S. 2026

Medicare Prescription Drug Gap Disclosure Act

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II

109th CONGRESS

1st Session

S. 2026

IN THE SENATE OF THE UNITED STATES

November 16, 2005

Mr. Lautenberg (for himself, Mr. Kerry, Mr. Dorgan, and Mr. Dayton) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XVIII of the Social Security Act to require that a prescription drug plan or an MA–PD plan that has an initial coverage limit obtain a signed certification prior to enrolling beneficiaries under the plan under part D of such title.

1.

Short title

This Act may be cited as the Medicare Prescription Drug Gap Disclosure Act.

2.

Requirement of signed certification prior to plan enrollment under part D

(a)

In general

Section 1860D–1(b)(1) of the Social Security Act (42 U.S.C. 1395w–101) is amended by adding at the end the following new subparagraph:

(D)

Special rule for plans with an initial coverage limit

(i)

In general

The process for enrollment established under subparagraph (A) shall include, in the case of a prescription drug plan or an MA–PD plan that has an initial coverage limit (as described in section 1860D–2(b)(3)), a requirement that, prior to enrolling a part D eligible individual in the plan, the plan must obtain a certification signed by the enrollee or the legal guardian of the enrollee that meets the requirements described in clause (ii) and includes the following text: I understand that the Medicare Prescription Drug Plan or MA–PD Plan that I am signing up for may result in a gap in coverage during a given year. I understand that if subject to this gap in coverage, I will be responsible for paying 100 percent of the cost of my prescription drugs and will continue to be responsible for paying the plan’s monthly premium while subject to this gap in coverage. For specific information on the potential coverage gap under this plan, I understand that I should contact (insert name of the sponsor of the prescription drug plan or the sponsor of the MA–PD plan) at (insert toll free phone number for such sponsor of such plan)..

(ii)

Certification requirements described

The certification required under clause (i) shall meet the following requirements:

(I)

The certification shall be printed in a typeface of not less than 18 points.

(II)

The certification shall be printed on a single piece of paper separate from any matter not related to the certification.

(III)

The certification shall have a heading printed at the top of the page in all capital letters and bold face type that states the following: WARNING: POTENTIAL MEDICARE PRESCRIPTION DRUG COVERAGE GAP.

.

(b)

Effective date

The amendment made by this section shall take effect on the date of enactment of this Act.