Section 1 Short title
This Act may be cited as the “Medicare Economic Security Solutions Act”.
Medicare Economic Security Solutions Act
A BILL
To amend title XVIII of the Social Security Act to limit the penalty for late enrollment under part B of the Medicare Program to 15 percent and twice the period of no enrollment, and to exclude periods of COBRA, retiree, and VA coverage from such late enrollment penalty.
Sec. 2 Limiting Medicare part B late enrollment penalty to 15 percent and twice the period of no enrollment
In general— The first sentence of section 1839(b) of the Social Security Act (42 U.S.C. 1395r(b)) is amended by striking “10 percent of the monthly premium so determined for each full 12 months” and inserting “15 percent of the monthly premium so determined for premiums paid during a period equal to twice the number of months in each of the full periods of 12 months”.
in subsection (c)(6), by striking “and shall only apply to premiums paid during a period equal to twice the number of months in the full 12-month periods described in that section and”; and
in subsection (g)(2)(B), by striking “by substituting” and all that follows and inserting the following: “by substituting “section 1818 (without any increase resulting from the application of section 1839(b) to such section 1818)” for “section 1839 (without any increase under subsection (b) thereof)”.”.
Effective date—
In general— The amendments made by this section shall apply to premiums paid for months beginning after the end of the 90-day period beginning on the date of the enactment of this Act.
Clarification— In applying these amendments, months (before, during, or after the month in which this Act is enacted) in which an individual was or is required to pay an increased premium shall be taken into account in determining the month in which the premium will no longer be subject to an increase.
Sec. 3 Exclusion of periods of COBRA, retiree, and VA coverage from Medicare part B late enrollment penalty
In general— The second sentence of section 1839(b) of the Social Security Act (42 U.S.C. 1395r(b)) is amended—
by striking “by reason of the individual’s (or the individual’s spouse’s) current employment”; and
by inserting “or months for which the individual can demonstrate that the individual had coverage under chapter 17 of title 38, United States Code” before the period at the end.
Effective date— The amendments made by subsection (a) shall apply to premiums paid for months beginning after the end of the 90-day period beginning on the date of the enactment of this Act.
Sec. 4 Special enrollment period for individuals whose COBRA or retiree coverage terminates
in the first sentence of paragraph (1), by striking “by reason of the individual's (or the individual’s spouse’s) current employment status” in subparagraph (A);
in the first sentence of paragraph (2) by striking “by reason of the individual's (or the individual’s spouse’s) current employment status” each place it appears in subparagraphs (B) and (C); and
in paragraph (3)(A) by striking “by reason of current employment status”.
Effective date— The amendments made by subsection (a) shall apply to terminations of coverage occurring after the end of the 90-day period beginning on the date of the enactment of this Act.