---
kind: "section"
citation: "42 C.F.R. § 423.907"
title: "42"
number: "423.907"
heading: "Treatment of territories."
url: "https://uscodex.org/cfr/42/423.907"
---

# §423.907. Treatment of territories.

- (a) **General rules.**
  - (1) Low-income Part D eligible individuals who reside in the territories are not eligible to receive premium and cost-sharing subsidies under subpart P of this part.
  - (2) A territory may submit a plan to the Secretary under which medical assistance is to be provided to low-income individuals for the provision of covered Part D drugs.
  - (3) Territories with plans approved by the Secretary will receive increased grants under section 1935(e)(3) of the Act as described in [paragraph (c)](#c) of this section.
- (b) **Plan requirements.** Plans submitted to the Secretary must include the following:
  - (1) **A description of the medical assistance to be provided.**
  - (2) The low-income population (income less than 150 percent of the Federal poverty level) to receive medical assistance.
  - (3) An assurance that no more than 10 percent of the amount of the increased grant will be used for administrative expenses.
- (c) **Increased grant amounts.** The amount of the grant provided under section 1108 (f) of the Act as increased by section 1108 (g) of the Act for each territory with an approved plan for a year is the amount in [paragraph (d)](#d) of this section multiplied by the ratio of—
  - (1) The number of individuals who are entitled to benefits under Part A or enrolled under Part B and who reside in the territory (as determined by the Secretary based on the most recent available data for the beginning of the year); and
  - (2) The sum of the number of individuals in all territories in [paragraph (c)(1)](#c-1) of this section with approved plans.
- (d) **Total grant amount.** The total grant amount is—
  - (1) For the last three quarters of fiscal year 2006, $28,125,000;
  - (2) For fiscal year 2007, $37,500,000; and
  - (3) For each subsequent year, the amount for the prior fiscal year increased by the annual percentage increase described in [§ 423.104(d)(5)(iv)](/cfr/42/423.104.md?p=d-5-iv).

## Notes

### Authority

Authority: 42 U.S.C. 1302, 1306, 1395w-101 through 1395w-152, and 1395hh.

### Source

Source: 70 FR 4525, Jan. 28, 2005, unless otherwise noted.