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 application and qualification process, by increasing the maximum permissible resource level for eligibility for such subsidies, and by waiving any late enrollment penalty for the first 24 uncovered months.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prescription Coverage Now Act of 
2006''.

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 adding 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 subsection for the 
                qualification for low-income assistance under this 
                section through a request by the Secretary to the 
                Secretary of the Treasury as provided in subparagraphs 
                (B) and (C) for information sufficient to identify 
                whether the individual involved 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 information. 
                Such process shall be conducted in cooperation with the 
                Commissioner of Social Security.
                    ``(B) Opt in for newly eligible individuals.--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 
                individuals--
                            ``(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 giving consent for the Secretary 
                        to screen the beneficiary for eligibility for 
                        such subsidy through a request to the Secretary 
                        of the Treasury under section 6103(l)(7) of the 
                        Internal Revenue Code of 1986.
                    ``(C) Transition for currently eligible 
                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, as soon as practicable after implementation of 
                subparagraph (B), request in writing that the Secretary 
                of the Treasury disclose, pursuant to section 
                6103(l)(21) of the Internal Revenue Code of 1986, 
                whether such individual has either filed no income tax 
                return or whether such individual's income tax return 
                indicates likely eligibility for the low-income subsidy 
                provided under this section.
            ``(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 eligible for, benefits under this section (or who 
        has applied for and been determined ineligible for such 
        benefits based only on excess resources), the Secretary shall 
        send them a letter (using basic, uncomplicated language) 
        containing the following:
                    ``(A) Eligibility.--A statement that, based on the 
                information obtained under paragraph (1), the 
                individual is likely eligible for low-income subsidies 
                under this section.
                    ``(B) Amount of subsidies.--A description of the 
                amount of premium and cost-sharing subsidies under this 
                section for which the individual would likely be 
                eligible based on such information.
                    ``(C) Enrollment opportunity.--In case the 
                individual is not enrolled in a prescription drug plan 
                or MA-PD plan--
                            ``(i) a statement that--
                                    ``(I) the individual has the 
                                opportunity 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 
                                creditable prescription drug coverage, 
                                the individual need not so enroll;
                            ``(ii) a list of the prescription drug 
                        plans and MA-PD plans in which the individual 
                        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 
                        individual in such a prescription drug plan 
                        selected 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 subsidies, the 
                        individual must complete the attestation 
                        described in subparagraph (D) or otherwise 
                        apply for such subsidies.
                    ``(D) Attestation.--A one-page application form 
                that provides for a signed attestation, under penalty 
                of law, as to the amount of income and assets of the 
                individual and constitutes an application for the low-
                income subsidies 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 
                        (6); and
                            ``(iii) may provide for the specification 
                        of a language (other than English) that is 
                        preferred for subsequent communications with 
                        respect to the individual 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 in order to obtain assistance 
                regarding enrollment and benefits under this part.
        If a State is doing its own outreach to low-income seniors 
        regarding enrollment and low-income subsidies under this part, 
        such process shall be coordinated with the State's outreach 
        effort.
            ``(3) Follow-up communications.--If the individual does not 
        respond to the letter described in paragraph (2) either by 
        making an enrollment described in paragraph (2)(C), completing 
        an attestation described in paragraph (2)(D), or declining 
        either or both, the Secretary shall make additional attempts to 
        contact the individual to obtain such an affirmative response.
            ``(4) Hold-harmless.--Under such process, if an individual 
        in good faith and 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 (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 subsequent 
        communications.--In the case an attestation 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 subsection shall be 
        construed as precluding the Secretary from taking additional 
        outreach efforts to enroll eligible individuals under this part 
        and to provide low-income subsidies to eligible individuals.''.
    (b) Transitional Disclosure of Return Information for Purposes of 
Providing 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) Transitional disclosure of return information for 
        purposes of providing low-income subsidies under medicare.--
                    ``(A) In general.--The Secretary, upon written 
                request from the Secretary of Health and Human Services 
                under section 1860D-14(e)(1) of the Social Security Act 
                for an individual described in subparagraph (C) of such 
                section, shall disclose to officers and employees of 
                the Department of Health and Human Services and the 
                Social Security Administration with respect to a 
                taxpayer for the applicable year--
                            ``(i)(I) whether the adjusted gross income, 
                        as modified in accordance with specifications 
                        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 specified by the Secretary 
                        of Health and Human Services as indicating 
                        likely eligibility for the low-income subsidy 
                        provided under section 1860D-14 of such Act,
                            ``(II) whether the return was a joint 
                        return, and
                            ``(III) 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 information systems, or, if 
                there is no return filed for such taxpayer for such 
                year, the prior taxable year.
                    ``(C) 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 section 
                        1860D-14 of the Social Security Act, and
                            ``(ii) the Medicare Savings Program 
                        implemented under clauses (i), (iii), and (iv) 
                        of section 1902(a)(10)(E) of such Act.
                    ``(D) Termination.--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 section 6103(a) of 
        such Code is amended by striking ``or (20)'' and inserting 
        ``(20), or (21)''.
            (3) Procedures and recordkeeping related 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 inspection.--Paragraph (2) 
        of section 7213(a) of such Code is amended by striking ``or 
        (20)'' and inserting ``(20), or (21)''.

SEC. 3. INCREASE IN PERMITTED RESOURCES TO OBTAIN LOW-INCOME SUBSIDIES.

    (a) Increase in Resource Limits.--Subparagraph (E) of section 
1860D-14(a)(3) of the Social Security Act (42 U.S.C. 1395ww-114(a)(3)) 
is amended--
            (1) in subclause (I), by striking ``for 2006'' and 
        inserting ``for months in 2006 before the first day of the 
        first month beginning after the date of the enactment of the 
        Prescription Drug Now Act of 2006'' and by striking ``and'' at 
        the end;
            (2) by redesignating subclause (II) as subclause (III);
            (3) by inserting after subclause (I) the following new 
        subclause:
                                    ``(II) for months in 2006 beginning 
                                with the first month that begins after 
                                the date of the enactment of the 
                                Prescription Drug Now Act of 2006, 
                                $50,000 (or $100,000 in the case of the 
                                combined value of the individual's 
                                assets or resources and the assets or 
                                resources of the individual's spouse); 
                                and''; and
            (4) in the last sentence, by striking ``subclause (II)'' 
        and inserting ``subclause (III)''.
    (b) Not Counting Value of Life Insurance as Resource.--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 subparagraph:
                    ``(G) Exclusion of life insurance in resources.--
                For purposes of subparagraphs (D) and (E), the value of 
                a life insurance policy shall not be counted as a 
                resource for months beginning after the date of the 
                enactment of this subparagraph.''.

SEC. 4. WAIVER OF LATE ENROLLMENT PENALTY FOR SUBSIDY ELIGIBLE 
              INDIVIDUALS FOR FIRST 24 MONTHS OF NON-ENROLLMENT.

    Section 1860D-13(b)(3)(B) of the Social Security Act (42 U.S.C. 
1395w-113(b)(3)(B)) is amended by inserting before the period at the 
end the following: ``, except that in the case of a subsidy eligible 
individual (as defined in section 1860D-14(a)(3)(A)) the first 24 
uncovered months shall not be counted''.

Summary: Prescription Coverage Now Act of 2006 - Amends part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act to direct the Secretary of Health and Human Service to provide for an expedited process for the qualification for low-income assistance through a request to the Secretary of the Treasury for tax return and other information sufficient to identify: (1) whether the individual involved is likely eligible for subsidies; and (2) the amount of premium and cost-sharing subsidies for which they would qualify based on such information.

Increases the maximum permissible resource level for subsidy eligibility.

Waives the late enrollment penalty for subsidy-eligible individuals for the first 24 months of non-enrollment.