Page:United States Statutes at Large Volume 102 Part 1.djvu/773

 ^immPUBLIC LAW 100-360—JULY 1, 1988

102 STAT. 735

"(I) the percentage increase in the CPI for the 12-month period ending with May of the preceding calendar year, exceeds (or is less than) "(II) 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 any year shall be adjusted up (or down, respectively) by V2 of the amount by which such excess (or shortage, respectively) exceeds 1 percent. "(D)(i) The reserve account percentage for any calendar year is the percentage which the premium change determined under clause (ii) is of the catastrophic coverage monthly premium in effect under paragraph (1) or this paragraph for the preceding year (determined without regard to paragraph (I)(B) or (I)(C)). If 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) The premium change determined under this clause for any year is the adjustment in the catastrophic coverage monthly premium (otherwise in effect for the 2nd preceding year) which the Secretary determines would have resulted in £m aggregate increase (or decrease) in the premiums imposed by this subsection for such year equal to 37 percent of the shortfall or excess determined under clause (iii) for the calendar year. "(iii) The shortfall (or excess) determined under this clause for any 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, 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 paragraph or section 59B(e) of the Internal Revenue Cllode of 1986 which have not been credited into such Account). "(3) In the case of months in a year after 1993, the prescription drug monthly premium shall be determined under rules similar to the rules of paragraph (2); except that— "(A) in determining the prescription drug monthly premium for any month in a year before 1998, the following percentages shall be substituted for 20 percent in paragraph (2)(D)(iiiXI): "In the case of year: 1994 1995 1996 1997

The percentage is: 75 50 25 25;

"(B) no adjustment by reason of the outlay-premium percentage shall be made for any calendar year before 1998; "(C) any reference to the Medicare Catastrophic Coverage Account shall be treated as a reference to the Federal Catastrophic Drug Insurance Trust Fund; and "(D) any reference to the catastrophic coverage monthly premium shall be treated as a reference to the prescription drug monthly premium. "(4)(A) In the case of an individual who is a resident of Puerto Rico Territories, U.S. or who is a resident of another U.S. commonwealth or territory during a month, instead of the premium increase provided under

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