REDUCTION IN PERFORMANCE STANDARD RATE OF INCREASE AND INCREASE IN MAXIMUM REDUCTION PERMITTED IN DEFAULT UPDATE.

SEC. 13512. REDUCTION IN PERFORMANCE STANDARD RATE OF INCREASE AND INCREASE IN MAXIMUM REDUCTION PERMITTED IN DEFAULT UPDATE. (a) Reduction in Performance Standard Factor.— Section 1848(f)(2)(B) (42 U.S.C. 1395w–4(f)(2)(B)) is amended— (1) by striking “and” at the end of clause (ii), and (2) by striking clause (iii) and inserting the following: “(iii) for 1993 is 2 percentage points, “(iv) for 1994 is 3½ percentage points, and “(v) for each succeeding year is 4 percentage points.”. (b) Increase in Maximum Reduction Permitted in Default Update.— Section 1848(d)(3)(B)(ii) (42 U.S.C. 1395w–4(d)(3)(B)(ii)) is amended— (1) in subclause (II), by striking “or 1995”, and (2) in subclause (III), by striking “3” and inserting “5”.