124 STAT. 1045 PUBLIC LAW 111–152—MAR. 30, 2010 the original medicare fee-for-service program for the year. ‘‘(4) QUALITY DETERMINATIONS FOR APPLICATION OF INCREASE.— ‘‘(A) QUALITY DETERMINATION.—The quality rating for a plan shall be determined according to a 5-star rating system (based on the data collected under section 1852(e)). ‘‘(B) PLANS THAT FAILED TO REPORT.—An MA plan which does not report data that enables the Secretary to rate the plan for purposes of this paragraph shall be counted as having a rating of fewer than 3.5 stars. ‘‘(5) EXCEPTION FOR PACE PLANS.—This subsection shall not apply to payments to a PACE program under section 1894.’’. (4) DETERMINATION OF MEDICARE PART D LOW-INCOME BENCHMARK PREMIUM.—Section 1860D–14(b)(2)(B)(iii) of the Social Security Act (42 U.S.C. 1395w–114(b)(2)(B)(iii)) as amended by section 3302 of the Patient Protection and Afford- able Care Act, is amended by striking ‘‘, determined without regard to any reduction in such premium as a result of any beneficiary rebate under section 1854(b)(1)(C) or bonus payment under section 1853(n)’’ and inserting the following: ‘‘and deter- mined before the application of the monthly rebate computed under section 1854(b)(1)(C)(i) for that plan and year involved and, in the case of a qualifying plan, before the application of the increase under section 1853(o) for that plan and year involved’’. (d) BENEFICIARY REBATES.—Section 1854(b)(1)(C) of such Act (42 U.S.C. 1395w–24(b)(1)(C)), as amended by section 3202(b) of the Patient Protection and Affordable Care Act, is further amended— (1) in clause (i), by inserting ‘‘(or the applicable rebate percentage specified in clause (iii) in the case of plan years beginning on or after January 1, 2012)’’ after ‘‘75 percent’’; and (2) by striking clause (iii), by redesignating clauses (iv) and (v) as clauses (vii) and (viii), respectively, and by inserting after clause (ii) the following new clauses: ‘‘(iii) APPLICABLE REBATE PERCENTAGE.—The applicable rebate percentage specified in this clause for a plan for a year, based on the system under section 1853(o)(4)(A), is the sum of— ‘‘(I) the product of the old phase-in proportion for the year under clause (iv) and 75 percent; and ‘‘(II) the product of the new phase-in propor- tion for the year under clause (iv) and the final applicable rebate percentage under clause (v). ‘‘(iv) OLD AND NEW PHASE-IN PROPORTIONS.—For purposes of clause (iv)— ‘‘(I) for 2012, the old phase-in proportion is 2⁄3 and the new phase-in proportion is 1⁄3; ‘‘(II) for 2013, the old phase-in proportion is 1⁄3 and the new phase-in proportion is 2⁄3; and ‘‘(III) for 2014 and any subsequent year, the old phase-in proportion is 0 and the new phase- in proportion is 1.
