Page:United States Statutes at Large Volume 111 Part 1.djvu/325

 PUBLIC LAW 105-33—AUG. 5, 1997 111 STAT. 301 such organizations an opportunity to comment on such proposed changes. "(3) EXPLANATION OF ASSUMPTIONS.— In each announcement made under paragraph (1), the Secretary shall include an explanation of the assumptions and changes in methodology used in the announcement in sufficient detail so that Medicare+Choice organizations can compute monthly adjusted Medicare+Choice capitation rates for individuals in each Medicare+Choice payment area which is in whole or in part within the service area of such an organization. "(c) CALCULATION OF ANNUAL MEDICARE+CHOICE CAPITATION RATES. — "(1) IN GENERAL. —For purposes of this part, subject to paragraphs (6)(C) and (7), each annual Medicare+Choice capitation rate, for a Medicare+Choice payment area for a contract year consisting of a calendar year, is equal to the largest of the amounts specified in the following subparagraph (A), (B), or (C): " (A) BLENDED CAPITATION RATE. — The sum of— "(i) the area-specific percentage (as specified under paragraph (2) for the year) of the annual area-specific Medicare+Choice capitation rate for the Medicare+Choice payment area, as determined under paragraph (3) for the year, and "(ii) the national percentage (as specified under paragraph (2) for the year) of the input-price-adjusted annual national Medicare+Choice capitation rate, as determined under paragraph (4) for the year, multiplied by the budget neutrality adjustment factor determined under paragraph (5). "(B) MINIMUM AMOUNT.—12 multiplied by the following amount: "(i) For 1998, $367 (but not to exceed, in the case of an area outside the 50 States and the District of Columbia, 150 percent of the annual per capita rate of pa5anent for 1997 determined under section 1876(a)(1)(C) for the area). "(ii) For a succeeding year, the minimum amount specified in this clause (or clause (i)) for the preceding year increased by the national per capita Medicare+Choice growth percentage, described in paragraph (6)(A) for that succeeding year. " (C) MINIMUM PERCENTAGE INCREASE.— "(i) For 1998, 102 percent of the annual per capita rate of payment for 1997 determined under section 1876(a)(1)(C) for the Medicare+Choice payment area, "(ii) For a subsequent year, 102 percent of the annual Medicare+Choice capitation rate under this paragraph for the area for the previous year. "(2) AREA-SPECIFIC AND NATIONAL PERCENTAGES.— For purposes of paragraph (1)(A)— "(A) for 1998, the 'area-specific percentage' is 90 percent and the 'national percentage' is 10 percent, "(B) for 1999, the 'area-specific percentage' is 82 percent and the 'national percentage' is 18 percent, "(C) for 2000, the 'area-specific percentage' is 74 percent and the 'national percentage' is 26 percent,

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