Restoration of Medicare Trust Funds.

Sec. 2703. Restoration of Medicare Trust Funds. (a) Correction of Trust Fund Holdings.— (1) In general.—Within 120 days after the effective date of this Act, the Secretary of the Treasury shall take the actions described in paragraph (2) with respect to each trust fund with the goal being that, after the actions are taken, the holdings of the trust fund will replicate, to the extent practicable in the judgement of the Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, the obligations that would have been held by the trust fund if the clerical error had not occurred. (2) Obligations issued and redeemed.—The Secretary of the Treasury shall— (A) issue to each trust fund obligations under chapter 31 of title 31, United States Code, that bear issue dates, interest rates, and maturity dates as the obligations that— (i) would have been issued to the trust fund if the clerical error had not occurred; or (ii) were issued to the trust fund and were redeemed by reason of the clerical error; and (B) redeem from each trust fund obligations that— (i) would not have been issued to the trust fund if the clerical error had not occurred; or (ii) would have been redeemed from the trust fund if the clerical error had not occurred. (b) Correction of Interest Income.— (1) Transfer of excess interest income.—Within 120 days after the effective date of this Act, the Secretary of the Treasury shall transfer from the Federal Hospital Insurance Trust Fund to the Federal Supplementary Medical Insurance Trust Fund an amount determined by the Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, to be equal to the amount of interest income that was credited to the Federal Hospital Insurance Trust Fund that would not have been credited if the clerical error had not occurred. (2) Credit of lost interest income.—Within 120 days after the effective date of this Act, there is hereby appropriated 114 STAT. 564to the Federal Supplementary Medical Insurance Trust Fund, out of any money in the Treasury not otherwise appropriated, an amount determined by the Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, to be equal to the difference between— (A) the interest income lost by that trust fund through the date of credit by reason of the clerical error; and (B) the amount transferred to that trust fund under paragraph (1). (c) Definitions.—For purposes of this section, the following definitions shall apply: (1) Clerical error.—The term “clerical error” means the erroneous transfers of moneys between the investment accounts and uninvested transfer accounts of the trust funds that occurred in the fiscal year ending September 30, 1999, as described in the Department of Health and Human Services’ “Accountability Report for Fiscal Year 1999: Federal Managers Financial Integrity Act Report on Systems and Controls”. (2) Trust fund.—The term “trust fund” means either the Federal Hospital Insurance Trust Fund or the Federal Supplementary Medical Insurance Trust Fund.