{"identifier":"/us/usc/t42/s1395w\u201327a","title":42,"num":"\u00a7\u202f1395w\u201327a.","heading":"Special rules for MA regional plans","text":"\u00a7\u202f1395w\u201327a.\nSpecial rules for MA regional plans\n(a)\nRegional service area; establishment of MA regions\n(1)\nCoverage of entire MA region\nThe service area for an MA regional plan shall consist of an entire MA region established under paragraph (2) and the provisions of\nsection 1395w\u201324(h) of this title\n(2)\nEstablishment of MA regions\n(A)\nMA region\nFor purposes of this subchapter, the term \u201cMA region\u201d means such a region within the 50 States and the District of Columbia as established by the Secretary under this paragraph.\n(B)\nEstablishment\n(i)\nInitial establishment\nNot later than\nJanuary 1, 2005\n(ii)\nPeriodic review and revision of service areas\nThe Secretary may periodically review MA regions under this paragraph and, based on such review, may revise such regions if the Secretary determines such revision to be appropriate.\n(C)\nRequirements for MA regions\nThe Secretary shall establish, and may revise, MA regions under this paragraph in a manner consistent with the following:\n(i)\nNumber of regions\nThere shall be no fewer than 10 regions, and no more than 50 regions.\n(ii)\nMaximizing availability of plans\nThe regions shall maximize the availability of MA regional plans to all MA eligible individuals without regard to health status, especially those residing in rural areas.\n(D)\nMarket survey and analysis\nBefore establishing MA regions, the Secretary shall conduct a market survey and analysis, including an examination of current insurance markets, to determine how the regions should be established.\n(3)\nNational plan\nNothing in this subsection shall be construed as preventing an MA regional plan from being offered in more than one MA region (including all regions).\n(b)\nApplication of single deductible and catastrophic limit on out-of-pocket expenses\nAn MA regional plan shall include the following:\n(1)\nSingle deductible\nAny deductible for benefits under the original medicare fee-for-service program option shall be a single deductible (instead of a separate inpatient hospital deductible and a part B deductible) and may be applied differentially for in-network services and may be waived for preventive or other items and services.\n(2)\nCatastrophic limit\n(A)\nIn-network\nA catastrophic limit on out-of-pocket expenditures for in-network benefits under the original medicare fee-for-service program option.\n(B)\nTotal\nA catastrophic limit on out-of-pocket expenditures for all benefits under the original medicare fee-for-service program option.\n(c)\nPortion of total payments to an organization subject to risk for 2006 and 2007\n(1)\nApplication of risk corridors\n(A)\nIn general\nThis subsection shall only apply to MA regional plans offered during 2006 or 2007.\n(B)\nNotification of allowable costs under the plan\nIn the case of an MA organization that offers an MA regional plan in an MA region in 2006 or 2007, the organization shall notify the Secretary, before such date in the succeeding year as the Secretary specifies, of\u2014\n(i) its total amount of costs that the organization incurred in providing benefits covered under the original medicare fee-for-service program option for all enrollees under the plan in the region in the year and the portion of such costs that is attributable to administrative expenses described in subparagraph (C); and\n(ii) its total amount of costs that the organization incurred in providing rebatable integrated benefits (as defined in subparagraph (D)) and with respect to such benefits the portion of such costs that is attributable to administrative expenses described in subparagraph (C) and not described in clause (i) of this subparagraph.\n(C)\nAllowable costs defined\nFor purposes of this subsection, the term \u201callowable costs\u201d means, with respect to an MA regional plan for a year, the total amount of costs described in subparagraph (B) for the plan and year, reduced by the portion of such costs attributable to administrative expenses incurred in providing the benefits described in such subparagraph.\n(D)\nRebatable integrated benefits\nFor purposes of this subsection, the term \u201crebatable integrated benefits\u201d means such non-drug supplemental benefits under subclause (I) of\nsection 1395w\u201324(b)(1)(C)(ii) of this title\n(2)\nAdjustment of payment\n(A)\nNo adjustment if allowable costs within 3 percent of target amount\nIf the allowable costs for the plan for the year are at least 97 percent, but do not exceed 103 percent, of the target amount for the plan and year, there shall be no payment adjustment under this subsection for the plan and year.\n(B)\nIncrease in payment if allowable costs above 103 percent of target amount\n(i)\nCosts between 103 and 108 percent of target amount\nIf the allowable costs for the plan for the year are greater than 103 percent, but not greater than 108 percent, of the target amount for the plan and year, the Secretary shall increase the total of the monthly payments made to the organization offering the plan for the year under\nsection 1395w\u201323(a) of this title\n(ii)\nCosts above 108 percent of target amount\nIf the allowable costs for the plan for the year are greater than 108 percent of the target amount for the plan and year, the Secretary shall increase the total of the monthly payments made to the organization offering the plan for the year under\n(I) 2.5 percent of such target amount; and\n(II) 80 percent of the difference between such allowable costs and 108 percent of such target amount.\n(C)\nReduction in payment if allowable costs below 97 percent of target amount\n(i)\nCosts between 92 and 97 percent of target amount\nIf the allowable costs for the plan for the year are less than 97 percent, but greater than or equal to 92 percent, of the target amount for the plan and year, the Secretary shall reduce the total of the monthly payments made to the organization offering the plan for the year under\nsection 1395w\u201323(a) of this title\n(ii)\nCosts below 92 percent of target amount\nIf the allowable costs for the plan for the year are less than 92 percent of the target amount for the plan and year, the Secretary shall reduce the total of the monthly payments made to the organization offering the plan for the year under\n(I) 2.5 percent of such target amount; and\n(II) 80 percent of the difference between 92 percent of such target amount and such allowable costs.\n(D)\nTarget amount described\nFor purposes of this paragraph, the term \u201ctarget amount\u201d means, with respect to an MA regional plan offered by an organization in a year, an amount equal to\u2014\n(i) the sum of\u2014\n(I) the total monthly payments made to the organization for enrollees in the plan for the year that are attributable to benefits under the original medicare fee-for-service program option (as defined in\nsection 1395w\u201322(a)(1)(B) of this title\n(II) the total of the MA monthly basic beneficiary premium collectable for such enrollees for the year; and\n(III) the total amount of the rebates under\nsection 1395w\u201324(b)(1)(C)(ii) of this title\n(ii) the amount of administrative expenses assumed in the bid insofar as the bid is attributable to benefits described in clause (i)(I) or (i)(III).\n(3)\nDisclosure of information\n(A)\nIn general\nEach contract under this part shall provide\u2014\n(i) that an MA organization offering an MA regional plan shall provide the Secretary with such information as the Secretary determines is necessary to carry out this subsection; and\n(ii) that, pursuant to\nsection 1395w\u201327(d)(2)(B) of this title\n(B)\nRestriction on use of information\nInformation disclosed or obtained pursuant to the provisions of this subsection may be used by officers, employees, and contractors of the Department of Health and Human Services only for the purposes of, and to the extent necessary in, carrying out this subsection.\n(d)\nOrganizational and financial requirements\n(1)\nIn general\nIn the case of an MA organization that is offering an MA regional plan in an MA region and\u2014\n(A) meets the requirements of\nsection 1395w\u201325(a)(1) of this title\n(B) with respect to each other State in such region in which it does not meet requirements, it demonstrates to the satisfaction of the Secretary that it has filed the necessary application to meet such requirements,\nthe Secretary may waive such requirement with respect to each State described in subparagraph (B) for such period of time as the Secretary determines appropriate for the timely processing of such an application by the State (and, if such application is denied, through the end of such plan year as the Secretary determines appropriate to provide for a transition).\n(2)\nSelection of appropriate State\nIn applying paragraph (1) in the case of an MA organization that meets the requirements of\nsection 1395w\u201325(a)(1) of this title\n(e)\nRepealed. Pub. L. 111\u2013148, title X, \u00a7\u202f10327(c)(1), Mar. 23, 2010, 124 Stat. 964\n(f)\nComputation of applicable MA region-specific non-drug monthly benchmark amounts\n(1)\nComputation for regions\nFor purposes of\nsection 1395w\u201323(j)(2) of this title\nsection 1395w\u201321(e)(3)(B) of this title\n(2)\n2 components\nFor purposes of paragraph (1), the 2 components described in this paragraph for an MA region and a year are the following:\n(A)\nStatutory component\nThe product of the following:\n(i)\nStatutory region-specific non-drug amount\nThe statutory region-specific non-drug amount (as defined in paragraph (3)) for the region and year.\n(ii)\nStatutory national market share\nThe statutory national market share percentage, determined under paragraph (4) for the year.\n(B)\nPlan-bid component\nThe product of the following:\n(i)\nWeighted average of MA plan bids in region\nThe weighted average of the plan bids for the region and year (as determined under paragraph (5)(A)).\n(ii)\nNon-statutory market share\n1 minus the statutory national market share percentage, determined under paragraph (4) for the year.\n(3)\nStatutory region-specific non-drug amount\nFor purposes of paragraph (2)(A)(i), the term \u201cstatutory region-specific non-drug amount\u201d means, for an MA region and year, an amount equal the sum (for each MA local area within the region) of the product of\u2014\n(A) MA area-specific non-drug monthly benchmark amount under\nsection 1395w\u201323(j)(1)(A) of this title\n(B) the number of MA eligible individuals residing in the local area, divided by the total number of MA eligible individuals residing in the region.\n(4)\nComputation of statutory market share percentage\n(A)\nIn general\nThe Secretary shall determine for each year a statutory national market share percentage that is equal to the proportion of MA eligible individuals nationally who were not enrolled in an MA plan during the reference month.\n(B)\nReference month defined\nFor purposes of this part, the term \u201creference month\u201d means, with respect to a year, the most recent month during the previous year for which the Secretary determines that data are available to compute the percentage specified in subparagraph (A) and other relevant percentages under this part.\n(5)\nDetermination of weighted average MA bids for a region\n(A)\nIn general\nFor purposes of paragraph (2)(B)(i), the weighted average of plan bids for an MA region and a year is the sum, for MA regional plans described in subparagraph (D) in the region and year, of the products (for each such plan) of the following:\n(i)\nMonthly MA statutory non-drug bid amount\nThe unadjusted MA statutory non-drug monthly bid amount for the plan.\n(ii)\nPlan\u2019s share of MA enrollment in region\nThe factor described in subparagraph (B) for the plan.\n(B)\nPlan\u2019s share of MA enrollment in region\n(i)\nIn general\nSubject to the succeeding provisions of this subparagraph, the factor described in this subparagraph for a plan is equal to the number of individuals described in subparagraph (C) for such plan, divided by the total number of such individuals for all MA regional plans described in subparagraph (D) for that region and year.\n(ii)\nSingle plan rule\nIn the case of an MA region in which only a single MA regional plan is being offered, the factor described in this subparagraph shall be equal to 1.\n(iii)\nEqual division among multiple plans in year in which plans are first available\nIn the case of an MA region in the first year in which any MA regional plan is offered, if more than one MA regional plan is offered in such year, the factor described in this subparagraph for a plan shall (as specified by the Secretary) be equal to\u2014\n(I) 1 divided by the number of such plans offered in such year; or\n(II) a factor for such plan that is based upon the organization\u2019s estimate of projected enrollment, as reviewed and adjusted by the Secretary to ensure reasonableness and as is certified by the Chief Actuary of the Centers for Medicare & Medicaid Services.\n(C)\nCounting of individuals\nFor purposes of subparagraph (B)(i), the Secretary shall count for each MA regional plan described in subparagraph (D) for an MA region and year, the number of individuals who reside in the region and who were enrolled under such plan under this part during the reference month.\n(D)\nPlans covered\nFor an MA region and year, an MA regional plan described in this subparagraph is an MA regional plan that is offered in the region and year and was offered in the region in the reference month.\n(g)\nElection of uniform coverage determination\nInstead of applying\nsection 1395w\u201322(a)(2)(C) of this title\n(h)\nAssuring network adequacy\n(1)\nIn general\nFor purposes of enabling MA organizations that offer MA regional plans to meet applicable provider access requirements under\n(A) the organization provides assurances satisfactory to the Secretary that the organization will make payment to the hospital for inpatient hospital services of an amount that is not less than the amount that would be payable to the hospital under\nsection 1395ww of this title\n(B) with respect to specific inpatient hospital services provided to an enrollee, the hospital demonstrates to the satisfaction of the Secretary that the hospital\u2019s costs of such services exceed the payment amount described in subparagraph (A).\n(2)\nPayment amounts\nThe payment amount under this subsection for inpatient hospital services provided by a subsection (d) hospital to an enrollee in an MA regional plan shall be, subject to the limitation of funds under paragraph (3), the amount (if any) by which\u2014\n(A) the amount of payment that would have been paid for such services under this subchapter if the enrollees were covered under the original medicare fee-for-service program option and the hospital were a critical access hospital; exceeds\n(B) the amount of payment made for such services under paragraph (1)(A).\n(3)\nAvailable amounts\nThere shall be available for payments under this subsection\u2014\n(A) in 2006, $25,000,000; and\n(B) in each succeeding year the amount specified in this paragraph for the preceding year increased by the market basket percentage increase (as defined in\nsection 1395ww(b)(3)(B)(iii) of this title\nPayments under this subsection shall be made from the Federal Hospital Insurance Trust Fund.\n(4)\nEssential hospital\nIn this subsection, the term \u201cessential hospital\u201d means, with respect to an MA regional plan offered by an MA organization, a subsection (d) hospital (as defined in\nsection 1395ww(d) of this title","url":"https://projectusc.org/usc/t42/s1395w\u201327a.html","content":[{"t":"sec","id":"/us/usc/t42/s1395w\u201327a","children":[{"t":"num","text":"\u00a7\u202f1395w\u201327a."},{"t":"heading","text":"Special rules for MA regional plans"},{"t":"subsec","id":"/us/usc/t42/s1395w\u201327a/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Regional service area; establishment of MA regions"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Coverage of entire MA region"},{"t":"content","children":[{"t":"p","text":"The service area for an MA regional plan shall consist of an entire MA region established under paragraph (2) and the provisions of ","children":[{"t":"ref","text":"section 1395w\u201324(h) of this title","href":"/us/usc/t42/s1395w\u201324/h","tail":" shall not apply to such a plan."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Establishment of MA regions"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/a/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"MA region"},{"t":"content","children":[{"t":"p","text":"For purposes of this subchapter, the term \u201cMA region\u201d means such a region within the 50 States and the District of Columbia as established by the Secretary under this paragraph.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/a/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Establishment"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/a/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Initial establishment"},{"t":"content","children":[{"t":"p","text":"Not later than ","children":[{"t":"text","text":"January 1, 2005","tail":", the Secretary shall first establish and publish MA regions."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/a/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Periodic review and revision of service areas"},{"t":"content","children":[{"t":"p","text":"The Secretary may periodically review MA regions under this paragraph and, based on such review, may revise such regions if the Secretary determines such revision to be appropriate.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/a/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Requirements for MA regions"},{"t":"chapeau","text":"The Secretary shall establish, and may revise, MA regions under this paragraph in a manner consistent with the following:"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/a/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Number of regions"},{"t":"content","children":[{"t":"p","text":"There shall be no fewer than 10 regions, and no more than 50 regions.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/a/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Maximizing availability of plans"},{"t":"content","children":[{"t":"p","text":"The regions shall maximize the availability of MA regional plans to all MA eligible individuals without regard to health status, especially those residing in rural areas.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/a/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Market survey and analysis"},{"t":"content","children":[{"t":"p","text":"Before establishing MA regions, the Secretary shall conduct a market survey and analysis, including an examination of current insurance markets, to determine how the regions should be established.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/a/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"National plan"},{"t":"content","children":[{"t":"p","text":"Nothing in this subsection shall be construed as preventing an MA regional plan from being offered in more than one MA region (including all regions).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u201327a/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Application of single deductible and catastrophic limit on out-of-pocket expenses"},{"t":"chapeau","text":"An MA regional plan shall include the following:"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Single deductible"},{"t":"content","children":[{"t":"p","text":"Any deductible for benefits under the original medicare fee-for-service program option shall be a single deductible (instead of a separate inpatient hospital deductible and a part B deductible) and may be applied differentially for in-network services and may be waived for preventive or other items and services.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Catastrophic limit"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In-network"},{"t":"content","children":[{"t":"p","text":"A catastrophic limit on out-of-pocket expenditures for in-network benefits under the original medicare fee-for-service program option.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Total"},{"t":"content","children":[{"t":"p","text":"A catastrophic limit on out-of-pocket expenditures for all benefits under the original medicare fee-for-service program option.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u201327a/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Portion of total payments to an organization subject to risk for 2006 and 2007"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Application of risk corridors"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"This subsection shall only apply to MA regional plans offered during 2006 or 2007.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Notification of allowable costs under the plan"},{"t":"chapeau","text":"In the case of an MA organization that offers an MA regional plan in an MA region in 2006 or 2007, the organization shall notify the Secretary, before such date in the succeeding year as the Secretary specifies, of\u2014"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" its total amount of costs that the organization incurred in providing benefits covered under the original medicare fee-for-service program option for all enrollees under the plan in the region in the year and the portion of such costs that is attributable to administrative expenses described in subparagraph (C); and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" its total amount of costs that the organization incurred in providing rebatable integrated benefits (as defined in subparagraph (D)) and with respect to such benefits the portion of such costs that is attributable to administrative expenses described in subparagraph (C) and not described in clause (i) of this subparagraph.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/1/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Allowable costs defined"},{"t":"content","children":[{"t":"p","text":"For purposes of this subsection, the term \u201callowable costs\u201d means, with respect to an MA regional plan for a year, the total amount of costs described in subparagraph (B) for the plan and year, reduced by the portion of such costs attributable to administrative expenses incurred in providing the benefits described in such subparagraph.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/1/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Rebatable integrated benefits"},{"t":"content","children":[{"t":"p","text":"For purposes of this subsection, the term \u201crebatable integrated benefits\u201d means such non-drug supplemental benefits under subclause (I) of ","children":[{"t":"ref","text":"section 1395w\u201324(b)(1)(C)(ii) of this title","href":"/us/usc/t42/s1395w\u201324/b/1/C/ii","tail":" pursuant to a rebate under such section that the Secretary determines are integrated with the benefits described in subparagraph (B)(i)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Adjustment of payment"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"No adjustment if allowable costs within 3 percent of target amount"},{"t":"content","children":[{"t":"p","text":"If the allowable costs for the plan for the year are at least 97 percent, but do not exceed 103 percent, of the target amount for the plan and year, there shall be no payment adjustment under this subsection for the plan and year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Increase in payment if allowable costs above 103 percent of target amount"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Costs between 103 and 108 percent of target amount"},{"t":"content","children":[{"t":"p","text":"If the allowable costs for the plan for the year are greater than 103 percent, but not greater than 108 percent, of the target amount for the plan and year, the Secretary shall increase the total of the monthly payments made to the organization offering the plan for the year under ","children":[{"t":"ref","text":"section 1395w\u201323(a) of this title","href":"/us/usc/t42/s1395w\u201323/a","tail":" by an amount equal to 50 percent of the difference between such allowable costs and 103 percent of such target amount."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Costs above 108 percent of target amount"},{"t":"chapeau","text":"If the allowable costs for the plan for the year are greater than 108 percent of the target amount for the plan and year, the Secretary shall increase the total of the monthly payments made to the organization offering the plan for the year under ","children":[{"t":"ref","text":"section 1395w\u201323(a) of this title","href":"/us/usc/t42/s1395w\u201323/a","tail":" by an amount equal to the sum of\u2014"}]},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/c/2/B/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" 2.5 percent of such target amount; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/c/2/B/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" 80 percent of the difference between such allowable costs and 108 percent of such target amount.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Reduction in payment if allowable costs below 97 percent of target amount"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Costs between 92 and 97 percent of target amount"},{"t":"content","children":[{"t":"p","text":"If the allowable costs for the plan for the year are less than 97 percent, but greater than or equal to 92 percent, of the target amount for the plan and year, the Secretary shall reduce the total of the monthly payments made to the organization offering the plan for the year under ","children":[{"t":"ref","text":"section 1395w\u201323(a) of this title","href":"/us/usc/t42/s1395w\u201323/a","tail":" by an amount (or otherwise recover from the plan an amount) equal to 50 percent of the difference between 97 percent of the target amount and such allowable costs."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Costs below 92 percent of target amount"},{"t":"chapeau","text":"If the allowable costs for the plan for the year are less than 92 percent of the target amount for the plan and year, the Secretary shall reduce the total of the monthly payments made to the organization offering the plan for the year under ","children":[{"t":"ref","text":"section 1395w\u201323(a) of this title","href":"/us/usc/t42/s1395w\u201323/a","tail":" by an amount (or otherwise recover from the plan an amount) equal to the sum of\u2014"}]},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/c/2/C/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" 2.5 percent of such target amount; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/c/2/C/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" 80 percent of the difference between 92 percent of such target amount and such allowable costs.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Target amount described"},{"t":"chapeau","text":"For purposes of this paragraph, the term \u201ctarget amount\u201d means, with respect to an MA regional plan offered by an organization in a year, an amount equal to\u2014"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/2/D/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" the sum of\u2014"},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/c/2/D/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the total monthly payments made to the organization for enrollees in the plan for the year that are attributable to benefits under the original medicare fee-for-service program option (as defined in ","children":[{"t":"ref","text":"section 1395w\u201322(a)(1)(B) of this title","href":"/us/usc/t42/s1395w\u201322/a/1/B","tail":");"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/c/2/D/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the total of the MA monthly basic beneficiary premium collectable for such enrollees for the year; and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/c/2/D/i/III","children":[{"t":"num","text":"(III)"},{"t":"content","text":" the total amount of the rebates under ","children":[{"t":"ref","text":"section 1395w\u201324(b)(1)(C)(ii) of this title","href":"/us/usc/t42/s1395w\u201324/b/1/C/ii","tail":" that are attributable to rebatable integrated benefits; reduced by"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/2/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the amount of administrative expenses assumed in the bid insofar as the bid is attributable to benefits described in clause (i)(I) or (i)(III).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/c/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Disclosure of information"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"Each contract under this part shall provide\u2014"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" that an MA organization offering an MA regional plan shall provide the Secretary with such information as the Secretary determines is necessary to carry out this subsection; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/c/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" that, pursuant to ","children":[{"t":"ref","text":"section 1395w\u201327(d)(2)(B) of this title","href":"/us/usc/t42/s1395w\u201327/d/2/B","tail":", the Secretary has the right to inspect and audit any books and records of the organization that pertain to the information regarding costs provided to the Secretary under paragraph (1)(B)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/c/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Restriction on use of information"},{"t":"content","children":[{"t":"p","text":"Information disclosed or obtained pursuant to the provisions of this subsection may be used by officers, employees, and contractors of the Department of Health and Human Services only for the purposes of, and to the extent necessary in, carrying out this subsection.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u201327a/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Organizational and financial requirements"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"In the case of an MA organization that is offering an MA regional plan in an MA region and\u2014"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/d/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" meets the requirements of ","children":[{"t":"ref","text":"section 1395w\u201325(a)(1) of this title","href":"/us/usc/t42/s1395w\u201325/a/1","tail":" with respect to at least one such State in such region; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/d/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" with respect to each other State in such region in which it does not meet requirements, it demonstrates to the satisfaction of the Secretary that it has filed the necessary application to meet such requirements,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"the Secretary may waive such requirement with respect to each State described in subparagraph (B) for such period of time as the Secretary determines appropriate for the timely processing of such an application by the State (and, if such application is denied, through the end of such plan year as the Secretary determines appropriate to provide for a transition).","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Selection of appropriate State"},{"t":"content","children":[{"t":"p","text":"In applying paragraph (1) in the case of an MA organization that meets the requirements of ","children":[{"t":"ref","text":"section 1395w\u201325(a)(1) of this title","href":"/us/usc/t42/s1395w\u201325/a/1","tail":" with respect to more than one State in a region, the organization shall select, in a manner specified by the Secretary among such States, one State the rules of which shall apply in the case of the States described in paragraph (1)(B)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u201327a/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Repealed. Pub. L. 111\u2013148, title X, \u00a7\u202f10327(c)(1), Mar. 23, 2010, 124 Stat. 964"},{"t":"content","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u201327a/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Computation of applicable MA region-specific non-drug monthly benchmark amounts"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/f/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Computation for regions"},{"t":"content","children":[{"t":"p","text":"For purposes of ","children":[{"t":"ref","text":"section 1395w\u201323(j)(2) of this title","href":"/us/usc/t42/s1395w\u201323/j/2","tail":" and this section, subject to subsection (e), the term \u201cMA region-specific non-drug monthly benchmark amount\u201d means, with respect to an MA region for a month in a year, the sum of the 2 components described in paragraph (2) for the region and year. The Secretary shall compute such benchmark amount for each MA region before the beginning of each annual, coordinated election period under "},{"t":"ref","text":"section 1395w\u201321(e)(3)(B) of this title","href":"/us/usc/t42/s1395w\u201321/e/3/B","tail":" for each year (beginning with 2006)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/f/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"2 components"},{"t":"chapeau","text":"For purposes of paragraph (1), the 2 components described in this paragraph for an MA region and a year are the following:"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Statutory component"},{"t":"chapeau","text":"The product of the following:"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Statutory region-specific non-drug amount"},{"t":"content","children":[{"t":"p","text":"The statutory region-specific non-drug amount (as defined in paragraph (3)) for the region and year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Statutory national market share"},{"t":"content","children":[{"t":"p","text":"The statutory national market share percentage, determined under paragraph (4) for the year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Plan-bid component"},{"t":"chapeau","text":"The product of the following:"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Weighted average of MA plan bids in region"},{"t":"content","children":[{"t":"p","text":"The weighted average of the plan bids for the region and year (as determined under paragraph (5)(A)).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Non-statutory market share"},{"t":"content","children":[{"t":"p","text":"1 minus the statutory national market share percentage, determined under paragraph (4) for the year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/f/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Statutory region-specific non-drug amount"},{"t":"chapeau","text":"For purposes of paragraph (2)(A)(i), the term \u201cstatutory region-specific non-drug amount\u201d means, for an MA region and year, an amount equal the sum (for each MA local area within the region) of the product of\u2014"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" MA area-specific non-drug monthly benchmark amount under ","children":[{"t":"ref","text":"section 1395w\u201323(j)(1)(A) of this title","href":"/us/usc/t42/s1395w\u201323/j/1/A","tail":" for that area and year; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the number of MA eligible individuals residing in the local area, divided by the total number of MA eligible individuals residing in the region.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/f/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Computation of statutory market share percentage"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Secretary shall determine for each year a statutory national market share percentage that is equal to the proportion of MA eligible individuals nationally who were not enrolled in an MA plan during the reference month.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Reference month defined"},{"t":"content","children":[{"t":"p","text":"For purposes of this part, the term \u201creference month\u201d means, with respect to a year, the most recent month during the previous year for which the Secretary determines that data are available to compute the percentage specified in subparagraph (A) and other relevant percentages under this part.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/f/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Determination of weighted average MA bids for a region"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/5/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"For purposes of paragraph (2)(B)(i), the weighted average of plan bids for an MA region and a year is the sum, for MA regional plans described in subparagraph (D) in the region and year, of the products (for each such plan) of the following:"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/5/A/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Monthly MA statutory non-drug bid amount"},{"t":"content","children":[{"t":"p","text":"The unadjusted MA statutory non-drug monthly bid amount for the plan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/5/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Plan\u2019s share of MA enrollment in region"},{"t":"content","children":[{"t":"p","text":"The factor described in subparagraph (B) for the plan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/5/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Plan\u2019s share of MA enrollment in region"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/5/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Subject to the succeeding provisions of this subparagraph, the factor described in this subparagraph for a plan is equal to the number of individuals described in subparagraph (C) for such plan, divided by the total number of such individuals for all MA regional plans described in subparagraph (D) for that region and year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/5/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Single plan rule"},{"t":"content","children":[{"t":"p","text":"In the case of an MA region in which only a single MA regional plan is being offered, the factor described in this subparagraph shall be equal to 1.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t42/s1395w\u201327a/f/5/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Equal division among multiple plans in year in which plans are first available"},{"t":"chapeau","text":"In the case of an MA region in the first year in which any MA regional plan is offered, if more than one MA regional plan is offered in such year, the factor described in this subparagraph for a plan shall (as specified by the Secretary) be equal to\u2014"},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/f/5/B/iii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" 1 divided by the number of such plans offered in such year; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t42/s1395w\u201327a/f/5/B/iii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" a factor for such plan that is based upon the organization\u2019s estimate of projected enrollment, as reviewed and adjusted by the Secretary to ensure reasonableness and as is certified by the Chief Actuary of the Centers for Medicare & Medicaid Services.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/5/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Counting of individuals"},{"t":"content","children":[{"t":"p","text":"For purposes of subparagraph (B)(i), the Secretary shall count for each MA regional plan described in subparagraph (D) for an MA region and year, the number of individuals who reside in the region and who were enrolled under such plan under this part during the reference month.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/f/5/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Plans covered"},{"t":"content","children":[{"t":"p","text":"For an MA region and year, an MA regional plan described in this subparagraph is an MA regional plan that is offered in the region and year and was offered in the region in the reference month.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u201327a/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Election of uniform coverage determination"},{"t":"content","children":[{"t":"p","text":"Instead of applying ","children":[{"t":"ref","text":"section 1395w\u201322(a)(2)(C) of this title","href":"/us/usc/t42/s1395w\u201322/a/2/C","tail":" with respect to an MA regional plan, the organization offering the plan may elect to have a local coverage determination for the entire MA region be the local coverage determination applied for any part of such region (as selected by the organization)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s1395w\u201327a/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Assuring network adequacy"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/h/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"For purposes of enabling MA organizations that offer MA regional plans to meet applicable provider access requirements under ","children":[{"t":"ref","text":"section 1395w\u201322 of this title","href":"/us/usc/t42/s1395w\u201322","tail":" with respect to such plans, the Secretary may provide for payment under this section to an essential hospital that provides inpatient hospital services to enrollees in such a plan where the MA organization offering the plan certifies to the Secretary that the organization was unable to reach an agreement between the hospital and the organization regarding provision of such services under the plan. Such payment shall be available only if\u2014"}]},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/h/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the organization provides assurances satisfactory to the Secretary that the organization will make payment to the hospital for inpatient hospital services of an amount that is not less than the amount that would be payable to the hospital under ","children":[{"t":"ref","text":"section 1395ww of this title","href":"/us/usc/t42/s1395ww","tail":" with respect to such services; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/h/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" with respect to specific inpatient hospital services provided to an enrollee, the hospital demonstrates to the satisfaction of the Secretary that the hospital\u2019s costs of such services exceed the payment amount described in subparagraph (A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/h/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Payment amounts"},{"t":"chapeau","text":"The payment amount under this subsection for inpatient hospital services provided by a subsection (d) hospital to an enrollee in an MA regional plan shall be, subject to the limitation of funds under paragraph (3), the amount (if any) by which\u2014"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/h/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the amount of payment that would have been paid for such services under this subchapter if the enrollees were covered under the original medicare fee-for-service program option and the hospital were a critical access hospital; exceeds","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/h/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the amount of payment made for such services under paragraph (1)(A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/h/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Available amounts"},{"t":"chapeau","text":"There shall be available for payments under this subsection\u2014"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/h/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" in 2006, $25,000,000; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s1395w\u201327a/h/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" in each succeeding year the amount specified in this paragraph for the preceding year increased by the market basket percentage increase (as defined in ","children":[{"t":"ref","text":"section 1395ww(b)(3)(B)(iii) of this title","href":"/us/usc/t42/s1395ww/b/3/B/iii","tail":") for the fiscal year ending in such succeeding year."}],"tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"Payments under this subsection shall be made from the Federal Hospital Insurance Trust Fund.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s1395w\u201327a/h/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Essential hospital"},{"t":"content","children":[{"t":"p","text":"In this subsection, the term \u201cessential hospital\u201d means, with respect to an MA regional plan offered by an MA organization, a subsection (d) hospital (as defined in ","children":[{"t":"ref","text":"section 1395ww(d) of this title","href":"/us/usc/t42/s1395ww/d","tail":") that the Secretary determines, based upon an application filed by the organization with the Secretary, is necessary to meet the requirements referred to in paragraph (1) for such plan."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}