; actuarial value In carrying out this section, the Administrator shall ensure that the Medicare Transition plan provides— (1) coverage for the benefits required to be covered under title II; and (2) coverage of benefits that are actuarially equivalent to 90 percent of the full actuarial value of the benefits provided under the plan. (d) Providers and reimbursement rates (1) In general With respect to the reimbursement provided to health care providers for covered benefits, as described in section 201, provided under the Medicare Transition plan, the Administrator shall reimburse such providers at rates determined for equivalent items and services under the original Medicare fee-for-service program under parts A and B of title XVIII of the Social Security Act ( 42 U.S.C. 1395c et seq.). For items and services covered under the Medicare Transition plan but not covered under such parts A and B, the Administrator shall reimburse providers at rates set by the Administrator in a manner consistent with the manner in which rates for other items and services were set under the original Medicare fee-for-service program. (2) Prescription drugs Any payment rate under this subsection for a prescription drug shall be at a rate negotiated by the Administrator with the manufacturer of the drug. If the Administrator is unable to reach a negotiated agreement on such a reimbursement rate, the Administrator shall establish the rate at an amount equal to the lesser of— (A) the price paid by the Secretary of Veterans Affairs to procure the drug under the laws administered by the Secretary of Veterans Affairs; (B) the price paid to procure the drug under section 8126 of title 38, United States Code