PUBLIC LAW 109–171—FEB. 8, 2006
120 STAT. 49
‘‘(II) then increased by the national per capita MA growth percentage, described in subsection (c)(6) for 2007, but not taking into account any adjustment under subparagraph (C) of such subsection for a year before 2004; ‘‘(ii) if such year is specified under subsection (c)(1)(D)(ii), an amount equal to the greater of— ‘‘(I) the amount determined under clause (i) for the area for the year; or ‘‘(II) the amount specified in subsection (c)(1)(D) for the area for the year; and ‘‘(B) for a subsequent year— ‘‘(i) if such year is not specified under subsection (c)(1)(D)(ii), an amount equal to the amount determined under this paragraph for the area for the previous year (determined without regard to paragraph (2)), increased by the national per capita MA growth percentage, described in subsection (c)(6) for that succeeding year, but not taking into account any adjustment under subparagraph (C) of such subsection for a year before 2004; and ‘‘(ii) if such year is specified under subsection (c)(1)(D)(ii), an amount equal to the greater of— ‘‘(I) the amount determined under clause (i) for the area for the year; or ‘‘(II) the amount specified in subsection (c)(1)(D) for the area for the year. ‘‘(2) PHASE-OUT OF BUDGET NEUTRALITY FACTOR.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (D), in the case of 2007 through 2010, the applicable amount determined under paragraph (1) shall be multiplied by a factor equal to 1 plus the product of— ‘‘(i) the percent determined under subparagraph (B) for the year; and ‘‘(ii) the applicable phase-out factor for the year under subparagraph (C). ‘‘(B) PERCENT DETERMINED.— ‘‘(i) IN GENERAL.—For purposes of subparagraph (A)(i), subject to clause (iv), the percent determined under this subparagraph for a year is a percent equal to a fraction the numerator of which is described in clause (ii) and the denominator of which is described in clause (iii). ‘‘(ii) NUMERATOR BASED ON DIFFERENCE BETWEEN DEMOGRAPHIC RATE AND RISK RATE.— ‘‘(I) IN GENERAL.—The numerator described in this clause is an amount equal to the amount by which the demographic rate described in subclause (II) exceeds the risk rate described in subclause (III). ‘‘(II) DEMOGRAPHIC RATE.—The demographic rate described in this subclause is the Secretary’s estimate of the total payments that would have been made under this part in the year if all the monthly payment amounts for all MA plans were 1⁄12 of the annual MA capitation rate equal to
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