CONFORMING CHANGES IN MEDIGAP PROGRAM.

SEC. 4003. CONFORMING CHANGES IN MEDIGAP PROGRAM. (a) Conforming Amendments to Medicare+Choice Changes.— (1) In general.—Section 1882(d)(3)(A)(i) (42 U.S.C. 1395ss(d)(3)(A)(i)) is amended— (A) in the matter before subclause (I), by inserting “(including an individual electing a Medicare+Choice plan under section 1851)” after “of this title”; and (B) in subclause (II)— (i) by inserting “in the case of an individual not electing a Medicare+Choice plan” after “(II)”, and111 STAT. 331 (ii) by inserting before the comma at the end the following: “or in the case of an individual electing a Medicare+Choice plan, a medicare supplemental policy with knowledge that the policy duplicates health benefits to which the individual is otherwise entitled under the Medicare+Choice plan or under another medicare supplemental policy”. (2) Conforming amendments.—Section 1882(d)(3)(B)(i)(I) (42 U.S.C. 1395ss(d)(3)(B)(i)(I)) is amended by inserting “(including any Medicare+Choice plan)” after “health insurance policies”. (3) Medicare+choice plans not treated as medicare supplementary policies.—Section 1882(g)(1) (42 U.S.C. 1395ss(g)(1)) is amended by inserting “or a Medicare+Choice plan or” after “does not include”. (b) Additional Rules Relating to Individuals Enrolled in MSA Plans and Private Fee-For-Service Plans.—Section 1882 (42 U.S.C. 1395ss) is further amended by adding at the end the following new subsection: “(u)(1) It is unlawful for a person to sell or issue a policy described in paragraph (2) to an individual with knowledge that the individual has in effect under section 1851 an election of an MSA plan or a Medicare+Choice private fee-for-service plan. “(2)(A) A policy described in this subparagraph is a health insurance policy (other than a policy described in subparagraph (B)) that provides for coverage of expenses that are otherwise required to be counted toward meeting the annual deductible amount provided under the MSA plan. “(B) A policy described in this subparagraph is any of the following: “(i) A policy that provides coverage (whether through insurance or otherwise) for accidents, disability, dental care, vision care, or long-term care. “(ii) A policy of insurance to which substantially all of the coverage relates to— “(I) liabilities incurred under workers’ compensation laws, “(II) tort liabilities, “(III) liabilities relating to ownership or use of property, or “(IV) such other similar liabilities as the Secretary may specify by regulations. “(iii) A policy of insurance that provides coverage for a specified disease or illness. “(iv) A policy of insurance that pays a fixed amount per day (or other period) of hospitalization.”.