Amends SSA title XIX (Medicaid) to: (1) require State Medicaid plans to provide for making eligibility determinations for premium and cost-sharing subsidies with regard to the Medicare prescription drug benefit for low-income Medicare beneficiaries; (2) provide for phased-in Federal assumption of Medicaid prescription drug costs for dually-eligible Medicare and Medicaid beneficiaries; (3) require continued Medicaid payment for such an individual to the extent payment is not made under the prescription drug plan or the Medicare+Choice plan selected by the individual; and (4) provide for Medicaid prescription drug coverage by territories.
Prescribes conditions and limitations for prescription drug coverage by new Medicare supplemental (Medigap) policies.