### Question
What is the definition of limited risk plan?


### Answer
The definition of **limited risk plan** is as follows in *42 U.S.C. § 1395w*:

> a prescription drug plan that provides basic prescription drug coverage and for which the PDP sponsor includes a modification of risk level described in subparagraph (E) of subsection (b)(2) of this section in its bid submitted for the plan under such subsection

#### 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**

