Page:United States Statutes at Large Volume 117.djvu/2138

 PUBLIC LAW 108–173—DEC. 8, 2003

117 STAT. 2119

‘‘(II) an amount equal to the second threshold risk percentage for the plan (as determined under subparagraph (C)(ii)) of such target amount. ‘‘(iii) FIRST THRESHOLD UPPER LIMIT.—The first threshold upper limit of such corridor shall be equal to the sum of— ‘‘(I) such target amount; and ‘‘(II) the amount described in clause (i)(II). ‘‘(iv) SECOND THRESHOLD UPPER LIMIT.—The second threshold upper limit of such corridor shall be equal to the sum of— ‘‘(I) such target amount; and ‘‘(II) the amount described in clause (ii)(II). ‘‘(B) TARGET AMOUNT DESCRIBED.—The target amount described in this paragraph is, with respect to a prescription drug plan or an MA–PD plan in a year, the total amount of payments paid to the PDP sponsor or MA– PD organization for the plan for the year, taking into account amounts paid by the Secretary and enrollees, based upon the standardized bid amount (as defined in section 1860D–13(a)(5) and as risk adjusted under subsection (c)(1)), reduced by the total amount of administrative expenses for the year assumed in such standardized bid. ‘‘(C) FIRST AND SECOND THRESHOLD RISK PERCENTAGE DEFINED.— ‘‘(i) FIRST THRESHOLD RISK PERCENTAGE.—Subject to clause (iii), for purposes of this section, the first threshold risk percentage is— ‘‘(I) for 2006 and 2007, and 2.5 percent; ‘‘(II) for 2008 through 2011, 5 percent; and ‘‘(III) for 2012 and subsequent years, a percentage established by the Secretary, but in no case less than 5 percent. ‘‘(ii) SECOND THRESHOLD RISK PERCENTAGE.—Subject to clause (iii), for purposes of this section, the second threshold risk percentage is— ‘‘(I) for 2006 and 2007, 5 percent; ‘‘(II) for 2008 through 2011, 10 percent; and ‘‘(III) for 2012 and subsequent years, a percentage established by the Secretary that is greater than the percent established for the year under clause (i)(III), but in no case less than 10 percent. ‘‘(iii) REDUCTION OF RISK PERCENTAGE TO ENSURE 2 PLANS IN AN AREA.—Pursuant to section 1860D– 11(b)(2)(E)(ii), a PDP sponsor may submit a bid that requests a decrease in the applicable first or second threshold risk percentages or an increase in the percents applied under paragraph (2). ‘‘(4) PLANS AT RISK FOR ENTIRE AMOUNT OF SUPPLEMENTAL PRESCRIPTION DRUG COVERAGE.—A PDP sponsor and MA organization that offers a plan that provides supplemental prescription drug benefits shall be at full financial risk for the provision of such supplemental benefits. ‘‘(5) NO EFFECT ON MONTHLY PREMIUM.—No adjustment in payments made by reason of this subsection shall affect

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