{"identifier":"/us/usc/t42/s1395w\u2013116","title":42,"num":"\u00a7\u202f1395w\u2013116.","heading":"Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund","text":"\u00a7\u202f1395w\u2013116.\nMedicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund\n(a)\nEstablishment and operation of Account\n(1)\nEstablishment\nThere is created within the Federal Supplementary Medical Insurance Trust Fund established by\nsection 1395t of this title\n(2)\nFunding\nThe Account shall consist of such gifts and bequests as may be made as provided in\nsection 401(i)(1) of this title\n(3)\nSeparate from rest of Trust Fund\nFunds provided under this part to the Account shall be kept separate from all other funds within the Federal Supplementary Medical Insurance Trust Fund, but shall be invested, and such investments redeemed, in the same manner as all other funds and investments within such Trust Fund.\n(b)\nPayments from Account\n(1)\nIn general\nThe Managing Trustee shall pay from time to time from the Account such amounts as the Secretary certifies are necessary to make payments to operate the program under this part, including\u2014\n(A) payments under\nsection 1395w\u2013114 of this title\n(B) payments under\nsection 1395w\u2013115 of this title\n(C) payments to sponsors of qualified retiree prescription drug plans under\nsection 1395w\u2013132(a) of this title\n(D) payments with respect to administrative expenses under this part in accordance with\nsection 401(g) of this title\n(E) payments under\nsection 1395w\u2013114d of this title\n(2)\nTransfers to Medicaid account for increased administrative costs\nThe Managing Trustee shall transfer from time to time from the Account to the Grants to States for Medicaid account amounts the Secretary certifies are attributable to increases in payment resulting from the application of\nsection 1396u\u20135(b) of this title\n(3)\nPayments of premiums withheld\nThe Managing Trustee shall make payment to the PDP sponsor or MA organization involved of the premiums (and the portion of late enrollment penalties) that are collected in the manner described in\nsection 1395w\u201324(d)(2)(A) of this title\n(4)\nTreatment in relation to part B premium\nAmounts payable from the Account shall not be taken into account in computing actuarial rates or premium amounts under\nsection 1395r of this title\n(c)\nDeposits into Account\n(1)\nLow-income transfer\nAmounts paid under\nsection 1396u\u20135(c) of this title\n(2)\nAmounts withheld\nPursuant to sections 1395w\u2013113(c) and 1395w\u201324(d) of this title (as applied under this part), amounts that are withheld (and allocated) to the Account are deposited into the Account.\n(3)\nAppropriations to cover Government contributions\nThere are authorized to be appropriated from time to time, out of any moneys in the Treasury not otherwise appropriated, to the Account, an amount equivalent to the amount of payments made from the Account under subsection (b) plus such amounts as the Managing Trustee certifies is necessary to maintain an appropriate contingency margin, reduced by the amounts deposited under paragraph (1) or subsection (a)(2).\n(4)\nInitial funding and reserve\nIn order to assure prompt payment of benefits provided under this part and the administrative expenses thereunder during the early months of the program established by this part and to provide an initial contingency reserve, there are authorized to be appropriated to the Account, out of any moneys in the Treasury not otherwise appropriated, such amount as the Secretary certifies are required, but not to exceed 10 percent of the estimated total expenditures from such Account in 2006.\n(5)\nTransfer of any remaining balance from Transitional Assistance Account\nAny balance in the Transitional Assistance Account that is transferred under\nsection 1395w\u2013141(k)(5) of this title","url":"https://projectusc.org/usc/t42/s1395w\u2013116.html","content":[{"t":"sec","id":"/us/usc/t42/s1395w\u2013116","children":[{"t":"num","text":"\u00a7\u202f1395w\u2013116."},{"t":"heading","text":"Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund"},{"t":"subsec","id":"/us/usc/t42/s1395w\u2013116/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Establishment and operation of Account"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Establishment"},{"t":"content","children":[{"t":"p","text":"There is created within the Federal Supplementary Medical Insurance Trust Fund established by ","children":[{"t":"ref","text":"section 1395t of this title","href":"/us/usc/t42/s1395t","tail":" an account to be known as the \u201cMedicare Prescription Drug Account\u201d (in this section referred to as the \u201cAccount\u201d)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Funding"},{"t":"content","children":[{"t":"p","text":"The Account shall consist of such gifts and bequests as may be made as provided in ","children":[{"t":"ref","text":"section 401(i)(1) of this title","href":"/us/usc/t42/s401/i/1","tail":", accrued interest on balances in the Account, and such amounts as may be deposited in, or appropriated to, such Account as provided in this part."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/a/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Separate from rest of Trust Fund"},{"t":"content","children":[{"t":"p","text":"Funds provided under this part to the Account shall be kept separate from all other funds within the Federal Supplementary Medical Insurance Trust Fund, but shall be invested, and such investments redeemed, in the same manner as all other funds and investments within such Trust Fund.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u2013116/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Payments from Account"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The Managing Trustee shall pay from time to time from the Account such amounts as the Secretary certifies are necessary to make payments to operate the program under this part, including\u2014"},{"t":"subpara","id":"/us/usc/t42/s1395w\u2013116/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" payments under ","children":[{"t":"ref","text":"section 1395w\u2013114 of this title","href":"/us/usc/t42/s1395w\u2013114","tail":" (relating to low-income subsidy payments);"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u2013116/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" payments under ","children":[{"t":"ref","text":"section 1395w\u2013115 of this title","href":"/us/usc/t42/s1395w\u2013115","tail":" (relating to subsidy payments and payments for fallback plans);"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u2013116/b/1/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" payments to sponsors of qualified retiree prescription drug plans under ","children":[{"t":"ref","text":"section 1395w\u2013132(a) of this title","href":"/us/usc/t42/s1395w\u2013132/a","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u2013116/b/1/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" payments with respect to administrative expenses under this part in accordance with ","children":[{"t":"ref","text":"section 401(g) of this title","href":"/us/usc/t42/s401/g","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u2013116/b/1/E","children":[{"t":"num","text":"(E)"},{"t":"content","text":" payments under ","children":[{"t":"ref","text":"section 1395w\u2013114d of this title","href":"/us/usc/t42/s1395w\u2013114d","tail":" (relating to selected drug subsidy payments)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Transfers to Medicaid account for increased administrative costs"},{"t":"content","children":[{"t":"p","text":"The Managing Trustee shall transfer from time to time from the Account to the Grants to States for Medicaid account amounts the Secretary certifies are attributable to increases in payment resulting from the application of ","children":[{"t":"ref","text":"section 1396u\u20135(b) of this title","href":"/us/usc/t42/s1396u\u20135/b","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Payments of premiums withheld"},{"t":"content","children":[{"t":"p","text":"The Managing Trustee shall make payment to the PDP sponsor or MA organization involved of the premiums (and the portion of late enrollment penalties) that are collected in the manner described in ","children":[{"t":"ref","text":"section 1395w\u201324(d)(2)(A) of this title","href":"/us/usc/t42/s1395w\u201324/d/2/A","tail":" and that are payable under a prescription drug plan or MA\u2013PD plan offered by such sponsor or organization."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Treatment in relation to part B premium"},{"t":"content","children":[{"t":"p","text":"Amounts payable from the Account shall not be taken into account in computing actuarial rates or premium amounts under ","children":[{"t":"ref","text":"section 1395r of this title","href":"/us/usc/t42/s1395r","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u2013116/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Deposits into Account"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Low-income transfer"},{"t":"content","children":[{"t":"p","text":"Amounts paid under ","children":[{"t":"ref","text":"section 1396u\u20135(c) of this title","href":"/us/usc/t42/s1396u\u20135/c","tail":" (and any amounts collected or offset under paragraph (1)(C) of such section) are deposited into the Account."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Amounts withheld"},{"t":"content","children":[{"t":"p","text":"Pursuant to sections 1395w\u2013113(c) and 1395w\u201324(d) of this title (as applied under this part), amounts that are withheld (and allocated) to the Account are deposited into the Account.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/c/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Appropriations to cover Government contributions"},{"t":"content","children":[{"t":"p","text":"There are authorized to be appropriated from time to time, out of any moneys in the Treasury not otherwise appropriated, to the Account, an amount equivalent to the amount of payments made from the Account under subsection (b) plus such amounts as the Managing Trustee certifies is necessary to maintain an appropriate contingency margin, reduced by the amounts deposited under paragraph (1) or subsection (a)(2).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/c/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Initial funding and reserve"},{"t":"content","children":[{"t":"p","text":"In order to assure prompt payment of benefits provided under this part and the administrative expenses thereunder during the early months of the program established by this part and to provide an initial contingency reserve, there are authorized to be appropriated to the Account, out of any moneys in the Treasury not otherwise appropriated, such amount as the Secretary certifies are required, but not to exceed 10 percent of the estimated total expenditures from such Account in 2006.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u2013116/c/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Transfer of any remaining balance from Transitional Assistance Account"},{"t":"content","children":[{"t":"p","text":"Any balance in the Transitional Assistance Account that is transferred under ","children":[{"t":"ref","text":"section 1395w\u2013141(k)(5) of this title","href":"/us/usc/t42/s1395w\u2013141/k/5","tail":" shall be deposited into the Account."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}