42 USC § 1395w–27a - Special rules for MA regional plans
(a)
Regional service area; establishment of MA regions
(2)
Establishment of MA regions
(A)
MA region
For purposes of this subchapter, the term “MA region” means such a region within the 50 States and the District of Columbia as established by the Secretary under this paragraph.
(B)
Establishment
(b)
Application of single deductible and catastrophic limit on out-of-pocket expenses
An MA regional plan shall include the following:
(1)
Single deductible
Any deductible for benefits under the original medicare fee-for-service program option shall be a single deductible (instead of a separate inpatient hospital deductible and a part B deductible) and may be applied differentially for in-network services and may be waived for preventive or other items and services.
(c)
Portion of total payments to an organization subject to risk for 2006 and 2007
(1)
Application of risk corridors
(B)
Notification of allowable costs under the plan
In the case of an MA organization that offers an MA regional plan in an MA region in 2006 or 2007, the organization shall notify the Secretary, before such date in the succeeding year as the Secretary specifies, of—
(i)
its total amount of costs that the organization incurred in providing benefits covered under the original medicare fee-for-service program option for all enrollees under the plan in the region in the year and the portion of such costs that is attributable to administrative expenses described in subparagraph (C); and
(ii)
its total amount of costs that the organization incurred in providing rebatable integrated benefits (as defined in subparagraph (D)) and with respect to such benefits the portion of such costs that is attributable to administrative expenses described in subparagraph (C) and not described in clause (i) of this subparagraph.
(C)
Allowable costs defined
For purposes of this subsection, the term “allowable costs” means, with respect to an MA regional plan for a year, the total amount of costs described in subparagraph (B) for the plan and year, reduced by the portion of such costs attributable to administrative expenses incurred in providing the benefits described in such subparagraph.
(D)
Rebatable integrated benefits
For purposes of this subsection, the term “rebatable integrated benefits” means such non-drug supplemental benefits under subclause (I) of section
1395w–24
(b)(1)(C)(ii) of this title pursuant to a rebate under such section that the Secretary determines are integrated with the benefits described in subparagraph (B)(i).
(2)
Adjustment of payment
(A)
No adjustment if allowable costs within 3 percent of target amount
If the allowable costs for the plan for the year are at least 97 percent, but do not exceed 103 percent, of the target amount for the plan and year, there shall be no payment adjustment under this subsection for the plan and year.
(B)
Increase in payment if allowable costs above 103 percent of target amount
(i)
Costs between 103 and 108 percent of target amount
If the allowable costs for the plan for the year are greater than 103 percent, but not greater than 108 percent, of the target amount for the plan and year, the Secretary shall increase the total of the monthly payments made to the organization offering the plan for the year under section
1395w–23
(a) of this title by an amount equal to 50 percent of the difference between such allowable costs and 103 percent of such target amount.
(ii)
Costs above 108 percent of target amount
If the allowable costs for the plan for the year are greater than 108 percent of the target amount for the plan and year, the Secretary shall increase the total of the monthly payments made to the organization offering the plan for the year under section
1395w–23
(a) of this title by an amount equal to the sum of—
(C)
Reduction in payment if allowable costs below 97 percent of target amount
(i)
Costs between 92 and 97 percent of target amount
If the allowable costs for the plan for the year are less than 97 percent, but greater than or equal to 92 percent, of the target amount for the plan and year, the Secretary shall reduce the total of the monthly payments made to the organization offering the plan for the year under section
1395w–23
(a) of this title by an amount (or otherwise recover from the plan an amount) equal to 50 percent of the difference between 97 percent of the target amount and such allowable costs.
(ii)
Costs below 92 percent of target amount
If the allowable costs for the plan for the year are less than 92 percent of the target amount for the plan and year, the Secretary shall reduce the total of the monthly payments made to the organization offering the plan for the year under section
1395w–23
(a) of this title by an amount (or otherwise recover from the plan an amount) equal to the sum of—
(D)
Target amount described
For purposes of this paragraph, the term “target amount” means, with respect to an MA regional plan offered by an organization in a year, an amount equal to—
(i)
the sum of—
(I)
the total monthly payments made to the organization for enrollees in the plan for the year that are attributable to benefits under the original medicare fee-for-service program option (as defined in section
1395w–22
(a)(1)(B) of this title);
(II)
the total of the MA monthly basic beneficiary premium collectable for such enrollees for the year; and
(III)
the total amount of the rebates under section
1395w–24
(b)(1)(C)(ii) of this title that are attributable to rebatable integrated benefits; reduced by
(3)
Disclosure of information
(A)
In general
Each contract under this part shall provide—
(B)
Restriction on use of information
Information disclosed or obtained pursuant to the provisions of this subsection may be used by officers, employees, and contractors of the Department of Health and Human Services only for the purposes of, and to the extent necessary in, carrying out this subsection.
(d)
Organizational and financial requirements
(1)
In general
In the case of an MA organization that is offering an MA regional plan in an MA region and—
(A)
meets the requirements of section
1395w–25
(a)(1) of this title with respect to at least one such State in such region; and
(B)
with respect to each other State in such region in which it does not meet requirements, it demonstrates to the satisfaction of the Secretary that it has filed the necessary application to meet such requirements,
the Secretary may waive such requirement with respect to each State described in subparagraph (B) for such period of time as the Secretary determines appropriate for the timely processing of such an application by the State (and, if such application is denied, through the end of such plan year as the Secretary determines appropriate to provide for a transition).
(2)
Selection of appropriate State
In applying paragraph (1) in the case of an MA organization that meets the requirements of section
1395w–25
(a)(1) of this title with respect to more than one State in a region, the organization shall select, in a manner specified by the Secretary among such States, one State the rules of which shall apply in the case of the States described in paragraph (1)(B).
(f)
Computation of applicable MA region-specific non-drug monthly benchmark amounts
(1)
Computation for regions
For purposes of section
1395w–23
(j)(2) of this title and this section, subject to subsection (e) of this section, the term “MA region-specific non-drug monthly benchmark amount” means, with respect to an MA region for a month in a year, the sum of the 2 components described in paragraph (2) for the region and year. The Secretary shall compute such benchmark amount for each MA region before the beginning of each annual, coordinated election period under section
1395w–21
(e)(3)(B) of this title for each year (beginning with 2006).
(2)
2 components
For purposes of paragraph (1), the 2 components described in this paragraph for an MA region and a year are the following:
(A)
Statutory component
The product of the following:
(3)
Statutory region-specific non-drug amount
For purposes of paragraph (2)(A)(i), the term “statutory region-specific non-drug amount” means, for an MA region and year, an amount equal the sum (for each MA local area within the region) of the product of—
(4)
Computation of statutory market share percentage
(A)
In general
The Secretary shall determine for each year a statutory national market share percentage that is equal to the proportion of MA eligible individuals nationally who were not enrolled in an MA plan during the reference month.
(B)
Reference month defined
For purposes of this part, the term “reference month” means, with respect to a year, the most recent month during the previous year for which the Secretary determines that data are available to compute the percentage specified in subparagraph (A) and other relevant percentages under this part.
(5)
Determination of weighted average MA bids for a region
(A)
In general
For purposes of paragraph (2)(B)(i), the weighted average of plan bids for an MA region and a year is the sum, for MA regional plans described in subparagraph (D) in the region and year, of the products (for each such plan) of the following:
(B)
Plan’s share of MA enrollment in region
(i)
In general
Subject to the succeeding provisions of this subparagraph, the factor described in this subparagraph for a plan is equal to the number of individuals described in subparagraph (C) for such plan, divided by the total number of such individuals for all MA regional plans described in subparagraph (D) for that region and year.
(ii)
Single plan rule
In the case of an MA region in which only a single MA regional plan is being offered, the factor described in this subparagraph shall be equal to 1.
(iii)
Equal division among multiple plans in year in which plans are first available
In the case of an MA region in the first year in which any MA regional plan is offered, if more than one MA regional plan is offered in such year, the factor described in this subparagraph for a plan shall (as specified by the Secretary) be equal to—
(C)
Counting of individuals
For purposes of subparagraph (B)(i), the Secretary shall count for each MA regional plan described in subparagraph (D) for an MA region and year, the number of individuals who reside in the region and who were enrolled under such plan under this part during the reference month.
(g)
Election of uniform coverage determination
Instead of applying section
1395w–22
(a)(2)(C) of this title with respect to an MA regional plan, the organization offering the plan may elect to have a local coverage determination for the entire MA region be the local coverage determination applied for any part of such region (as selected by the organization).
(h)
Assuring network adequacy
(1)
In general
For purposes of enabling MA organizations that offer MA regional plans to meet applicable provider access requirements under section
1395w–22 of this title with respect to such plans, the Secretary may provide for payment under this section to an essential hospital that provides inpatient hospital services to enrollees in such a plan where the MA organization offering the plan certifies to the Secretary that the organization was unable to reach an agreement between the hospital and the organization regarding provision of such services under the plan. Such payment shall be available only if—
(A)
the organization provides assurances satisfactory to the Secretary that the organization will make payment to the hospital for inpatient hospital services of an amount that is not less than the amount that would be payable to the hospital under section
1395ww of this title with respect to such services; and
(2)
Payment amounts
The payment amount under this subsection for inpatient hospital services provided by a subsection (d) hospital to an enrollee in an MA regional plan shall be, subject to the limitation of funds under paragraph (3), the amount (if any) by which—
(3)
Available amounts
There shall be available for payments under this subsection—
(B)
in each succeeding year the amount specified in this paragraph for the preceding year increased by the market basket percentage increase (as defined in section
1395ww
(b)(3)(B)(iii) of this title) for the fiscal year ending in such succeeding year.
Payments under this subsection shall be made from the Federal Hospital Insurance Trust Fund.
(4)
Essential hospital
In this subsection, the term “essential hospital” means, with respect to an MA regional plan offered by an MA organization, a subsection (d) hospital (as defined in section
1395ww
(d) of this title) that the Secretary determines, based upon an application filed by the organization with the Secretary, is necessary to meet the requirements referred to in paragraph (1) for such plan.
(a)
Regional service area; establishment of MA regions
(2)
Establishment of MA regions
(A)
MA region
For purposes of this subchapter, the term “MA region” means such a region within the 50 States and the District of Columbia as established by the Secretary under this paragraph.
(B)
Establishment
(b)
Application of single deductible and catastrophic limit on out-of-pocket expenses
An MA regional plan shall include the following:
(1)
Single deductible
Any deductible for benefits under the original medicare fee-for-service program option shall be a single deductible (instead of a separate inpatient hospital deductible and a part B deductible) and may be applied differentially for in-network services and may be waived for preventive or other items and services.
(c)
Portion of total payments to an organization subject to risk for 2006 and 2007
(1)
Application of risk corridors
(B)
Notification of allowable costs under the plan
In the case of an MA organization that offers an MA regional plan in an MA region in 2006 or 2007, the organization shall notify the Secretary, before such date in the succeeding year as the Secretary specifies, of—
(i)
its total amount of costs that the organization incurred in providing benefits covered under the original medicare fee-for-service program option for all enrollees under the plan in the region in the year and the portion of such costs that is attributable to administrative expenses described in subparagraph (C); and
(ii)
its total amount of costs that the organization incurred in providing rebatable integrated benefits (as defined in subparagraph (D)) and with respect to such benefits the portion of such costs that is attributable to administrative expenses described in subparagraph (C) and not described in clause (i) of this subparagraph.
(C)
Allowable costs defined
For purposes of this subsection, the term “allowable costs” means, with respect to an MA regional plan for a year, the total amount of costs described in subparagraph (B) for the plan and year, reduced by the portion of such costs attributable to administrative expenses incurred in providing the benefits described in such subparagraph.
(D)
Rebatable integrated benefits
For purposes of this subsection, the term “rebatable integrated benefits” means such non-drug supplemental benefits under subclause (I) of section
1395w–24
(b)(1)(C)(ii) of this title pursuant to a rebate under such section that the Secretary determines are integrated with the benefits described in subparagraph (B)(i).
(2)
Adjustment of payment
(A)
No adjustment if allowable costs within 3 percent of target amount
If the allowable costs for the plan for the year are at least 97 percent, but do not exceed 103 percent, of the target amount for the plan and year, there shall be no payment adjustment under this subsection for the plan and year.
(B)
Increase in payment if allowable costs above 103 percent of target amount
(i)
Costs between 103 and 108 percent of target amount
If the allowable costs for the plan for the year are greater than 103 percent, but not greater than 108 percent, of the target amount for the plan and year, the Secretary shall increase the total of the monthly payments made to the organization offering the plan for the year under section
1395w–23
(a) of this title by an amount equal to 50 percent of the difference between such allowable costs and 103 percent of such target amount.
(ii)
Costs above 108 percent of target amount
If the allowable costs for the plan for the year are greater than 108 percent of the target amount for the plan and year, the Secretary shall increase the total of the monthly payments made to the organization offering the plan for the year under section
1395w–23
(a) of this title by an amount equal to the sum of—
(C)
Reduction in payment if allowable costs below 97 percent of target amount
(i)
Costs between 92 and 97 percent of target amount
If the allowable costs for the plan for the year are less than 97 percent, but greater than or equal to 92 percent, of the target amount for the plan and year, the Secretary shall reduce the total of the monthly payments made to the organization offering the plan for the year under section
1395w–23
(a) of this title by an amount (or otherwise recover from the plan an amount) equal to 50 percent of the difference between 97 percent of the target amount and such allowable costs.
(ii)
Costs below 92 percent of target amount
If the allowable costs for the plan for the year are less than 92 percent of the target amount for the plan and year, the Secretary shall reduce the total of the monthly payments made to the organization offering the plan for the year under section
1395w–23
(a) of this title by an amount (or otherwise recover from the plan an amount) equal to the sum of—
(D)
Target amount described
For purposes of this paragraph, the term “target amount” means, with respect to an MA regional plan offered by an organization in a year, an amount equal to—
(i)
the sum of—
(I)
the total monthly payments made to the organization for enrollees in the plan for the year that are attributable to benefits under the original medicare fee-for-service program option (as defined in section
1395w–22
(a)(1)(B) of this title);
(II)
the total of the MA monthly basic beneficiary premium collectable for such enrollees for the year; and
(III)
the total amount of the rebates under section
1395w–24
(b)(1)(C)(ii) of this title that are attributable to rebatable integrated benefits; reduced by
(3)
Disclosure of information
(A)
In general
Each contract under this part shall provide—
(B)
Restriction on use of information
Information disclosed or obtained pursuant to the provisions of this subsection may be used by officers, employees, and contractors of the Department of Health and Human Services only for the purposes of, and to the extent necessary in, carrying out this subsection.
(d)
Organizational and financial requirements
(1)
In general
In the case of an MA organization that is offering an MA regional plan in an MA region and—
(A)
meets the requirements of section
1395w–25
(a)(1) of this title with respect to at least one such State in such region; and
(B)
with respect to each other State in such region in which it does not meet requirements, it demonstrates to the satisfaction of the Secretary that it has filed the necessary application to meet such requirements,
the Secretary may waive such requirement with respect to each State described in subparagraph (B) for such period of time as the Secretary determines appropriate for the timely processing of such an application by the State (and, if such application is denied, through the end of such plan year as the Secretary determines appropriate to provide for a transition).
(2)
Selection of appropriate State
In applying paragraph (1) in the case of an MA organization that meets the requirements of section
1395w–25
(a)(1) of this title with respect to more than one State in a region, the organization shall select, in a manner specified by the Secretary among such States, one State the rules of which shall apply in the case of the States described in paragraph (1)(B).
(f)
Computation of applicable MA region-specific non-drug monthly benchmark amounts
(1)
Computation for regions
For purposes of section
1395w–23
(j)(2) of this title and this section, subject to subsection (e) of this section, the term “MA region-specific non-drug monthly benchmark amount” means, with respect to an MA region for a month in a year, the sum of the 2 components described in paragraph (2) for the region and year. The Secretary shall compute such benchmark amount for each MA region before the beginning of each annual, coordinated election period under section
1395w–21
(e)(3)(B) of this title for each year (beginning with 2006).
(2)
2 components
For purposes of paragraph (1), the 2 components described in this paragraph for an MA region and a year are the following:
(A)
Statutory component
The product of the following:
(3)
Statutory region-specific non-drug amount
For purposes of paragraph (2)(A)(i), the term “statutory region-specific non-drug amount” means, for an MA region and year, an amount equal the sum (for each MA local area within the region) of the product of—
(4)
Computation of statutory market share percentage
(A)
In general
The Secretary shall determine for each year a statutory national market share percentage that is equal to the proportion of MA eligible individuals nationally who were not enrolled in an MA plan during the reference month.
(B)
Reference month defined
For purposes of this part, the term “reference month” means, with respect to a year, the most recent month during the previous year for which the Secretary determines that data are available to compute the percentage specified in subparagraph (A) and other relevant percentages under this part.
(5)
Determination of weighted average MA bids for a region
(A)
In general
For purposes of paragraph (2)(B)(i), the weighted average of plan bids for an MA region and a year is the sum, for MA regional plans described in subparagraph (D) in the region and year, of the products (for each such plan) of the following:
(B)
Plan’s share of MA enrollment in region
(i)
In general
Subject to the succeeding provisions of this subparagraph, the factor described in this subparagraph for a plan is equal to the number of individuals described in subparagraph (C) for such plan, divided by the total number of such individuals for all MA regional plans described in subparagraph (D) for that region and year.
(ii)
Single plan rule
In the case of an MA region in which only a single MA regional plan is being offered, the factor described in this subparagraph shall be equal to 1.
(iii)
Equal division among multiple plans in year in which plans are first available
In the case of an MA region in the first year in which any MA regional plan is offered, if more than one MA regional plan is offered in such year, the factor described in this subparagraph for a plan shall (as specified by the Secretary) be equal to—
(C)
Counting of individuals
For purposes of subparagraph (B)(i), the Secretary shall count for each MA regional plan described in subparagraph (D) for an MA region and year, the number of individuals who reside in the region and who were enrolled under such plan under this part during the reference month.
(g)
Election of uniform coverage determination
Instead of applying section
1395w–22
(a)(2)(C) of this title with respect to an MA regional plan, the organization offering the plan may elect to have a local coverage determination for the entire MA region be the local coverage determination applied for any part of such region (as selected by the organization).
(h)
Assuring network adequacy
(1)
In general
For purposes of enabling MA organizations that offer MA regional plans to meet applicable provider access requirements under section
1395w–22 of this title with respect to such plans, the Secretary may provide for payment under this section to an essential hospital that provides inpatient hospital services to enrollees in such a plan where the MA organization offering the plan certifies to the Secretary that the organization was unable to reach an agreement between the hospital and the organization regarding provision of such services under the plan. Such payment shall be available only if—
(A)
the organization provides assurances satisfactory to the Secretary that the organization will make payment to the hospital for inpatient hospital services of an amount that is not less than the amount that would be payable to the hospital under section
1395ww of this title with respect to such services; and
(2)
Payment amounts
The payment amount under this subsection for inpatient hospital services provided by a subsection (d) hospital to an enrollee in an MA regional plan shall be, subject to the limitation of funds under paragraph (3), the amount (if any) by which—
(3)
Available amounts
There shall be available for payments under this subsection—
(B)
in each succeeding year the amount specified in this paragraph for the preceding year increased by the market basket percentage increase (as defined in section
1395ww
(b)(3)(B)(iii) of this title) for the fiscal year ending in such succeeding year.
Payments under this subsection shall be made from the Federal Hospital Insurance Trust Fund.
(4)
Essential hospital
In this subsection, the term “essential hospital” means, with respect to an MA regional plan offered by an MA organization, a subsection (d) hospital (as defined in section
1395ww
(d) of this title) that the Secretary determines, based upon an application filed by the organization with the Secretary, is necessary to meet the requirements referred to in paragraph (1) for such plan.
Source
(Aug. 14, 1935, ch. 531, title XVIII, § 1858, as added Pub. L. 108–173, title II, § 221(c),Dec. 8, 2003, 117 Stat. 2181; amended Pub. L. 109–432, div. B, title III, § 301,Dec. 20, 2006, 120 Stat. 2990; Pub. L. 110–48, § 3,July 18, 2007, 121 Stat. 244; Pub. L. 110–173, title I, § 110,Dec. 29, 2007, 121 Stat. 2497; Pub. L. 110–275, title I, § 166,July 15, 2008, 122 Stat. 2575; Pub. L. 111–8, div. G, title I, § 1301(f),Mar. 11, 2009, 123 Stat. 829; Pub. L. 111–148, title III, § 3201(a)(2)(C), (f)(2), title X, § 10327(c)(1),Mar. 23, 2010, 124 Stat. 444, 450, 964; Pub. L. 111–152, title I, § 1102(a),Mar. 30, 2010, 124 Stat. 1040.)
Amendments
2010—Subsec. (e). Pub. L. 111–148, § 10327(c)(1), struck out subsec. (e) which related to the MA Regional Plan Stabilization Fund.
Subsec. (f)(1). Pub. L. 111–148, § 3201(a)(2)(C)(i), (f)(2)(A), which directed substitution of “1395w–23(j)(1)(B)” for “1395w–23(j)(2)” and “subsections (e) and (i)” for “subsection (e)”, respectively, was repealed by Pub. L. 111–152, § 1102(a). See Effective Date of 2010 Amendment note below.
Subsec. (f)(3)(A). Pub. L. 111–148, § 3201(a)(2)(C)(ii), which directed substitution of “1395w–23(j)(1)(A)(i)” for “1395w–23(j)(1)(A)”, was repealed by Pub. L. 111–152, § 1102(a). See Effective Date of 2010 Amendment note below.
Subsec. (i). Pub. L. 111–148, § 3201(f)(2)(B), which directed addition of subsec. (i), was repealed by Pub. L. 111–152, § 1102(a). As enacted, text read as follows: “For years beginning with 2014, the Secretary shall apply the performance bonuses under section
1395w–23
(n) of this title (relating to bonuses for care coordination and management, quality performance, and new and low enrollment MA plans) to MA regional plans in a similar manner as such performance bonuses apply to MA plans under such subsection.” See Effective Date of 2010 Amendment note below.
2009—Subsec. (e)(7). Pub. L. 111–8struck out par. (7) which related to biennial GAO reports to be submitted by the Comptroller General to the Secretary and Congress.
2008—Subsec. (e)(2)(A)(i). Pub. L. 110–275substituted “2014” for “2013” and “$1” for “$1,790,000,000”.
2007—Subsec. (e)(2)(A)(i). Pub. L. 110–173, which directed substitution of “the Fund during 2013, $1,790,000,000.” for “the Fund” and all that follows, was executed by making the substitution for “the Fund—
“(I) during 2012, $1,600,000,000; and
“(II) during 2013, $1,790,000,000.”
to reflect the probable intent of Congress.
Pub. L. 110–48substituted “the Fund—
“(I) during 2012, $1,600,000,000; and
“(II) during 2013, $1,790,000,000.”
for “the Fund during the period beginning on January 1, 2012, and ending on December 31, 2013, a total of $3,500,000,000.”
2006—Subsec. (e)(2)(A)(i). Pub. L. 109–432substituted “2012” for “2007” and “$3,500,000,000” for “$10,000,000,000”.
Effective Date of 2010 Amendment
Repeal of sections 3201 and 3203 ofPub. L. 111–148and the amendments made by such sections, effective as if included in the enactment of Pub. L. 111–148, see section 1102(a) ofPub. L. 111–152, set out as a note under section
1395w–21 of this title.
Effective Date
Section applicable with respect to plan years beginning on or after Jan. 1, 2006, see section 223(a) ofPub. L. 108–173, set out as an Effective Date of 2003 Amendment note under section
1395w–21 of this title.
Elimination of MA Regional Plan Stabilization Fund; Transition
Pub. L. 111–148, title X, § 10327(c)(2),Mar. 23, 2010, 124 Stat. 964, provided that: “Any amount contained in the MA Regional Plan Stabilization Fund as of the date of the enactment of this Act [Mar. 23, 2010] shall be transferred to the Federal Supplementary Medical Insurance Trust Fund.”
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, May 21, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
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