(1) Individuals with income below 135 percent of poverty line In the case of a subsidy eligible individual (as defined in paragraph (3)) who is determined to have income that is below 135 percent of the poverty line applicable to a family of the size involved and who meets the resources requirement described in paragraph (3)(D) or who is covered under this paragraph under paragraph (3)(B)(i), the individual is entitled under this section to the following:
(A) Full premium subsidy An income-related premium subsidy equal to
(i) 100 percent of the amount described in subsection (b)(1) of this section, but not to exceed the premium amount specified in subsection (b)(2)(B) of this section; plus
(ii) 80 percent of any late enrollment penalties imposed under section
1395w–113 (b) of this title for the first 60 months in which such penalties are imposed for that individual, and 100 percent of any such penalties for any subsequent month.
(B) Elimination of deductible A reduction in the annual deductible applicable under section
1395w–102 (b)(1) of this title to $0.
(C) Continuation of coverage above the initial coverage limit The continuation of coverage from the initial coverage limit (under paragraph (3) of section
1395w–102 (b) of this title) for expenditures incurred through the total amount of expenditures at which benefits are available under paragraph (4) of such section, subject to the reduced cost-sharing described in subparagraph (D).
(D) Reduction in cost-sharing below out-of-pocket threshold
(i) Institutionalized individuals In the case of an individual who is a full-benefit dual eligible individual and who is an institutionalized individual or couple (as defined in section
1396a (q)(1)(B) of this title), the elimination of any beneficiary coinsurance described in section
1395w–102 (b)(2) of this title (for all amounts through the total amount of expenditures at which benefits are available under section
1395w–102 (b)(4) of this title).
(ii) Lowest income dual eligible individuals In the case of an individual not described in clause (i) who is a full-benefit dual eligible individual and whose income does not exceed 100 percent of the poverty line applicable to a family of the size involved, the substitution for the beneficiary coinsurance described in section
1395w–102 (b)(2) of this title (for all amounts through the total amount of expenditures at which benefits are available under section
1395w–102 (b)(4) of this title) of a copayment amount that does not exceed $1 for a generic drug or a preferred drug that is a multiple source drug (as defined in section
1396r–8 (k)(7)(A)(i) of this title) and $3 for any other drug, or, if less, the copayment amount applicable to an individual under clause (iii).
(iii) Other individuals In the case of an individual not described in clause (i) or (ii), the substitution for the beneficiary coinsurance described in section
1395w–102 (b)(2) of this title (for all amounts through the total amount of expenditures at which benefits are available under section
1395w–102 (b)(4) of this title) of a copayment amount that does not exceed the copayment amount specified under section
1395w–102 (b)(4)(A)(i)(I) of this title for the drug and year involved.
(E) Elimination of cost-sharing above annual out-of-pocket threshold The elimination of any cost-sharing imposed under section
1395w–102 (b)(4)(A) of this title.
(2) Other individuals with income below 150 percent of poverty line In the case of a subsidy eligible individual who is not described in paragraph (1), the individual is entitled under this section to the following:
(A) Sliding scale premium subsidy
An income-related premium subsidy determined on a linear sliding scale ranging from 100 percent of the amount described in paragraph (1)(A) for individuals with incomes at or below 135 percent of such level to 0 percent of such amount for individuals with incomes at 150 percent of such level.
(B) Reduction of deductible A reduction in the annual deductible applicable under section
1395w–102 (b)(1) of this title to $50.
(C) Continuation of coverage above the initial coverage limit The continuation of coverage from the initial coverage limit (under paragraph (3) of section
1395w–102 (b) of this title) for expenditures incurred through the total amount of expenditures at which benefits are available under paragraph (4) of such section, subject to the reduced coinsurance described in subparagraph (D).
(D) Reduction in cost-sharing below out-of-pocket threshold The substitution for the beneficiary coinsurance described in section
1395w–102 (b)(2) of this title (for all amounts above the deductible under subparagraph (B) through the total amount of expenditures at which benefits are available under section
1395w–102 (b)(4) of this title) of coinsurance of 15 percent instead of coinsurance of 25 percent in section
1395w–102 (b)(2) of this title.
(E) Reduction of cost-sharing above annual out-of-pocket threshold Subject to subsection (c) of this section, the substitution for the cost-sharing imposed under section
1395w–102 (b)(4)(A) of this title of a copayment or coinsurance not to exceed the copayment or coinsurance amount specified under section
1395w–102 (b)(4)(A)(i)(I) of this title for the drug and year involved.
(3) Determination of eligibility
(A) Subsidy eligible individual defined For purposes of this part, subject to subparagraph (F), the term subsidy eligible individual means a part D eligible individual who
(i) is enrolled in a prescription drug plan or MAPD plan;
(ii) has income below 150 percent of the poverty line applicable to a family of the size involved; and
(iii) meets the resources requirement described in subparagraph (D) or (E).
(B) Determinations
(i) In general The determination of whether a part D eligible individual residing in a State is a subsidy eligible individual and whether the individual is described in paragraph (1) shall be determined under the State plan under subchapter XIX of this chapter for the State under section
1396u–5 (a) of this title or by the Commissioner of Social Security. There are authorized to be appropriated to the Social Security Administration such sums as may be necessary for the determination of eligibility under this subparagraph.
(ii) Effective period Determinations under this subparagraph shall be effective beginning with the month in which the individual applies for a determination that the individual is a subsidy eligible individual and shall remain in effect for a period specified by the Secretary, but not to exceed 1 year.
(iii) Redeterminations and appeals through medicaid Redeterminations and appeals, with respect to eligibility determinations under clause (i) made under a State plan under subchapter XIX of this chapter, shall be made in accordance with the frequency of, and manner in which, redeterminations and appeals of eligibility are made under such plan for purposes of medical assistance under such subchapter.
(iv) Redeterminations and appeals through Commissioner With respect to eligibility determinations under clause (i) made by the Commissioner of Social Security
(I) redeterminations shall be made at such time or times as may be provided by the Commissioner; and
(II) the Commissioner shall establish procedures for appeals of such determinations that are similar to the procedures described in the third sentence of section
1383 (c)(1)(A) of this title.
(v) Treatment of medicaid beneficiaries Subject to subparagraph (F), the Secretary
(I) shall provide that part D eligible individuals who are full-benefit dual eligible individuals (as defined in section
1396u–5 (c)(6) of this title) or who are recipients of supplemental security income benefits under subchapter XVI of this chapter shall be treated as subsidy eligible individuals described in paragraph (1); and
(II) may provide that part D eligible individuals not described in subclause (I) who are determined for purposes of the State plan under subchapter XIX of this chapter to be eligible for medical assistance under clause (i), (iii), or (iv) of section
1396a (a)(10)(E) of this title are treated as being determined to be subsidy eligible individuals described in paragraph (1).
Insofar as the Secretary determines that the eligibility requirements under the State plan for medical assistance referred to in subclause (II) are substantially the same as the requirements for being treated as a subsidy eligible individual described in paragraph (1), the Secretary shall provide for the treatment described in such subclause.
(C) Income determinations For purposes of applying this section
(i) in the case of a part D eligible individual who is not treated as a subsidy eligible individual under subparagraph (B)(v), income shall be determined in the manner described in section
1396d (p)(1)(B) of this title, without regard to the application of section
1396a (r)(2) of this title; and
(ii) the term poverty line has the meaning given such term in section
9902 (2) of this title, including any revision required by such section.
Nothing in clause (i) shall be construed to affect the application of section 1396a (r)(2) of this title for the determination of eligibility for medical assistance under subchapter XIX of this chapter.
(D) Resource standard applied to full low-income subsidy to be based on three times SSI resource standard The resources requirement of this subparagraph is that an individuals resources (as determined under section
1382b of this title for purposes of the supplemental security income program) do not exceed
(i) for 2006 three times the maximum amount of resources that an individual may have and obtain benefits under that program; and
(ii) for a subsequent year the resource limitation established 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.
Any resource limitation established under clause (ii) that is not a multiple of $10 shall be rounded to the nearest multiple of $10.
(E) Alternative resource standard
(i) In general The resources requirement of this subparagraph is that an individuals resources (as determined under section
1382b of this title for purposes of the supplemental security income program) do not exceed
(I) for 2006, $10,000 (or $20,000 in the case of the combined value of the individuals assets or resources and the assets or resources of the individuals spouse); and
(II) for a subsequent year the dollar amounts specified in this subclause (or subclause (I)) 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.
Any dollar amount established under subclause (II) that is not a multiple of $10 shall be rounded to the nearest multiple of $10.
(ii) Use of simplified application form and process The Secretary, jointly with the Commissioner of Social Security, shall
(I) develop a model, simplified application form and process consistent with clause (iii) for the determination and verification of a part D eligible individuals assets or resources under this subparagraph; and
(II) provide such form to States.
(iii) Documentation and safeguards Under such process
(I) the application form shall consist of an attestation under penalty of perjury regarding the level of assets or resources (or combined assets and resources in the case of a married part D eligible individual) and valuations of general classes of assets or resources;
(II) such form shall be accompanied by copies of recent statements (if any) from financial institutions in support of the application; and
(III) matters attested to in the application shall be subject to appropriate methods of verification.
(iv) Methodology flexibility The Secretary may permit a State in making eligibility determinations for premium and cost-sharing subsidies under this section to use the same asset or resource methodologies that are used with respect to eligibility for medical assistance for medicare cost-sharing described in section
1396d (p) of this title so long as the Secretary determines that the use of such methodologies will not result in any significant differences in the number of individuals determined to be subsidy eligible individuals.
(F) Treatment of territorial residents In the case of a part D eligible individual who is not a resident of the 50 States or the District of Columbia, the individual is not eligible to be a subsidy eligible individual under this section but may be eligible for financial assistance with prescription drug expenses under section
1396u–5 (e) of this title.
(4) Indexing dollar amounts
(A) Copayment for lowest income dual eligible individuals The dollar amounts applied under paragraph (1)(D)(ii)
(i) for 2007 shall be the dollar amounts specified in such paragraph increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year; or
(ii) for a subsequent year shall be the dollar amounts specified in this clause (or clause (i)) 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.
Any amount established under clause (i) or (ii), that is based on an increase of $1 or $3, that is not a multiple of 5 cents or 10 cents, respectively, shall be rounded to the nearest multiple of 5 cents or 10 cents, respectively.
(B) Reduced deductible The dollar amount applied under paragraph (2)(B)
(i) for 2007 shall be the dollar amount specified in such paragraph increased by the annual percentage increase described in section
1395w–102 (b)(6) of this title for 2007; or
(ii) for a subsequent year shall be the dollar amount specified in this clause (or clause (i)) for the previous year increased by the annual percentage increase described in section
1395w–102 (b)(6) of this title for the year involved.
Any amount established under clause (i) or (ii) that is not a multiple of $1 shall be rounded to the nearest multiple of $1.
