ESTABLISHMENT OF FEDERAL CATASTROPHIC DRUG INSURANCE TRUST FUND; FUND TRANSFERS.

SEC. 212. ESTABLISHMENT OF FEDERAL CATASTROPHIC DRUG INSURANCE TRUST FUND; FUND TRANSFERS. (a) In General.—Part B of title XVIII is amended by inserting after section 1841 the following new section: “federal catastrophic drug insurance trust fund “Sec. 1841A. (a) (1) There is hereby created on the books of the Treasury of the United States a trust fund to be known as the ‘Federal Catastrophic Drug Insurance Trust Fund’ (in this section referred to as the ‘Trust Fund’). The Trust Fund shall consist of such gifts and bequests as may be made as provided in section 201(i)(I)and amounts transferred to it in accordance with section 1841(j) or under paragraph (2). “(2) There are hereby appropriated to the Trust Fund amounts equivalent to 100 percent of the supplemental premiums imposed by section 59B of the Internal Revenue Code of 1986 which are attributable to the prescription drug rate. The amounts appropriated by the preceding sentence shall be transferred from time to time (not less frequently than monthly) from the general fund in the Treasury to the Trust Fund, such amounts to be determined on the basis of estimates by the Secretary of the Treasury of the premiums, specified in the preceding sentence, paid to or deposited into the Treasury; and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or were less than the premiums specified in such sentence. At the close of each year, the transfers under this subsection shall reflect all premiums paid or deposited (as specified in this subsection) into the Treasury in the year. “(b) The provisions of subsections (b) through (i) of section 1841 shall apply to the Trust Fund in the same manner as they apply to the Federal Supplementary Medical Insurance Trust Fund. “(c) Notwithstanding any other provision of this title, all payments under this part on or after January 1, 1990, for benefits and administrative costs relating to covered outpatient drugs shall be made from the Trust Fund. 102 STAT. 740 “(d) (1) The Secretary of the Treasury, in consultation with the Board of Trustees of the Trust Fund, shall publish in the Federal Register— “(A) not later than July 1 of each year (beginning with 1992), information on— “(i) the outlays made from the Trust Fund in the preceding year, and “(ii) the balance in the Trust Fund as of the close of the preceding year; and “(B) during the last 3 days of September of each such year, the prescription drug monthly premiums to be established under section 1839(g) for months in the succeeding year. “(2) The Secretary shall report to Congress, not later than July 1 of each year (beginning with 1992), respecting the distribution of outlays from the Trust Fund in the previous year among major spending categories. The Comptroller General shall report, not later than September 1 of each year, to Congress concerning the completeness and accuracy of the Secretary’s report under the previous sentence and of the premiums established under section 1839(g) and under section 59B of the Internal Revenue Code of 1986. “(e) In this part, with respect to the Trust Fund and the Medicare Catastrophic Coverage Account, the terms ‘outlays’ and ‘receipts’ mean, with respect to a quarter or other period, gross outlays and receipts, as such terms are employed in the ‘Monthly Treasury Statement of Receipts and Outlays of the United States Government (MTS)’, as published by the Department of the Treasury, for months in such quarter or other period.”. (b) Transfers of Certain Premiums.— (1) Transfer of flat prescription drug premiums to federal catastrophic drug insurance trust fund.—Section 1840 (42 U.S.C. 1395s) is amended by adding at the end the following new subsection: “(i) Notwithstanding the previous provisions of this subsection, premiums collected under this part which are attributable to a prescription drug monthly premium established under section 1839(g) shall, instead of being transferred to (or being deposited to the credit of) the Federal Supplemental Medical Insurance Trust Fund, be transferred to (or deposited to the credit of) the Federal Catastrophic Drug Insurance Trust Fund.”. (2) Transfer of supplemental catastrophic coverage premiums into the smi trust fund.—Section 1841(a) (42 U.S.C. 1395t(a)) is amended by adding the following: “There are hereby appropriated to the Trust Fund amounts equivalent to 100 percent of the supplemental premiums imposed by section 59B of the Internal Revenue Code of 1986 which are attributable to the catastrophic coverage rate and which are not otherwise appropriated under section 1817A(a)(2) to the Federal Hospital Insurance Catastrophic Coverage Reserve Fund. The amounts appropriated by the preceding sentence shall be transferred from time to time (not less frequently than monthly) from the general fund in the Treasury to the Trust Fund, such amounts to be determined on the basis of estimates by the Secretary of the Treasury of the premiums, specified in the preceding sentence, paid to or deposited into the Treasury; and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or were less than the premiums specified in such sentence. At the close of each 102 STAT. 741year, the transfers under this subsection shall reflect all premiums under section 59B of the Internal Revenue Code of 1986 paid or deposited into the Treasury in the year.”. (c) Conforming Amendments.— (1) (A) Section 201(g)(1)(A) (42 U.S.C. 401(g)(1)(A)) is amended by striking “and the Federal Supplementary Medical Insurance Trust Fund” and inserting “, Federal Supplementary Medical Insurance Trust Fund, and the Federal Catastrophic Drug Insurance Trust Fund”. (B) Section 201(i)(1)(42 U.S.C. 401(i)(1)) is amended by striking “and the Federal Supplementary Medical Insurance Trust Fund” and inserting “.Federal Hospital Insurance Catastrophic Coverage Reserve Fund, Federal Supplementary Medical Insurance Trust Fund, and the Federal Catastrophic Drug Insurance Trust Fund”. (2) Section 1833(a) (42 U.S.C. 13951(a)) is amended, in the matter before paragraph (1), by inserting “or, as provided in section 1841A(c), from the Federal Catastrophic Drug Insurance Trust Fund” after “Medical Insurance Trust Fund”. (3) Section 1817(b) (42 U.S.C. 1395i(b)) is amended by inserting after the sixth sentence the following: “Such report shall also identify (and treat separately) those outlays from the Trust Fund which are also outlays from the Medicare Catastrophic Coverage Account created under section 1841B and those outlays for which there are amounts transferred into the Federal Hospital Insurance Catastrophic Coverage Reserve Fund.”. (4) Section 1841(b) (42 U.S.C. 1395t(b)) is amended by inserting after the sixth sentence the following “Such report shall also identify (and treat separately) those receipts and outlays in the Trust fund which are also receipts and outlays in the Medicare Catastrophic Coverage Account created under section 1841B.”.