ADDITION OF HIGH DEDUCTIBLE MEDIGAP POLICIES.

SEC. 4032. ADDITION OF HIGH DEDUCTIBLE MEDIGAP POLICIES. (a) In General.—Section 1882(p) (42 U.S.C. 1395ss(p)) is amended— (1) in paragraph (2)(C), by inserting “plus the 2 plans described in paragraph (11)(A)” after “exceed 10”; and (2) by adding at the end the following: “(11)(A) For purposes of paragraph (2), the benefit packages described in this subparagraph are as follows: “(i) The benefit package classified as ‘F’ under the standards established by such paragraph, except that it has a high deductible feature. “(ii) The benefit package classified as ‘J’ under the standards established by such paragraph, except that it has a high deductible feature. “(B) For purposes of subparagraph (A), a high deductible feature is one which— “(i) requires the beneficiary of the policy to pay annual out-of-pocket expenses (other than premiums) in the amount specified in subparagraph (C) before the policy begins payment of benefits, and “(ii) covers 100 percent of covered out-of-pocket expenses once such deductible nas been satisfied in a year. “(C) The amount specified in this subparagraph— “(i) for 1998 and 1999 is $1,500, and “(ii) for a subsequent year, is the amount specified in this subparagraph for the previous year increased by the percentage increase in the Consumer Price Index for all urban consumers (all items; U.S. city average) for the 12-month period ending with August of the preceding year. If any amount determined under clause (ii) is not a multiple of $10, it shall be rounded to the nearest multiple of $10.”. (b) Effective Date.— (1) In general.—The amendments made by subsection (a) shall take effect the date of the enactment of this Act. (2) Transition.—The provisions of section 4031(e) shall apply with respect to this section in the same manner as they apply to section 4031.111 STAT. 360