### Question
How does the law define applicable amount?


### Answer
Under *42 U.S.C. § 1395w*, **applicable amount** is defined as:

> for an area—


(A) for 2007—


(i) if such year is not specified under subsection (c)(1)(D)(ii), an amount equal to the amount specified in subsection (c)(1)(C) for the area for 2006—


(I) first adjusted by the rescaling factor for 2006 for the area (as made available by the Secretary in the announcement of the rates on April 4, 2005, under subsection (b)(1), but excluding any national adjustment factors for coding intensity and risk adjustment budget neutrality that were included in such factor)

#### Citation:
  - *42 U.S.C. § 1395w*
  - Heading: **CHAPTER 7-SOCIAL SECURITY > SUBCHAPTER XVIII-HEALTH INSURANCE FOR AGED AND DISABLED > Part C-Medicare+Choice Program**

