Medicare Part D Reform Act of 2006

Medicare Part D Reform Act of 2006 - Amends part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act (SSA) to prohibit the prescription drug plan sponsor of a prescription drug plan from removing a covered part D drug from the plan formulary or changing the preferred or tiered cost-sharing status of such a drug, except between September 1 and October 31 of any year, effective only as of January 1 of the following year.

Amends SSA title XI to exempt from certain criminal penalties any waiver or reduction of patient cost-sharing by pharmacies under pharmaceutical patient assistance programs.

Amends SSA title XVIII part D with respect to the reduction in cost-sharing below the out-of-pocket threshold for individuals with income below 135% of the poverty line. Requires waiver of such copayments in the case of a full-benefit dual eligible individual who is unable to pay the applicable copayment.

Gives the Secretary the authority to negotiate prescription drug prices with manufacturers of covered part D drugs.