§1395w–116 Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund

Summary

Creates a separate “Medicare Prescription Drug Account” inside the Federal Supplementary Medical Insurance Trust Fund. The Account holds gifts and bequests, interest, and any amounts deposited or appropriated for this drug program. Its money is kept separate from other trust funds but is invested and cashed out the same way as the rest of the Trust Fund. The Managing Trustee must pay out money from the Account when the Secretary certifies it is needed to run the drug program, including payments under sections 1395w–114, 1395w–115, 1395w–132(a), 401(g), and 1395w–114d. The Trustee must also transfer amounts to the Grants to States for Medicaid account when increases are due under section 1396u–5(b), and pay PDP sponsors or MA organizations premiums and certain late-enrollment penalty shares. Money paid under section 1396u–5(c) and amounts withheld under sections 1395w–113(c) and 1395w–24(d) go into the Account. The Treasury may appropriate amounts equal to payments made plus a certified contingency margin (reduced by deposits already made), and may provide up to 10 percent of estimated 2006 Account expenditures for initial funding. Any balance moved from the Transitional Assistance Account under section 1395w–141(k)(5) must be deposited into this Account.