SEC. 1234. PART B SPECIAL ENROLLMENT PERIOD AND WAIVER OF LIMITED ENROLLMENT PENALTY FOR TRICARE BENEFICIARIES.

[a] Part B Special Enrollment Period-

[1] IN GENERAL- Section- 1837 of the Social Security Act [42 U.S.C. 1395p] is amended by adding at the end the following new subsection:

'[l][1] In the case of any individual who is a covered beneficiary [as defined in section 1072[5] of title 10, United States Code] at the time the individual is entitled to hospital insurance benefits under part A under section 226[b] or section 226A and who is eligible to enroll but who has elected not to enroll [or to be deemed enrolled] during the individual's initial enrollment period, there shall be a special enrollment period described in paragraph [2].

'[2] The special enrollment period described in this paragraph, with respect to an individual, is the 12-month period beginning on the day after the last day of the initial enrollment period of the individual or, if later, the 12-month period beginning with the month the individual is notified of enrollment under this section.

'[3] In the case of an individual who enrolls during the special enrollment period provided under paragraph [1], the coverage period under this part shall begin on the first day of the month in which the individual enrolls or, at the option of the individual, on the first day of the second month following the last month of the individual's initial enrollment period.

'[4] The Secretary of Defense shall establish a method for identifying individuals described in paragraph [1] and providing notice to them of their eligibility for enrollment during the special enrollment period described in paragraph [2].'.

[2] EFFECTIVE DATE- The amendment made by paragraph [1] shall apply to elections made on or after the date of the enactment of this Act.

[b] Waiver of Increase of Premium-

[1] IN GENERAL- Section- 1839[b] of the Social Security Act [42 U.S.C. 1395r[b]] is amended by striking 'section 1837[i][4]' and inserting 'subsection [i][4] or [l] of section 1837'.

[2] EFFECTIVE DATE-

[A] IN GENERAL- The amendment made by paragraph [1] shall apply with respect to elections made on or after the date of the enactment of this Act.

[B] REBATES FOR CERTAIN DISABLED AND ESRD BENEFICIARIES-

[i] IN GENERAL- With respect to premiums for months on or after January 2005 and before the month of the enactment of this Act, no increase in the premium shall be effected for a month in the case of any individual who is a covered beneficiary [as defined in section 1072[5] of title 10, United States Code] at the time the individual is entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act under section 226[b] or 226A of such Act, and who is eligible to enroll, but who has elected not to enroll [or to be deemed enrolled], during the individual's initial enrollment period, and who enrolls under this part within the 12-month period that begins on the first day of the month after the month of notification of entitlement under this part.

[ii] CONSULTATION WITH DEPARTMENT OF DEFENSE- The Secretary of Health and Human Services shall consult with the Secretary of Defense in identifying individuals described in this paragraph.

[iii] REBATES- The Secretary of Health and Human Services shall establish a method for providing rebates of premium increases paid for months on or after January 1, 2005, and before the month of the enactment of this Act for which a penalty was applied and collected.