PUBLIC LAW 106-554—APPENDIX F 114 STAT. 2763A-555 (1) by redesignating clause (ii) as clause (iv); (2) by inserting after clause (i) the following new clauses: "(ii) For 1999 and 2000, 102 percent of the annual Medicare+Choice capitation rate under this paragraph for the area for the previous year. "(iii) For 2001, 103 percent of the annual Medicare+Choice capitation rate under this paragraph for the area for 2000."; and (3) in clause (iv), as so redesignated, by striking "a subsequent year" and inserting "2002 and each succeeding year". (b) APPLICATION OF SPECIAL RULE FOR JANUARY AND FEBRUARY OF 2001. —The provisions of section 601(b) shall apply with respect to the amendments made by subsection (a) in the same manner as they apply to the amendments made by section 601(a). SEC. 603. PHASE-IN OF RISK ADJUSTMENT. Section 1853(a)(3)(C) (42 U.S.C. 1395w-23(a)(3)(C)) is amended— (1) in clause (ii)— (A) in subclause (I), by striking "and 2001" and inserting "and each succeeding year through 2003" and by striking "and" at the end; and (B) by striking subclause (II) and inserting the following new subclauses: "(II) 30 percent of such capitation rate in 2004; "(III) 50 percent of such capitation rate in 2005; "(IV) 75 percent of such capitation rate in 2006; and "(V) 100 percent of such capitation rate in 2007 and succeeding years."; and (2) by adding at the end the following new clause: " (iii) DATA FOR RISK ADJUSTMENT METHODOLOGY. — Such risk adjustment methodology for 2004 and each succeeding year, shall be based on data from inpatient hospital and ambulatory settings.". SEC. 604. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT RATES. (a) ANNOUNCEMENT OF REVISED MEDICARE+CHOICE PAYMENT RATES. — Within 2 weeks after the date of the enactment of this Act, the Secretary of Health sind Human Services shall determine, and shall announce (in a manner intended to provide notice to interested parties) Medicare+Choice capitation rates under section 1853 of the Social Security Act (42 U.S.C. 1395w-23) for 2001, revised in accordance with the provisions of this Act. (b) REENTRY INTO PROGRAM PERMITTED FOR MEDICARE+CHOICE PROGRAMS.— A Medicare+Choice organization that provided notice to the Secretary of Health and Human Services before the date of the enactment of this Act that it was terminating its contract under part C of title XVIII of the Social Security Act or was reducing the service area of a Medicare+Choice plan offered under such part shall be permitted to continue participation under such part, or to maintain the service area of such plan, for 2001 if it submits the Secretary with the information described in section 1854(a)(1) of the Social Security Act (42 U.S.C. 1395w-24(a)(l)) within 2 weeks after the date revised rates are annoimced by the Secretary under subsection (a).
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