Page:United States Statutes at Large Volume 117.djvu/2123

 117 STAT. 2104

PUBLIC LAW 108–173—DEC. 8, 2003 ‘‘(i) BASIC COVERAGE.—In the case of a prescription drug plan that provides basic prescription drug coverage, the PDP approved bid (as defined in paragraph (6)). ‘‘(ii) SUPPLEMENTAL COVERAGE.—In the case of a prescription drug plan that provides supplemental prescription drug coverage, the portion of the PDP approved bid that is attributable to basic prescription drug coverage. ‘‘(B) MA–PD PLANS.—In the case of an MA–PD plan, the portion of the accepted bid amount that is attributable to basic prescription drug coverage. ‘‘(6) PDP APPROVED BID DEFINED.—For purposes of this part, the term ‘PDP approved bid’ means, with respect to a prescription drug plan, the bid amount approved for the plan under this part. ‘‘(b) LATE ENROLLMENT PENALTY.— ‘‘(1) IN GENERAL.—Subject to the succeeding provisions of this subsection, in the case of a part D eligible individual described in paragraph (2) with respect to a continuous period of eligibility, there shall be an increase in the monthly beneficiary premium established under subsection (a) in an amount determined under paragraph (3). ‘‘(2) INDIVIDUALS SUBJECT TO PENALTY.—A part D eligible individual described in this paragraph is, with respect to a continuous period of eligibility, an individual for whom there is a continuous period of 63 days or longer (all of which in such continuous period of eligibility) beginning on the day after the last date of the individual’s initial enrollment period under section 1860D–1(b)(2) and ending on the date of enrollment under a prescription drug plan or MA–PD plan during all of which the individual was not covered under any creditable prescription drug coverage. ‘‘(3) AMOUNT OF PENALTY.— ‘‘(A) IN GENERAL.—The amount determined under this paragraph for a part D eligible individual for a continuous period of eligibility is the greater of— ‘‘(i) an amount that the Secretary determines is actuarially sound for each uncovered month (as defined in subparagraph (B)) in the same continuous period of eligibility; or ‘‘(ii) 1 percent of the base beneficiary premium (computed under subsection (a)(2)) for each such uncovered month in such period. ‘‘(B) UNCOVERED MONTH DEFINED.—For purposes of this subsection, the term ‘uncovered month’ means, with respect to a part D eligible individual, any month beginning after the end of the initial enrollment period under section 1860D–1(b)(2) unless the individual can demonstrate that the individual had creditable prescription drug coverage (as defined in paragraph (4)) for any portion of such month. ‘‘(4) CREDITABLE PRESCRIPTION DRUG COVERAGE DEFINED.— For purposes of this part, the term ‘creditable prescription drug coverage’ means any of the following coverage, but only if the coverage meets the requirement of paragraph (5):

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