Page:United States Statutes at Large Volume 117.djvu/2112

 PUBLIC LAW 108–173—DEC. 8, 2003

117 STAT. 2093

‘‘(B) ACTUARIAL VALUE.—The actuarial value of the qualified prescription drug coverage in the region for a part D eligible individual with a national average risk profile for the factors described in section 1860D–15(c)(1)(A) (as specified by the Secretary). ‘‘(C) BID.—Information on the bid, including an actuarial certification of— ‘‘(i) the basis for the actuarial value described in subparagraph (B) assumed in such bid; ‘‘(ii) the portion of such bid attributable to basic prescription drug coverage and, if applicable, the portion of such bid attributable to supplemental benefits; ‘‘(iii) assumptions regarding the reinsurance subsidy payments provided under section 1860D–15(b) subtracted from the actuarial value to produce such bid; and ‘‘(iv) administrative expenses assumed in the bid. ‘‘(D) SERVICE AREA.—The service area for the plan. ‘‘(E) LEVEL OF RISK ASSUMED.— ‘‘(i) IN GENERAL.—Whether the PDP sponsor requires a modification of risk level under clause (ii) and, if so, the extent of such modification. Any such modification shall apply with respect to all prescription drug plans offered by a PDP sponsor in a PDP region. This subparagraph shall not apply to an MA–PD plan. ‘‘(ii) RISK LEVELS DESCRIBED.—A modification of risk level under this clause may consist of one or more of the following: ‘‘(I) INCREASE IN FEDERAL PERCENTAGE ASSUMED IN INITIAL RISK CORRIDOR.—An equal percentage point increase in the percents applied under subparagraphs (B)(i), (B)(ii)(I), (C)(i), and (C)(ii)(I) of section 1860D–15(e)(2). In no case shall the application of previous sentence prevent the application of a higher percentage under section 1869D–15(e)(2)(B)(iii). ‘‘(II) INCREASE IN FEDERAL PERCENTAGE ASSUMED IN SECOND RISK CORRIDOR.—An equal percentage point increase in the percents applied under subparagraphs (B)(ii)(II) and (C)(ii)(II) of section 1860D–15(e)(2). ‘‘(III) DECREASE IN SIZE OF RISK CORRIDORS.— A decrease in the threshold risk percentages specified in section 1860D–15(e)(3)(C). ‘‘(F) ADDITIONAL INFORMATION.—Such other information as the Secretary may require to carry out this part. ‘‘(3) PAPERWORK REDUCTION FOR OFFERING OF PRESCRIPTION DRUG PLANS NATIONALLY OR IN MULTI-REGION AREAS.—The Secretary shall establish requirements for information submission under this subsection in a manner that promotes the offering of such plans in more than one PDP region (including all regions) through the filing of consolidated information. ‘‘(c) ACTUARIAL VALUATION.— ‘‘(1) PROCESSES.—For purposes of this part, the Secretary shall establish processes and methods for determining the actuarial valuation of prescription drug coverage, including—

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