; and (B) by inserting , and $0 for each year subsequent year after $1) . 1012. Reduction in Medicare part D annual out-of-pocket threshold and elimination of cost-sharing above that threshold (a) Reduction Section 1860D–2(b)(4)(B) of the Social Security Act ( 42 U.S.C. 1395w–102(b)(4)(B) ) is amended— (1) in clause (i), by striking For purposes and inserting Subject to clause (iii), for purposes ; and (2) by adding at the end the following new clause: (iii) Reduction in threshold during transition period (I) In general Subject to subclause (II), for plan years beginning on or after January 1 following the date of enactment of the Medicare for All Act of 2017 and before January 1 of the year that is 4 years following such date of enactment, notwithstanding clauses (i) and (ii), the annual out-of-pocket threshold specified in this subparagraph is equal to $305. (II) Authority to exempt brand-name drugs if generic available In applying subclause (I), the Secretary may exempt costs incurred for a covered part D drug that is an applicable drug under section 1860D–14A(g)(2) if the Secretary determines that a generic version of that drug is available. . (b) Elimination of cost-Sharing Section 1860D–2(b)(4)(A) of the Social Security Act ( 42 U.S.C. 1395w–102(b)(4)(A) ) is amended— (1) in clause (i)— (A) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively; (B) by striking subparagraph (B), with cost-sharing and inserting the following: “subparagraph (B)— (I) for plan years 2006 through the plan year ending December 31 following the date of enactment of the Medicare for All Act of 2017 , with cost-sharing ; (C) in item (bb), as redesignated by subparagraph (A), by striking the period at the end and inserting ; and ; and (D) by adding at the end the following new subclause: (II) for the plan year beginning January 1 following the date of enactment of the Medicare for All Act of 2017 and the two subsequent plan years, without any cost-sharing.