Medicare Prescription Drug Simplification Act of 2006

Medicare Prescription Drug Simplification Act of 2006 - Revises the Medicare prescription drug program under part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act.

Directs the Secretary of Health and Human Services to establish five national uniform benefit packages consisting of three basic and two supplemental packages.

Limits removal or change of coverage of covered part D drugs under a formulary under a prescription drug plan (PDP) or an Medicare Advantage Prescription Drug (MA-PD) plan.

Provides for: (1) additional funding for enrollment assistance; (2) comparative plan information; (3) a standardized definition for cost and utilization management tools, and nomenclature for distinguishing between excluded and nonformulary drugs; (4) standardized enrollee notice regarding coverage determinations; (5) standardized forms and processes for reconsiderations and exceptions; and (6) authority to waive late the enrollment penalty in certain circumstances.

Directs the Secretary, jointly with the Commissioner of Social Security, to work to integrate processes and beneficiary information for applying for a premium and cost-sharing subsidy and enrolling in a PDP or an MA-PD plan in order to simplify steps for part D eligible individuals who wish to participate in both.

Outlines requirements for comparative information regarding performance of plans under Medicare part D.

Specifies factors the Secretary shall use in determining whether, for plan approval purposes, a PDP and its sponsor demonstrate a satisfactory quality of performance.