Direct subsidy.
(1) Direct subsidy. CMS makes a direct subsidy payment for each Part D eligible beneficiary enrolled in a Part D plan for a month equal to the amount of the plan's approved standardized bid, adjusted for health status (as determined under 423.329(b)(1)), and reduced by the base beneficiary premium for the plan (as determined under 423.286(c) and adjusted in 423.286(d)(1)). The direct subsidy payment may be increased by the excess amount of a negative premium as described in 423.286(d)(1), if applicable.