Page:United States Statutes at Large Volume 102 Part 1.djvu/731

 PUBLIC LAW 100-360—JULY 1, 1988

102 STAT. 693

"(ii) ADJUSTMENT FOR MORE RECENT INCREASES IN COSTKJF-LIVING.—If—

"(I) the percentage increase in the CPI for the 12month period ending with May of the preceding calendar year, exceeds (or is less than) "(ED such increase for the 12-month period ending with May of the 2nd preceding calendar year, by at least 1 percentage point, the percentage determined under clause (i) for the calendar year shall be adjusted up (or down, respectively) by Vz of the amount by which such excess (or shortage, respectively) exceeds 1 percent. '(C) RESERVE ACCOUNT PERCENTAGE.—

"(i) IN GENERAL.—The reserve account percentage for any calendar year is the percentage which the rate change determined under clause (ii) is of the catastrophic coverage premium rate which would be in effect under this section for taxable years beginning in the preceding calendar year if paragraph (2) did not apply to any preceding calendar year. K there is an excess determined under clause (iii), the percentage determined under the preceding sentence shall be taken into account as a negative percentage. "(ii) DETERMINATION OF RATE CHANGE.—The rate chmige determined under this clause for any calendar year is the adjustment in the catastrophic coverage premium rate (otherwise in effect for taxable years b ^ i i m i n g in the 2nd preceding calendar year) which the Secretary determines would have resulted in an a ^ r ^ a t e increase (or decrease) in the premiums imposed by this section for such taxable years equal to 63 percent of the shortfall or excess determined under clause (iii) for the calendar year. "(iii) DETERMINATION OF SHORTFALL OR EXCESS.—The shortfall (or excess) determined under this clause for any calendar year is the amount by which— "(I) 20 percent of the outlays during the 2nd preceding calendar year from the Medicare Catastrophic (Coverage Account created under section 1841B of the Social Security Act, exceeds (or is less than) "(II) the balance in such Account as of the close of such 2nd preceding calendar year (determined by taking into account previous premium increases by reason of the reserve account percentage under this subsection or by reason of section 1839(g)(2) of the Social Security Act but not credited to the Account). '(D) DEFINITIONS.—For purposes of this paragraph— "(i) PER CAPITA CATASTROPHIC OUTLAYS.—The term 'per capita catastrophic outlays' means, with respect to any calendar year, the amount (as determined by the Secretary of Health and Human Services) equal to— "(I) the o u t l a y during such year from the Medicare Catastrophic Goverage Account created under section 1841B of the Socisd Security Act, divided by

�