Page:United States Statutes at Large Volume 117.djvu/2122

 PUBLIC LAW 108–173—DEC. 8, 2003

117 STAT. 2103

‘‘(2) BASE BENEFICIARY PREMIUM.—The base beneficiary premium under this paragraph for a prescription drug plan for a month is equal to the product— ‘‘(A) the beneficiary premium percentage (as specified in paragraph (3)); and ‘‘(B) the national average monthly bid amount (computed under paragraph (4)) for the month. ‘‘(3) BENEFICIARY PREMIUM PERCENTAGE.—For purposes of this subsection, the beneficiary premium percentage for any year is the percentage equal to a fraction— ‘‘(A) the numerator of which is 25.5 percent; and ‘‘(B) the denominator of which is 100 percent minus a percentage equal to— ‘‘(i) the total reinsurance payments which the Secretary estimates are payable under section 1860D– 15(b) with respect to the coverage year; divided by ‘‘(ii) the sum of— ‘‘(I) the amount estimated under clause (i) for the year; and ‘‘(II) the total payments which the Secretary estimates will be paid to prescription drug plans and MA–PD plans that are attributable to the standardized bid amount during the year, taking into account amounts paid by the Secretary and enrollees. ‘‘(4) COMPUTATION OF NATIONAL AVERAGE MONTHLY BID AMOUNT.— ‘‘(A) IN GENERAL.—For each year (beginning with 2006) the Secretary shall compute a national average monthly bid amount equal to the average of the standardized bid amounts (as defined in paragraph (5)) for each prescription drug plan and for each MA–PD plan described in section 1851(a)(2)(A)(i). Such average does not take into account the bids submitted for MSA plans, MA private fee-forservice plan, and specialized MA plans for special needs individuals, PACE programs under section 1894 (pursuant to section 1860D–21(f)), and under reasonable cost reimbursement contracts under section 1876(h) (pursuant to section 1860D–21(e)). ‘‘(B) WEIGHTED AVERAGE.— ‘‘(i) IN GENERAL.—The monthly national average monthly bid amount computed under subparagraph (A) for a year shall be a weighted average, with the weight for each plan being equal to the average number of part D eligible individuals enrolled in such plan in the reference month (as defined in section 1858(f)(4)). ‘‘(ii) SPECIAL RULE FOR 2006.—For purposes of applying this paragraph for 2006, the Secretary shall establish procedures for determining the weighted average under clause (i) for 2005. ‘‘(5) STANDARDIZED BID AMOUNT DEFINED.—For purposes of this subsection, the term ‘standardized bid amount’ means the following: ‘‘(A) PRESCRIPTION DRUG PLANS.—

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