### Question
What does standardized bid amount mean?


### Answer
**Standardized bid amount** has the following meaning in *42 U.S.C. § 1395w*:

> the following:


#### (A) Prescription drug plans


#### (i) Basic coverage


In the case of a prescription drug plan that provides basic prescription drug coverage, the PDP approved bid (as defined in paragraph (6))

#### Citation:
  - *42 U.S.C. § 1395w*
  - Heading: **CHAPTER 7-SOCIAL SECURITY > SUBCHAPTER XVIII-HEALTH INSURANCE FOR AGED AND DISABLED > Part D-Voluntary Prescription Drug Benefit Program > subpart 2-prescription drug plans; pdp sponsors; financing**

