adjustment percentage
(6) Annual reconciliation (A) In general Notwithstanding paragraph (3), if the Secretary makes a payment to a State under this subsection in a fiscal year, then the State shall remit to the Secretary, within 1 year after the end of the first subsequent period of 3 consecutive months for which the State is not a needy State, an amount equal to the amount (if any) by which— (i) the total amount paid to the State under paragraph (3) of this subsection in the fiscal year; exceeds (ii) the product of— (I) the Federal medical assistance percentage for the State (as defined in section 1396d(b) of this title , as such section was in effect on September 30, 1995 ); (II) the State’s reimbursable expenditures for the fiscal year; and (III) 1 ⁄ 12 times the number of months during the fiscal year for which the Secretary made a payment to the State under such paragraph (3). (B) Definitions As used in subparagraph (A): (i) Reimbursable expenditures The term “reimbursable expenditures” means, with respect to a State and a fiscal year, the amount (if any) by which— (I) countable State expenditures for the fiscal year; exceeds (II) historic State expenditures (as defined in section 609(a)(7)(B)(iii) of this title ), excluding any amount expended by the State for child care under subsection (g) or (i) of section 602 of this title (as in effect during fiscal year 1994) for fiscal year 1994. (ii) Countable State expenditures The term “countable expenditures” means, with respect to a State and a fiscal year— (I) the qualified State expenditures (as defined in section 609(a)(7)(B)(i) of this title (other than the expenditures described in subclause (I)(bb) of such section)) under the State program funded under this part for the fiscal year; plus (II) any amount paid to the State under paragraph (3) during the fiscal year that is expended by the State under the State program funded under this part. (C) Adjustment of State remittances (i) In general The amount otherwise required by subparagraph (A) to be remitted by a State for a fiscal year shall be increased by the lesser of— (I) the total adjustment for the fiscal year, multiplied by the adjustment percentage for the State for the fiscal year; or (II) the unadjusted net payment to the State for the fiscal year. (ii) Total adjustment As used in clause (i), the term “total adjustment” means— (I) in the case of fiscal year 1998, $2,000,000; (II) in the case of fiscal year 1999, $9,000,000; (III) in the case of fiscal year 2000, $16,000,000; and (IV) in the case of fiscal year 2001, $13,000,000. (iii) Adjustment percentage As used in clause (i), the term “adjustment percentage” means, with respect to a State and a fiscal year— (I) the unadjusted net payment to the State for the fiscal year; divided by (II) the sum of the unadjusted net payments to all States for the fiscal year. (iv) Unadjusted net payment As used in this subparagraph, the term, “unadjusted net payment” means with respect to a State and a fiscal year— (I) the total amount paid to the State under paragraph (3) in the fiscal year; minus (II) the amount that, in the absence of this subparagraph, would be required by subparagraph (A) or by section 609(a)(10) of this title to be remitted by the State in respect of the payment.