deemed to be the Regional Consumer Price
Index for such region’’; and
(B) in paragraph (4), by striking ‘‘and by
section 9001’’ and inserting ‘‘, by section
9001’’, and by inserting after ‘‘1986,’’ the fol-
lowing: ‘‘and by section 3(a) of the COLA Fair-
ness Act of 2001,’’.
(2) CONFORMING AMENDMENTS RELATING TO
APPLICABLE
FORMER
LAW.—Section 215(i)(4) of
such Act (42 U.S.C. 415(i)(4)) is amended by add-
ing at the end the following new sentence: ‘‘For pur-
poses of computing adjustments under this sub-
section as so in effect, the applicable Consumer
Price Index shall be deemed to be the Regional Con-
sumer Price Index for the region in which such indi-
vidual resides at the time he becomes eligible for old-
age insurance benefits or disability insurance bene-
fits (or dies before initially becoming so eligible).’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to determinations made by the
Commissioner of Social Security under section 215(i)(2)
of the Social Security Act (42 U.S.C. 415(i)(2)) with re-
spect to cost-of-living computation quarters ending on or
after September 30 of the second calendar year following
the calendar year in which this Act is enacted.
SEC. 4. AMENDMENTS TO TITLE XVIII OF THE SOCIAL SE-
CURITY ACT.
(a) IN GENERAL.—Title XVIII of the Social Security
Act (42 U.S.C. 1395 et seq.) is amended—
(1) in section 1814(i)(2)(B), by inserting ‘‘(i)
for accounting years ending before October 1 of the
second calendar year following the calendar year in
which the COLA Fairness Act of 2001 was en-
acted,’’ after ‘‘for a year is’’, and by inserting after
‘‘fifth month of the accounting year’’ the following:
‘‘, and (ii) for accounting years ending after October
1 of such calendar year, the cap amount determined
under clause (i) for the last accounting year referred
to in such clause, increased or decreased by the
same percentage as the percentage increase or de-
crease, respectively, in the medical care expenditure
category (or corresponding category) of the applica-
ble consumer price index, published by the Bureau
of Labor Statistics, from March of such calendar
year to the fifth month of the accounting year’’;
(2) in section 1833(h)(2)(A)(i), by striking
‘‘Consumer Price Index for All Urban Consumers
(United States city average)’’ and inserting ‘‘appli-
cable consumer price index’’;
(3) in section 1833(i)(2)(C), by striking ‘‘con-
sumer price index for all urban consumers (U.S. city
average)’’ and inserting ‘‘applicable consumer price
index’’;
(4) in section 1834(a)(14)(F), by striking ‘‘con-
sumer price index for all urban consumers (United
States city average)’’ and inserting ‘‘applicable con-
sumer price index’’;
(5) in section 1834(h)(4)(A)(viii), by striking
‘‘consumer price index for all urban consumers
(United States city average)’’ and inserting ‘‘appli-
cable consumer price index’’;
(6) in section 1834(l)(3)(A), by striking ‘‘con-
sumer price index for all urban consumers (U.S. city
average)’’ and inserting ‘‘applicable consumer price
index’’;
(7) in section 1834(l)(3)(B), by striking ‘‘con-
sumer price index for all urban consumers (U.S. city
average)’’ and inserting ‘‘applicable consumer price
index’’;
(8) in section 1842(s)(1), by striking ‘‘con-
sumer price index for all urban consumers (United
States city average)’’ and inserting ‘‘applicable con-
sumer price index’’; and
(9) in section 1886(h)(5)(B), by striking ‘‘Con-
sumer Price Index for All Urban Consumers (United
States city average)’’ and inserting ‘‘applicable con-
sumer price index’’.
(b) DEFINITION OF APPLICABLE CONSUMER PRICE
INDEX.—Section 1861 of such Act (42 U.S.C. 1395x) is
amended by adding at the end the following new sub-
section:
‘‘Applicable Consumer Price Index
‘‘(uu) The term ‘applicable consumer price index’
means, in connection with any person affected by an ad-
justment to be made under this title based on such index,
the Regional Consumer Price Index (as prescribed from
time to time by the Bureau of Labor Statistics pursuant
to section 2(c) of the COLA Fairness Act of 2001) for
the region in which such person resides (in the case of
an individual) or maintains principal offices (in any other
case) at the time the adjustment takes effect. The Sec-
retary of Health and Human Services shall prescribe by
regulation, in connection with each requirement for an ad-
justment under this title based a Regional Consumer Price
Index, the manner in which such adjustment is to be de-
termined to affect particular persons for purposes of this
subsection.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to determinations
made for periods ending after December 31 of the second
calendar year following the calendar year in which this Act
was enacted.
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