S. 3697Senate109th Congress (2005-2007)In Committee

Medicare Health Savings Accounts Act of 2006

Introduced July 20, 2006

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

July 20, 2006

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SenateIntro Referral

Introduced in Senate

July 20, 2006

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S8050-8051)

July 20, 2006

SenateIntro Referral

Read twice and referred to the Committee on Finance.

July 20, 2006

Floor Debate

10 members

What members said about S. 3697 on the floor

5 Republicans4 Democrats1 Independent
Ron Wyden
Sen. Ron WydenD-OR · Jul 20, 2006

Mr. President, how much time remains under the Smith unanimous consent request for a half hour? Thank you, Mr. President. Mr. President, I have come to the floor today to join my colleague at this…

Mel Martinez
Sen. Mel MartinezR-FL · Jul 20, 2006

Mr. President, today I rise with my colleagues, Senators Feinstein, Nelson of Florida, Hutchison, and Bingaman, on the 37th anniversary of the lunar landing when American astronauts Neil Armstrong…

James M. Inhofe
Sen. James M. InhofeR-OK · Jul 20, 2006

Mr. President, I rise today to introduce a bill to establish medicare health savings accounts, HSAs. This bill will make HSAs available under Medicare in lieu of Medicare medical savings accounts,…

James M. Inhofe
Sen. James M. InhofeR-OK · Jul 20, 2006

Mr. President, I rise today to introduce a bill to establish medicare health savings accounts, HSAs. This bill will make HSAs available under Medicare in lieu of Medicare medical savings accounts,…

Edward M. Kennedy
Sen. Edward M. KennedyD-MA · Jul 20, 2006

Mr. President, it is a privilege to join my Senate and House colleagues in introducing the Protecting Children's Health in Schools Act of 2006. This bill will ensure that the Nation's 7 million…

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Gordon H. Smith
Sen. Gordon H. SmithR-OR · Jul 20, 2006

Mr. President, every Congress and a number I have served in since 1997, nearly 10 years ago, Senator Wyden and I, my colleague from Oregon, have put forward a bipartisan agenda of things we could do…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Jul 20, 2006

Mr. President, I am pleased to be here today with my colleague and friend, Senator Wyden, with whom I have worked for many years to achieve affordable prescription drug coverage for our seniors. We…

Arlen Specter
Sen. Arlen SpecterR-PA · Jul 20, 2006

Mr. President, I seek recognition today to introduce a bill to provide private relief to the survivors of Christopher Kangas of Brookhaven, PA. This is a final attempt to recognize the public service…

James M. Jeffords
Sen. James M. JeffordsI-VT · Jul 20, 2006

Mr. President, I rise to introduce the Global Warming Pollution Reduction Act of 2006. One of the most important issues facing mankind is the problem of global warming. Global warming is real and it…

Robert Menendez
Rep. Robert MenendezD-NJ-13 · Jul 20, 2006

Mr. President, I rise today with my good friend Senator Lautenberg to introduce Danielle's Act, an important piece of legislation that I know will save countless lives. I also recognize…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jul 20, 2006

Mr. President, I rise today to introduce legislation with Senator Snowe that will provide our Nation's migrant agricultural and forest workers with a safe ride to work. The Farm and Forestry Worker…

Bill Text

Latest available legislative text

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Introduced in SenateIssued July 20, 2006

II

109th CONGRESS

2d Session

S. 3697

IN THE SENATE OF THE UNITED STATES

July 20, 2006

Mr. Inhofe 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 establish Medicare Health Savings Accounts.

1.

Short title

This Act may be cited as the Medicare Health Savings Accounts Act of 2006.

2.

Establishment of medicare health savings accounts

(a)

Establishment

(1)

In general

Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is amended—

(A)

by redesignating part E as part F; and

(B)

by inserting after part D the following new part:

E

Medicare health savings accounts

1860E–1.

Entitlement to elect to receive benefits under medicare health savings accounts

(a)

In general

The Secretary shall establish procedures under which each eligible beneficiary (as defined in subsection (b)) shall be entitled to elect to receive benefits under a Medicare Health Savings Account under this part instead of benefits under parts A, B, or D.

(b)

Eligible beneficiary described

An eligible beneficiary described in this subsection is an individual who—

(1)

is entitled to benefits under part A or enrolled under part B;

(2)

has a health savings account (as defined in subsection (d) of section 223 of the Internal Revenue Code of 1986), or certifies that they will use funds provided under this part to establish such an account; and

(3)

is enrolled under a high deductible health plan (as defined in subsection (c)(2) of such section, except that section 223(c)(2)(A)(ii)(I) of such Code shall be applied by substituting the amount in effect under clause (i)(I) for $5,000).

(c)

Benefits To be available in 2007

The Secretary shall establish the procedures under subsection (a) in a manner such that Medicare Health Savings Accounts are available for years beginning on or after January 1, 2007.

(d)

Preservation of original medicare fee-for-service benefits

Nothing in this part shall be construed to limit the right of an individual who is entitled to benefits under part A or enrolled under part B to receive benefits under such part (or under part C or D) if an election to receive benefits under Medicare Health Savings Accounts under this part is not in effect with respect to such individual.

(e)

Rule of construction

Nothing in this part shall be construed as preventing an individual from depositing personal funds (subject to the contribution limitations under section 223 of the Internal Revenue Code of 1986) into a Medicare Health Savings Account.

1860E–2.

Medicare Health Savings Accounts program

(a)

In general

The Secretary shall establish a program to be known as the Medicare Health Savings Accounts program (in this part referred to as the Medicare HSA program).

(b)

Amount provided to enrollees

(1)

Amount

The Secretary shall establish procedures to ensure that, for each plan year an individual is enrolled in the Medicare HSA program, the Secretary shall provide to such individual an amount that is equal to 95 percent of the annual MA capitation rate (as calculated under section 1853(c)(1)) with respect to that individual for the Medicare Advantage payment area the individual is in.

(2)

Permissible use of amount

The Secretary shall establish procedures to ensure that the amount provided under paragraph (1) is used only for the following purposes:

(A)

As a contribution into a health savings account established by such individual, as described in paragraph (2) of section 1860E–1(b).

(B)

For payment of premiums for enrollment of such individual under a high deductible health plan described in paragraph (3) of such section.

(3)

Notification of amount provided

The Secretary shall ensure that, not later than the date that is 90 days before the date on which payment of the amount provided under paragraph (1) is made to an individual enrolled in the Medicare HSA program, such individual receives notification of such amount. Such information shall be made available on the website of the Centers for Medicare & Medicaid Services (based on the age and geographic location of the beneficiary) and through 1–800–MEDICARE.

(4)

Payment

Payment of the amount provided under paragraph (1) shall be made from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund (including the Medicare Prescription Drug Account within such Trust Fund) in such proportion as the Secretary determines appropriate.

(5)

Recovery of amount provided in case of termination

(A)

In general

In the case of a termination of an election to receive benefits under this part as of a month before the end of a plan year, the Secretary shall provide for a procedure for the recovery of amounts provided attributable to the remaining months in such year.

(B)

Penalty

(i)

In general

In addition to the amount recovered under subparagraph (A), if the Secretary determines there was fraud involved in such termination, the Secretary may apply a civil money penalty of not more than 25 percent of the amount recovered.

(ii)

Civil money penalty

The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this subparagraph in the same manner as they apply to a civil money penalty or proceeding under section 1128A(a).

(c)

Payment for items and services

The Secretary shall establish procedures under which providers of services and suppliers (as defined in sections 1861(u) and 1861(d), respectively) are required to accept as payment for items and services provided to an individual enrolled in the Medicare HSA program under this part the amount that would otherwise be paid under the original Medicare fee-for-service program under parts A and B.

1860E–3.

Election of benefits under Medicare HSA program; termination of election

The Secretary shall establish procedures for the election of benefits, and the termination of such election, as appropriate, under the Medicare HSA program.

.

(2)

Conforming references to previous part E

Any reference in law (in effect before the date of the enactment of this Act) to part E of title XVIII of the Social Security Act is deemed a reference to part F of such title (as in effect after such date).

(b)

Amendment of Internal Revenue Code of 1986

(1)

In general

Paragraph (7) of section 223(b) of the Internal Revenue Code of 1986 (relating to medicare eligible individuals) is amended to read as follows:

(7)

Medicare eligible individuals

The limitation under this subsection for any month with respect to an individual shall be zero for any month such individual is entitled to benefits under part A, B, or D of title XVIII of the Social Security Act.

.

(2)

Effective date

The amendment made by this subsection shall apply to taxable years beginning on or after January 1, 2007.

(c)

Sunset of MSA provisions

Section 1851(a)(2)(B) of the Social Security Act (42 U.S.C. 1395w–21(a)(2)(B)) is amended—

(1)

by striking MSA.— An MSA plan, and inserting the following: “MSA.—

(i)

Subject to clause (ii), an MSA plan,

; and

(2)

by inserting after clause (i), as added by paragraph (1), the following new clause:

(ii)

Beginning on January 1, 2007, the plan described in clause (i) shall not be available as a Medicare Advantage plan under this part.

.