SECTION 1. ESTABLISHMENT OF SPECIAL ENROLLMENT PERIODS AND WAIVER OF 
              LATE ENROLLMENT PENALTY FOR CERTAIN MILITARY RETIREES AND 
              DEPENDENTS.

    (a) Special Medicare Part B Enrollment Period.--
            (1) In general.--Section 1837 of the Social Security Act 
        (42 U.S.C. 1395p) is amended by adding at the end the following 
        new subsection:
    ``(j)(1)(A) There shall be a special enrollment period described in 
subparagraph (B) in the case of an individual who attained age 65 
before the date of the enactment of this subsection and with respect to 
whom the following conditions are met:
            ``(i) Since attaining such age and up to such date of 
        enactment, the individual has been a covered beneficiary (as 
        defined in section 1072(5) of title 10, United States Code) 
        under chapter 55 of title 10, United States Code.
            ``(ii) Since attaining such age and up to the date of the 
        event described in clause (iii), the individual continuously 
        maintained a primary residence within 100 miles of a military 
        hospital that provided inpatient hospital services and was not 
        been enrolled under this part.
            ``(iii) Since attaining such age and before such date of 
        enactment, any military hospital that provided inpatient 
        hospital services and that was located within 100 miles of the 
        individual's primary residence either was closed or 
        discontinued the provision of such services.
    ``(B) The special enrollment period under this paragraph shall be 
the 9-month period beginning with the first month that begins at least 
45 days after the date of the enactment of this Act.
    ``(2)(A) There shall be a special enrollment period described in 
subparagraph (B) in the case of an individual who attains age 65 on or 
after the date of the enactment of this subsection and with respect to 
whom the following conditions are met:
            ``(i) Since attaining such age and until the date of the 
        announcement described in clause (ii), the individual has been 
        a covered beneficiary (as defined in section 1072(5) of title 
        10, United States Code) under chapter 55 of title 10, United 
        States Code, has not been enrolled under this part, and has 
        continuously maintained a primary residence within 100 miles of 
        a military hospital that provided inpatient hospital services.
            ``(ii) Since attaining such age, there has been an 
        announcement that any military hospital that provided inpatient 
        hospital services and that was located within 100 miles of the 
        individual's primary residence either will be closed or that 
        the provision of inpatient hospital services at any such 
        facility will be discontinued.
    ``(B) A special enrollment period under this paragraph shall be a 
90-day period beginning 45 days before the date of the proposed 
hospital closure or service discontinuation described in subparagraph 
(A)(ii).
    ``(3)(A) For purposes of this subsection, if a military hospital is 
closed (or inpatient hospital services at a military hospital are 
discontinued) under a base closure law, the closure or discontinuation 
of services is considered to be `announced' as of the date of the 
submission to Congress under the base closure law of a report 
recommending the closure of the military base at which the facility is 
located.
    ``(B) If the there is a determination (other than under a base 
closure law) that a military hospital in the United States will be 
closed or that all inpatient hospital services at a military hospital 
will be discontinued, there shall be a public announcement of such 
determination at least 60 days before the date of the closure or 
discontinuation. Such announcement shall be made through a posting at 
the hospital and through other means intended to inform individuals who 
are 65 years of age or older and who obtain services through the 
hospital.
    ``(4) For purposes of this subsection:
            ``(A) The term `base closure law' means any of the 
        following:
                    ``(i) The Defense Base Closure and Realignment Act 
                of 1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note).
                    ``(ii) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).
                    ``(iii) Section 2687 of title 10, United States 
                Code.
                    ``(iv) Any other similar law enacted after the date 
                of the enactment of this subsection.
            ``(B) The term `military hospital' means a hospital that is 
        a facility of a uniformed service referred to in section 
        1074(a) of title 10, United States Code.''.
            (2) Coverage period for special enrollments.--Section 1838 
        of such Act (42 U.S.C. 1395q) is amended by adding at the end 
        the following new subsection:
    ``(f) Notwithstanding subsection (a), in the case of an individual 
who enrolls under this part pursuant to a special enrollment period 
provided under section 1837(j), the coverage period shall begin on the 
first day of the month that begins at least 15 days after the date of 
such enrollment.''.
    (b) Waiver of Medicare Part B Late Enrollment Penalty.--Section 
1839 of such Act (42 U.S.C. 1395r) is amended by adding at the end the 
following new subsection:
    ``(h) The increase in premiums required under subsection (b) due to 
late enrollment under this part shall not apply to an individual who 
enrolls under this part pursuant to a special enrollment period 
provided under section 1837(j).''.
    (c) Medigap Special Open Enrollment Period.--Section 1882 of such 
Act (42 U.S.C. 1395ss) is amended by adding at the end the following 
new subsection:
    ``(u) Notwithstanding any other provision of law, an issuer of a 
medicare supplemental policy--
            ``(1) may not deny or condition the issuance or 
        effectiveness of a medicare supplemental policy, and
            ``(2) may not discriminate in the pricing of the policy on 
        the basis of the individual's health status, medical condition 
        (including both physical and mental illnesses), claims 
        experience, receipt of health care, medical history, genetic 
        information, evidence of insurability (including conditions 
        arising out of acts of domestic violence), or disability;
in the case of an individual described in paragraph (1) or (2) of 
section 1839(j) who seeks to enroll during a special enrollment period 
provided pursuant to such section.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
Amends title XVIII (Medicare) of the Social Security Act to provide for a special Medicare part B (Supplementary Medical Insurance) enrollment period and Medigap enrollment period and a waiver of the Medicare part B late enrollment penalty for certain military retirees and dependents who live within a certain distance of a military hospital which provided inpatient hospital services that either closed or discontinued the provision of such services.
To amend title XVIII to provide a special Medicare part B enrollment period and MediGap enrollment period and a waiver of the Medicare part B late enrollment penalty for certain military retirees and dependents who live near military hospitals that are closed or that discontinue inpatient hospital services.