text: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
  
      (a) Short Title.--This Act may be cited as the ``Meeting Our 
  Responsibility to Medicare Beneficiaries Act of 2005''.
      (b) Table of Contents.--The table of contents of this Act is as 
  follows:
  
  Sec. 1. Short title; table of contents.
             TITLE I--ELIMINATING SPECIAL INTEREST PREFERENCES
  
  Sec. 101. Negotiating fair prices for medicare prescription drugs.
  Sec. 102. Elimination of MA Regional Plan Stabilization Fund (Slush 
                              Fund).
  Sec. 103. Application of risk adjustment reflecting characteristics for 
                              the entire medicare population in payments 
                              to Medicare Advantage organizations.
         TITLE II--IMPROVING THE MEDICARE PROGRAM FOR BENEFICIARIES
  
  Sec. 201. Eliminating coverage gap.
  Sec. 202. Requiring two prescription drug plans to avoid Federal 
                              fallback.
  Sec. 203. Waiver of part D late enrollment penalty for transition 
                              period.
  Sec. 204. Improving the transition of full-benefit dual eligible 
                              individuals to coverage under the medicare 
                              drug benefit.
  Sec. 205. Part B premium reduction.
  Sec. 206. Study and report on providing incentives to preserve retiree 
                              coverage.
  Sec. 207. Promoting transparency in employer subsidy payments.
  
             TITLE I--ELIMINATING SPECIAL INTEREST PREFERENCES
  
  SEC. 101. NEGOTIATING FAIR PRICES FOR MEDICARE PRESCRIPTION DRUGS.
  
      (a) In General.--Section 1860D-11 of the Social Security Act (42 
  U.S.C. 1395w-111) is amended by striking subsection (i) (relating to 
  noninterference) and by inserting the following new subsection:
      ``(i) Authority To Negotiate Prices With Manufacturers.--
              ``(1) In general.--The Secretary shall have authority 
          similar to that of other Federal entities that purchase 
          prescription drugs in bulk to negotiate contracts with 
          manufacturers of covered part D drugs, consistent with the 
          requirements and in furtherance of the goals of providing 
          quality care and containing costs under this part.
              ``(2) Required use of authority.--
                      ``(A) Fallback plans.--The Secretary shall exercise 
                  the authority described in paragraph (1) with respect 
                  to covered part D drugs offered under each fallback 
                  prescription drug plan under subsection (g).
                      ``(B) PDPs and ma-pd plans.--In order to ensure 
                  that beneficiaries enrolled under prescription drug 
                  plans and MA-PD plans and taxpayers are getting fair 
                  and affordable prices for covered part D drugs that 
                  reflect the bulk purchasing power of such enrollees, 
                  the Secretary shall exercise the authority described in 
                  paragraph (1) with respect to such drugs offered under 
                  all such plans if the Secretary determines that the 
                  negotiated prices available under such plans for such 
                  drugs are not fair and affordable prices compared to 
                  the prices obtained by other Federal government 
                  programs for such drugs.''.
      (b) Effective Date.--The amendment made by this section shall take 
  effect as if included in the enactment of section 101(a) of the 
  Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
  (Public Law 108-173; 117 Stat. 2071).
  
  SEC. 102. ELIMINATION OF MA REGIONAL PLAN STABILIZATION FUND (SLUSH 
                FUND).
  
      (a) In General.--Subsection (e) of section 1858 of the Social 
  Security Act (42 U.S.C. 1395w-27a) is repealed.
      (b) Conforming Amendment.--Section 1858(f)(1) of the Social 
  Security Act (42 U.S.C. 1395w-27a(f)(1)) is amended by striking 
  ``subject to subsection (e),''.
      (c) Effective Date.--The amendments made by this section shall take 
  effect as if included in the enactment of section 221(c) of the 
  Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
  (Public Law 108-173; 117 Stat. 2181).
  
  SEC. 103. APPLICATION OF RISK ADJUSTMENT REFLECTING CHARACTERISTICS FOR 
                THE ENTIRE MEDICARE POPULATION IN PAYMENTS TO MEDICARE 
                ADVANTAGE ORGANIZATIONS.
  
      Effective January 1, 2006, in applying risk adjustment factors to 
  payments to organizations under section 1853 of the Social Security Act 
  (42 U.S.C. 1395w-23), the Secretary of Health and Human Services shall 
  ensure that payments to such organizations are adjusted based on such 
  factors to ensure that the health status of the enrollee is reflected 
  in such adjusted payments, including adjusting for the difference 
  between the health status of the enrollee and individuals enrolled 
  under the original medicare fee-for-service program under parts A and B 
  of title XVIII of such Act. Payments to such organizations must, in 
  aggregate, reflect such differences.
  
         TITLE II--IMPROVING THE MEDICARE PROGRAM FOR BENEFICIARIES
  
  SEC. 201. ELIMINATING COVERAGE GAP.
  
      (a) In General.--Section 1860D-2(b)(4)(B) of the Social Security 
  Act (42 U.S.C. 1395w-102(b)(4)(B)) is amended to read as follows:
                      ``(B) Annual out-of-pocket threshold.--For purposes 
                  of this part, the `annual out-of-pocket threshold' 
                  specified in this subparagraph for a year is equal to 
                  the greater of--
                              ``(i) $3,600; or
                              ``(ii) the initial coverage limit for the 
                          year specified in paragraph (3).''.
      (b) Conforming Amendment.--Section 1860D-22(a)(3)(B)(ii) of the 
  Social Security Act (42 U.S.C. 1395w-132(b)(4)(B)(ii)) is amended by 
  striking ``and the annual out-of-pocket threshold, respectively, are 
  annually adjusted under paragraphs (1) and (4)(B) of section 1860D-
  2(b)'' and inserting ``is annually adjusted under paragraph (1) of 
  section 1860D-2(b) (using the percentage increase specified in 
  paragraph (6) of such section)''.
      (c) Effective Date.--The amendments made by this section shall take 
  effect as if included in the enactment of section 101(a) of the 
  Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
  (Public Law 108-173; 117 Stat. 2071).
  
  SEC. 202. REQUIRING TWO PRESCRIPTION DRUG PLANS TO AVOID FEDERAL 
                FALLBACK.
  
      (a) In General.--Section 1860D-3(a) of the Social Security Act (42 
  U.S.C. 1395w-103(a)) is amended--
              (1) in paragraph (1)--
                      (A) by striking ``qualifying plans (as defined in 
                  paragraph (3))'' and inserting ``prescription drug 
                  plans''; and
                      (B) by striking ``, at least one of which is a 
                  prescription drug plan'';
              (2) in paragraph (2), by striking ``qualifying plans'' and 
          inserting ``prescription drug plans''; and
              (3) by striking paragraph (3).
      (b) Effective Date.--The amendments made by this section shall take 
  effect as if included in the enactment of section 101(a) of the 
  Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
  (Public Law 108-173; 117 Stat. 2071).
  
  SEC. 203. WAIVER OF PART D LATE ENROLLMENT PENALTY FOR TRANSITION 
                PERIOD.
  
      (a) In General.--Section 1860D-13(b) of the Social Security Act (42 
  U.S.C. 1895w-113(b)) is amended by adding at the end the following new 
  paragraph:
              ``(8) Waiver of penalty for months prior to 2008.--A part D 
          eligible individual who enrolls for the first time in a 
          prescription drug plan or an MA-PD plan under this part prior 
          to January 1, 2008, shall not be subject an increase in the 
          monthly beneficiary premium established under subsection (a) 
          with respect to months occurring prior to such date.''.
      (b) Effective Date.--The amendment made by this section shall take 
  effect as if included in the enactment of section 101(a) of the 
  Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
  (117 Stat. 2071).
  
  SEC. 204. IMPROVING THE TRANSITION OF FULL-BENEFIT DUAL ELIGIBLE 
                INDIVIDUALS TO COVERAGE UNDER THE MEDICARE DRUG BENEFIT.
  
      (a) In General.--Notwithstanding subsection (d)(1) of section 1935 
  of the Social Security Act (42 U.S.C. 1396u-5), beginning on January 1, 
  2006, the Secretary of Health and Human Services shall administer a 12-
  month period during which full-benefit dual eligible individuals (as 
  defined in section 1935(c)(6) of the Social Security Act) shall 
  gradually transition from receiving medical assistance for prescribed 
  drugs under the medicaid program under title XIX of such Act to 
  obtaining coverage of covered part D drugs (as defined in section 
  1860D-2(e) (42 U.S.C. 1395w-102(e)) under title XVIII of such Act in 
  order to assure that such individuals continue to receive the 
  outpatient prescription drugs they need.
      (b) Adjustments to Phased-Down State Contribution.--The Secretary 
  of Health and Human Services shall make appropriate adjustments to the 
  amount of payments required to be made by a State or the District of 
  Columbia under section 1935(c) of the Social Security Act (42 U.S.C. 
  1396u-5(c)) for months occurring during the period described in 
  subsection (a) in order to account for increased costs for the 
  provision of medical assistance incurred by the State or the District 
  of Columbia by reason of the application of the transition period 
  required under this section.
  
  SEC. 205. PART B PREMIUM REDUCTION.
  
      Section 1839(a) of the Social Security Act (42 U.S.C. 1395r(a)) is 
  amended--
              (1) in paragraph (3), in the first sentence, by striking 
          ``The Secretary'' and inserting ``Subject to paragraph (5), the 
          Secretary''; and
              (2) by adding at the end the following new paragraph:
      ``(5) For each year (beginning with 2006), the Secretary shall 
  reduce the monthly premium rate determined under paragraph (3) for each 
  month in the year for each individual enrolled under this part 
  (including such an individual subject to an increased premium under 
  subsection (b) or (i)) so that the aggregate amount of such reductions 
  in the year is equal to the aggregate amount of reduced expenditures 
  from the Federal Supplementary Medicare Insurance Trust Fund in the 
  year that the Secretary estimates will result from the provisions of 
  section 103 of the Meeting Our Responsibility to Medicare Beneficiaries 
  Act of 2005.''.
  
  SEC. 206. STUDY AND REPORT ON PROVIDING INCENTIVES TO PRESERVE RETIREE 
                COVERAGE.
  
      (a) Study.--The Secretary of Health and Human Services shall 
  conduct a study to determine what additional incentives should be 
  provided to employers in order for such employers to continue to 
  provide retirees with prescription drug coverage. Such study shall 
  include an assessment of permitting costs incurred by an employer for 
  covered part D drugs on behalf of a retiree to be treated as incurred 
  costs for purposes of reaching the annual out-of-pocket threshold under 
  section 1860D-2(b)(4) of the Social Security Act (42 U.S.C. 1395w-
  102(b)(4)).
      (b) Report.--Not later than January 1, 2006, the Secretary of 
  Health and Human Services shall submit to Congress a report on the 
  study under subsection (a) together with such recommendations for 
  legislation as the Secretary deems appropriate.
  
  SEC. 207. PROMOTING TRANSPARENCY IN EMPLOYER SUBSIDY PAYMENTS.
  
      (a) In General.--Section 1860D-22(a) of the Social Security Act (42 
  U.S.C. 1895w-132(a)) is amended by adding at the end the following new 
  paragraph:
              ``(7) Disclosure of certain information.--The Secretary 
          shall make the following information regarding the sponsor of a 
          qualified prescription drug plan receiving a subsidy under this 
          section available to the public through the Internet website of 
          the Centers for Medicare & Medicaid Services and other 
          appropriate means:
                      ``(A) The information used by the Secretary to 
                  ensure that the prescription drug coverage offered 
                  under the plan meets the requirements for subsidy 
                  payments under this section.
                      ``(B) The total amount of the subsidy payments made 
                  to the sponsor under this section.''.
      (b) Effective Date.--The amendment made by this section shall take 
  effect as if included in the enactment of section 101(a) of the 
  Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
  (Public Law 108-173; 117 Stat. 2071).
target: Meeting Our Responsibility to Medicare Beneficiaries Act of 2005 - Amends title XVIII (Medicare) of the Social Security Act (SSA) with respect to: (1) negotiating fair prices for Medicare prescription drugs; (2) elimination of the MA Regional Plan Stabilization Fund; (3) application of risk adjustment reflecting characteristics for the entire Medicare population in payments to Medicare advantage organizations; (4) modification of the annual out-of-pocket threshold with respect to prescription drug benefits; (5) requiring two prescription drug plans to avoid Federal fallback; (6) waiver of the part D (Voluntary Prescription Drug Benefit Program); (7) transition of full-benefit dual eligible individuals to coverage under the Medicare drug benefit; and (8) Medicare part B (Supplementary Medical Insurance) premium reduction.
  
  Directs the Secretary to study and report to Congress on providing incentives to preserve retiree coverage.
  
  Amends SSA title XVIII to direct the Secretary to make certain information regarding the sponsor of a qualified prescription drug plan receiving a subsidy under the prescription drug program available to the public through the Internet website of the Centers for Medicare & Medicaid Services.
feat_title: A bill to amend title XVIII of the Social Security Act to make improvements to the medicare program for beneficiaries.