text: SECTION 1. EXTENSION OF MEDICARE PRESCRIPTION DRUG INITIAL ENROLLMENT 
                PERIODS FOR 2006 AND 2007; SUSPENSION OF LATE ENROLLMENT 
                PENALTY THROUGH DECEMBER 31, 2007.
  
      (a) Extension of Medicare Prescription Drug Initial Enrollment 
  Periods for 2006 and 2007.--Section 1860D-1(b)(1) of the Social 
  Security Act (42 U.S.C. 1395w-101(b)(1)) is amended--
              (1) in subparagraph (B)(iii), by inserting ``subparagraph 
          (D) and'' after ``Subject to''; and
              (2) by adding at the end the following new subparagraph:
              ``(D) Extension of initial enrollment periods.--For 
          purposes of subparagraph (B)(iii), in applying section 
          1851(e)(1), with respect to the annual, coordinated election 
          period--
                      ``(i) for 2006, such period shall begin on November 
                  15, 2005, and end on November 14, 2006; and
                      ``(ii) for 2007, such period shall begin on 
                  November 15, 2006, and end on November 14, 2007.''.
      (b) Suspension of Late Enrollment Penalty Through December 31, 
  2007.--Section 1860D-13(b)(3)(B) of such Act (42 U.S.C. 1395w-
  113(b)(3)(B)) is amended by inserting ``(after December 2007)'' after 
  ``any month''.
  
  SEC. 2. OPEN ENROLLMENT AND DISENROLLMENT IN PRESCRIPTION DRUG PLANS 
                ALLOWED DURING FIRST 12 MONTHS OF ENROLLMENT.
  
      Section 1860D-1(b)(1) of the Social Security Act (42 U.S.C. 1395w-
  101(b)(1)) is amended by adding at the end the following new 
  subparagraph:
                      ``(D) Open enrollment and disenrollment period for 
                  first 12 months of enrollment.--In establishing the 
                  process under subparagraph (A), in the case of a part D 
                  eligible individual who initially enrolls under section 
                  1860D-1(a) in a prescription drug plan on or after the 
                  date of enactment of this paragraph, the Secretary 
                  shall permit such individual to change such enrollment 
                  into another prescription drug plan once at any time 
                  during the first 12 months of such initial enrollment 
                  (other than during an annual, coordinated election 
                  period referred to in section 1860D-
                  1(b)(1)(B)(iii)).''.
  
  SEC. 3. LIMITATIONS ON CHANGING PRESCRIPTION DRUG PLAN FORMULARIES; 
                NOTICE OF CHANGE IN FORMULARY.
  
      (a) Limitation on Removal or Change of Covered Part D Drugs From 
  the Prescription Drug Plan Formulary.--Section 1860D-4(b)(3)(E) of the 
  Social Security Act (42 U.S.C. 1395w-104(b)(3)(E)) is amended to read 
  as follows:
                      ``(E) Removing a drug from formulary or imposing a 
                  restriction or limitation on coverage.--
                              ``(i) Limitation on removal, limitation, or 
                          restriction.--
                                      ``(I) In general.--Subject to 
                                  subclause (II) and clause (ii), 
                                  beginning with 2006, the PDP sponsor of 
                                  a prescription drug plan may not remove 
                                  a covered part D drug from the plan 
                                  formulary or impose a restriction or 
                                  limitation on the coverage of such a 
                                  drug (such as through the application 
                                  of a preferred status, usage 
                                  restriction, step therapy, prior 
                                  authorization, or quantity limitation) 
                                  other than at the beginning of each 
                                  plan year except as the Secretary may 
                                  permit to take into account new 
                                  therapeutic uses and newly covered part 
                                  D drugs.
                                      ``(II) Special rule for newly 
                                  enrolled individuals.--Subject to 
                                  clause (ii), in the case of an 
                                  individual who enrolls in a 
                                  prescription drug plan on or after the 
                                  date of enactment of this subparagraph, 
                                  the PDP sponsor of such plan may not 
                                  remove a covered part D drug from the 
                                  plan formulary or impose a restriction 
                                  or limitation on the coverage of such a 
                                  drug (such as through the application 
                                  of a preferred status, usage 
                                  restriction, step therapy, prior 
                                  authorization, or quantity limitation) 
                                  during the period beginning on the date 
                                  of such enrollment and ending on 
                                  December 31 of the immediately 
                                  succeeding plan year except as the 
                                  Secretary may permit to take into 
                                  account new therapeutic uses and newly 
                                  covered part D drugs.
                              ``(ii) Exceptions to limitation on 
                          removal.--Clause (i) shall not apply with 
                          respect to a covered part D drug that--
                                      ``(I) is a brand name drug for 
                                  which there is a generic drug approved 
                                  under section 505(j) of the Food and 
                                  Drug Cosmetic Act (21 U.S.C. 355(j)) 
                                  that is placed on the market during the 
                                  period in which there are limitations 
                                  on removal or change in the formulary 
                                  under subclause (I) or (II) of clause 
                                  (i);
                                      ``(II) is a brand name drug that 
                                  goes off-patent during such period;
                                      ``(III) is a drug for which the 
                                  Commissioner of Food and Drugs issues a 
                                  clinical warning that imposes a 
                                  restriction or limitation on the drug 
                                  during such period; or
                                      ``(IV) has been determined to be 
                                  ineffective during such period.
                              ``(iii) Notice of removal under application 
                          of exception to limitation.--The PDP sponsor of 
                          a prescription drug plan shall provide 
                          appropriate notice (such as under subsection 
                          (a)(3)) of any removal or change under clause 
                          (ii) to the Secretary, affected enrollees, 
                          physicians, pharmacies, and pharmacists.''.
      (b) Notice of Change in Formulary and Other Restrictions or 
  Limitations on Coverage.--
              (1) In general.--Section 1860D-4(a) of such Act (42 U.S.C. 
          1395w-104(a)) is amended by adding at the end the following new 
          paragraph:
              ``(5) Annual notice of changes in formulary and other 
          restrictions or limitations on coverage.--Each PDP sponsor 
          offering a prescription drug plan shall furnish to each 
          enrollee at the time of each annual coordinated election period 
          (referred to in section 1860D-1(b)(1)(B)(iii)) for a plan year 
          a notice of any changes in the formulary or other restrictions 
          or limitations on coverage of a covered part D drug under the 
          plan that will take effect for the plan year.''.
              (2) Effective date.--The amendment made by paragraph (1) 
          shall apply to annual coordinated election periods beginning 
          after the date of the enactment of this Act.
target: Amends part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act to: (1) extend the 2006 and 2007 initial enrollment periods for the Medicare prescription drug benefit; (2) suspend the late enrollment penalty through December 31, 2007; and (3) permit Medicare beneficiaries to change enrollment in a prescription drug plan during the first 12 months of enrollment.
  
  Prohibits a PDP sponsor, beginning with 2006, from removing a covered part D drug from the plan formulary, or imposing a restriction or limitation on the coverage of such a drug, other than at the beginning of each plan year, except as the Secretary may permit to take into account new therapeutic uses and newly covered part D drugs.
  
  Requires each PDP sponsor to furnish to each plan enrollee, at the time of each annual coordinated election period, a notice of any changes in the formulary or other part D drug coverage restrictions or limitations that will take effect for the upcoming plan year.
feat_title: To amend part D of title XVIII of the Social Security Act to extend the 2006 and 2007 initial enrollment periods for the Medicare prescription drug benefit and suspend the late enrollment penalty through December 31, 2007, to permit Medicare beneficiaries to change enrollment in a prescription drug plan during the first 12 months of enrollment, and to prevent changes in formularies other than at the time of open enrollment periods and only with advance notice.