Page:United States Statutes at Large Volume 124.djvu/1072

 124 STAT. 1046 PUBLIC LAW 111–152—MAR. 30, 2010 ‘‘(v) FINAL APPLICABLE REBATE PERCENTAGE.—Sub- ject to clause (vi), the final applicable rebate percentage under this clause is— ‘‘(I) in the case of a plan with a quality rating under such system of at least 4.5 stars, 70 percent; ‘‘(II) in the case of a plan with a quality rating under such system of at least 3.5 stars and less than 4.5 stars, 65 percent; and ‘‘(III) in the case of a plan with a quality rating under such system of less than 3.5 stars, 50 percent. ‘‘(vi) TREATMENT OF LOW ENROLLMENT AND NEW PLANS.—For purposes of clause (v)— ‘‘(I) for 2012, in the case of a plan described in subclause (I) of subsection (o)(3)(A)(ii), the plan shall be treated as having a rating of 4.5 stars; and ‘‘(II) for 2012 or a subsequent year, in the case of a new MA plan (as defined under subclause (III) of subsection (o)(3)(A)(iii)) that is treated as a qualifying plan pursuant to subclause (I) of such subsection, the plan shall be treated as having a rating of 3.5 stars.’’. (e) CODING INTENSITY ADJUSTMENT.—Section 1853(a)(1)(C)(ii) of such Act (42 U.S.C. 1395w–23(a)(1)(C)(ii)) is amended— (1) in the heading, by striking ‘‘DURING PHASEOUT OF BUDGET NEUTRALITY FACTOR’’ and inserting ‘‘OF CODING ADJUST- MENT’’; (2) in the matter before subclause (I), by striking ‘‘through 2010’’ and inserting ‘‘and each subsequent year’’; and (3) in subclause (II)— (A) in the first sentence, by inserting ‘‘annually’’ before ‘‘conduct an analysis’’; (B) in the second sentence— (i) by inserting ‘‘on a timely basis’’ after ‘‘are incor- porated’’; and (ii) by striking ‘‘only for 2008, 2009, and 2010’’ and inserting ‘‘for 2008 and subsequent years’’; (C) in the third sentence, by inserting ‘‘and updated as appropriate’’ before the period at the end; and (D) by adding at the end the following new subclauses: ‘‘(III) In calculating each year’s adjustment, the adjustment factor shall be for 2014, not less than the adjustment factor applied for 2010, plus 1.3 percentage points; for each of years 2015 through 2018, not less than the adjustment factor applied for the previous year, plus 0.25 percentage point; and for 2019 and each subsequent year, not less than 5.7 percent. ‘‘(IV) Such adjustment shall be applied to risk scores until the Secretary implements risk adjust- ment using Medicare Advantage diagnostic, cost, and use data.’’. (f) REPEAL OF COMPARATIVE COST ADJUSTMENT PROGRAM.— Section 1860C–1 of the Social Security Act (42 U.S.C. 1395w– 29), as added by section 241(a) of the Medicare Prescription Drug, Applicability.