Title IV, SEC. 4003. TREATMENT OF CERTAIN MEDICARE BENEFICIARIES. Title XVIII, as amended by section 4001, is further amended by adding at the end the following new section: ``treatment of certain medicare-eligible individuals under health security act ``Sec. 1894. (a) No Medicare Coverage for Certain Medicare-Eligible Individuals. Notwithstanding any other provision of this title or title II, an individual is not entitled to receive payment or have payment made on the individual's behalf under this title for items and services furnished during a year if the individual is not treated as a medicare-eligible individual under the Health Security Act during the year through the application of section 1012(a) of such Act. ``(b) Transfers to Regional Alliances. The Secretary shall provide for a transfer from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund, in appropriate proportions, to each regional alliance in each year of the amount of the reductions in liability owed to the alliance in the year resulting from the application of section 6115 of the Health Security Act.''.