Medicare HEALS Act of 2005

Medicare Help for Every beneficiary And Low income Senior Act of 2005 or Medicare HEALS Act of 2005 - Amends title XIX (Medicaid) of the Social Security Act (SSA), as amended by the Medicare Prescription Drug Improvement and Modernization Act of 2003, to repeal the prohibition on the use of Medicaid funds to provide wrap-around prescription drug coverage for individuals dually eligible for both Medicare and Medicaid. Provides for a reduction in clawback payments by the amount of wrap-around payments.

Amends SSA title XVIII (Medicare) to provide that a part D eligible individual who enrolls for the first time in a prescription drug plan or a MedicareAdvantage-Prescription Drug (MA-PD) plan prior to January 1, 2008, shall not be subject to a penalty increase in the monthly beneficiary premium established with respect to months occurring prior to such date.