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.

July 20, 2004

Mr. BINGAMAN introduced the following bill; which was read the first time

July 21, 2004

Read the second time and placed on the calendar

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.

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

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).

Calendar No. 656

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.

July 21, 2004

END