SEC. 1204. ENHANCED OVERSIGHT RELATING TO REIMBURSEMENTS FOR RETROACTIVE LOW INCOME SUBSIDY ENROLLMENT.

[a] In General- In the case of a retroactive LIS enrollment beneficiary who is enrolled under a prescription drug plan under part D of title XVIII of the Social Security Act [or an MA-PD plan under part C of such title], the beneficiary [or any eligible third party] is entitled to reimbursement by the plan for covered drug costs incurred by the beneficiary during the retroactive coverage period of the beneficiary in accordance with subsection [b] and in the case of such a beneficiary described in subsection [c][4][A][i], such reimbursement shall be made automatically by the plan upon receipt of appropriate notice the beneficiary is eligible for assistance described in such subsection [c][4][A][i] without further information required to be filed with the plan by the beneficiary.

[b] Administrative Requirements Relating to Reimbursements-

[1] LINE-ITEM DESCRIPTION- Each reimbursement made by a prescription drug plan or MA-PD plan under subsection [a] shall include a line-item description of the items for which the reimbursement is made.

[2] TIMING OF REIMBURSEMENTS- A prescription drug plan or MA-PD plan must make a reimbursement under subsection [a] to a retroactive LIS enrollment beneficiary, with respect to a claim, not later than 45 days after--

[A] in the case of a beneficiary described in subsection [c][4][A][i], the date on which the plan receives notice from the Secretary that the beneficiary is eligible for assistance described in such subsection; or

[B] in the case of a beneficiary described in subsection [c][4][A][ii], the date on which the beneficiary files the claim with the plan.

[3] REPORTING REQUIREMENT- For each month beginning with January 2011, each prescription drug plan and each MA-PD plan shall report to the Secretary the following:

[A] The number of claims the plan has readjudicated during the month due to a beneficiary becoming retroactively eligible for subsidies available under section 1860D-14 of the Social Security Act.

[B] The total value of the readjudicated claim amount for the month.

[C] The Medicare Health Insurance Claims Number of beneficiaries for whom claims were readjudicated.

[D] For the claims described in subparagraphs [A] and [B], an attestation to the Administrator of the Centers for Medicare & Medicaid Services of the total amount of reimbursement the plan has provided to beneficiaries for premiums and cost-sharing that the beneficiary overpaid for which the plan received payment from the Centers for Medicare & Medicaid Services.

[c] Definitions- For purposes of this section:

[1] COVERED DRUG COSTS- The term 'covered drug costs' means, with respect to a retroactive LIS enrollment beneficiary enrolled under a prescription drug plan under part D of title XVIII of the Social Security Act [or an MA-PD plan under part C of such title], the amount by which--

[A] the costs incurred by such beneficiary during the retroactive coverage period of the beneficiary for covered part D drugs, premiums, and cost-sharing under such title; exceeds

[B] such costs that would have been incurred by such beneficiary during such period if the beneficiary had been both enrolled in the plan and recognized by such plan as qualified during such period for the low income subsidy under section 1860D-14 of the Social Security Act to which the individual is entitled.

[2] ELIGIBLE THIRD PARTY- The term 'eligible third party' means, with respect to a retroactive LIS enrollment beneficiary, an organization or other third party that is owed payment on behalf of such beneficiary for covered drug costs incurred by such beneficiary during the retroactive coverage period of such beneficiary.

[3] RETROACTIVE COVERAGE PERIOD- The term 'retroactive coverage period' means--

[A] with respect to a retroactive LIS enrollment beneficiary described in paragraph [4][A][i], the period--

[i] beginning on the effective date of the assistance described in such paragraph for which the individual is eligible; and

[ii] ending on the date the plan effectuates the status of such individual as so eligible; and

[B] with respect to a retroactive LIS enrollment beneficiary described in paragraph [4][A][ii], the period--

[i] beginning on the date the individual is both entitled to benefits under part A, or enrolled under part B, of title XVIII of the Social Security Act and eligible for medical assistance under a State plan under title XIX of such Act; and

[ii] ending on the date the plan effectuates the status of such individual as a full-benefit dual eligible individual [as defined in section 1935[c][6] of such Act].

[4] RETROACTIVE LIS ENROLLMENT BENEFICIARY-

[A] IN GENERAL- The term 'retroactive LIS enrollment beneficiary' means an individual who--

[i] is enrolled in a prescription drug plan under part D of title XVIII of the Social Security Act [or an MA-PD plan under part C of such title] and subsequently becomes eligible as a full-benefit dual eligible individual [as defined in section 1935[c][6] of such Act], an individual receiving a low-income subsidy under section 1860D-14 of such Act, an individual receiving assistance under the Medicare Savings Program implemented under clauses [i], [iii], and [iv] of section 1902[a][10][E] of such Act, or an individual receiving assistance under the supplemental security income program under section 1611 of such Act; or

[ii] subject to subparagraph [B][i], is a full-benefit dual eligible individual [as defined in section 1935[c][6] of such Act] who is automatically enrolled in such a plan under section 1860D-1[b][1][C] of such Act.

[B] EXCEPTION FOR BENEFICIARIES ENROLLED IN RFP PLAN-

[i] IN GENERAL- In no case shall an individual described in subparagraph [A][ii] include an individual who is enrolled, pursuant to a RFP contract described in clause [ii], in a prescription drug plan offered by the sponsor of such plan awarded such contract.

[ii] RFP CONTRACT DESCRIBED- The RFP contract described in this section is a contract entered into between the Secretary and a sponsor of a prescription drug plan pursuant to the Centers for Medicare & Medicaid Services' request for proposals issued on February 17, 2009, relating to Medicare part D retroactive coverage for certain low income beneficiaries, or a similar subsequent request for proposals.