Addressing disparities in Medicare Advantage benchmark levels based on penetration

(a) In general Section 1853(n) of the Social Security Act (42 U.S.C. 1395w–23(n)) is amended— (1) in paragraph (1)(B), by striking subsequent year and inserting subsequent year, subject to paragraph (6),; and (2) by adding at the end the following new paragraph: (6) Average geographic adjustment floor For 2026 and subsequent years, when calculating the adjusted average per capita cost under section 1876(a)(4) for the purposes of establishing the base payment amount specified in paragraph (2)(E), the average geographic adjustment shall not be less than 0.70 for any area. For the purposes of the previous sentence, the Secretary may define the term average geographic adjustment under subparagraph (A) by program instruction or otherwise.. (b) Ensuring plan payments flow to providers and patients Section 1854(a)(6) of the Social Security Act (42 U.S.C. 1395w–24(a)(6)) is amended by adding at the end the following new subparagraph: (C) Ensuring increased payments support care With respect to the increase in blended benchmark amount attributable to the application of section 1853(n)(6), no less than 50 percent shall be directed toward payment for basic benefits as defined in section 1852(a)(1)(B)..