2008’’; 
(B) by striking ‘‘this clause (or clause (i)) 
for the previous year’’ and inserting ‘‘clause (i) 
for 2007’’; and 
(C) by striking the period at the end and 
inserting ‘‘; and’’; 
(3) by adding after clause (ii) the following new 
clause: 
‘‘(iii) for 2008 and each succeeding 
year, the amount determined under this 
subparagraph for the previous year in-
creased by the annual percentage increase 
in the consumer price index (all items; 
U.S. city average) as of September of such 
previous year.’’; and 
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(4) in the last sentence, by striking ‘‘clause (i) 
or (ii)’’ and inserting ‘‘clause (i), (ii), or (iii)’’. 
(b) INDEXING
COST-SHARING.—Section 1860D– 
14(a) of the Social Security Act (42 U.S.C. 1395w– 
114(a)) is amended— 
(1) in paragraph (1)(D)(iii), by striking ‘‘exceed 
the copayment amount’’ and all that follows through 
the period at the end and inserting ‘‘exceed— 
‘‘(I) for 2006 and 2007, the co-
payment amount specified under sec-
tion 1860D–2(b)(4)(A)(i)(I) for the 
drug and year involved; and 
‘‘(II) for 2008 and each suc-
ceeding year, the amount determined 
under this subparagraph for the pre-
vious year increased by the annual 
percentage increase in the consumer 
price index (all items; U.S. city aver-
age) as of September of such previous 
year.’’; and 
(2) in paragraph (2)(E), by striking ‘‘exceed 
the copayment or coinsurance amount’’ and all that 
follows through the period at the end and inserting 
‘‘exceed— 
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‘‘(i) for 2006 and 2007, the copay-
ment or coinsurance amount specified 
under section 1860D–2(b)(4)(A)(i)(I) for 
the drug and year involved; and 
‘‘(ii) for 2008 and each succeeding 
year, the amount determined under this 
clause for the previous year increased by 
the annual percentage increase in the con-
sumer price index (all items; U.S. city av-
erage) as of September of such previous 
year.’’. 
SEC. 5. NO IMPACT ON ELIGIBILITY FOR BENEFITS UNDER 
OTHER PROGRAMS. 
(a) IN GENERAL.—Section 1860D–14(a)(3) of the 
Social Security Act (42 U.S.C. 1395w–114(a)(3)), as 
amended by section 3(c)(2), is amended— 
(1) in subparagraph (A), in the matter pre-
ceding clause (i), by striking ‘‘subparagraph (F)’’ 
and inserting ‘‘subparagraphs (F) and (H)’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(H) NO
IMPACT
ON
ELIGIBILITY
FOR 
BENEFITS
UNDER
OTHER
PROGRAMS.—The 
availability of premium and cost-sharing sub-
sidies under this section shall not be treated as 
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benefits or otherwise taken into account in de-
termining an individual’s eligibility for, or the 
amount of benefits under, any other Federal 
program.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to premium and cost-sharing 
subsidies for months beginning after the date of the enact-
ment of this Act. 
SEC. 6. SCREENING BY COMMISSIONER OF SOCIAL SECU-
RITY FOR ELIGIBILITY UNDER MEDICARE 
SAVINGS PROGRAMS. 
(a) IN GENERAL.—Section 1860D–14(a)(3)(B)(i) of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1395w– 
114(a)(3)(B)(i)) is amended by inserting after the first 
sentence the following: ‘‘As part of making an eligibility 
determination under the preceding sentence for an indi-
vidual, the Commissioner shall make a determination of 
the individual’s eligibility for medical assistance for any 
medicare cost-sharing described in section 1905(p)(3) and, 
if the individual is eligible for any such medicare cost- 
sharing, transmit the data necessary to verify such eligi-
bility to the appropriate State Medicaid agency.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to determinations made for 
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months beginning after the date of the enactment of this 
Act. 
SEC. 7. SPECIAL ENROLLMENT PERIOD FOR SUBSIDY ELI-
GIBLE INDIVIDUALS. 
(a) IN GENERAL.—Section 1860D–1(b)(3) of the So-
cial Security Act (42 U.S.C. 1395w–101(b)(3)) is amend-
ed by adding at the end the following new subparagraph: 
‘‘(F) ELIGIBILITY FOR LOW-INCOME SUB-
SIDY.— 
‘‘(i) IN GENERAL.—In the case of an 
applicable subsidy eligible individual (as 
defined in clause (ii)), the special enroll-
ment period described in clause (iii). 
‘‘(ii) APPLICABLE SUBSIDY ELIGIBLE 
INDIVIDUAL
DEFINED.—For purposes of 
this subparagraph, the term ‘applicable 
subsidy eligible individual’ means a part D 
eligible individual who is determined under 
subparagraph (B) of section 1860D– 
14(a)(3) to be a subsidy eligible individual 
(as defined in subparagraph (A) of such 
section), and includes such an individual 
who was enrolled in a prescription drug 
plan or an MA–PD plan on the date of 
such determination. 
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‘‘(iii) SPECIAL ENROLLMENT PERIOD 
DESCRIBED.—The special enrollment pe-
riod described in this clause, with respect 
to an applicable subsidy eligible individual, 
is the 90-day period beginning on the date 
the individual receives notification that 
such individual has been determined under 
section 1860D–14(a)(3)(B) to be a subsidy 
eligible individual (as so defined).’’. 
(b) AUTOMATIC ENROLLMENT PROCESS FOR CER-
TAIN SUBSIDY ELIGIBLE INDIVIDUALS.—Section 1860D– 
1(b)(1) is amended by adding at the end the following new 
subparagraph: 
‘‘(D) SPECIAL RULE FOR SUBSIDY ELIGI-
BLE
INDIVIDUALS.—The process established 
under subparagraph (A) shall include, in the 
case of an applicable subsidy eligible individual 
(as defined in clause (ii) of paragraph (3)(F)) 
who fails to enroll in a prescription drug plan 
or an MA–PD plan during the special enroll-
ment period described in clause (iii) of such 
paragraph applicable to such individual, a proc-
ess for the facilitated enrollment of the indi-
vidual in the prescription drug plan or MA–PD 
plan that is most appropriate for such indi-
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vidual (as determined by the Secretary). Noth-
ing in the previous sentence shall prevent an in-
dividual described in such sentence from declin-
ing enrollment in a plan determined appropriate 
by the Secretary (or in the program under this 
part) or from changing such enrollment.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to subsidy determinations made 
for months beginning with January 2008. 
SEC. 8. WAIVER OF LATE ENROLLMENT PENALTY FOR SUB-
SIDY ELIGIBLE INDIVIDUALS. 
(a) IN GENERAL.—Section 1860D–13(b) of the So-
cial Security Act (42 U.S.C. 1395w–113(b)) is amended 
by adding at the end the following new paragraph: 
‘‘(8) WAIVER OF LATE ENROLLMENT PENALTY 
FOR SUBSIDY ELIGIBLE INDIVIDUALS.—In the case 
of a subsidy eligible individual (as defined in para-
graph (3)(A) of section 1860D–14(a)) who is deter-
mined to be entitled to a subsidy in accordance with 
paragraph (1) or (2) of such section, there shall not 
be an increase under paragraph (1) in the monthly 
premium of such individual for any month in which 
such individual is determined to be so entitled.’’. 
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(b) CONFORMING AMENDMENT.—Section 1860D– 
14(a)(1)(A) of such Act (42 U.S.C. 1395w–114(a)(1)(A)) 
is amended— 
(1) by striking ‘‘equal to—’’ and all that follows 
through ‘‘(i) 100 percent’’ and inserting ‘‘equal to 
100 percent’’; 
(2) by striking ‘‘; plus’’ and inserting a period; 
and 
(3) by striking clause (ii). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to premiums and subsidies for 
months beginning with January 2008. Nothing in this sec-
tion shall be construed as affecting the waiver of any late 
enrollment penalties for subsidy eligible individuals that 
may have been effected by administrative action for 
months before such month. 
Æ 
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