II
110th CONGRESS
1st Session
S. 1102
IN THE SENATE OF THE UNITED STATES
April 12, 2007
Mr. Bingaman (for himself, Mr. Smith, Mr. Kohl, Ms. Snowe, Mrs. Lincoln, and Mr. Kerry) 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 expedite the application and eligibility process for low-income subsidies under the Medicare prescription drug program and to revise the resource standards used to determine eligibility for an income-related subsidy, and for other purposes.
Short title
This Act may be cited as the
Part D Equity for Low-Income Seniors
Act of 2007
.
Expediting low-income subsidies under the Medicare prescription drug program
In general
Section 1860D–14 of the Social Security Act (42 U.S.C. 1395w–114) is amended by adding at the end the following new subsection:
Expedited application and eligibility process
Expedited process
In general
The Commissioner of Social Security shall provide for an expedited process under this subsection for the qualification for low-income assistance under this section through a request to the Secretary of the Treasury as provided in subparagraph (B) for information described in section 6103(l)(21) of the Internal Revenue Code of 1986. Such process shall be conducted in cooperation with the Secretary.
Currently eligible individuals
The Commissioner of Social Security shall, as soon as practicable after implementation of subparagraph (A), screen such individual for eligibility for the low-income subsidy provided under this section through such a request to the Secretary of the Treasury.
Notification of potentially eligible individuals
Under such process, in the case of each individual identified under paragraph (1) who has not otherwise applied for, or been determined eligible for, benefits under this section (or who has applied for and been determined ineligible for such benefits based only on excess resources), the Commissioner of Social Security shall send a notification that the individual is likely eligible for low-income subsidies under this section. Such notification shall include the following:
Application information
Information on how to apply for such low-income subsidies.
Description of the LIS benefit
A description of the low-income subsidies available under this section.
Information on State Health Insurance Programs
Information on—
the State Health Insurance Assistance Program for the State in which the individual is located; and
how the individual may contact such Program in order to obtain assistance regarding enrollment and benefits under this part.
Attestation
An application form that provides for a signed attestation, under penalty of law, as to the amount of income and assets of the individual and constitutes an application for the low-income subsidies under this section. Such form—
shall not require the submittal of additional documentation regarding income or assets;
shall permit the appointment of a personal representative described in paragraph (4); and
shall allow for the specification of a language (other than English) that is preferred by the individual for subsequent communications with respect to the individual under this part.
Hold-harmless
Under such process, if an individual in good faith and in the absence of fraud executes an attestation described in paragraph (2)(D) and is provided low-income subsidies under this section on the basis of such attestation, if the individual is subsequently found not eligible for such subsidies, there shall be no recovery made against the individual because of such subsidies improperly paid.
Use of authorized representative
Under such process, with proper authorization (which may be part of the attestation form described in paragraph (2)(D)), an individual may authorize another individual to act as the individual’s personal representative with respect to communications under this part and the enrollment of the individual under a prescription drug plan (or MA–PD plan) and for low-income subsidies under this section.
Use of preferred language in subsequent communications
In the case an attestation described in paragraph (2)(D) is completed and in which a language other than English is specified under clause (iii) of such paragraph, the Commissioner of Social Security shall provide that subsequent communications to the individual under this part shall be in such language.
Construction
Nothing in this subsection shall be construed as precluding the Commissioner of Social Security or the Secretary from taking additional outreach efforts to enroll eligible individuals under this part and to provide low-income subsidies to eligible individuals.
.
Disclosure of return information for purposes of determining individuals eligible for subsidies under Medicare part D
In general
Subsection (l) of section 6103 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Disclosure of return information to carry out Medicare part D subsidies
In general
The Secretary shall, upon written request from the Commissioner of Social Security under section 1860D–14(e)(1) of the Social Security Act, disclose to officers and employees of the Social Security Administration return information of a taxpayer who (according to the records of the Secretary) may be eligible for a subsidy under section 1860D–14 of the Social Security Act. Such return information shall be limited to—
taxpayer identity information with respect to such taxpayer,
the filing status of such taxpayer,
the gross income of such taxpayer,
such other information relating to the liability of the taxpayer as is prescribed by the Secretary by regulation as might indicate the eligibility of such taxpayer for a subsidy under section 1860D–14 of the Social Security Act, and
the taxable year with respect to which the preceding information relates.
Restriction on use of disclosed information
Return information disclosed under this paragraph may be used by officers and employees of the Social Security Administration only for the purposes of identifying eligible individuals for, and, if applicable, administering—
low-income subsidies under section 1860D–14 of the Social Security Act, and
the Medicare Savings Program implemented under clauses (i), (iii), and (iv) of section 1902(a)(10)(E) of such Act.
Termination
Return information may not be disclosed under this paragraph after the date that is one year after the date of the enactment of this paragraph.
.
Conforming amendments
Paragraph (4) of section 6103(p) of the Internal Revenue Code of 1986 is amended—
by striking
(14) or (17)
in the matter preceding subparagraph (A) and
inserting (14), (17), or (21)
; and
by striking
(15) or (17)
in subparagraph (F)(ii) and inserting (15),
(17), or (21)
.
Modification of resource standards for determination of eligibility for low-income subsidy
Increasing the alternative resource standard
Section 1860D–14(a)(3)(E)(i) of the Social Security Act (42 U.S.C. 1395w–114(a)(3)(E)(i)) is amended—
in subclause (I),
by striking and
at the end;
in subclause (II)—
by striking
a subsequent year
and inserting 2007
;
by striking
in this subclause (or subclause (I)) for the previous year
and
inserting in subclause (I) for 2006
;
by striking the period at the end and inserting a semicolon; and
by inserting before the flush sentence at the end the following new subclauses:
for 2008, $27,500 (or $55,000 in the case of the combined value of the individual’s assets or resources and the assets or resources of the individual’s spouse); and
for a subsequent year the dollar amounts specified in this subclause (or subclause (III)) for the previous year increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.
; and
in the flush
sentence at the end, by inserting or (IV)
after subclause
(II)
.
Exemptions from resources
Section 1860D–14(a)(3) of the Social Security Act (42 U.S.C. 1395w–114(a)(3)) is amended—
in subparagraph
(D), in the matter preceding clause (i), by inserting subject to the
additional exclusions provided under subparagraph (G)
before
)
;
in subparagraph
(E)(i), in the matter preceding subclause (I), by inserting subject to
the additional exclusions provided under subparagraph (G)
before
)
; and
by adding at the end the following new subparagraph:
Additional exclusions
In determining the resources of an individual (and their eligible spouse, if any) under section 1613 for purposes of subparagraphs (D) and (E) the following additional exclusions shall apply:
Life insurance policy
No part of the value of any life insurance policy shall be taken into account.
In-kind contributions
No in-kind contribution shall be taken into account.
Pension or retirement plan
No balance in any pension or retirement plan shall be taken into account.
.
Effective date
The amendments made by this section shall take effect on the date of enactment of this Act.
Indexing deductible and cost-sharing above annual out-of-pocket threshold for individuals with income below 150 percent of poverty line
Indexing deductible
Section 1860D–14(a)(4)(B) of the Social Security Act (42 U.S.C. 1395w–114(a)(4)(B)) is amended—
in clause (i), by
striking or
;
in clause (ii)—
by striking
a subsequent year
and inserting 2008
;
by striking
this clause (or clause (i)) for the previous year
and inserting
clause (i) for 2007
; and
by striking
involved.
and inserting involved; and
;
by adding after clause (ii) the following new clause:
for 2008 and each succeeding year, the amount determined under this subparagraph for the previous year increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.
; and
in the flush
sentence at the end, by striking clause (i) or (ii)
and
inserting clause (i), (ii), or (iii)
.
Indexing cost-sharing
Section 1860D–14(a) of the Social Security Act (42 U.S.C. 1395w–114(a)) is amended–
in paragraph
(1)(D)(iii), by striking exceed the copayment amount
and all
that follows through the period at the end and inserting “exceed—
for 2006 and 2007, the copayment amount specified under section 1860D–2(b)(4)(A)(i)(I) for the drug and year involved; and
for 2008 and each succeeding year, the amount determined under this subparagraph for the previous year increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.
; and
in paragraph
(2)(E), by striking exceed the copayment or coinsurance amount
and all that follows through the period at the end and inserting
“exceed—
for 2006 and 2007, the copayment or coinsurance amount specified under section 1860D–2(b)(4)(A)(i)(I) for the drug and year involved; and
for 2008 and each succeeding year, the amount determined under this clause for the previous year increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.
.
No impact on eligibility for benefits under other programs
In general
Section 1860D–14(a)(3) of the Social Security Act (42 U.S.C. 1395w–114(a)(3)), as amended by section 3(c)(3), is amended—
in subparagraph
(A), in the matter preceding clause (i), by striking subparagraph
(F)
and inserting subparagraphs (F) and (H)
; and
by adding at the end the following new subparagraph:
No impact on eligibility for benefits under other programs
The availability of premium and cost-sharing subsidies under this section shall not be treated as benefits or otherwise taken into account in determining an individual’s eligibility for, or the amount of benefits under, any other Federal program.
.
Effective date
The amendments made by this section shall take effect on the date of enactment of this Act.