To hold Medicare beneficiaries harmless for the increase in the 2007 Medicare monthly part B premium that would otherwise occur because of the 2006 increase in payments under the physician fee schedule.

SA 2357. Mr. NELSON of Florida (for himself, Mr. Kerry, Ms. Cantwell,
Mrs. Murray, Mr. Reid, and Mr. Kennedy) proposed an amendment to the
bill S. 1932, to provide for reconciliation pursuant to section to
section 202(a) of the concurrent resolution on the budget for fiscal
year 2006 (H. Con. Res. 95); as follows:

On page 268, between lines 10 and 11, insert the following:
(d) Premium Transition Rule.--
(1) 2006.--
(A) Premium.--Nothing in this section shall be construed as
modifying the premium previously computed under section 1839
of the Social Security Act (42 U.S.C. 1395r) for months in
2006.
(B) Government contribution.--In computing the amount of
the Government contribution under section 1844(a) of the
Social Security Act (42 U.S.C. 1395w(a)) for months in 2006,
the Secretary of Health and Human Services shall compute and
apply a new actuarially adequate rate per enrollee age 65 and
over under section 1839(a)(1) of such Act (42 U.S.C.
1395r(a)(1)) taking into account the provisions of this
section.
(2) 2007.--
(A) Premium.--The monthly premium under section 1839 of the
Social Security Act (42 U.S.C. 1395r) for months in 2007
shall be computed as if this section had not been enacted.
(B) Government contribution.--The Government contribution
under section 1844(a) of the Social Security Act (42 U.S.C.
1395w(a)) for months in 2007 shall be computed taking into
account the provisions of this section, including
subparagraph (A).

[[Page S12144]]

(e) Extension of Prescription Drug Discounts to Enrollees
of Medicaid Managed Care Organizations.--
(1) In general.--Section 1903(m)(2)(A) (42 U.S.C.
1396b(m)(2)(A)) is amended--
(A) in clause (xi), by striking ``and'' at the end;
(B) in clause (xii), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(xiii) such contract provides that payment for covered
outpatient drugs dispensed to individuals eligible for
medical assistance who are enrolled with the entity shall be
subject to the same rebate agreement entered into under
section 1927 as the State is subject to and that the State
shall have the option of collecting rebates for the
dispensing of such drugs by the entity directly from
manufacturers or allowing the entity to collect such rebates
from manufacturers in exchange for a reduction in the prepaid
payments made to the entity for the enrollment of such
individuals.''.
(2) Conforming amendment.--Section 1927(j)(1) (42 U.S.C.
1396r-8(j)91)) is amended by inserting ``other than for
purposes of collection of rebates for the dispensing of such
drugs in accordance with the provisions of a contract under
section 1903(m) that meets the requirements of paragraph
(2)(A)(xiii) of that section'' before the period.
(3) Effective date.--The amendments made by this subsection
take effect on the date of enactment of this Act and apply to
rebate agreements entered into or renewed under section 1927
of the Social Security Act (42 U.S.C. 1396r-8) on or after
such date.

____________________