In this subtitle the following words have the meanings indicated. “Eligible individual” means an individual who: Is a resident of Maryland; Is a Medicare beneficiary enrolled in the Medicare Part D Voluntary Prescription Drug Benefit Program or a Medicare Advantage Plan that provides Part D coverage; Is not enrolled in a health benefit plan, other than a Medicare Part D prescription drug plan or a Medicare Advantage Plan, that provides prescription drug benefits at the time that the individual applies for enrollment in the Program; Has an annual household income at or below 300% of the federal poverty guidelines; Is not eligible for a full federal low–income subsidy under 42 C.F.R. § 423.772; and Pays the premium, and copayments or coinsurance, for the Program. “Enrollee” means an individual enrolled in the Program. “Fund” means the Senior Prescription Drug Assistance Program Fund established under § 15–1004 of this subtitle. “Program” means the Senior Prescription Drug Assistance Program established under this subtitle.

There is a Senior Prescription Drug Assistance Program. The purpose of the Program is to provide Medicare Part D beneficiaries, who meet Program eligibility requirements, with a State subsidy. The Department shall administer the Program.

The Program shall: Provide a prescription drug benefit subsidy, as determined by the Department, that may pay all or some of the deductibles, coinsurance payments, premiums, and copayments under the federal Medicare Part D Pharmaceutical Assistance Program for enrollees of the Program; and Provide the subsidy to the maximum number of individuals eligible for enrollment in the Program, subject to the money available in the Fund. The Program may limit payment of any subsidy by paying the subsidy only on behalf of eligible individuals enrolled in a Medicare Part D Prescription Drug Plan or Medicare Advantage Plan that coordinates with the Program in accordance with federal requirements. The Program may annually provide an additional subsidy, up to the full amount of the Medicare Part D Prescription Drug Plan premium, for individuals who qualify for a partial federal low–income subsidy. The Department shall maintain a waiting list of individuals who meet the eligibility requirements for the Program but who are not served by the Program due to funding limitations. The Department shall determine annually: The number of individuals to be enrolled in the Program; The amount of subsidy to be provided under subsection (a) of this section; and The amount of any additional subsidy provided under subsection (c) of this section.

There is a Senior Prescription Drug Assistance Program Fund. The purpose of the Fund is to support the administration, operation, and activities of the Program. The Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: Money transferred to the Fund by a nonprofit health service plan under § 14–106(d) of the Insurance Article; Money appropriated in the State budget to the Fund; Interest earnings of the Fund; and Any other money from any other source accepted for the benefit of the Fund. Except as provided in paragraphs (2) and (3) of this subsection, the Fund may be used only for the administration, operation, and activities of the Program. For fiscal year 2025 and each fiscal year thereafter, excess funds not required for the administration, operation, and activities of the Program may be used only to subsidize: The Kidney Disease Program under Title 13, Subtitle 3 of this article; or The provision of mental health services to the uninsured under Title 10, Subtitle 2 of this article. For fiscal year 2025 and each fiscal year thereafter, excess funds not required for the administration, operation, and activities of the Program may be used for health reimbursement accounts established in accordance with § 105(h) of the Internal Revenue Code under § 2–509.1 of the State Personnel and Pensions Article. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. The Program shall have its own program code within the State budget. Beginning July 1, 2016, and quarterly thereafter, the nonprofit health service plan required to subsidize the Program under § 14–106(d) of the Insurance Article shall deposit to the Fund the amount that is necessary to operate and administer the Program for the following quarter. The amount deposited shall be determined by the Department based on enrollment, expenditures, and revenue for the previous year. The amount required by the Department under paragraph (2) of this subsection may not exceed the amounts specified in § 14–106(e) of the Insurance Article.

On or before June 30 of each year, the Department shall submit a report to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly that includes a summary of Program activities for the year and any recommendations for consideration by the General Assembly. The Department shall adopt regulations to carry out this subtitle. The Department may adopt regulations that require an insurance producer to receive training about the Program before the insurance producer may market the Program or assist a Medicare beneficiary to enroll in the Program. Subject to § 10–116(d) of the Insurance Article, training received under paragraph (2) of this subsection qualifies as continuing education under § 10–116(a) of the Insurance Article.

For the purpose of maximizing participation in the Program, the Department may develop outreach materials for distribution to eligible individuals. The Department shall publicize the existence and eligibility requirements of the Program through the following entities: The Department of Aging; Local health departments; Continuing care retirement communities; Places of worship; Civic organizations; Community pharmacies; and Any other entity that the Department determines appropriate. The Department of Aging, through its Senior Health Insurance Program, shall: Assist eligible individuals in applying for coverage under the Program; and Provide notice of the Program and its eligibility requirements to potentially eligible individuals who seek health insurance counseling services through the Department of Aging. The Department shall develop a mail–in application for the Program. Any outreach performed by the Department on behalf of the Program shall be funded through the Fund.

The Department shall develop a process for providing information about the availability of the State’s earned income tax credit established under § 10–704 of the Tax – General Article to each individual receiving services under this subtitle.