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136 STAT. 1879 PUBLIC LAW 117–169—AUG. 16, 2022 (i) in clause (i), by striking ‘‘and for amounts’’ and inserting ‘‘and, for a year preceding 2025, for amounts’’; and (ii) in clause (iii)— (I) by redesignating subclauses (I) through (IV) as items (aa) through (dd) and indenting appro- priately; (II) by striking ‘‘if such costs are borne or paid’’ and inserting ‘‘if such costs— ‘‘(I) are borne or paid—’’; and (III) in item (dd), by striking the period at the end and inserting ‘‘; or’’; and (IV) by adding at the end the following new subclause: ‘‘(II) for 2025 and subsequent years, are reimbursed through insurance, a group health plan, or certain other third party payment arrange- ments, but not including the coverage provided by a prescription drug plan or an MA–PD plan that is basic prescription drug coverage (as defined in subsection (a)(3)) or any payments by a manu- facturer under the manufacturer discount program under section 1860D–14C.’’; and (D) in subparagraph (E), by striking ‘‘In applying’’ and inserting ‘‘For each of years 2011 through 2024, in applying’’. (b) REINSURANCE PAYMENT AMOUNT.—Section 1860D–15(b) of the Social Security Act (42 U.S.C. 1395w–115(b)) is amended— (1) in paragraph (1)— (A) by striking ‘‘equal to 80 percent’’ and inserting ‘‘equal to— ‘‘(A) for a year preceding 2025, 80 percent’’; (B) in subparagraph (A), as added by subparagraph (A), by striking the period at the end and inserting ‘‘; and’’; and (C) by adding at the end the following new subpara- graph: ‘‘(B) for 2025 and each subsequent year, the sum of— ‘‘(i) with respect to applicable drugs (as defined in section 1860D–14C(g)(2)), an amount equal to 20 percent of such allowable reinsurance costs attributable to that portion of gross covered prescription drug costs as specified in paragraph (3) incurred in the coverage year after such individual has incurred costs that exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B); and ‘‘(ii) with respect to covered part D drugs that are not applicable drugs (as so defined), an amount equal to 40 percent of such allowable reinsurance costs attributable to that portion of gross covered prescrip- tion drug costs as specified in paragraph (3) incurred in the coverage year after such individual has incurred costs that exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B).’’; (2) in paragraph (2)— (A) by striking ‘‘COSTS.—For purposes’’ and inserting ‘‘COSTS.— VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00063 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw