Section text and notes
Payments to organizations
Monthly payments
In general
Payment before 2006
112section 1395w–24(f)(1)(E) of this titleFor years before 2006, the payment amount shall be equal to ⁄ of the annual MA capitation rate (as calculated under subsection (c)(1)) with respect to that individual for that area, adjusted under subparagraph (C) and reduced by the amount of any reduction elected under .
Payment for original fee-for-service benefits beginning with 2006
For years beginning with 2006, the amount specified in subparagraph (B).
Payment amount for original fee-for-service benefits beginning with 2006
Payment of bid for plans with bids below benchmark
In the case of a plan for which there are average per capita monthly savings described in section 1395w–24(b)(3)(C) or 1395w–24(b)(4)(C) of this title, as the case may be, the amount specified in this subparagraph is equal to the unadjusted MA statutory non-drug monthly bid amount, adjusted under subparagraph (C) and (if applicable) under subparagraphs (F) and (G), plus the amount (if any) of any rebate under subparagraph (E).
Payment of benchmark for plans with bids at or above benchmark
In the case of a plan for which there are no average per capita monthly savings described in section 1395w–24(b)(3)(C) or 1395w–24(b)(4)(C) of this title, as the case may be, the amount specified in this subparagraph is equal to the MA area-specific non-drug monthly benchmark amount, adjusted under subparagraph (C) and (if applicable) under subparagraphs (F) and (G).
Payment of benchmark for MSA plans
Notwithstanding clauses (i) and (ii), in the case of an MSA plan, the amount specified in this subparagraph is equal to the MA area-specific non-drug monthly benchmark amount, adjusted under subparagraph (C).
Authority to apply frailty adjustment under PACE payment rules for certain specialized MA plans for special needs individuals
In general
section 1395eee(d) of this titleNotwithstanding the preceding provisions of this paragraph, for plan year 2011 and subsequent plan years, in the case of a plan described in subclause (II), the Secretary may apply the payment rules under (other than paragraph (3) of such section) rather than the payment rules that would otherwise apply under this part, but only to the extent necessary to reflect the costs of treating high concentrations of frail individuals.
Plan described
section 1395w–28(b)(6)(B)(ii) of this titleA plan described in this subclause is a specialized MA plan for special needs individuals described in that is fully integrated with capitated contracts with States for Medicaid benefits, including long-term care, and that have similar average levels of frailty (as determined by the Secretary) as the PACE program.
Demographic adjustment, including adjustment for health status
In general
Subject to subparagraph (I), the Secretary shall adjust the payment amount under subparagraph (A)(i) and the amount specified under subparagraph (B)(i), (B)(ii), and (B)(iii) for such risk factors as age, disability status, gender, institutional status, and such other factors as the Secretary determines to be appropriate, including adjustment for health status under paragraph (3), so as to ensure actuarial equivalence. The Secretary may add to, modify, or substitute for such adjustment factors if such changes will improve the determination of actuarial equivalence.
Application of coding adjustment
Improvements to risk adjustment for special needs individuals with chronic health conditions
In general
section 1395w–28(b)(6) of this titleFor 2011 and subsequent years, for purposes of the adjustment under clause (i) with respect to individuals described in subclause (II), the Secretary shall use a risk score that reflects the known underlying risk profile and chronic health status of similar individuals. Such risk score shall be used instead of the default risk score for new enrollees in Medicare Advantage plans that are not specialized MA plans for special needs individuals (as defined in ).
Individuals described
2
Evaluation
For 2011 and periodically thereafter, the Secretary shall evaluate and revise the risk adjustment system under this subparagraph in order to, as accurately as possible, account for higher medical and care coordination costs associated with frailty, individuals with multiple, comorbid chronic conditions, and individuals with a diagnosis of mental illness, and also to account for costs that may be associated with higher concentrations of beneficiaries with those conditions.
Publication of evaluation and revisions
The Secretary shall publish, as part of an announcement under subsection (b), a description of any evaluation conducted under subclause (III) during the preceding year and any revisions made under such subclause as a result of such evaluation.
Separate payment for Federal drug subsidies
Payment of rebate for plans with bids below benchmark
section 1395w–24(b)(1)(C)(i) of this title2In the case of a plan for which there are average per capita monthly savings described in section 1395w–24(b)(3)(C) or 1395w–24(b)(4)(C) of this title, as the case may be, the amount specified in this subparagraph is the amount of the monthly rebate computed under for that plan and year (as reduced by the amount of any credit provided under section 1395w–24(b)(1)(C)(iv) of this title).
Adjustment for intra-area variations
Intra-regional variations
In the case of payment with respect to an MA regional plan for an MA region, the Secretary shall also adjust the amounts specified under subparagraphs (B)(i) and (B)(ii) in a manner to take into account variations in MA local payment rates under this part among the different MA local areas included in such region.
Intra-service area variations
In the case of payment with respect to an MA local plan for a service area that covers more than one MA local area, the Secretary shall also adjust the amounts specified under subparagraphs (B)(i) and (B)(ii) in a manner to take into account variations in MA local payment rates under this part among the different MA local areas included in such service area.
Adjustment relating to risk adjustment
Special rule for end-stage renal disease
section 1395rr(b)(7) of this titleThe Secretary shall establish separate rates of payment to a Medicare+Choice organization with respect to classes of individuals determined to have end-stage renal disease and enrolled in a Medicare+Choice plan of the organization. Such rates of payment shall be actuarially equivalent to rates that would have been paid with respect to other enrollees in the MA payment area (or such other area as specified by the Secretary) under the provisions of this section as in effect before . In accordance with regulations, the Secretary shall provide for the application of the seventh sentence of to payments under this section covering the provision of renal dialysis treatment in the same manner as such sentence applies to composite rate payments described in such sentence. In establishing such rates, the Secretary shall provide for appropriate adjustments to increase each rate to reflect the demonstration rate (including the risk adjustment methodology associated with such rate) of the social health maintenance organization end-stage renal disease capitation demonstrations (established by section 2355 of the Deficit Reduction Act of 1984, as amended by section 13567(b) of the Omnibus Budget Reconciliation Act of 1993), and shall compute such rates by taking into account such factors as renal treatment modality, age, and the underlying cause of the end-stage renal disease. The Secretary may apply the competitive bidding methodology provided for in this section, with appropriate adjustments to account for the risk adjustment methodology applied to end stage renal disease payments.
Improvements to risk adjustment for 2019 and subsequent years
In general
Taking into account total number of diseases or conditions
The Secretary shall take into account the total number of diseases or conditions of an individual enrolled in an MA plan. The Secretary shall make an additional adjustment under such subparagraph as the number of diseases or conditions of an individual increases.
Using at least 2 years of diagnostic data
The Secretary may use at least 2 years of diagnosis data.
Providing separate adjustments for dual eligible individuals
Evaluation of mental health and substance use disorders
The Secretary shall evaluate the impact of including additional diagnosis codes related to mental health and substance use disorders in the risk adjustment model.
Evaluation of chronic kidney disease
The Secretary shall evaluate the impact of including the severity of chronic kidney disease in the risk adjustment model.
Evaluation of payment rates for end-stage renal disease
The Secretary shall evaluate whether other factors (in addition to those described in subparagraph (H)) should be taken into consideration when computing payment rates under such subparagraph.
Phased-in implementation
The Secretary shall phase-in any changes to risk adjustment payment amounts under subparagraph (C)(i) under this subparagraph over a 3-year period, beginning with 2019, with such changes being fully implemented for 2022 and subsequent years.
Opportunity for review and public comment
The Secretary shall provide an opportunity for review of the proposed changes to such risk adjustment payment amounts under this subparagraph and a public comment period of not less than 60 days before implementing such changes.
Adjustment to reflect number of enrollees
In general
The amount of payment under this subsection may be retroactively adjusted to take into account any difference between the actual number of individuals enrolled with an organization under this part and the number of such individuals estimated to be so enrolled in determining the amount of the advance payment.
Special rule for certain enrollees
In general
Subject to clause (ii), the Secretary may make retroactive adjustments under subparagraph (A) to take into account individuals enrolled during the period beginning on the date on which the individual enrolls with a Medicare+Choice organization under a plan operated, sponsored, or contributed to by the individual’s employer or former employer (or the employer or former employer of the individual’s spouse) and ending on the date on which the individual is enrolled in the organization under this part, except that for purposes of making such retroactive adjustments under this subparagraph, such period may not exceed 90 days.
Exception
section 1395w–22(c) of this titleNo adjustment may be made under clause (i) with respect to any individual who does not certify that the organization provided the individual with the disclosure statement described in at the time the individual enrolled with the organization.
Establishment of risk adjustment factors
Report
The Secretary shall develop, and submit to Congress by not later than , a report on the method of risk adjustment of payment rates under this section, to be implemented under subparagraph (C), that accounts for variations in per capita costs based on health status. Such report shall include an evaluation of such method by an outside, independent actuary of the actuarial soundness of the proposal.
Data collection
section 1395mm of this titleIn order to carry out this paragraph, the Secretary shall require Medicare+Choice organizations (and eligible organizations with risk-sharing contracts under ) to submit data regarding inpatient hospital services for periods beginning on or after , and data regarding other services and other information as the Secretary deems necessary for periods beginning on or after . The Secretary may not require an organization to submit such data before .
Initial implementation
In general
The Secretary shall first provide for implementation of a risk adjustment methodology that accounts for variations in per capita costs based on health status and other demographic factors for payments by no later than .
Phase-in
Data for risk adjustment methodology
Such risk adjustment methodology for 2004 and each succeeding year, shall be based on data from inpatient hospital and ambulatory settings.
Full implementation of risk adjustment for congestive heart failure enrollees for 2001
Exemption from phase-in
Subject to subclause (II), the Secretary shall fully implement the risk adjustment methodology described in clause (i) with respect to each individual who has had a qualifying congestive heart failure inpatient diagnosis (as determined by the Secretary under such risk adjustment methodology) during the period beginning on , and ending on , and who is enrolled in a coordinated care plan that is the only coordinated care plan offered on , in the service area of the individual.
Period of application
Subclause (I) shall only apply during the 1-year period beginning on .
Uniform application to all types of plans
section 1395w–28(e)(4) of this titleSubject to , the methodology shall be applied uniformly without regard to the type of plan.
Payment rule for federally qualified health center services
Annual announcement of payment rates
Annual announcements
For 2005
MA capitation rates
The annual MA capitation rate for each MA payment area for 2005.
Adjustment factors
The risk and other factors to be used in adjusting such rates under subsection (a)(1)(C) for payments for months in 2005.
For 2006 and subsequent years
Initial announcement
MA capitation rates; MA local area benchmark
The annual MA capitation rate for each MA payment area for the year.
Adjustment factors
The risk and other factors to be used in adjusting such rates under subsection (a)(1)(C) for payments for months in such year.
Regional benchmark announcement
section 1395w–24 of this titleThe Secretary shall determine, and shall announce (in a manner intended to provide notice to interested parties), on a timely basis before the calendar year concerned, with respect to each MA region and each MA regional plan for which a bid was submitted under , the MA region-specific non-drug monthly benchmark amount for that region for the year involved.
Benchmark announcement for CCA local areas
22The Secretary shall determine, and shall announce (in a manner intended to provide notice to interested parties), on a timely basis before the calendar year concerned, with respect to each CCA area (as defined in section 1395w–29(b)(1)(A) of this title), the CCA non-drug monthly benchmark amount under section 1395w–29(e)(1) of this title for that area for the year involved.
Advance notice of methodological changes
At least 45 days (or, in 2017 and each subsequent year, at least 60 days) before making the announcement under paragraph (1) for a year, the Secretary shall provide for notice to Medicare+Choice organizations of proposed changes to be made in the methodology from the methodology and assumptions used in the previous announcement and shall provide such organizations an opportunity (in 2017 and each subsequent year, of no less than 30 days) to comment on such proposed changes.
Explanation of assumptions
In each announcement made under paragraph (1), the Secretary shall include an explanation of the assumptions and changes in methodology used in such announcement.
Continued computation and publication of county-specific per capita fee-for-service expenditure information
Calculation of annual Medicare+Choice capitation rates
In general
Blended capitation rate
Minimum amount
Minimum percentage increase
100 percent of fee-for-service costs
In general
section 1395mm(a)(4) of this title3
Periodic rebasing
The provisions of clause (i) shall apply for 2004 and for subsequent years as the Secretary shall specify (but not less than once every 3 years).
Inclusion of costs of VA and DOD military facility services to medicare-eligible beneficiaries
In determining the adjusted average per capita cost under clause (i) for a year, such cost shall be adjusted to include the Secretary’s estimate, on a per capita basis, of the amount of additional payments that would have been made in the area involved under this subchapter if individuals entitled to benefits under this subchapter had not received services from facilities of the Department of Defense or the Department of Veterans Affairs.
Area-specific and national percentages
Annual area-specific Medicare+Choice capitation rate
In general
Removal of medical education from calculation of adjusted average per capita cost
In general
section 1395mm(a)(1)(C) of this titleIn determining the area-specific Medicare+Choice capitation rate under subparagraph (A) for a year (beginning with 1998), the annual per capita rate of payment for 1997 determined under shall be adjusted to exclude from the rate the applicable percent (specified in clause (ii)) of the payment adjustments described in subparagraph (C).
Applicable percent
Payment adjustment
In general
Treatment of payments covered under State hospital reimbursement system
section 1395f(b)(3) of this titleTo the extent that the Secretary estimates that an annual per capita rate of payment for 1997 described in clause (i) reflects payments to hospitals reimbursed under , the Secretary shall estimate a payment adjustment that is comparable to the payment adjustment that would have been made under clause (i) if the hospitals had not been reimbursed under such section.
Treatment of areas with highly variable payment rates
section 1395mm(a)(1)(C) of this titleIn the case of a Medicare+Choice payment area for which the annual per capita rate of payment determined under for 1997 varies by more than 20 percent from such rate for 1996, for purposes of this subsection the Secretary may substitute for such rate for 1997 a rate that is more representative of the costs of the enrollees in the area.
Inclusion of costs of DOD and VA military facility services to Medicare-eligible beneficiaries
section 1395mm(a)(1)(C) of this titleIn determining the area-specific MA capitation rate under subparagraph (A) for a year (beginning with 2004), the annual per capita rate of payment for 1997 determined under shall be adjusted to include in the rate the Secretary’s estimate, on a per capita basis, of the amount of additional payments that would have been made in the area involved under this subchapter if individuals entitled to benefits under this subchapter had not received services from facilities of the Department of Defense or the Department of Veterans Affairs.
Input-price-adjusted annual national Medicare+Choice capitation rate
In general
National standardized annual Medicare+ÐChoice capitation rate
Special rules for 1998
Payment adjustment budget neutrality factor
For purposes of paragraph (1)(A), for each year (other than 2004), the Secretary shall determine a budget neutrality adjustment factor so that the aggregate of the payments under this part (other than those attributable to subsections (a)(3)(C)(iv), (a)(4), and (i)) shall equal the aggregate payments that would have been made under this part if payment were based entirely on area-specific capitation rates.
“National per capita Medicare+Choice growth percentage” defined
In general
osection 1395w–4 of this titlesection 1395ww of this titleIn this part, the “national per capita Medicare+Choice growth percentage” for a year is the percentage determined by the Secretary, by March 1st before the beginning of the year involved, to reflect the Secretary’s estimate of the projected per capita rate of growth in expenditures under this subchapter for an individual entitled to benefits under part A and enrolled under part B, excluding expenditures attributable to subsections (a)(7) and () of and subsections (b)(3)(B)(ix) and (n) of , reduced by the number of percentage points specified in subparagraph (B) for the year. Separate determinations may be made for aged enrollees, disabled enrollees, and enrollees with end-stage renal disease.
Adjustment
Adjustment for over or under projection of national per capita Medicare+Choice growth percentage
Beginning with rates calculated for 1999, before computing rates for a year as described in paragraph (1), the Secretary shall adjust all area-specific and national Medicare+Choice capitation rates (and beginning in 2000, the minimum amount) for the previous year for the differences between the projections of the national per capita Medicare+Choice growth percentage for that year and previous years and the current estimate of such percentage for such years, except that for purposes of paragraph (1)(C)(v)(II), no such adjustment shall be made for a year before 2004.
Adjustment for national coverage determinations and legislative changes in benefits
section 1395w–22(a)(5) of this titleIf the Secretary makes a determination with respect to coverage under this subchapter or there is a change in benefits required to be provided under this part that the Secretary projects will result in a significant increase in the costs to Medicare+Choice of providing benefits under contracts under this part (for periods after any period described in ), the Secretary shall adjust appropriately the payments to such organizations under this part. Such projection and adjustment shall be based on an analysis by the Chief Actuary of the Centers for Medicare & Medicaid Services of the actuarial costs associated with the new benefits.
MA payment area; MA local area; MA region defined
MA payment area
MA local area
The term “MA local area” means a county or equivalent area specified by the Secretary.
Rule for ESRD beneficiaries
In the case of individuals who are determined to have end stage renal disease, the Medicare+Choice payment area shall be a State or such other payment area as the Secretary specifies.
Geographic adjustment
In general
Budget neutrality adjustment
In the case of a State requesting an adjustment under this paragraph, the Secretary shall initially (and annually thereafter) adjust the payment rates otherwise established under this section with respect to MA local plans for Medicare+Choice payment areas in the State in a manner so that the aggregate of the payments under this section for such plans in the State shall not exceed the aggregate payments that would have been made under this section for such plans for Medicare+Choice payment areas in the State in the absence of the adjustment under this paragraph.
Metropolitan based system
Areas
In subparagraph (C), the terms “metropolitan statistical area”, “consolidated metropolitan statistical area”, and “primary metropolitan statistical area” mean any area designated as such by the Secretary of Commerce.
Special rules for individuals electing MSA plans
In general
section 1395w–24(b)(2)(C) of this title112If the amount of the Medicare+Choice monthly MSA premium (as defined in ) for an MSA plan for a year is less than ⁄ of the annual Medicare+Choice capitation rate applied under this section for the area and year involved, the Secretary shall deposit an amount equal to 100 percent of such difference in a Medicare+Choice MSA established (and, if applicable, designated) by the individual under paragraph (2).
Establishment and designation of Medicare+Choice medical savings account as requirement for payment of contribution
Lump-sum deposit of medical savings account contribution
In the case of an individual electing an MSA plan effective beginning with a month in a year, the amount of the contribution to the Medicare+Choice MSA on behalf of the individual for that month and all successive months in the year shall be deposited during that first month. In the case of a termination of such an election as of a month before the end of a year, the Secretary shall provide for a procedure for the recovery of deposits attributable to the remaining months in the year.
Payments from Trust Funds
lThe payment to a Medicare+Choice organization under this section for individuals enrolled under this part with the organization and for payments under subsection () and subsection (m) and payments to a Medicare+Choice MSA under subsection (e)(1) shall be made from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund in such proportion as the Secretary determines reflects the relative weight that benefits under part A and under part B represents of the actuarial value of the total benefits under this subchapter. Payments to MA organizations for statutory drug benefits provided under this subchapter are made from the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund. Monthly payments otherwise payable under this section for October 2000 shall be paid on the first business day of such month. Monthly payments otherwise payable under this section for October 2001 shall be paid on the last business day of September 2001. Monthly payments otherwise payable under this section for October 2006 shall be paid on the first business day of October 2006.
Special rule for certain inpatient hospital stays
Special rule for hospice care
Information
Payment
New entry bonus
In general
Period of application
Paragraph (1) shall only apply to payment for Medicare+Choice plans which are first offered in a Medicare+Choice payment area during the 2-year period beginning on .
Limitation to organization offering first plan in an area
Paragraph (1) shall only apply to payment to the first Medicare+Choice organization that offers a Medicare+Choice plan in each Medicare+Choice payment area, except that if more than one such organization first offers such a plan in an area on the same date, paragraph (1) shall apply to payment for such organizations.
Construction
Nothing in paragraph (1) shall be construed as affecting the calculation of the annual Medicare+Choice capitation rate under subsection (c) for any payment area or as applying to payment for any period not described in such paragraph and paragraph (2).
Offered defined
In this subsection, the term “offered” means, with respect to a Medicare+Choice plan as of a date, that a Medicare+Choice eligible individual may enroll with the plan on that date, regardless of when the enrollment takes effect or when the individual obtains benefits under the plan.
Computation of benchmark amounts
Determination of applicable amount for purposes of calculating the benchmark amounts
Applicable amount defined
Phase-out of budget neutrality factor
In general
Percent determined
In general
For purposes of subparagraph (A)(i), subject to clause (iv), the percent determined under this subparagraph for a year is a percent equal to a fraction the numerator of which is described in clause (ii) and the denominator of which is described in clause (iii).
Numerator based on difference between demographic rate and risk rate
In general
The numerator described in this clause is an amount equal to the amount by which the demographic rate described in subclause (II) exceeds the risk rate described in subclause (III).
Demographic rate
112The demographic rate described in this subclause is the Secretary’s estimate of the total payments that would have been made under this part in the year if all the monthly payment amounts for all MA plans were equal to ⁄ of the annual MA capitation rate under subsection (c)(1) for the area and year, adjusted pursuant to subsection (a)(1)(C).
Risk rate
The risk rate described in this subclause is the Secretary’s estimate of the total payments that would have been made under this part in the year if all the monthly payment amounts for all MA plans were equal to the amount described in subsection (j)(1)(A) (determined as if this paragraph had not applied) under subsection (j) for the area and year, adjusted pursuant to subsection (a)(1)(C).
Denominator based on risk rate
The denominator described in this clause is equal to the total amount estimated for the year under clause (ii)(III).
Requirements
Authority
In computing such amounts the Secretary may take into account the estimated health risk of enrollees in preferred provider organization plans (including MA regional plans) for the year.
Applicable phase-out factor
Termination of application
Subparagraph (A) shall not apply in a year if the amount estimated under subparagraph (B)(ii)(III) for the year is equal to or greater than the amount estimated under subparagraph (B)(ii)(II) for the year.
No revision in percent
In general
The Secretary may not make any adjustment to the percent determined under paragraph (2)(B) for any year.
Rule of construction
Nothing in this subsection shall be construed to limit the authority of the Secretary to make adjustments to the applicable amounts determined under paragraph (1) as appropriate for purposes of updating data or for purposes of adopting an improved risk adjustment methodology.
Phase-out of the indirect costs of medical education from capitation rates
In general
section 1395ww(d)(5)(B) of this titleAfter determining the applicable amount for an area for a year under paragraph (1) (beginning with 2010), the Secretary shall adjust such applicable amount to exclude from such applicable amount the phase-in percentage (as defined in subparagraph (B)(i)) for the year of the Secretary’s estimate of the standardized costs for payments under in the area for the year. Any adjustment under the preceding sentence shall be made prior to the application of paragraph (2).
Percentages defined
Phase-in percentage
Maximum cumulative adjustment percentage
Standardized IME cost percentage
section 1395ww(d)(5)(B) of this titleThe term “standardized IME cost percentage” means, for an area for a year, the per capita costs for payments under (expressed as a percentage of the fee-for-service amount specified in subparagraph (C)) for the area and the year.
Fee-for-service amount
The fee-for-service amount specified in this subparagraph for an area for a year is the amount specified under subsection (c)(1)(D) for the area and the year.
Exclusion of costs for kidney acquisitions from capitation rates
section 1395rr(d) of this titleAfter determining the applicable amount for an area for a year under paragraph (1) (beginning with 2021), the Secretary shall adjust such applicable amount to exclude from such applicable amount the Secretary’s estimate of the standardized costs for payments for organ acquisitions for kidney transplants covered under this subchapter (including expenses covered under ) in the area for the year.
Application of eligible professional incentives for certain MA organizations for adoption and meaningful use of certified EHR technology
In general
oSubject to paragraphs (3) and (4), in the case of a qualifying MA organization, the provisions of sections 1395w–4() and 1395w–4(a)(7) of this title shall apply with respect to eligible professionals described in paragraph (2) of the organization who the organization attests under paragraph (6) to be meaningful EHR users in a similar manner as they apply to eligible professionals under such sections. Incentive payments under paragraph (3) shall be made to and payment adjustments under paragraph (4) shall apply to such qualifying organizations.
Eligible professional described
Eligible professional incentive payments
In general
ooIn applying section 1395w–4() of this title under paragraph (1), instead of the additional payment amount under section 1395w–4()(1)(A) of this title and subject to subparagraph (B), the Secretary may substitute an amount determined by the Secretary to the extent feasible and practical to be similar to the estimated amount in the aggregate that would be payable if payment for services furnished by such professionals was payable under part B instead of this part.
Avoiding duplication of payments
In general
Methods
Fixed schedule for application of limitation on incentive payments for all eligible professionals
oIn applying section 1395w–4()(1)(B)(ii) of this title under subparagraph (A), in accordance with rules specified by the Secretary, a qualifying MA organization shall specify a year (not earlier than 2011) that shall be treated as the first payment year for all eligible professionals with respect to such organization.
Payment adjustment
In general
section 1395w–4(a)(7) of this titleIn applying under paragraph (1), instead of the payment adjustment being an applicable percent of the fee schedule amount for a year under such section, subject to subparagraph (D), the payment adjustment under paragraph (1) shall be equal to the percent specified in subparagraph (B) for such year of the payment amount otherwise provided under this section for such year.
Specified percent
Medicare physician expenditure proportion
The Medicare physician expenditure proportion under this subparagraph for a year is the Secretary’s estimate of the proportion, of the expenditures under parts A and B that are not attributable to this part, that are attributable to expenditures for physicians’ services.
Application of payment adjustment
In the case that a qualifying MA organization attests that not all eligible professionals of the organization are meaningful EHR users with respect to a year, the Secretary shall apply the payment adjustment under this paragraph based on the proportion of all such eligible professionals of the organization that are not meaningful EHR users for such year.
Qualifying MA organization defined
section 300gg–91(b)(3) of this titleIn this subsection and subsection (m), the term “qualifying MA organization” means a Medicare Advantage organization that is organized as a health maintenance organization (as defined in ).
Meaningful EHR user attestation
Posting on website
Limitation on review
Application of eligible hospital incentives for certain MA organizations for adoption and meaningful use of certified EHR technology
Application
lSubject to paragraphs (3) and (4), in the case of a qualifying MA organization, the provisions of sections 1395ww(n) and 1395ww(b)(3)(B)(ix) of this title shall apply with respect to eligible hospitals described in paragraph (2) of the organization which the organization attests under subsection ()(6) to be meaningful EHR users in a similar manner as they apply to eligible hospitals under such sections. Incentive payments under paragraph (3) shall be made to and payment adjustments under paragraph (4) shall apply to such qualifying organizations.
Eligible hospital described
section 1395ww(n)(6)(B) of this titleWith respect to a qualifying MA organization, an eligible hospital described in this paragraph is an eligible hospital (as defined in ) that is under common corporate governance with such organization and serves individuals enrolled under an MA plan offered by such organization.
Eligible hospital incentive payments
In general
Avoiding duplication of payments
In general
section 1395ww(n) of this titleIn the case of a hospital that for a payment year is an eligible hospital described in paragraph (2) and for which at least one-third of their discharges (or bed-days) of Medicare patients for the year are covered under part A, payment for the payment year shall be made only under and not under this subsection.
Methods
Payment adjustment
Specified percent .—
Medicare hospital expenditure proportion .—
Application of payment adjustment .—
Posting on website
Limitations on review
Determination of blended benchmark amount
In general
Specified amount
In general
Applicable percentage
Periodic ranking
1-year transition for changes in applicable percentage
Base payment amount
Application of indirect medical education phase-out
The base payment amount specified in subparagraph (E) for a year shall be adjusted in the same manner under paragraph (4) of subsection (k) as the applicable amount is adjusted under such subsection.
Application of kidney acquisitions adjustment
The base payment amount specified in subparagraph (E) for a year (beginning with 2021) shall be adjusted in the same manner under paragraph (5) of subsection (k) as the applicable amount is adjusted under such subsection.
Alternative phase-ins
4-year phase-in for certain areas
6-year phase-in for certain areas
Projected 2010 benchmark amount
Cap on benchmark amount
oIn no case shall the blended benchmark amount for an area for a year (determined taking into account subsection ()) be greater than the applicable amount that would (but for the application of this subsection) be determined under subsection (k)(1) for the area for the year.
Non-application to PACE plans
section 1395eee of this titleThis subsection shall not apply to payments to a PACE program under .
Applicable percentage quality increases
In general
Increase for qualifying plans in qualifying counties
The increase applied under paragraph (1) for a qualifying plan located in a qualifying county for a year shall be doubled.
Qualifying plans and qualifying county defined; application of increases to low enrollment and new plans
Qualifying plan
In general
The term “qualifying plan” means, for a year and subject to paragraph (4), a plan that had a quality rating under paragraph (4) of 4 stars or higher based on the most recent data available for such year.
Application of increases to low enrollment plans
2012
For 2012, the term “qualifying plan” includes an MA plan that the Secretary determines is not able to have a quality rating under paragraph (4) because of low enrollment.
2013 and subsequent years
For 2013 and subsequent years, for purposes of determining whether an MA plan with low enrollment (as defined by the Secretary) is included as a qualifying plan, the Secretary shall establish a method to apply to MA plans with low enrollment (as defined by the Secretary) the computation of quality rating and the rating system under paragraph (4).
Application of increases to new plans
In general
New MA plan defined
The term “new MA plan” means, with respect to a year, a plan offered by an organization or sponsor that has not had a contract as a Medicare Advantage organization in the preceding 3-year period.
Qualifying county
Quality determinations for application of increase
Quality determination
section 1395w–22(e) of this titleThe quality rating for a plan shall be determined according to a 5-star rating system (based on the data collected under ).
Plans that failed to report
An MA plan which does not report data that enables the Secretary to rate the plan for purposes of this paragraph shall be counted as having a rating of fewer than 3.5 stars.
Special rule for first 3 plan years for plans that were converted from a reasonable cost reimbursement contract
Special rule to prevent the artificial inflation of star ratings after the consolidation of Medicare Advantage plans offered by a single organization
In general
Application
An adjustment under clause (i) shall apply for any year for which the quality rating of the continuing contract is based primarily on a measurement period that is prior to the first year in which a closed contract is no longer offered.
Exception for PACE plans
section 1395eee of this titleThis subsection shall not apply to payments to a PACE program under .
Quality measurement at the plan level for SNPs
In general
section 1395w–22(e) of this titleSubject to subparagraph (B), the Secretary may require reporting of data under for, and apply under this subsection, quality measures at the plan level for specialized MA plans for special needs individuals instead of at the contract level.
Considerations
Application
Determination of feasibility of quality measurement at the plan level for all MA plans
Determination of feasibility
section 1395w–22(e) of this titleThe Secretary shall determine the feasibility of requiring reporting of data under for, and applying under this subsection, quality measures at the plan level for all MA plans under this part.
Consideration of change
3After making a determination under subparagraph (A), the Secretary shall consider requiring such reporting and applying such quality measures at the plan level as described in such subparagraph
Aug. 14, 1935, ch. 531 Pub. L. 105–33, title IV, § 4001111 Stat. 299 Pub. L. 106–113, div. B, § 1000(a)(6) [title V, §§ 511(a), 512, 514(a), 517]113 Stat. 1536 Pub. L. 106–554, § 1(a)(6) [title VI, §§ 601(a), 602(a), 603, 605(a), 606(a)(2)(A), 607, 608(a), 611(a)]114 Stat. 2763 Pub. L. 107–188, title V, § 532(d)(1)116 Stat. 696 Pub. L. 108–173, title I, § 101(e)(3)(D)117 Stat. 2151 Pub. L. 109–171, title V, § 5301120 Stat. 48 Pub. L. 110–275, title I, § 161(a)122 Stat. 2568 Pub. L. 111–5, div. B, title IV123 Stat. 473 Pub. L. 111–148, title III124 Stat. 442 Pub. L. 111–152, title I, § 1102(a)124 Stat. 1040 Pub. L. 112–240, title VI, § 639126 Stat. 2357 Pub. L. 114–10, title II, § 209(d)129 Stat. 150 Pub. L. 114–106, § 2129 Stat. 2222 Pub. L. 114–113, div. O, title VI, § 602(b)(2)129 Stat. 3024 Pub. L. 114–255, div. C, title XVII, § 17006(b)130 Stat. 1334 Pub. L. 115–123, div. E, title III, § 50311(d)132 Stat. 198 (, title XVIII, § 1853, as added , , ; amended , , , 1501A–380, 1501A–382 to 1501A–384; , , , 2763A–554 to 2763A–559; , , ; , title II, §§ 211(a)–(e)(1), 221(d)(1), (4), 222(d)–(f), (i), 237(b)(1), (2)(B), 241(b)(1), title VII, § 736(d)(1), title IX, § 900(e)(1)(G), , , 2176–2178, 2192, 2193, 2200–2202, 2204, 2212, 2213, 2220, 2357, 2371; , , ; , (b), , , 2569; , §§ 4101(c), (e), 4102(c), (d)(3), , , 476, 484, 486; , §§ 3201(a)(1), (2)(A), (b), (e)(1), (2)(A)(ii)–(iv), (f)(1), (g), (h), (i)(2), 3202(b)(2), 3203, 3205(b), (f), title X, § 10318, , , 444–447, 450, 452, 454–458, 948; –(c)(3), (e), , , 1043, 1046; , , ; , , ; , , ; , , ; , (f)(1), , , 1336; , title XII, § 53112, , , 305.)
Editorial Notes
References in Text
section 1395w–28(b)(6)(B)(iii) of this titleSubsection (b)(6)(B)(iii), referred to in subsec. (a)(1)(C)(iii)(II), probably means . This section does not contain a subsec. (b)(6)(B)(iii).
Section 1395w–24(b)(1)(C)(iv) of this titlesection 1395w–24(b)(1)(C)(v) of this titlePub. L. 111–148, title III, § 3202(b)(1)(B)124 Stat. 454 section 1395w–24(b)(1)(C)(viii) of this titlePub. L. 111–152, title I, § 1102(d)(2)124 Stat. 1045 , referred to in subsec. (a)(1)(E), was redesignated by , , , and subsequently redesignated by , , .
section 2355 of Pub. L. 98–36998 Stat. 1103 section 13567(b) of Pub. L. 103–66107 Stat. 608 Section 2355 of the Deficit Reduction Act of 1984, as amended by section 13567(b) of the Omnibus Budget Reconciliation Act of 1993, referred to in subsec. (a)(1)(H), is , div. B, title III, , , as amended by , title XIII, , , which is not classified to the Code.
Section 1395w–29 of this titlePub. L. 111–152, title I, § 1102(f)124 Stat. 1046 , referred to in subsecs. (b)(1)(B)(iii) and (j)(1)(A), was repealed by , , .
The Internal Revenue Code of 1986, referred to in subsec. (e)(2)(A), is classified generally to Title 26, Internal Revenue Code.
section 1395ww(d)(1)(B) of this titlesection 1395ww(d)(1)(B) of this titlePub. L. 114–255, div. C, title XV, § 15008(a)(2)(B)130 Stat. 1321 The matter following clause (v) of , referred to in subsec. (g), now follows cl. (vi) of following the redesignation of subcl. (II) of cl. (iv) of subsec. (d)(1)(B) as cl. (vi) by , , .
Amendments
oPub. L. 115–123, § 531122018—Subsec. ()(4)(D). , added subpar. (D).
oPub. L. 115–123, § 50311(d)Subsec. ()(6), (7). , added pars. (6) and (7).
Pub. L. 114–255, § 17006(f)(1)(A)2016—Subsec. (a)(1)(C)(i). , which directed substitution of “Subject to subparagraph (I), the Secretary” for “The Secretary”, was executed by making the substitution in the first sentence to reflect the probable intent of Congress.
Pub. L. 114–255, § 17006(f)(1)(B)Subsec. (a)(1)(I). , added subpar. (I).
Pub. L. 114–255, § 17006(b)(1)(A)(i)Subsec. (k)(1). , substituted “paragraphs (2), (4), and (5)” for “paragraphs (2) and (4)” in introductory provisions.
Pub. L. 114–255, § 17006(b)(1)(A)(ii)Subsec. (k)(1)(B)(i). , substituted “paragraphs (2), (4), and (5)” for “paragraphs (2) and (4)”.
Pub. L. 114–255, § 17006(b)(1)(B)Subsec. (k)(5). , added par. (5).
Pub. L. 114–255, § 17006(b)(2)(A)Subsec. (n)(2)(A)(i). , inserted before semicolon at end “and, for 2021 and subsequent years, the exclusion of payments for organ acquisitions for kidney transplants from the capitation rate as described in subsection (k)(5)”.
Pub. L. 114–255, § 17006(b)(2)(B)Subsec. (n)(2)(E). , substituted “subparagraphs (F) and (G)” for “subparagraph (F)” in introductory provisions.
Pub. L. 114–255, § 17006(b)(2)(C)Subsec. (n)(2)(G). , added subpar. (G).
Pub. L. 114–1062015—Subsec. (b)(2). inserted “(or, in 2017 and each subsequent year, at least 60 days)” after “45 days” and “(in 2017 and each subsequent year, of no less than 30 days)” after “opportunity”.
Pub. L. 114–113Subsec. (m)(2), (4)(A). substituted “1395ww(n)(6)(B)” for “1395ww(n)(6)(A)”.
oPub. L. 114–10Subsec. ()(4)(C). added subpar. (C).
Pub. L. 112–2402013—Subsec. (a)(1)(C)(ii)(III). substituted “1.5 percentage points” for “1.3 percentage points” and “5.9 percent” for “5.7 percent”.
Pub. L. 111–148, § 3201(f)(1)(B)Pub. L. 111–152, § 1102(a)2010—Subsec. (a)(1)(B)(i), (ii). , which directed amendment of subpar. (B) by inserting “and any performance bonus under subsection (n)” before period at end of cl. (i) and substituting “(G), plus the amount (if any) of any performance bonus under subsection (n)” for “(G)” in cl. (ii), was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3205(b)Subsec. (a)(1)(B)(iv). , added cl. (iv).
Pub. L. 111–152, § 1102(e)(2)Subsec. (a)(1)(C)(ii). , substituted “and each subsequent year” for “through 2010” in introductory provisions.
Pub. L. 111–152, § 1102(e)(1), which directed the substitution of “of coding adjustment” for “during phaseout of budget neutrality factor” in heading, was executed by making the substitution for “during phase-out of budget neutrality factor” to reflect the probable intent of Congress.
Pub. L. 111–152, § 1102(e)(3)(A)Subsec. (a)(1)(C)(ii)(II). –(C), inserted “annually” before “conduct an analysis” and “on a timely basis” after “are incorporated”, substituted “for 2008 and subsequent years” for “only for 2008, 2009, and 2010”, and inserted “and updated as appropriate” after “as available”.
Pub. L. 111–152, § 1102(e)(3)(D)Subsec. (a)(1)(C)(ii)(III), (IV). , which directed amendment “in subclause (II)” of subsec. (a)(1)(C)(ii) by adding subcls. (III) and (IV) at the end, was executed by adding subcls. (III) and (IV) after subcl. (II), to reflect the probable intent of Congress.
Pub. L. 111–148, § 3205(f)Subsec. (a)(1)(C)(iii). , added cl. (iii).
Pub. L. 111–148, § 3203Pub. L. 111–152, § 1102(a), which directed amendment of subpar. (C) by adding cl. (iii) relating to application of coding intensity adjustment for 2011 and subsequent years, was repealed by . As enacted, text read as follows:
Requirement to apply in 2011 through 2013“(I) .—In order to ensure payment accuracy, the Secretary shall conduct an analysis of the differences described in clause (ii)(I). The Secretary shall ensure that the results of such analysis are incorporated into the risk scores for 2011, 2012, and 2013.
Authority to apply in 2014 and subsequent years“(II) .—The Secretary may, as appropriate, incorporate the results of such analysis into the risk scores for 2014 and subsequent years.”
See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(e)(2)(A)(ii)Pub. L. 111–152, § 1102(a)Subsec. (b)(1)(B)(i). , which directed amendment of cl. (i) by substituting “MA local area (as defined in subsection (d)(2))” for “MA payment area” in introductory provisions and “MA local area (as so defined)” for “MA payment area” in subcl. (I), was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(e)(2)(A)(iii)Pub. L. 111–152, § 1102(a)Subsec. (b)(4). , which directed substitution of “MA local area (as so defined)” for “Medicare Advantage payment area”, was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(e)(2)(A)(iv)Pub. L. 111–152, § 1102(a)Subsec. (c)(1). , which directed amendment of par. (1) by striking “a Medicare Advantage payment area that is” in introductory provisions and substituting “MA local area (as defined in subsection (d)(2))” for “MA payment area” in subpar. (D)(i), was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(b)Pub. L. 111–152, § 1102(a)Subsec. (c)(6). , which directed amendment of par. (6) by substituting “for 2003 through 2010” for “for a year after 2002” in cl. (vi) and adding cl. (vii), which read “for 2011, 3 percentage points; and”, and cl. (viii), which read “for a year after 2011, 0 percentage points.”, was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(e)(1)(A)Pub. L. 111–152, § 1102(a)Subsec. (d). , which directed substitution of “MA region; MA local plan service area” for “MA region” in heading, was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(e)(1)(B)Subsec. (d)(1)(A). , which directed substitution of “with respect to an MA local plan—
“(i) for years before 2012, an MA local area (as defined in paragraph (2)); and
“(ii) for 2012 and succeeding years, a service area that is an entire urban or rural area, as applicable (as described in paragraph (5)); and”
Pub. L. 111–152, § 1102(a)for “with respect to an MA local plan, an MA local area (as defined in paragraph (2)); and”, was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(e)(1)(C)Pub. L. 111–152, § 1102(a)Subsec. (d)(5). , which directed the addition of par. (5), was repealed by . As enacted, text read as follows: “For 2012 and succeeding years, the service area for an MA local plan shall be an entire urban or rural area in each State as follows:
Urban areas.—“(A)
In general“(i) .—Subject to clause (ii) and subparagraphs (C) and (D), the service area for an MA local plan in an urban area shall be the Core Based Statistical Area (in this paragraph referred to as a ‘CBSA’) or, if applicable, a conceptually similar alternative classification, as defined by the Director of the Office of Management and Budget.
CBSA covering more than one state“(ii) .—In the case of a CBSA (or alternative classification) that covers more than one State, the Secretary shall divide the CBSA (or alternative classification) into separate service areas with respect to each State covered by the CBSA (or alternative classification).
Rural areas“(B) .—Subject to subparagraphs (C) and (D), the service area for an MA local plan in a rural area shall be a county that does not qualify for inclusion in a CBSA (or alternative classification), as defined by the Director of the Office of Management and Budget.
Refinements to service areas“(C) .—For 2015 and succeeding years, in order to reflect actual patterns of health care service utilization, the Secretary may adjust the boundaries of service areas for MA local plans in urban areas and rural areas under subparagraphs (A) and (B), respectively, but may only do so based on recent analyses of actual patterns of care.
Additional authority to make limited exceptions to service area requirements for ma local plans“(D) .—The Secretary may, in addition to any adjustments under subparagraph (C), make limited exceptions to service area requirements otherwise applicable under this part for MA local plans that have in effect (as of )—
“(i) agreements with another MA organization or MA plan that preclude the offering of benefits throughout an entire service area; or
“(ii) limitations in their structural capacity to support adequate networks throughout an entire service area as a result of the delivery system model of the MA local plan.”
See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(i)(2)Pub. L. 111–152, § 1102(a)section 1395eee of this titleSubsec. (d)(6). , which directed the addition of par. (6), was repealed by . As enacted, text read as follows: “For years beginning with 2012, in the case of a PACE program under , the MA payment area shall be the MA local area (as defined in paragraph (2)).” See Effective Date of 2010 Amendment note below.
Pub. L. 111–152, § 1102(c)(1)oSubsec. (j). , inserted “subject to subsection (),” after “For purposes of this part,” in introductory provisions.
Pub. L. 111–148, § 3201(a)(1)(A)Pub. L. 111–152, § 1102(a)–(C)(i), which directed the designation of existing provisions as par. (1), the insertion of par. (1) heading, the redesignation of former pars. (1) and (2) as subpars. (A) and (B), respectively, and former subpars. (A) and (B) of former par. (1) as cls. (i) and (ii) of subpar. (A), respectively, and the realignment of margins, was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–152, § 1102(b)(1)112112112112Subsec. (j)(1)(A). , substituted “for the area for the year (or, for 2007, 2008, 2009, and 2010, ⁄ of the applicable amount determined under subsection (k)(1) for the area for the year; for 2011, ⁄ of the applicable amount determined under subsection (k)(1) for the area for 2010; and, beginning with 2012, ⁄ of the blended benchmark amount determined under subsection (n)(1) for the area for the year)” for “(or, beginning with 2007, ⁄ of the applicable amount determined under subsection (k)(1)) for the area for the year”.
Pub. L. 111–148, § 3201(a)(1)(C)(ii)section 1395w–29(d)(2)(A) of this titlesection 1395w–29(d)(2)(A) of this title112112Pub. L. 111–152, § 1102(a), (iii), which, in cl. (i), directed substitution of “, an amount equal to—” for “, an amount equal to”, subcls. (I) to (VI) for “⁄ of the annual MA capitation rate under subsection (c)(1) (or, beginning with 2007, ⁄ of the applicable amount determined under subsection (k)(1)) for the area for the year, adjusted as appropriate (for years before 2007) for the purpose of risk adjustment; or”, and, in cl. (ii), directed substitution of “clause (i)” for “subparagraph (A)”, was repealed by . As enacted, subcls. (I) to (VI) read as follows:
112“(I) for years before 2007, ⁄ of the annual MA capitation rate under subsection (c)(1) for the area for the year, adjusted as appropriate for the purpose of risk adjustment;
112“(II) for 2007 through 2011, ⁄ of the applicable amount determined under subsection (k)(1) for the area for the year;
“(III) for 2012, the sum of—
“(aa) ⅔ of the quotient of—
“(AA) the applicable amount determined under subsection (k)(1) for the area for the year; and
“(BB) 12; and
“(bb) ⅓ of the MA competitive benchmark amount (determined under paragraph (2)) for the area for the month;
“(IV) for 2013, the sum of—
“(aa) ⅓ of the quotient of—
“(AA) the applicable amount determined under subsection (k)(1) for the area for the year; and
“(BB) 12; and
“(bb) ⅔ of the MA competitive benchmark amount (as so determined) for the area for the month;
“(V) for 2014, the MA competitive benchmark amount for the area for a month in 2013 (as so determined), increased by the national per capita MA growth percentage, described in subsection (c)(6) for 2014, but not taking into account any adjustment under subparagraph (C) of such subsection for a year before 2004; and
“(VI) for 2015 and each subsequent year, the MA competitive benchmark amount (as so determined) for the area for the month; or”.
See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(a)(1)(D)Pub. L. 111–152, § 1102(a)Subsec. (j)(2), (3). , which directed addition of pars. (2) and (3), was repealed by . As enacted, pars. (2) and (3) read as follows:
Computation of ma competitive benchmark amount.—“(2)
In generalsection 1395w–24(b)(2)(E) of this titlesection 1395w–27a(f)(4) of this titlesection 1395w–23(j)(2) of this title“(A) .—Subject to subparagraph (B) and paragraph (3), for months in each year (beginning with 2012) for each MA payment area the Secretary shall compute an MA competitive benchmark amount equal to the weighted average of the unadjusted MA statutory non-drug monthly bid amount (as defined in ) for each MA plan in the area, with the weight for each plan being equal to the average number of beneficiaries enrolled under such plan in the reference month (as defined in , except that, in applying such definition for purposes of this paragraph, ‘to compute the MA competitive benchmark amount under ’ shall be substituted for ‘to compute the percentage specified in subparagraph (A) and other relevant percentages under this part’).
Weighting rules.—“(B)
Single plan rule“(i) .—In the case of an MA payment area in which only a single MA plan is being offered, the weight under subparagraph (A) shall be equal to 1.
Use of simple average among multiple plans if no plans offered in previous year“(ii) .—In the case of an MA payment area in which no MA plan was offered in the previous year and more than 1 MA plan is offered in the current year, the Secretary shall use a simple average of the unadjusted MA statutory non-drug monthly bid amount (as so defined) for purposes of computing the MA competitive benchmark amount under subparagraph (A).
Cap on ma competitive benchmark amount“(3) .—In no case shall the MA competitive benchmark amount for an area for a month in a year be greater than the applicable amount that would (but for the application of this subsection) be determined under subsection (k)(1) for the area for the month in the year.”
See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(a)(1)(E)Pub. L. 111–152, § 1102(a)Subsec. (k)(2). , (2)(A), which directed amendment of par. (2) by substituting “and subsequent years” for “through 2010” in subpar. (A) and “(j)(1)(A)(i)” for “(j)(1)(A)” in subpar. (B)(ii)(III), and by adding, in subpar. (C), cl. (v), which read “for 2011 and subsequent years, 0.00.”, was repealed by . See Effective Date of 2010 Amendment note below.
Pub. L. 111–152, § 1102(b)(2)Subsec. (n). , added subsec. (n).
Pub. L. 111–148, § 3201(f)(1)(A)Pub. L. 111–152, § 1102(a), which directed addition of subsec. (n) relating to performance bonuses, was repealed by . As enacted, text read as follows:
Care coordination and management performance bonus.—“(1)
In general“(A) .—For years beginning with 2014, subject to subparagraph (B), in the case of an MA plan that conducts 1 or more programs described in subparagraph (C) with respect to the year, the Secretary shall, in addition to any other payment provided under this part, make monthly payments, with respect to coverage of an individual under this part, to the MA plan in an amount equal to the product of—
“(i) 0.5 percent of the national monthly per capita cost for expenditures for individuals enrolled under the original medicare fee-for-service program for the year; and
“(ii) the total number of programs described in clauses (i) through (ix) of subparagraph (C) that the Secretary determines the plan is conducting for the year under such subparagraph.
Limitation“(B) .—In no case may the total amount of payment with respect to a year under subparagraph (A) be greater than 2 percent of the national monthly per capita cost for expenditures for individuals enrolled under the original medicare fee-for-service program for the year, as determined prior to the application of risk adjustment under paragraph (4).
Programs described“(C) .—The following programs are described in this paragraph:
“(i) Care management programs that—
“(I) target individuals with 1 or more chronic conditions;
“(II) identify gaps in care; and
“(III) facilitate improved care by using additional resources like nurses, nurse practitioners, and physician assistants.
“(ii) Programs that focus on patient education and self-management of health conditions, including interventions that—
“(I) help manage chronic conditions;
“(II) reduce declines in health status; and
“(III) foster patient and provider collaboration.
“(iii) Transitional care interventions that focus on care provided around a hospital inpatient episode, including programs that target post-discharge patient care in order to reduce unnecessary health complications and readmissions.
“(iv) Patient safety programs, including provisions for hospital-based patient safety programs in contracts that the Medicare Advantage organization offering the MA plan has with hospitals.
“(v) Financial policies that promote systematic coordination of care by primary care physicians across the full spectrum of specialties and sites of care, such as medical homes, capitation arrangements, or pay-for-performance programs.
“(vi) Programs that address, identify, and ameliorate health care disparities among principal at-risk subpopulations.
section 1395w–104(c) of this title“(vii) Medication therapy management programs that are more extensive than is required under (as determined by the Secretary).
“(viii) Health information technology programs, including clinical decision support and other tools to facilitate data collection and ensure patient-centered, appropriate care.
“(ix) Such other care management and coordination programs as the Secretary determines appropriate.
Conduct of program in urban and rural areas“(D) .—An MA plan may conduct a program described in subparagraph (C) in a manner appropriate for an urban or rural area, as applicable.
Reporting of data“(E) .—Each Medicare Advantage organization shall provide to the Secretary the information needed to determine whether they are eligible for a care coordination and management performance bonus at a time and in a manner specified by the Secretary.
Periodic auditing“(F) .—The Secretary shall provide for the annual auditing of programs described in subparagraph (C) for which an MA plan receives a care coordination and management performance bonus under this paragraph. The Comptroller General shall monitor auditing activities conducted under this subparagraph.
Quality performance bonuses.—“(2)
Quality bonus“(A) .—For years beginning with 2014, the Secretary shall, in addition to any other payment provided under this part, make monthly payments, with respect to coverage of an individual under this part, to an MA plan that achieves at least a 3 star rating (or comparable rating) on a rating system described in subparagraph (C) in an amount equal to—
“(i) in the case of a plan that achieves a 3 star rating (or comparable rating) on such system 2 percent of the national monthly per capita cost for expenditures for individuals enrolled under the original medicare fee-for-service program for the year; and
“(ii) in the case of a plan that achieves a 4 or 5 star rating (or comparable rating[)] on such system, 4 percent of such national monthly per capita cost for the year.
Improved quality bonus“(B) .—For years beginning with 2014, in the case of an MA plan that does not receive a quality bonus under subparagraph (A) and is an improved quality MA plan with respect to the year (as identified by the Secretary), the Secretary shall, in addition to any other payment provided under this part, make monthly payments, with respect to coverage of an individual under this part, to the MA plan in an amount equal to 1 percent of such national monthly per capita cost for the year.
Use of rating system“(C) .—For purposes of subparagraph (A), a rating system described in this paragraph is—
“(i) a rating system that uses up to 5 stars to rate clinical quality and enrollee satisfaction and performance at the Medicare Advantage contract or MA plan level; or
“(ii) such other system established by the Secretary that provides for the determination of a comparable quality performance rating to the rating system described in clause (i).
Data used in determining score.—“(D)
In general“(i) .—The rating of an MA plan under the rating system described in subparagraph (C) with respect to a year shall be based on based on the most recent data available.
Plans that fail to report data“(ii) .—An MA plan which does not report data that enables the Secretary to rate the plan for purposes of subparagraph (A) or identify the plan for purposes of subparagraph (B) shall be counted, for purposes of such rating or identification, as having the lowest plan performance rating and the lowest percentage improvement, respectively.
Quality bonus for new and low enrollment ma plans.—“(3)
New ma planssection 1395w–24(a)(1)(A) of this titlesection 1395w–21(e) of this title“(A) .—For years beginning with 2014, in the case of an MA plan that first submits a bid under for 2012 or a subsequent year, only receives enrollments made during the coverage election periods described in , and is not able to receive a bonus under subparagraph (A) or (B) of paragraph (2) for the year, the Secretary shall, in addition to any other payment provided under this part, make monthly payments, with respect to coverage of an individual under this part, to the MA plan in an amount equal to 2 percent of national monthly per capita cost for expenditures for individuals enrolled under the original medicare fee-for-service program for the year. In its fourth year of operation, the MA plan shall be paid in the same manner as other MA plans with comparable enrollment.
Low enrollment plans“(B) .—For years beginning with 2014, in the case of an MA plan that has low enrollment (as defined by the Secretary) and would not otherwise be able to receive a bonus under subparagraph (A) or (B) of paragraph (2) or subparagraph (A) of this paragraph for the year (referred to in this subparagraph as a ‘low enrollment plan’), the Secretary shall use a regional or local mean of the rating of all MA plans in the region or local area, as determined appropriate by the Secretary, on measures used to determine whether MA plans are eligible for a quality or an improved quality bonus, as applicable, to determine whether the low enrollment plan is eligible for a bonus under such a subparagraph.
Risk adjustmentsection 1395w–24(b)(1)(C) of this title“(4) .—The Secretary shall risk adjust a performance bonus under this subsection in the same manner as the Secretary risk adjusts beneficiary rebates described in .
Notification“(5) .—The Secretary, in the annual announcement required under subsection (b)(1)(B) for 2014 and each succeeding year, shall notify the Medicare Advantage organization of any performance bonus (including a care coordination and management performance bonus under paragraph (1), a quality performance bonus under paragraph (2), and a quality bonus for new and low enrollment plans under paragraph (3)) that the organization will receive under this subsection with respect to the year. The Secretary shall provide for the publication of the information described in the previous sentence on the Internet website of the Centers for Medicare & Medicaid Services.”
See Effective Date of 2010 Amendment note below.
Pub. L. 111–152, § 1102(c)(2)oSubsec. (n)(2)(B). , which directed insertion of “, subject to subsection ()” after “as follows” could not be executed because “as follows” did not appear in text.
Pub. L. 111–148, § 3202(b)(2)Pub. L. 111–148, § 3201(f)Pub. L. 111–152, § 1102(a)Subsec. (n)(6). , which directed that subsec. (n), as added by , be amended by adding a par. (6), was not executed to reflect the probable intent of Congress and the subsequent repeal of § 3201(f) by . See Amendment note above.
oPub. L. 111–152, § 1102(c)(3)oSubsec. (). , added subsec. ().
Pub. L. 111–148, § 3201(g)oPub. L. 111–152, § 1102(a), which directed addition of subsec. () relating to grandfathering supplemental benefits for current enrollees after implementation of competitive bidding, was repealed by . As enacted, text read as follows:
Identification of areassection 1395w–24(a) of this titlesection 1395mm(a)(4) of this titleo“(1) .—The Secretary shall identify MA local areas in which, with respect to 2009, average bids submitted by an MA organization under for MA local plans in the area are not greater than 75 percent of the adjusted average per capita cost for the year involved, determined under , for the area for individuals who are not enrolled in an MA plan under this part for the year, but adjusted to exclude costs attributable to payments under section 1395w–4(), 1395ww(n), and 1395ww(h) of this title.
Election to provide rebates to grandfathered enrollees.—“(2)
In generalsection 1395w–24(b)(1)(C) of this title“(A) .—For years beginning with 2012, each Medicare Advantage organization offering an MA local plan in an area identified by the Secretary under paragraph (1) may elect to provide rebates to grandfathered enrollees under . In the case where an MA organization makes such an election, the monthly per capita dollar amount of such rebates shall not exceed the applicable amount for the year (as defined in subparagraph (B)).
Applicable amount“(B) .—For purposes of this subsection, the term ‘applicable amount’ means—
“(i) for 2012, the monthly per capita dollar amount of such rebates provided to enrollees under the MA local plan with respect to 2011; and
“(ii) for a subsequent year, 95 percent of the amount determined under this subparagraph for the preceding year.
Special rules for plans in identified areas“(3) .—Notwithstanding any other provision of this part, the following shall apply with respect to each Medicare Advantage organization offering an MA local plan in an area identified by the Secretary under paragraph (1) that makes an election described in paragraph (2):
Payments“(A) .—The amount of the monthly payment under this section to the Medicare Advantage organization, with respect to coverage of a grandfathered enrollee under this part in the area for a month, shall be equal to—
“(i) for 2012 and 2013, the sum of—
section 1395w–24(a) of this title“(I) the bid amount under for the MA local plan; and
“(II) the applicable amount (as defined in paragraph (2)(B)) for the MA local plan for the year.
“(ii) for 2014 and subsequent years, the sum of—
“(I) the MA competitive benchmark amount under subsection (j)(1)(A)(i) for the area for the month, adjusted, only to the extent the Secretary determines necessary, to account for induced utilization as a result of rebates provided to grandfathered enrollees (except that such adjustment shall not exceed 0.5 percent of such MA competitive benchmark amount); and
“(II) the applicable amount (as so defined) for the MA local plan for the year.
Requirement to submit bids under competitive biddingsection 1395w–24(a) of this title“(B) .—The Medicare Advantage organization shall submit a single bid amount under for the MA local plan. The Medicare Advantage organization shall remove from such bid amount any effects of induced demand for care that may result from the higher rebates available to grandfathered enrollees under this subsection.
Nonapplication of bonus payments and any other rebates“(C) .—The Medicare Advantage organization offering the MA local plan shall not be eligible for any bonus payment under subsection (n) or any rebate under this part (other than as provided under this subsection) with respect to grandfathered enrollees.
Nonapplication of uniform bid and premium amounts to grandfathered enrolleesSection 1395w–24(c) of this title“(D) .— shall not apply with respect to the MA local plan.
Nonapplication of limitation on application of plan rebates toward payment of part b premiumsection 1395w–24(b)(1)(C) of this title“(E) .—Notwithstanding clause (iii) of , in the case of a grandfathered enrollee, a rebate under such section may be used for the purpose described in clause (ii)(III) of such section.
Risk adjustmentsection 1395w–24(b)(1)(C) of this title“(F) .—The Secretary shall risk adjust rebates to grandfathered enrollees under this subsection in the same manner as the Secretary risk adjusts beneficiary rebates described in .
Definition of grandfathered enrollee“(4) .—In this subsection, the term ‘grandfathered enrollee’ means an individual who is enrolled (effective as of ) in an MA local plan in an area that is identified by the Secretary under paragraph (1).”
See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 3201(h)Pub. L. 111–152, § 1102(a)Subsec. (p). , which directed addition of subsec. (p) relating to transitional extra benefits, was repealed by . As enacted, text read as follows:
In generalsection 1395w–24(b)(1)(C) of this title“(1) .—For years beginning with 2012, the Secretary shall provide transitional rebates under for the provision of extra benefits (as specified by the Secretary) to enrollees described in paragraph (2).
Enrollees described“(2) .—An enrollee described in this paragraph is an individual who—
“(A) enrolls in an MA local plan in an applicable area; and
section 1395w–24(b)(1)(C) of this title“(B) experiences a significant reduction in extra benefits described in clause (ii) of as a result of competitive bidding under this part (as determined by the Secretary).
Applicable areas“(3) .—In this subsection, the term ‘applicable area’ means the following:
“(A) The 2 largest metropolitan statistical areas, if the Secretary determines that the total amount of such extra benefits for each enrollee for the month in those areas is greater than $100.
“(B) A county where—
“(i) the MA area-specific non-drug monthly benchmark amount for a month in 2011 is equal to the legacy urban floor amount (as described in subsection (c)(1)(B)(iii)), as determined by the Secretary for the area for 2011;
“(ii) the percentage of Medicare Advantage eligible beneficiaries in the county who are enrolled in an MA plan for 2009 is greater than 30 percent (as determined by the Secretary); and
section 1395w–24(a) of this titlesection 1395mm(a)(4) of this titleo“(iii) average bids submitted by an MA organization under for MA local plans in the county for 2011 are not greater than the adjusted average per capita cost for the year involved, determined under , for the county for individuals who are not enrolled in an MA plan under this part for the year, but adjusted to exclude costs attributable to payments under section 1395w–4(), 1395ww(n), and 1395ww(h) of this title.
“(C) If the Secretary determines appropriate, a county contiguous to an area or county described in subparagraph (A) or (B), respectively.
Review of plan bidssection 1395w–24(a) of this title“(4) .—In the case of a bid submitted by an MA organization under for an MA local plan in an applicable area, the Secretary shall review such bid in order to ensure that extra benefits (as specified by the Secretary) are provided to enrollees described in paragraph (2).
Fundingsection 1395i of this titlesection 1395t of this titlesection 1395w–24(b)(1)(C) of this title“(5) .—The Secretary shall provide for the transfer from the Federal Hospital Insurance Trust Fund under and the Federal Supplementary Medical Insurance Trust Fund established under , in such proportion as the Secretary determines appropriate, of an amount not to exceed $5,000,000,000 for the period of fiscal years 2012 through 2019 for the purpose of providing transitional rebates under for the provision of extra benefits under this subsection.”
See Effective Date of 2010 Amendment note below.
Pub. L. 111–148, § 10318Pub. L. 111–148, § 3201(h)Pub. L. 111–152, § 1102(a)Subsec. (p)(3)(A). , which directed that subsec. (p)(3)(A), as added by , be amended by inserting “in 2009” before the period at the end, was not executed to reflect the probable intent of Congress and the subsequent repeal of § 3201(h) by . See Amendment note above.
Pub. L. 111–5, § 4101(e)(1)l2009—Subsec. (a)(1)(A). , substituted “(i), and ()” for “and (i)”.
Pub. L. 111–5, § 4102(d)(3)(A)(i)ooSubsec. (c)(1)(D)(i). , substituted “, 1395w–4(), and 1395ww(n)” for “1395w–4()”.
Pub. L. 111–5, § 4101(e)(2)(A)osection 1395ww(h) of this title, substituted “sections 1395w–4() and 1395ww(h) of this title” for “”.
Pub. L. 111–5, § 4102(d)(3)(A)(ii)section 1395ww of this titleSubsec. (c)(6)(A). , inserted “and subsections (b)(3)(B)(ix) and (n) of ” after “1395w–4 of this title”.
Pub. L. 111–5, § 4101(e)(2)(B)osection 1395w–4 of this title, inserted “excluding expenditures attributable to subsections (a)(7) and () of ,” after “under part B,”.
Pub. L. 111–5, § 4102(d)(3)(B)lSubsec. (f). , inserted “and subsection (m)” after “under subsection ()”.
Pub. L. 111–5, § 4101(e)(3)l, inserted “and for payments under subsection ()” after “with the organization”.
lPub. L. 111–5, § 4101(c)lSubsec. (). , added subsec. ().
Pub. L. 111–5, § 4102(c)Subsec. (m). , added subsec. (m).
Pub. L. 110–275, § 161(a)(1)2008—Subsec. (k)(1). , (b), substituted “paragraphs (2) and (4)” for “paragraph (2)” in introductory provisions and cl. (i) of subpar. (B).
Pub. L. 110–275, § 161(a)(2)Subsec. (k)(4). , added par. (4).
Pub. L. 109–171, § 5301(b)2006—Subsec. (a)(1)(C). , designated existing provisions as cl. (i), inserted heading, and added cl. (ii).
Pub. L. 109–171, § 5301(a)(1)(A)112Subsec. (j)(1)(A). , inserted “(or, beginning with 2007, ⁄ of the applicable amount determined under subsection (k)(1))” after “subsection (c)(1)” and “(for years before 2007)” after “adjusted as appropriate”.
Pub. L. 109–171, § 5301(a)(1)(B)Subsec. (j)(1)(B). , inserted “(for years before 2007)” after “adjusted as appropriate”.
Pub. L. 109–171, § 5301(a)(2)Subsec. (k). , added subsec. (k).
Pub. L. 108–173, § 222(e)(1)(B)112section 1395w–24(f)(1)(E) of this title2003—Subsec. (a)(1)(A). , substituted “amount determined as follows:” and cls. (i) and (ii) for “amount” and provisions describing amount equal to ⁄ of the annual Medicare+Choice capitation rate, reduced by the amount of any reduction elected under and adjusted for certain factors.
Pub. L. 108–173, § 222(e)(1)(B)Subsec. (a)(1)(B) to (G). , added subpars. (B) to (G). Former subpar. (B) redesignated (H).
Pub. L. 108–173, § 222(i)Subsec. (a)(1)(H). , substituted as second sentence provisions relating to actuarial equivalence of rates of payment to rates that would have been paid with respect to other enrollees in the MA payment area under this section as in effect before , for provisions relating to actuarial equivalence of rates of payment to rates paid to other enrollees in the Medicare+Choice payment area and inserted sentence at end authorizing application of the competitive bidding methodology provided for in this section, with appropriate adjustments to account for the risk adjustment methodology applied to end stage renal disease payments.
Pub. L. 108–173, § 222(e)(1)(A), redesignated subpar. (B) as (H).
Pub. L. 108–173, § 736(d)(1)(A)Subsec. (a)(3)(C)(ii). , substituted “clause (iv)” for “clause (iii)” in introductory provisions.
Pub. L. 108–173, § 736(d)(1)(B)Subsec. (a)(3)(C)(iii), (iv). , redesignated cl. (iii), relating to full implementation of risk adjustment for congestive heart failure enrollees for 2001, as (iv).
Pub. L. 108–173, § 237(b)(1)Subsec. (a)(4). , added par. (4).
Pub. L. 108–173, § 222(f)(1)Subsec. (b)(1). , amended heading and text of par. (1) generally, substituting provisions relating to announcements of payment rates for 2005 and for 2006 and subsequent years for provisions relating to announcement for years before 2004, for 2004 and 2005, and for years after 2005.
Pub. L. 108–173, § 241(b)(1)(B)Subsec. (b)(1)(B)(iii). , added cl. (iii).
Pub. L. 108–173, § 222(f)(2)Subsec. (b)(3). , substituted “in such announcement” for “in the announcement in sufficient detail so that Medicare+Choice organizations can compute monthly adjusted Medicare+Choice capitation rates for individuals in each Medicare+Choice payment area which is in whole or in part within the service area of such an organization”.
Pub. L. 108–173, § 900(e)(1)(G)(i)Subsec. (b)(4). , substituted “Centers for Medicare & Medicaid Services” for “Health Care Financing Administration” in introductory provisions.
Pub. L. 108–173, § 221(d)(4)Subsec. (c)(1). , inserted “that is an MA local area” after “for a Medicare+Choice payment area” in introductory provisions.
Pub. L. 108–173, § 211(a)(2), substituted “(C), or (D)” for “or (C)” in introductory provisions.
Pub. L. 108–173, § 211(b)(1)Subsec. (c)(1)(A). , (c)(1)(A), substituted “For a year before 2005, the sum” for “The sum” in introductory provisions and inserted “(for a year other than 2004)” after “multiplied” in concluding provisions.
Pub. L. 108–173, § 211(c)(1)(B)Subsec. (c)(1)(B)(iv). , substituted “, 2003, and 2004” for “and each succeeding year”.
Pub. L. 108–173, § 211(c)(1)(C)Subsec. (c)(1)(C)(iv). , substituted “and 2003” for “and each succeeding year”.
Pub. L. 108–173, § 211(c)(1)(D)Subsec. (c)(1)(C)(v). , added cl. (v).
Pub. L. 108–173, § 211(a)(1)Subsec. (c)(1)(D). , added subpar. (D).
Pub. L. 108–173, § 211(d)(1)Subsec. (c)(3)(A). , substituted “subparagraphs (B) and (E)” for “subparagraph (B)” in introductory provisions.
Pub. L. 108–173, § 211(d)(2)Subsec. (c)(3)(E). , added subpar. (E).
Pub. L. 108–173, § 736(d)(1)(C)Subsec. (c)(5). , substituted “(a)(3)(C)(iv)” for “(a)(3)(C)(iii)”.
Pub. L. 108–173, § 237(b)(2)(B), substituted “subsections (a)(3)(C)(iii), (a)(4), and (i)” for “subsections (a)(3)(C)(iii) and (i)”.
Pub. L. 108–173, § 211(b)(2), inserted “(other than 2004)” after “for each year”.
Pub. L. 108–173, § 211(c)(2)Subsec. (c)(6)(C). , inserted “, except that for purposes of paragraph (1)(C)(v)(II), no such adjustment shall be made for a year before 2004” before period at end.
Pub. L. 108–173, § 900(e)(1)(G)(ii)Subsec. (c)(7). , substituted “Centers for Medicare & Medicaid Services” for “Health Care Financing Administration”.
Pub. L. 108–173, § 221(d)(1)(A)Subsec. (d). , substituted “MA payment area; MA local area; MA region defined” for “ ‘Medicare+Choice payment area’ defined” in heading.
Pub. L. 108–173, § 221(d)(1)(C)Subsec. (d)(1). , amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “In this part, except as provided in paragraph (3), the term ‘Medicare+Choice payment area’ means a county, or equivalent area specified by the Secretary.”
Pub. L. 108–173, § 221(d)(1)(B)Subsec. (d)(2), (3). , (D), added par. (2) and redesignated former par. (2) as (3). Former par. (3) redesignated (4).
Pub. L. 108–173, § 221(d)(1)(B)Subsec. (d)(4). , redesignated par. (3) as (4).
Pub. L. 108–173, § 221(d)(1)(E)(i)Subsec. (d)(4)(A). , inserted “for MA local plans” after “paragraph (1)” in introductory provisions.
Pub. L. 108–173, § 221(d)(1)(E)(ii)Subsec. (d)(4)(A)(iii). , substituted “paragraph (1)(A)” for “paragraph (1)”.
Pub. L. 108–173, § 221(d)(1)(E)(iii)Subsec. (d)(4)(B). , inserted “with respect to MA local plans” after “established under this section” and “for such plans” after “payments under this section” and “made under this section”.
Pub. L. 108–173, § 101(e)(3)(D)Subsec. (f). , in heading, substituted “Trust Funds” for “Trust Fund” and, after first sentence, inserted “Payments to MA organizations for statutory drug benefits provided under this subchapter are made from the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund.”
Pub. L. 108–173, § 211(e)(1)(A)section 1395ww(d)(1)(B)(ii) of this titlesection 1395ww(d)(1)(B) of this titlesection 1395ww(d)(1)(B)(iv) of this titleSubsec. (g). , inserted “, a rehabilitation hospital described in or a distinct part rehabilitation unit described in the matter following clause (v) of , or a long-term care hospital (described in )” after “1395ww(d)(1)(B) of this title)” in introductory provisions.
Pub. L. 108–173, § 211(e)(1)(B)Subsec. (g)(2)(B). , inserted “or other payment provision under this subchapter for inpatient services for the type of facility, hospital, or unit involved, described in the matter preceding paragraph (1), as the case may be,” after “1395ww(d) of this title”.
Pub. L. 108–173, § 222(d)Subsec. (j). , added subsec. (j).
Pub. L. 108–173, § 241(b)(1)(A)section 1395w–29(d)(2)(A) of this titleSubsec. (j)(1)(A). , inserted “subject to ,” after “within an MA local area,”.
Pub. L. 107–1882002—Subsec. (b)(1). in introductory provisions substituted “for years before 2004 and after 2005 not later than March 1 before the calendar year concerned and for 2004 and 2005 not later than the second Monday in May before the respective calendar year” for “not later than March 1 before the calendar year concerned”.
Pub. L. 106–554, § 1(a)(6) [title VI, § 606(a)(2)(A)]section 1395w–24(f)(1)(E) of this title2000—Subsec. (a)(1)(A). , inserted “reduced by the amount of any reduction elected under and” after “for that area,”.
Pub. L. 106–554, § 1(a)(6) [title VI, § 605(a)]Subsec. (a)(1)(B). , inserted at end “In establishing such rates, the Secretary shall provide for appropriate adjustments to increase each rate to reflect the demonstration rate (including the risk adjustment methodology associated with such rate) of the social health maintenance organization end-stage renal disease capitation demonstrations (established by section 2355 of the Deficit Reduction Act of 1984, as amended by section 13567(b) of the Omnibus Budget Reconciliation Act of 1993), and shall compute such rates by taking into account such factors as renal treatment modality, age, and the underlying cause of the end-stage renal disease.”
Pub. L. 106–554, § 1(a)(6) [title VI, § 607(a)(1)]Subsec. (a)(3)(C)(ii). , substituted “Except as provided in clause (iii), such risk adjustment” for “Such risk adjustment”.
Pub. L. 106–554, § 1(a)(6) [title VI, § 603(1)(A)]Subsec. (a)(3)(C)(ii)(I). , substituted “and each succeeding year through 2003” for “and 2001” and struck out “and” at end.
Pub. L. 106–554, § 1(a)(6) [title VI, § 603(1)(B)]Subsec. (a)(3)(C)(ii)(II) to (V). , added subcls. (II) to (V) and struck out former subcl. (II) which read as follows: “not more than 20 percent of such capitation rate in 2002.”
Pub. L. 106–554, § 1(a)(6) [title VI, § 607(a)(2)]Subsec. (a)(3)(C)(iii). , added cl. (iii) relating to full implementation of risk adjustment for congestive heart failure enrollees for 2001.
Pub. L. 106–554, § 1(a)(6) [title VI, § 603(2)], added cl. (iii) relating to data for risk adjustment methodology.
Pub. L. 106–554, § 1(a)(6) [title VI, § 601(a)(2)]Subsec. (c)(1)(B)(ii), (iii). , added cls. (ii) and (iii). Former cl. (ii) redesignated (iv).
Pub. L. 106–554, § 1(a)(6) [title VI, § 601(a)(1), (3)]Subsec. (c)(1)(B)(iv). , redesignated cl. (ii) as (iv) and substituted “2002 and each succeeding year” for “a succeeding year” and “clause (iii)” for “clause (i)”.
Pub. L. 106–554, § 1(a)(6) [title VI, § 602(a)(2)]Subsec. (c)(1)(C)(ii), (iii). , added cls. (ii) and (iii). Former cl. (ii) redesignated (iv).
Pub. L. 106–554, § 1(a)(6) [title VI, § 602(a)(1), (3)]Subsec. (c)(1)(C)(iv). , redesignated cl. (ii) as (iv) and substituted “2002 and each succeeding year” for “a subsequent year”.
Pub. L. 106–554, § 1(a)(6) [title VI, § 607(b)]Subsec. (c)(5). , substituted “subsections (a)(3)(C)(iii) and (i)” for “subsection (i)”.
Pub. L. 106–554, § 1(a)(6) [title VI, § 611(a)]section 1395w–22(a)(5) of this titleSubsec. (c)(7). , amended heading and text of par. (7) generally. Prior to amendment, text read as follows: “If the Secretary makes a determination with respect to coverage under this subchapter that the Secretary projects will result in a significant increase in the costs to Medicare+Choice of providing benefits under contracts under this part (for periods after any period described in ), the Secretary shall adjust appropriately the payments to such organizations under this part.”
Pub. L. 106–554, § 1(a)(6) [title VI, § 608(a)]Subsec. (i)(1). , in introductory provisions, inserted “, or filed notice with the Secretary as of , that they will not be offering such a plan as of ” after “”.
Pub. L. 106–113, § 1000(a)(6) [title V, § 512(1)]1999—Subsec. (a)(1)(A). , substituted “subsections (e), (g), and (i)” for “subsections (e) and (f)”.
Pub. L. 106–113, § 1000(a)(6) [title V, § 511(a)]Subsec. (a)(3)(C). , designated existing provisions as cl. (i), inserted heading, and added cl. (ii).
Pub. L. 106–113, § 1000(a)(6) [title V, § 514(a)]Subsec. (b)(4). , added par. (4).
Pub. L. 106–113, § 1000(a)(6) [title V, § 512(2)]Subsec. (c)(5). , inserted “(other than those attributable to subsection (i))” after “payments under this part”.
Pub. L. 106–113, § 1000(a)(6) [title V, § 517]Subsec. (c)(6)(B)(v). , substituted “0.3 percentage points” for “0.5 percentage points”.
Pub. L. 106–113, § 1000(a)(6) [title V, § 512(3)]Subsec. (i). , added subsec. (i).
Statutory Notes and Related Subsidiaries
Change of Name
section 201 of Pub. L. 108–173section 1395w–21 of this titleReferences to Medicare+Choice deemed to refer to Medicare Advantage or MA, subject to an appropriate transition provided by the Secretary of Health and Human Services in the use of those terms, see , set out as a note under .
Effective Date of 2015 Amendment
Pub. L. 114–113Pub. L. 111–5section 602(d) of Pub. L. 114–113section 1395ww of this titleAmendment by applicable as if included in the enactment of , with certain exceptions, see , set out as a note under .
Effective Date of 2010 Amendment
Pub. L. 111–148Pub. L. 111–148section 1102(a) of Pub. L. 111–152section 1395w–21 of this titleRepeal of sections 3201 and 3203 of and the amendments made by such sections, effective as if included in the enactment of , see , set out as a note under .
Effective Date of 2003 Amendment
Pub. L. 108–173, title II, § 211(e)(2)117 Stat. 2178
Pub. L. 108–173section 223(a) of Pub. L. 108–173section 1395w–21 of this titleAmendment by sections 221(d)(1), (4) and 222(d)–(f), (i) of applicable with respect to plan years beginning on or after , see , set out as a note under .
Pub. L. 108–173section 237(e) of Pub. L. 108–173section 1320a–7b of this titleAmendment by section 237(b)(1), (2)(B) of applicable to services provided on or after , and contract years beginning on or after such date, see , set out as a note under .
Effective Date of 2002 Amendment
Pub. L. 107–188, title V, § 532(d)(2)116 Stat. 697
Effective Date of 2000 Amendment
Pub. L. 106–554, § 1(a)(6) [title VI, § 605(b)]114 Stat. 2763
Pub. L. 106–554Pub. L. 106–554section 1395r of this titleAmendment by section 1(a)(6) [title VI, § 606(a)(2)(A)] of applicable to years beginning with 2003, see section 1(a)(6) [title VI, § 606(b)] of , set out as a note under .
Pub. L. 106–554, § 1(a)(6) [title VI, § 608(b)]114 Stat. 2763
Pub. L. 106–554Pub. L. 106–554section 1395w–22 of this titleAmendment by section 1(a)(6) [title VI, § 611(a)] of effective , and applicable to national coverage determinations and legislative changes in benefits occurring on or after such date, see section 1(a)(6) [title VI, § 611(c)] of , set out as a note under .
Reports on Risk Adjustment Models
Pub. L. 114–255, div. C, title XVII, § 17006(f)(2)(A)(ii)130 Stat. 1337
MedPAC Study of AAPCC
Pub. L. 108–173, title II, § 211(f)117 Stat. 2178 section 1395mm(a)(4) of this title, , , directed the Medicare Payment Advisory Commission to conduct a study that would assess the method used for determining the adjusted average per capita cost (AAPCC) under , as applied under subsection (c)(1)(A) of this section, and to submit to Congress a report on such study not later than 18 months after .
Implementation of 2003 Amendment
Pub. L. 108–173, title II, § 211(i)117 Stat. 2179
Announcement of revised medicare advantage payment rates .—
Transition to revised payment rates .—
Special rule for payment rates in 2004.—
January and february .—
March through december .—
Construction .—
Plans required to provide notice of changes in plan benefits .—
Limitation on review .—
Special Rule for January and February of 2001
Pub. L. 106–554, § 1(a)(6) [title VI, § 601(b)]114 Stat. 2763
In general .—
Construction .—
Pub. L. 106–554, § 1(a)(6) [title VI, § 602(b)]114 Stat. 2763
Transition to Revised Medicare+Choice Payment Rates
Pub. L. 106–554, § 1(a)(6) [title VI, § 604]114 Stat. 2763
Announcement of Revised Medicare+Choice Payment Rates .—
Reentry Into Program Permitted for Medicare+Choice Programs .—
Revised Submission of Proposed Premiums and Related Information .—
Waiver of Limits on Stabilization Fund .—
Disregard of New Rate Announcement in Applying Pass-Through for New National Coverage Determinations .—
Publication
Pub. L. 106–554, § 1(a)(6) [title VI, § 605(c)]114 Stat. 2763
Report on Inclusion of Certain Costs of the Department of Veterans Affairs and Military Facility Services in Calculating Medicare+Choice Payment Rates
Pub. L. 106–554, § 1(a)(6) [title VI, § 609]114 Stat. 2763
MedPAC Study and Report
Pub. L. 106–113, div. B, § 1000(a)(6) [title V, § 511(b)]113 Stat. 1536
Study .—
Issues to be studied .—
Report .—
Study and Report Regarding Reporting of Encounter Data
Pub. L. 106–113, div. B, § 1000(a)(6) [title V, § 511(c)]113 Stat. 1536
Study .—
Report .—
Special Rule for 2001
Pub. L. 106–113, div. B, § 1000(a)(6) [title V, § 514(b)]113 Stat. 1536
Development of Special Payment Rules Under Medicare+Choice Program for Frail Elderly Enrolled in Specialized Programs
Pub. L. 106–113, div. B, § 1000(a)(6) [title V, § 552(a)]113 Stat. 1536
Study .—
Report .—
Publication of New Capitation Rates
Pub. L. 105–33, title IV, § 4002(i)111 Stat. 330
Medicare+Choice Competitive Pricing Demonstration Project
Pub. L. 105–33, title IV111 Stat. 334–336 Pub. L. 106–113, div. B, § 1000(a)(6) [title V, § 533]113 Stat. 1536 Pub. L. 117–286, § 4(a)(254)136 Stat. 4333