SEC. 1202. ELIMINATION OF PART D COST-SHARING FOR CERTAIN NON-INSTITUTIONALIZED FULL-BENEFIT DUAL ELIGIBLE INDIVIDUALS.

[a] In General- Section- 1860D-14[a][1][D][i] of the Social Security Act [42 U.S.C. 1395w-114[a][1][D][i]] is amended--

[1] by striking 'INSTITUTIONALIZED INDIVIDUALS- In' and inserting 'ELIMINATION OF COST-SHARING FOR CERTAIN FULL-BENEFIT DUAL ELIGIBLE INDIVIDUALS-

'[I] INSTITUTIONALIZED INDIVIDUALS- In'; and

[2] by adding at the end the following new subclause:

'[II] CERTAIN OTHER INDIVIDUALS- In the case of an individual who is a full-benefit dual eligible individual and with respect to whom there has been a determination that but for the provision of home and community based care [whether under section 1915, 1932, or under a waiver under section 1115] the individual would require the level of care provided in a hospital or a nursing facility or intermediate care facility for the mentally retarded the cost of which could be reimbursed under the State plan under title XIX, the elimination of any beneficiary coinsurance described in section 1860D-2[b][2] [for all amounts through the total amount of expenditures at which benefits are available under section 1860D-2[b][4]].'.

[b] Effective Date- The amendments made by subsection [a] shall apply to drugs dispensed on or after January 1, 2011.