transition area
(6) Use of MSAs as fee schedule areas in California (A) In general Subject to the succeeding provisions of this paragraph and notwithstanding the previous provisions of this subsection, for services furnished on or after January 1, 2017 , the fee schedule areas used for payment under this section applicable to California shall be the following: (i) Each Metropolitan Statistical Area (each in this paragraph referred to as an “MSA”), as defined by the Director of the Office of Management and Budget as of December 31 of the previous year, shall be a fee schedule area. (ii) All areas not included in an MSA shall be treated as a single rest-of-State fee schedule area. (B) Transition for MSAs previously in rest-of-state payment locality or in locality 3 (i) In general For services furnished in California during a year beginning with 2017 and ending with 2021 in an MSA in a transition area (as defined in subparagraph (D)), subject to subparagraph (C), the geographic index values to be applied under this subsection for such year shall be equal to the sum of the following: (I) Current law component The old weighting factor (described in clause (ii)) for such year multiplied by the geographic index values under this subsection for the fee schedule area that included such MSA that would have applied in such area (as estimated by the Secretary) if this paragraph did not apply. (II) MSA-based component The MSA-based weighting factor (described in clause (iii)) for such year multiplied by the geographic index values computed for the fee schedule area under subparagraph (A) for the year (determined without regard to this subparagraph). (ii) Old weighting factor The old weighting factor described in this clause— (I) for 2017, is ⅚; and (II) for each succeeding year, is the old weighting factor described in this clause for the previous year minus ⅙. (iii) MSA-based weighting factor The MSA-based weighting factor described in this clause for a year is 1 minus the old weighting factor under clause (ii) for that year. (C) Hold harmless For services furnished in a transition area in California during a year beginning with 2017, the geographic index values to be applied under this subsection for such year shall not be less than the corresponding geographic index values that would have applied in such transition area (as estimated by the Secretary) if this paragraph did not apply. (D) Transition area defined In this paragraph, the term “transition area” means each of the following fee schedule areas for 2013: (i) The rest-of-State payment locality. (ii) Payment locality 3. (E) References to fee schedule areas Effective for services furnished on or after January 1, 2017 , for California, any reference in this section to a fee schedule area shall be deemed a reference to a fee schedule area established in accordance with this paragraph.