CREATION OF MEDICARE CATASTROPHIC COVERAGE ACCOUNT.

SEC. 213. CREATION OF MEDICARE CATASTROPHIC COVERAGE ACCOUNT. (a) In General.—Part B of title XVIII is amended by inserting after section 1841A, as inserted by section 212, the following new section: “medicare catastrophic coverage account “Sec. 1841B. (a) For purposes of carrying out certain provisions of this title, and section 59B of the Internal Revenue Code of 1986, there is hereby created on the books of the Treasury of the United States an account to be known as the ‘Medicare Catastrophic Coverage Account’ (in this section referred to as the ‘Account’), to be maintained by the Secretary of the Treasury in consultation with the Boards of Trustees of the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund. No funds shall actually be transferred into or paid out of the Account, but, for other purposes of this part and for purposes of section 59B of the Internal Revenue Code of 1986, amounts credited to the Account shall be considered receipts of the Account and amounts debited to the Account shall be considered outlays from the Account. “(b) (1) The Account shall be— “(A) credited for receipts of the Federal Supplementary Medical Insurance Trust Fund attributable to the portion of supplemental premiums under section 59B of the Internal Revenue Code of 1986, and the premiums under section 1839(g), attrib-102 STAT. 742utable to the catastrophic coverage premium rate or catastrophic coverage monthly premium, “(B) credited for receipts of the Federal Hospital Insurance Catastrophic Coverage Reserve Fund, and “(C) debited for outlays made under this title that are attributable to the amendments made by the Medicare Catastrophic Coverage Act of 1988 (other than outlays relating to covered outpatient drugs and related administrative costs). “(2) In addition, the Account shall be— “(A) credited with interest (at the rate used for purposes of the Federal Supplementary Medical Insurance Trust Fund) on any positive average balance maintained in the Account in a calendar quarter, and “(B) debited with interest (at the rate used for purposes of the Federal Supplementary Medical Insurance Trust Fund) on any negative average balance maintained in the Account in a calendar quarter. “(3) Credits and debits under this subsection shall be made as of the last date of each month based upon receipts and outlays occurring during the month, as estimated by the Secretary and the Secretary of the Treasury. “(4) The Account shall also identify (and treat separately) those credits and debits in the Account which are also receipts and outlays in the Federal Supplementary Medical Insurance Trust Fund, those receipts which are also receipts of the Federal Hospital Insurance Catastrophic Coverage Reserve Fund, and those outlays that are also outlays from the Federal Hospital Insurance Trust Fund. “(c) (1) The Secretary of the Treasury shall publish in the Federal Register— “(A) not later than July 1 of each year (beginning with 1990), information on— “(i) the outlays made from the Account in the preceding year, and “(ii) the balance in the Account as of the close of the preceding year; and “(B) during the last 3 days of September of each such year, the catastrophic coverage 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 1990), respecting the distribution of outlays from the Account 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. “(d) The Secretary of the Treasury shall report to Congress in April of each year on the status of the Account created under this section.”.