A bill to amend title XVIII of the Social Security Act to provide for the automatic enrollment of medicaid beneficiaries for prescription drug benefits under part D of such title, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Assurance of Rx 
Transitional Assistance Act of 2004''.

SEC. 2. AUTOMATIC ENROLLMENT OF MEDICAID BENEFICIARIES ELIGIBLE FOR 
              MEDICARE PRESCRIPTION DRUG BENEFITS.

    (a) Automatic Enrollment of Beneficiaries Receiving Medical 
Assistance for Medicare Cost-Sharing Under Medicaid.--Section 1860D-
14(a)(3)(B)(v) (42 U.S.C. 1395w-114(a)(3)(B)(v)) is amended to read as 
follows:
                            ``(v) Treatment of medicaid 
                        beneficiaries.--Subject to subparagraph (F), 
                        the Secretary shall provide that part D 
                        eligible individuals who are--
                                    ``(I) full-benefit dual eligible 
                                individuals (as defined in section 
                                1935(c)(6)) or who are recipients of 
                                supplemental security income benefits 
                                under title XVI shall be treated as 
                                subsidy eligible individuals described 
                                in paragraph (1); and
                                    ``(II) not described in subclause 
                                (I), but who are determined for 
                                purposes of the State plan under title 
                                XIX to be eligible for medical 
                                assistance under clause (i), (iii), or 
                                (iv) of section 1902(a)(10)(E), shall 
                                be treated as being determined to be 
                                subsidy eligible individuals described 
                                in paragraph (1).''.
    (b) Assurance of Transitional Assistance Under Drug Discount Card 
Program.--
            (1) In general.--Section 1860D-31(b)(2)(A) of the Social 
        Security Act (42 U.S.C. 1395w-141(b)(2)(A)) is amended by 
        adding at the end the following new sentence: ``Subject to 
        subparagraph (B), each discount card eligible individual who is 
        described in section 1860D-14(a)(3)(B)(v) shall be considered 
        to be a transitional assistance eligible individual.''.
            (2) Automatic enrollment of medicaid beneficiaries.--
        Section 1860D-31(c)(1) of the Social Security Act (42 U.S.C. 
        1395w-141(c)(1)) is amended by adding at the end the following 
        new subparagraph:
                    ``(F) Automatic enrollment of certain 
                beneficiaries.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall--
                                    ``(I) enroll each discount card 
                                eligible individual who is described in 
                                section 1860D-14(a)(3)(B)(v), but who 
                                has not enrolled in an endorsed 
                                discount card program as of August 15, 
                                2004, in an endorsed discount card 
                                program selected by the Secretary that 
                                serves residents of the State in which 
                                the individual resides; and
                                    ``(II) notwithstanding paragraphs 
                                (2) and (3) of subsection (f), 
                                automatically determine that such 
                                individual is a transitional assistance 
                                eligible individual (including whether 
                                such individual is a special 
                                transitional assistance eligible 
                                individual) without requiring any self-
                                certification or subjecting such 
                                individual to any verification under 
                                such paragraphs.
                            ``(ii) Opt-out.--The Secretary shall not 
                        enroll an individual under clause (i) if the 
                        individual notifies the Secretary that such 
                        individual does not wish to be enrolled and be 
                        determined to be a transitional assistance 
                        eligible individual under such clause before 
                        the individual is so enrolled.''.
            (3) Notice of eligibility for transitional assistance.--
        Section 1860D-31(d) of the Social Security Act (42 U.S.C. 
        1395w-141(d)) is amended by adding at the end the following new 
        paragraph:
            ``(4) Notice of eligibility to medicaid beneficiaries.--Not 
        later than July 15, 2004, each State or the Secretary (at the 
        option of each State) shall mail to each discount card eligible 
        individual who is described in section 1860D-14(a)(3)(B)(v), 
        but who has not enrolled in an endorsed discount card program 
        as of July 1, 2004, a notice stating that--
                    ``(A) such individual is eligible to enroll in an 
                endorsed discount card program and to receive 
                transitional assistance under subsection (g);
                    ``(B) if such individual does not enroll before 
                August 15, 2004, such individual will automatically be 
                enrolled in an endorsed discount card program selected 
                by the Secretary unless the individual notifies the 
                Secretary that such individual does not wish to be so 
                enrolled;
                    ``(C) if the individual is enrolled in an endorsed 
                discount card program during 2004, the individual will 
                be permitted to change enrollment under subsection 
                (c)(1)(C)(ii) for 2005; and
                    ``(D) there is no obligation to use the endorsed 
                discount card program or transitional assistance when 
                purchasing prescription drugs.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 101 of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003 (Public 
Law 108-173; 117 Stat. 2071).

Summary: Medicare Assurance of Rx Transitional Assistance Act of 2004 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to provide for the automatic enrollment of Medicare Savings Program (MSP) beneficiaries under SSA title XIX (Medicaid) in the interim prescription drug discount program and the transitional assistance program, making them eligible for the $600 per year in low-income discount card assistance without requiring a separate enrollment process.