Title VI, SEC. 6012. PROVIDER PAYMENT REDUCTION. (a) Participating Providers. (1) In general. Each regional alliance health plan, as part of its contract under section 1406(e) with any participating provider (as defined in section 1407(c), or group of participating providers) shall (A) include a provision that provides that if the plan is a noncomplying plan for a year, payments to the provider (or group) shall be reduced by the applicable network reduction percentage (described in paragraph (2)) for the year, and (B) not include any provision which the State determines otherwise varies the payments to such providers (or group) because of, or in relation to, a plan payment reduction under section 6011 or otherwise is intended to nullify the effect of subparagraph (A). The Board may issue regulations relating to the requirements of this paragraph. (2) Applicable network reduction percentage. (A) In general. Subject to subparagraphs (B) and (C), the ``adjusted plan reduction percentage'', with respect to network providers of a noncomplying plan for a year is (i) the plan payment reduction amount for the plan for the year (as determined under section 6011(c)), divided by (ii) the final accepted bid for the plan for the year, adjusted under subparagraph (B). (B) Induced volume offset. The Board shall provide for an appropriate increase of the percentage reduction computed under subparagraph (A) to take into account any estimated increase in volume of services provided that may reasonably be anticipated as a consequence of applying a reduction in payment under this subsection. The Board may compute and apply such increase differently for different classes of providers or services or different types of health plans (as the Board may define). (b) Other Providers. (1) In general. Each regional alliance health plan that is a noncomplying plan in a year shall provide for a reduction in the amount of payments to providers (or groups of providers) that are not participating providers under the applicable alliance fee schedule under section 1406(c)(3) by the applicable nonnetwork reduction percentage (described in paragraph (2)) for the year. (2) Applicable nonnetwork reduction percentage. (A) In general. Subject to subparagraph (B), the ``adjusted plan reduction percentage'', with respect to nonnetwork providers of a noncomplying plan for a year is (i) the plan payment reduction amount for the plan for the year (as determined under section 6011(c)), divided by (ii) the final accepted bid for the plan for the year, adjusted under subparagraph (B). (B) Induced volume offset. The Board shall provide for an appropriate adjustment of the percentage reduction computed under subparagraph (A) to take into account any estimated increase in volume of services provided that may reasonably be anticipated as a consequence of applying a reduction in payment under this subsection. (c) Application to Cost Sharing and to Balance Billing Restrictions. For purposes of applying section 1406(d) (relating to balance billing limitations) and part 3 of subtitle B of title I (relating to computation of cost sharing), the payment basis otherwise used for computing any limitation on billing or cost sharing shall be such payment basis as adjusted by any reductions effected under this section.