Subpart 5—Definitions and Miscellaneous Provisions

DEFINITIONS; TREATMENT OF REFERENCES TO PROVISIONS IN PART C

Sec. 1860D-41. [42 U.S.C. 1395w-151] (a) Definitions.—For purposes of this part:

(1) Basic prescription drug coverage.—The term “basic prescription drug coverage” is defined in section 1860D-2(a)(3).

(2) Covered part D drug.—The term “covered part D drug” is defined in section 1860D-2(e).

(3) Creditable prescription drug coverage.—The term “creditable prescription drug coverage” has the meaning given such term in section 1860D-13(b)(4).

(4) Part D eligible individual.—The term “part D eligible individual” has the meaning given such term in section 1860D-1(a)(4)(A).

(5) Fallback prescription drug plan.—The term “fallback prescription drug plan” has the meaning given such term in section 1860D-11(g)(4).

(6) Initial coverage limit.—The term “initial coverage limit” means such limit as established under section 1860D-2(b)(3), or, in the case of coverage that is not standard prescription drug coverage, the comparable limit (if any) established under the coverage.

(7) Insurance risk.—The term “insurance risk” means, with respect to a participating pharmacy, risk of the type commonly assumed only by insurers licensed by a State and does not include payment variations designed to reflect performance-based measures of activities within the control of the pharmacy, such as formulary compliance and generic drug substitution.

(8) MA plan.—The term “MA plan” has the meaning given such term in section 1860D-1(a)(4)(B).

(9) MA-PD plan.—The term “MA-PD plan” has the meaning given such term in section 1860D-1(a)(4)(C).

(10) Medicare prescription drug account.—The term “Medicare Prescription Drug Account” means the Account created under section 1860D-16(a).

(11) PDP approved bid.—The term “PDP approved bid” has the meaning given such term in section 1860D-13(a)(6).

(12) PDP region.—The term “PDP region” means such a region as provided under section 1860D-11(a)(2).

(13) PDP sponsor.—The term “PDP sponsor” means a nongovernmental entity that is certified under this part as meeting the requirements and standards of this part for such a sponsor.

(14) Prescription drug plan.—The term “prescription drug plan” means prescription drug coverage that is offered—

(A) under a policy, contract, or plan that has been approved under section 1860D-11(e); and

(B) by a PDP sponsor pursuant to, and in accordance with, a contract between the Secretary and the sponsor under section 1860D-12(b).

(15) Qualified prescription drug coverage.—The term “qualified prescription drug coverage” is defined in section 1860D-2(a)(1).

(16) Standard prescription drug coverage.—The term “standard prescription drug coverage” is defined in section 1860D-2(b).

(17) State pharmaceutical assistance program.—The term “State Pharmaceutical Assistance Program” has the meaning given such term in section 1860D-23(b).

(18) Subsidy eligible individual.—The term “subsidy eligible individual” has the meaning given such term in section 1860D-14(a)(3)(A).

(b) Application of Part C Provisions Under This Part.—For purposes of applying provisions of part C under this part with respect to a prescription drug plan and a PDP sponsor, unless otherwise provided in this part such provisions shall be applied as if—

(1) any reference to an MA plan included a reference to a prescription drug plan;

(2) any reference to an MA organization or a provider-sponsored organization included a reference to a PDP sponsor;

(3) any reference to a contract under section 1857 included a reference to a contract under section 1860D-12(b);

(4) any reference to part C included a reference to this part; and

(5) any reference to an election period under section 1851 were a reference to an enrollment period under section 1860D-1.