Page:United States Statutes at Large Volume 117.djvu/2120

 PUBLIC LAW 108–173—DEC. 8, 2003

117 STAT. 2101

‘‘(A) IN GENERAL.—The grounds for approval under this paragraph are— ‘‘(i) subject to subparagraph (B), the grounds for approval described in subparagraphs (B), (C), and (D) of section 1855(a)(2); and ‘‘(ii) the application by a State of any grounds other than those required under Federal law. ‘‘(B) SPECIAL RULES.—In applying subparagraph (A)(i)— ‘‘(i) the ground of approval described in section 1855(a)(2)(B) is deemed to have been met if the State does not have a licensing process in effect with respect to the PDP sponsor; and ‘‘(ii) for plan years beginning before January 1, 2008, if the State does have such a licensing process in effect, such ground for approval described in such section is deemed to have been met upon submission of an application described in such section. ‘‘(3) APPLICATION OF WAIVER PROCEDURES.—With respect to an application for a waiver (or a waiver granted) under paragraph (1)(A) of this subsection, the provisions of subparagraphs (E), (F), and (G) of section 1855(a)(2) shall apply, except that clauses (i) and (ii) of such subparagraph (E) shall not apply in the case of a State that does not have a licensing process described in paragraph (2)(B)(i) in effect. ‘‘(4) REFERENCES TO CERTAIN PROVISIONS.—In applying provisions of section 1855(a)(2) under paragraphs (2) and (3) of this subsection to prescription drug plans and PDP sponsors— ‘‘(A) any reference to a waiver application under section 1855 shall be treated as a reference to a waiver application under paragraph (1)(A) of this subsection; and ‘‘(B) any reference to solvency standards shall be treated as a reference to solvency standards established under subsection (d) of this section. ‘‘(d) SOLVENCY STANDARDS FOR NON-LICENSED ENTITIES.— ‘‘(1) ESTABLISHMENT AND PUBLICATION.—The Secretary, in consultation with the National Association of Insurance Commissioners, shall establish and publish, by not later than January 1, 2005, financial solvency and capital adequacy standards for entities described in paragraph (2). ‘‘(2) COMPLIANCE WITH STANDARDS.—A PDP sponsor that is not licensed by a State under subsection (a)(1) and for which a waiver application has been approved under subsection (c) shall meet solvency and capital adequacy standards established under paragraph (1). The Secretary shall establish certification procedures for such sponsors with respect to such solvency standards in the manner described in section 1855(c)(2). ‘‘(e) LICENSURE DOES NOT SUBSTITUTE FOR OR CONSTITUTE CERTIFICATION.—The fact that a PDP sponsor is licensed in accordance with subsection (a)(1) or has a waiver application approved under subsection (c) does not deem the sponsor to meet other requirements imposed under this part for a sponsor. ‘‘(f) PERIODIC REVIEW AND REVISION OF STANDARDS.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary may periodically review the standards established under this

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