102 STAT. 734
PUBLIC LAW 100-360—JULY 1, 1988
"(I) the total amount of the supplemental premiums imposed under section 59B of the Internal Revenue Code of 1986 in the 2nd preceding year, over "(II) the total amount of such premiums which would have been imposed in such year if the supplemental premium rate under such section had been increased by the shortfall rate, or decreased by the excess rate, described in clause (iii). "(iii) The excess rate or shortfall rate under this clause for a year is the excess or shortfall of— "(I) the supplemental premium rate established under section 59B of the Internal Revenue Code of 1986 for taxable years beginning in the year, and "(II) the amount of such supplemental rate if determined without regard to subsection (e)(2)(A) of such section, "(iv) The amount determined under clause (i)(1) for a year shall be increased by the percentage by which the per capita catastrophic coverage premium liability (as determined in section 59B(e)(3)(D)(ii) of the Internal Revenue Code of 1986) for the second preceding year exceeds such liability for the fourth preceding year (determined as if the catastrophic coverage premium rate for the second preceding calendar year were the same as the rate in effect for the fourth preceding calendar year). "(C) In no event shall the monthly premium increase in effect under this paragraph for months in a year after 1993 be less than the monthly premium increase in effect under this paragraph for months in the preceding year. "(D) If subparagraph (B) or subparagraph (C), or both, affects the increase in the monthly premium determined under this paragraph for a year, the increase in the monthly premium determined after the application of such subparagraph or subparagraphs shall be allocated between the catastrophic coverage monthly premium and the prescription drug monthly premium on the basis of the respective amounts of such premiums without regard to the application of either such subparagraph. "(2)(A) In the case of months in a year after 1993, the catastrophic coverage monthly premium is the catastrophic coverage monthly premium (in effect under paragraph (1) or this paragraph for months in the preceding year, determined without regard to paragraph (I)(B) or (1)(C)) adjusted by the percentage determined under subparagraph (B) for the year. "(B) The percentage determined under this subparagraph for a year shall be the sum of— "(i) the outlay-premium percentage, and "(ii) the reserve account percentage. For purposes of the preceding sentence, negative percentages shall be taken into account as negatives. "(C)(i) Except as provided in clause (ii), the outlay-premium percentage for any year is the percentage by which— "(I) the per capita catastrophic outlays in the 2nd preceding year exceeds "(II) such outlays in the 3rd preceding calendar year. If there is no excess, this clause shall be applied by substituting 'is less than' for 'exceeds' and the percentage determined with such substitution shall be taken into account as a negative percentage. "(ii)If—
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