; United States city average as of June of the previous fiscal year). (3) Methods Payments under this subsection shall be based on such a method as the Secretary determines. The Secretary may establish a payment method by which interim payments of amounts under this subsection are made during a plan year based on the Secretary’s best estimate of amounts that will be payable after obtaining all of necessary information. (c) Qualifying reinsurance plan (1) In general For purposes of this section, the term qualifying reinsurance plan means, with respect to a health insurance issuer a qualified health plan (as defined in section 1301 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18021 )) offered by such issuer on the individual market. Such term does not include a grandfathered health plan (as defined in section 1251 of such Act ( 42 U.S.C. 18011 )), transitional health plan, or a standard health plan offered in connection with a basic health program established under section 1331 of such Act ( 42 U.S.C. 18051 ). (2) Transitional health plan For purposes of paragraph (1), the term transitional health plan means a plan continued under the letter issued by the Centers for Medicare & Medicaid Services on November 14, 2013, to the State Insurance Commissioners outlining a transitional policy for coverage in the individual and small group markets to which section 1251 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18011 ) does not apply, and under the extension of the transitional policy for such coverage set forth in the Insurance Standards Bulletin Series guidance issued by the Centers for Medicare & Medicaid Services on March 5, 2014, February 29, 2016, and February 13, 2017, or under any subsequent extensions thereof. (d) Coordination with risk adjustment The Secretary shall make adjustments to the risk adjustment program operated under section 1343 of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18063 ), as appropriate, to account for the effects of this section on the