Title: To amend title XVIII of the Social Security Act to limit the penalty for late enrollment under part B of the Medicare Program to 15 percent and twice the period of no enrollment, and to exclude periods of COBRA, retiree, and VA coverage from such late enrollment penalty.
Policy area: Health

Summary:
This bill modifies provisions relating to enrollment periods for Medicare medical services.
Among other things, the bill establishes a late enrollment penalty of 15% of monthly premiums and applies the penalty for a period equal to twice the number of months in each 12-month period during which the individual was not enrolled. Currently, the late enrollment penalty is 10% of monthly premiums for each 12-month period during which the individual was not enrolled, and the penalty continues to apply for as long as the individual is enrolled in Medicare medical services.
The bill also expands the special enrollment periods to individuals who have health insurance coverage other than through their employer.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1788 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 1788

 To amend title XVIII of the Social Security Act to limit the penalty 
for late enrollment under part B of the Medicare Program to 15 percent 
and twice the period of no enrollment, and to exclude periods of COBRA, 
      retiree, and VA coverage from such late enrollment penalty.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2019

  Ms. Hill of California (for herself, Mr. Nadler, Mr. Garamendi, Ms. 
 Norton, Ms. Brownley of California, Mrs. Trahan, Mr. Perlmutter, Mr. 
 Cox of California, Ms. Schakowsky, Mr. Rouda, Ms. Lofgren, Ms. Kuster 
 of New Hampshire, Ms. Underwood, Mr. Rose of New York, and Mr. Babin) 
 introduced the following bill; which was referred to the Committee on 
   Energy 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 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend title XVIII of the Social Security Act to limit the penalty 
for late enrollment under part B of the Medicare Program to 15 percent 
and twice the period of no enrollment, and to exclude periods of COBRA, 
      retiree, and VA coverage from such late enrollment penalty.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. 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 premium so determined for each full 12 months'' 
and inserting ``15 percent of the monthly premium so determined for 
premiums paid during a period equal to twice the number 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 
        substituting'' and all that follows and inserting the 
        following: ``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) thereof)'.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to premiums paid for months beginning after the end of 
        the 90-day period beginning on the date of the enactment of 
        this Act.
            (2) Clarification.--In applying these amendments, 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. 2. 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 individual can 
        demonstrate that the individual had coverage 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 beginning after the end of the 90-day 
period beginning on the date of the enactment of this Act.

SEC. 3. SPECIAL ENROLLMENT PERIOD FOR INDIVIDUALS WHOSE COBRA OR 
              RETIREE COVERAGE TERMINATES.

    (a) In General.--Section 1837(i) of the Social Security 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 individual'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 individual'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 occurring after the end of the 90-day 
period beginning on the date of the enactment of this Act.
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