Managed care organizations (MCOs) are able to use their adjusted excess to reduce the Medicare Part B premium for beneficiaries. When offering this benefit, a plan cannot reduce its payment by more than 125% of the Medicare Part B premium. In order to calculate the Part B premium reduction amount, the PBP system must multiply the number entered in the “indicate your MCO plan payment reduction amount, per member” field by 80%. The resulting number is the Part B premium reduction amount for each member in that particular plan rounded to the nearest multiple of 10 cents.