73348 Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Notices 

acquire voting shares of Farmers 

Citizens Bank, all of Bucyrus, Ohio. 

Board of Governors of the Federal Reserve 

System, December 20, 2007. 

Robert deV. Frierson, 

Deputy Secretary of the Board. 

[FR Doc. E7–25016 Filed 12–26–07; 8:45 am] 

BILLING CODE 6210–01–S 

FEDERAL RESERVE SYSTEM 

Formations of, Acquisitions by, and 

Mergers of Bank Holding Companies 

The companies listed in this notice 

have applied to the Board for approval, 

pursuant to the Bank Holding Company 

Act of 1956 (12 U.S.C. 1841 et seq.) 

(BHC Act), Regulation Y (12 CFR Part 

225), and all other applicable statutes 

and regulations to become a bank 

holding company and/or to acquire the 

assets or the ownership of, control of, or 

the power to vote shares of a bank or 

bank holding company and all of the 

banks and nonbanking companies 

owned by the bank holding company, 

including the companies listed below. 

The applications listed below, as well 

as other related filings required by the 

Board, are available for immediate 

inspection at the Federal Reserve Bank 

indicated. The application also will be 

available for inspection at the offices of 

the Board of Governors. Interested 

persons may express their views in 

writing on the standards enumerated in 

the BHC Act (12 U.S.C. 1842(c)). If the 

proposal also involves the acquisition of 

a nonbanking company, the review also 

includes whether the acquisition of the 

nonbanking company complies with the 

standards in section 4 of the BHC Act 

(12 U.S.C. 1843). Unless otherwise 

noted, nonbanking activities will be 

conducted throughout the United States. 

Additional information on all bank 

holding companies may be obtained 

from the National Information Center 

website at www.ffiec.gov/nic/. 

Unless otherwise noted, comments 

regarding each of these applications 

must be received at the Reserve Bank 

indicated or the offices of the Board of 

Governors not later than January 18, 

2008. 

A. Federal Reserve Bank of Chicago 

(Burl Thornton, Assistant Vice 

President) 230 South LaSalle Street, 

Chicago, Illinois 60690–1414: 

1. Capitol Bancorp Ltd., and Capitol 

Development Bancorp Limited VII, both 

of Lansing, Michigan; to acquire 51 

percent of the voting shares of Mountain 

View Bank of Commerce (in 

organization), Westminster, Colorado. 

In connection with this application, 

Capitol Bancorp Colorado Ltd. III, 

Lansing, Michigan; has applied to 

become a bank holding company by 

acquiring 51 percent of the voting shares 

of Mountain View Bank of Commerce 

(in organization), Westminster, 

Colorado. 

2. Kerndt Bank Services, Inc., Lansing, 

Iowa; to acquire 100 percent of Family 

Merchants Bancorporation, Inc., and 

thereby indirectly acquire voting shares 

of Family Merchants Bank, both of 

Cedar Rapids, Iowa. 

Board of Governors of the Federal Reserve 

System, December 20, 2007. 

Robert deV. Frierson, 

Deputy Secretary of the Board. 

[FR Doc.E7–25015 Filed 12–26–07; 8:45 am] 

BILLING CODE 6210–01–S 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Centers for Medicare & Medicaid 

Services 

[CMS–4134–N] 

Medicare Program; Medicare Appeals; 

Adjustment to the Amount in 

Controversy Threshold Amounts for 

Calendar Year 2008 

AGENCY: Centers for Medicare & 

Medicaid Services (CMS), HHS. 

ACTION: Notice. 

SUMMARY: This notice announces the 

annual adjustment in the amount in 

controversy (AIC) threshold amounts for 

administrative law judge (ALJ) hearings 

and judicial review under the Medicare 

appeals process. The adjustment to the 

AIC threshold amounts will be effective 

for requests for ALJ hearings and 

judicial review filed on or after January 

1, 2008. The 2008 AIC threshold 

amounts are $120 for ALJ hearings and 

$1,180 for judicial review. 

EFFECTIVE DATE: This notice is effective 

on January 1, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Arrah Tabe-Bedward, (410) 786–7129; 

Katherine Hosna, (410) 786–4993. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 1869(b)(1)(E) of the Social 

Security Act (the Act), as amended by 

Section 521 of the Medicare, Medicaid 

and SCHIP Benefits Improvement and 

Protection Act of 2000 (BIPA), 

established the AIC threshold amounts 

for ALJ hearing requests and judicial 

review at $100 and $1000, respectively, 

for Medicare Part A and Part B appeals. 

Section 940 of the Medicare 

Prescription Drug, Improvement, and 

Modernization Act of 2003 (Medicare 

Modernization Act ‘‘MMA’’), amended 

section 1869(b)(1)(E) of the Act to 

require the AIC threshold amounts for 

ALJ hearings and judicial review be 

adjusted annually. The AIC threshold 

amounts are to be adjusted, as of 

January 2005, by the percentage increase 

in the medical care component of the 

consumer price index for all urban 

consumers (U.S. city average) for July 

2003 to July of the year preceding the 

year involved and rounded to the 

nearest multiple of $10. Section 

940(b)(2) of the MMA provided 

conforming amendments to apply the 

AIC adjustment requirement to 

Medicare Part C (Medicare Advantage 

‘‘MA’’) appeals and certain health 

maintenance organization and 

competitive health plan appeals. Health 

care prepayment plans are also subject 

to MA appeals rules, including the AIC 

adjustment requirement. Section 101 of 

the MMA provides for the application of 

the AIC adjustment requirement to 

Medicare Part D appeals. 

A. Medicare Part A and Part B Appeals 

The statutory formula for the annual 

adjustment to the AIC threshold 

amounts for ALJ hearings and judicial 

review of Medicare Part A and Part B 

appeals, set forth at section 

1869(b)(1)(E) of the Act, is included in 

the applicable implementing 

regulations, 42 CFR part 405, Subpart I, 

at § 405.1006(b). The regulations require 

the Secretary of the Department of 

Health and Human Services (the 

Secretary) to publish changes to the AIC 

threshold amounts in the Federal 

Register (§ 405.1006(b)(2)). In order to 

be entitled to a hearing before an ALJ, 

a party to a proceeding must meet the 

AIC requirements at § 405.1006(c). 

Similarly, a party must meet the AIC 

requirement at the time judicial review 

is requested for the court to have 

jurisdiction over the appeal 

(§ 405.1136(a)). 

B. Medicare Part C (Medicare 

Advantage) Appeals 

Section 940(b)(2) of the MMA applies 

the AIC adjustment requirement to Part 

C (MA) appeals by amending section 

1852(g)(5) of the Act. The implementing 

regulations for Medicare Part C appeals 

are found at 42 CFR part 422, Subpart 

M. Specifically, § 422.600 and § 422.612 

discuss the AIC threshold amounts for 

ALJ hearings and judicial review. 

Section 422.600 grants any party, 

except the MA organization, a right to 

an ALJ hearing as long as the amount 

remaining in controversy after 

reconsideration meets the threshold 

requirement established annually by the 

Secretary. Section 422.612 states that 

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Federal Register / Vol. 72, No. 247 / Thursday, December 27, 2007 / Notices 73349 

any party, including the MA 

organization, may request judicial 

review if the amount in controversy 

meets the threshold requirement 

established annually by the Secretary. 

C. Health Maintenance Organizations, 

Competitive Medical Plans, and Health 

Care Prepayment Plans 

Section 940(b)(2) of the MMA also 

amended section 1876(c)(5)(B) of the 

Act to make section 1869(b)(1)(E) of the 

Act applicable to certain beneficiary 

appeals within the context of health 

maintenance organizations and 

competitive medical plans. The 

applicable implementing regulations for 

Medicare Part C appeals are set forth in 

42 CFR part 422, Subpart M, and as 

discussed above, apply to these appeals. 

The Medicare Part C appeals rules also 

apply to health care prepayment plan 

appeals. 

D. Medicare Part D (Prescription Drug 

Plan) Appeals 

The annually adjusted AIC threshold 

amounts for ALJ hearings and judicial 

review that apply to Medicare Parts A, 

B, and C appeals also apply to Medicare 

Part D appeals. Section 101 of the MMA 

added section 1860D–4(h)(1) of the Act 

regarding Part D appeals. This statutory 

provision requires a prescription drug 

plan sponsor to meet the requirements 

set forth in sections 1852(g)(4) and (g)(5) 

of the Act, in a similar manner as MA 

organizations. As noted above, the 

annually adjusted AIC threshold 

requirement was added to section 

1852(g)(5) of the Act by section 

940(b)(2)(A) of the MMA. The 

implementing regulations for Medicare 

Part D appeals can be found at 42 CFR 

part 423, Subpart M. The regulations 

impart at § 423.562(c) that unless the 

Part D appeals rules provide otherwise, 

the Part C appeals rules (including the 

annually adjusted AIC threshold 

amount) apply to Part D appeals to the 

extent they are appropriate. More 

specifically, § 423.610 and § 423.630 of 

the Part D appeals rules discuss the AIC 

threshold amounts for ALJ hearings and 

judicial review. Section 423.610(a) 

grants a Part D enrollee, who is 

dissatisfied with the Independent 

Review Entity (IRE) reconsideration 

determination, a right to an ALJ hearing 

if the amount remaining in controversy 

after the IRE reconsideration meets the 

threshold amount established annually 

by the Secretary. Section 423.630(a) 

allows a Part D enrollee to request 

judicial review if the AIC meets the 

threshold amount established annually 

by the Secretary. 

II. Annual AIC Adjustments 

A. AIC Adjustment Formula and AIC 

Adjustments 

As previously noted, section 940 of 

the MMA requires that the AIC 

threshold amounts be adjusted 

annually, beginning in January of 2005, 

by the percentage increase in the 

medical care component of the 

consumer price index (CPI) for all urban 

consumers (U.S. city average) for July 

2003 to the July of the preceding year 

involved and rounded to the nearest 

multiple of $10. 

B. Calendar Year 2008 

The AIC threshold amount for ALJ 

hearing requests will rise to $120 and 

the AIC threshold amount for judicial 

review will rise to $1,180 for the 2008 

calendar year. These new amounts are 

based on the 18.2 percent increase in 

the medical care component of the CPI 

from July of 2003 to July of 2007. The 

CPI level was at 297.6 in July of 2003 

and rose to 351.6 in July of 2007. This 

change accounted for the 18.2 percent 

increase. The AIC threshold amount for 

ALJ hearing requests changes to $118.16 

based on the 18.2 percent increase. In 

accordance with section 940 of the 

MMA, this amount is rounded to the 

nearest multiple of $10. Therefore, the 

2008 AIC threshold amount for ALJ 

hearings is $120. The AIC threshold 

amount for judicial review changes to 

$1,181.60 based on the 18.2 percent 

increase. This amount was rounded to 

the nearest multiple of $10, resulting in 

a 2008 AIC threshold amount of $1,180. 

C. Summary Table of Adjustments in 

the AIC Threshold Amounts 

In Table 1 below, we list the Calendar 

Year 2005 through 2008 threshold 

amounts. 

TABLE 1.—AMOUNT-IN-CONTROVERSY THRESHOLD AMOUNTS

CY 2005* CY 2006 CY 2007 CY 2008 

ALJ Hearing ............................................................................................................................. $100 $110 $110 $120 

Judicial Review ........................................................................................................................ 1050 1090 1130 1180 

* CY—Calendar Year. 

III. Collection of Information 

Requirements (If Applicable) 

This document does not impose 

information collection and 

recordkeeping requirements. 

Consequently, it need not be reviewed 

by the Office of Management and 

Budget under the authority of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 35). 

Authority: Section of the Social Security 

Act (42 U.S.C.). 

(Catalog of Federal Domestic Assistance 

Program No. 93.778, Medical Assistance 

Program; No. 93.773, Medicare—Hospital 

Insurance Program; and No. 93.774, 

Medicare—Supplementary Medical 

Insurance Program) 

Dated: December 19, 2007. 

Kerry Weems, 

Acting Administrator, Centers for Medicare 

& Medicaid Services. 

[FR Doc. 07–6198 Filed 12–20–07; 1:15 pm] 

BILLING CODE 4120–01–P 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

[FWS–R9–IA–2007–N0002; 96300–1671–

0000] 

Receipt of Applications for Permit 

AGENCY: Fish and Wildlife Service, 

Interior. 

ACTION: Notice of receipt of applications 

for permit. 

SUMMARY: The public is invited to 

comment on the following applications 

to conduct certain activities with 

endangered species and/or marine 

mammals. 

DATES: Written data, comments or 

requests must be received by January 28, 

2008. 

ADDRESSES: Documents and other 

information submitted with these 

applications are available for review, 

subject to the requirements of the 

Privacy Act and Freedom of Information 

Act, by any party who submits a written 

request for a copy of such documents 

within 30 days of the date of publication 

of this notice to: U.S. Fish and Wildlife 

Service, Division of Management 

Authority, 4401 North Fairfax Drive, 

mstockstill on PROD1PC66 with NOTICES