Common use of PDP Regions Clause in Contracts

PDP Regions. New Section 1860D-10 would require the Administrator to establish by April 15, 2005, and periodically review, service areas in which plans could offer benefits. The Administrator would establish service areas so that they maximized the availability of Medicare Prescription Drug Plans to eligible beneficiaries and minimized the ability of entities offering plans to favorably select beneficiaries. In establishing the service areas, the Administrator would establish at least 10 service areas, which would have to include at least one state. The Administrator could not divide states so that portions of a state were in different service areas. To the extent possible, the Administrator would include multi-state metropolitan statistical areas (MSAs) in a single service area. The Secretary could divide MSAs where it is necessary to establish service areas of such size and geography as to maximize plan participation. The Administrator could conform service areas to those established for preferred provider organizations under MedicareAdvantage. Under the New Section 1860D-12, plan service areas could either be, the entire area of one of the service areas established by the Administrator or the entire area covered by Medicare. Entities could submit separate bids for multiple service areas, provided each bid was for a single service area.