Section text and notes
Requirements
In general
Standard prescription drug coverage with access to negotiated prices
Standard prescription drug coverage (as defined in subsection (b)) and access to negotiated prices under subsection (d).
Alternative prescription drug coverage with at least actuarially equivalent benefits and access to negotiated prices
Coverage of covered part D drugs which meets the alternative prescription drug coverage requirements of subsection (c) and access to negotiated prices under subsection (d), but only if the benefit design of such coverage is approved by the Secretary, as provided under subsection (c).
Permitting supplemental prescription drug coverage
In general
Certain reductions in cost-sharing
In general
A reduction in the annual deductible, a reduction in the coinsurance percentage or, for a year preceding 2025, an increase in the initial coverage limit with respect to covered part D drugs, or any combination thereof, insofar as such a reduction or increase increases the actuarial value of benefits above the actuarial value of basic prescription drug coverage.
Construction
Nothing in this paragraph shall be construed as affecting the application of subsection (c)(3).
Optional drugs
Coverage of any product that would be a covered part D drug but for the application of subsection (e)(2)(A).
Requirement
A PDP sponsor may not offer a prescription drug plan that provides supplemental prescription drug coverage pursuant to subparagraph (A) in an area unless the sponsor also offers a prescription drug plan in the area that only provides basic prescription drug coverage.
Basic prescription drug coverage
Application of secondary payor provisions
section 1395w–22(a)(4) of this titleThe provisions of shall apply under this part in the same manner as they apply under part C.
Construction
Nothing in this subsection shall be construed as changing the computation of incurred costs under subsection (b)(4).
Standard prescription drug coverage
Deductible
In general
Rounding
Any amount determined under subparagraph (A)(ii) that is not a multiple of $5 shall be rounded to the nearest multiple of $5.
Benefit structure
25 percent coinsurance
Use of tiers
Nothing in this part shall be construed as preventing a PDP sponsor or an MA organization from applying tiered copayments under a plan, so long as such tiered copayments are consistent with subparagraphs (A)(ii), (C), and (D).
Coverage for generic drugs in coverage gap
In general
Generic-gap coinsurance percentage
Coverage for applicable drugs in coverage gap
In general
Applicable gap percentage
Maximum monthly cap on cost-sharing payments
In general
section 1395w–114(a) of this titleFor plan years beginning on or after , each PDP sponsor offering a prescription drug plan and each MA organization offering an MA–PD plan shall provide to any enrollee of such plan, including an enrollee who is a subsidy eligible individual (as defined in paragraph (3) of ), the option to elect with respect to a plan year to pay cost-sharing under the plan in monthly amounts that are capped in accordance with this subparagraph.
Determination of maximum monthly cap
For each month in the plan year for which an enrollee in a prescription drug plan or an MA–PD plan has made an election pursuant to clause (i), the PDP sponsor or MA organization shall determine a maximum monthly cap (as defined in clause (iv)) for such enrollee.
Beneficiary monthly payments
With respect to an enrollee who has made an election pursuant to clause (i), for each month described in clause (ii), the PDP sponsor or MA organization shall bill such enrollee an amount (not to exceed the maximum monthly cap) for the out-of-pocket costs of such enrollee in such month.
Maximum monthly cap defined
Additional requirements
Secretarial responsibilities
section 1395b–2(a) of this titleThe Secretary shall provide information to part D eligible individuals on the option to make such election through educational materials, including through the notices provided under .
Timing of election
PDP sponsor and MA organization responsibilities
Failure to pay amount billed
Clarification regarding past due amounts
Nothing in this subparagraph shall be construed as prohibiting a PDP sponsor or an MA organization from billing an enrollee for an amount owed under this subparagraph.
Treatment of unsettled balances
Any unsettled balances with respect to amounts owed under this subparagraph shall be treated as plan losses and the Secretary shall not be liable for any such balances outside of those assumed as losses estimated in plan bids.
Initial coverage limit
In general
Rounding
Any amount determined under subparagraph (A)(ii) that is not a multiple of $10 shall be rounded to the nearest multiple of $10.
Protection against high out-of-pocket expenditures
In general
In general
Adjustment of amount
section 1395w–114(a)(1)(D)(iii) of this titleFor a year after 2006, the dollar amounts specified in clause (i)(I)(aa) shall be equal to the dollar amounts specified in this subparagraph for the previous year, increased by the annual percentage increase described in paragraph (6) for the year involved. Any amount established under this clause that is not a multiple of a 5 cents shall be rounded to the nearest multiple of 5 cents. The Secretary shall continue to calculate the dollar amounts specified in clause (i)(I)(aa), including with the adjustment under this clause, after 2023 for purposes of .
Annual out-of-pocket threshold
In general
Rounding
Any amount determined under clause (i) that is not a multiple of $50 shall be rounded to the nearest multiple of $50.
Application
Information regarding third-party reimbursement
Procedures for exchanging information
Authority to request information from enrollees
section 1395w–21(g)(3)(B) of this titlesection 1395w–101(b)(1)(B)(v) of this titleA PDP sponsor or an MA organization may periodically ask part D eligible individuals enrolled in a prescription drug plan or an MA–PD plan offered by the sponsor or organization whether such individuals have or expect to receive such third-party reimbursement. A material misrepresentation of the information described in the preceding sentence by an individual (as defined in standards set by the Secretary and determined through a process established by the Secretary) shall constitute grounds for termination of enrollment in any plan under (and as applied under this part under ) for a period specified by the Secretary.
Inclusion of costs of applicable drugs under medicare coverage gap discount program
section 1395w–114a(g) of this titlesection 1395w–114a of this titleFor each of years 2011 through 2024, in applying subparagraph (A), incurred costs shall include the negotiated price (as defined in paragraph (6) of ) of an applicable drug (as defined in paragraph (2) of such section) of a manufacturer that is furnished to an applicable beneficiary (as defined in paragraph (1) of such section) under the Medicare coverage gap discount program under , regardless of whether part of such costs were paid by a manufacturer under such program, except that incurred costs shall not include the portion of the negotiated price that represents the reduction in coinsurance resulting from the application of paragraph (2)(D).
Inclusion of costs paid under maximum monthly cap option
In applying subparagraph (A), with respect to an enrollee who has made an election pursuant to clause (i) of paragraph (2)(E), costs shall be treated as incurred if such costs are paid by a PDP sponsor or an MA organization under the option provided under such paragraph.
Construction
Nothing in this part shall be construed as preventing a PDP sponsor or an MA organization offering an MA–PD plan from reducing to zero the cost-sharing otherwise applicable to preferred or generic drugs.
Annual percentage increase
The annual percentage increase specified in this paragraph for a year is equal to the annual percentage increase in average per capita aggregate expenditures for covered part D drugs in the United States for part D eligible individuals, as determined by the Secretary for the 12-month period ending in July of the previous year using such methods as the Secretary shall specify.
Additional annual percentage increase
The annual percentage increase specified in this paragraph for a year is equal to the annual percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending in July of the previous year.
Treatment of cost-sharing for adult vaccines recommended by the Advisory Committee on Immunization Practices consistent with treatment of vaccines under part B
In general
Adult vaccines recommended by the Advisory Committee on Immunization Practices
42 U.S.C. 262For purposes of this paragraph, the term “adult vaccine recommended by the Advisory Committee on Immunization Practices” means a covered part D drug that is a vaccine licensed under section 351 of the Public Health Service Act [] for use by adult populations and administered in accordance with recommendations of the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention.
Treatment of cost-sharing for covered insulin products
No application of deductible
For plan year 2023 and subsequent plan years, the deductible under paragraph (1) shall not apply with respect to any covered insulin product.
Application of cost-sharing
Plan years 2023 and 2024
For plan years 2023 and 2024, the coverage provides benefits for any covered insulin product, regardless of whether an individual has reached the initial coverage limit under paragraph (3) or the out-of-pocket threshold under paragraph (4), with cost-sharing for a month’s supply that does not exceed the applicable copayment amount.
Plan year 2025 and subsequent plan years
For a plan year beginning on or after , the coverage provides benefits for any covered insulin product, prior to an individual reaching the out-of-pocket threshold under paragraph (4), with cost-sharing for a month’s supply that does not exceed the applicable copayment amount.
Covered insulin product
section 355 of title 2142 U.S.C. 262In this paragraph, the term “covered insulin product” means an insulin product that is a covered part D drug covered under the prescription drug plan or MA–PD plan that is approved under or licensed under section 351 of the Public Health Service Act [] and marketed pursuant to such approval or licensure, including any covered insulin product that has been deemed to be licensed under section 351 of the Public Health Service Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and marketed pursuant to such section.
Applicable copayment amount
Special rule for first 3 months of 2023
With respect to a month’s supply of a covered insulin product dispensed during the period beginning on , and ending on , a PDP sponsor offering a prescription drug plan or an MA organization offering an MA–PD plan shall reimburse an enrollee within 30 days for any cost-sharing paid by such enrollee that exceeds the cost-sharing applied by the prescription drug plan or MA–PD plan under subparagraph (B)(i) at the point-of-sale for such month’s supply.
Alternative prescription drug coverage requirements
Assuring at least actuarially equivalent coverage
Assuring equivalent value of total coverage
The actuarial value of the total coverage is at least equal to the actuarial value of standard prescription drug coverage.
Assuring equivalent unsubsidized value of coverage
section 1395w–115 of this titleThe unsubsidized value of the coverage is at least equal to the unsubsidized value of standard prescription drug coverage. For purposes of this subparagraph, the unsubsidized value of coverage is the amount by which the actuarial value of the coverage exceeds the actuarial value of the subsidy payments under with respect to such coverage.
Assuring standard payment for costs
Maximum required deductible
The deductible under the coverage shall not exceed the deductible amount specified under subsection (b)(1) for the year.
Same protection against high out-of-pocket expenditures
The coverage provides the coverage required under subsection (b)(4).
Same maximum monthly cap on cost-sharing
The maximum monthly cap on cost-sharing payments shall apply to coverage with respect to an enrollee who has made an election pursuant to clause (i) of subsection (b)(2)(E) under the option provided under such subsection.
Treatment of cost-sharing for adult vaccines recommended by the Advisory Committee on Immunization Practices
The coverage is in accordance with subsection (b)(8).
Treatment of cost-sharing for covered insulin products
The coverage is provided in accordance with subsection (b)(9).
Access to negotiated prices
Access
In general
Under qualified prescription drug coverage offered by a PDP sponsor offering a prescription drug plan or an MA organization offering an MA–PD plan, the sponsor or organization shall provide enrollees with access to negotiated prices used for payment for covered part D drugs, regardless of the fact that no benefits may be payable under the coverage with respect to such drugs because of the application of a deductible or other cost-sharing or, for a year preceding 2025, an initial coverage limit (described in subsection (b)(3)).
Negotiated prices
For purposes of this part, negotiated prices, subject to subparagraph (D), shall take into account negotiated price concessions, such as discounts, direct or indirect subsidies, rebates, and direct or indirect remunerations, for covered part D drugs, and include any dispensing fees for such drugs.
Medicaid-related provisions
section 1395w–132(a)(2) of this titlesection 1396r–8(c)(1)(C) of this titleThe prices negotiated by a prescription drug plan, by an MA–PD plan with respect to covered part D drugs, or by a qualified retiree prescription drug plan (as defined in ) with respect to such drugs on behalf of part D eligible individuals, shall (notwithstanding any other provision of law) not be taken into account for the purposes of establishing the best price under .
Application of maximum fair price for selected drugs
section 1320f–1(c) of this titlesection 1320f(b)(2) of this titlesection 1320f(c)(3) of this titleIn applying this section, in the case of a covered part D drug that is a selected drug (as referred to in ), with respect to a price applicability period (as defined in ), the negotiated prices used for payment (as described in this subsection) shall be no greater than the maximum fair price (as defined in ) for such drug and for each year during such period plus any dispensing fees for such drug.
Disclosure
section 1396r–8(b)(3)(D) of this titleA PDP sponsor offering a prescription drug plan or an MA organization offering an MA–PD plan shall disclose to the Secretary (in a manner specified by the Secretary) the aggregate negotiated price concessions described in paragraph (1)(B) made available to the sponsor or organization by a manufacturer which are passed through in the form of lower subsidies, lower monthly beneficiary prescription drug premiums, and lower prices through pharmacies and other dispensers. The provisions of apply to information disclosed to the Secretary under this paragraph.
Audits
section 1395w–27(d)(2)(B) of this titlesection 1395w–112(b)(3)(C) of this titleTo protect against fraud and abuse and to ensure proper disclosures and accounting under this part and in accordance with (as applied under ), the Secretary may conduct periodic audits, directly or through contracts, of the financial statements and records of PDP sponsors with respect to prescription drug plans and MA organizations with respect to MA–PD plans.
Covered part D drug defined
In general
Exclusions
In general
section 1396r–8(d)(2) of this titlesection 1396r–8(d)(3) of this titleSuch term does not include drugs or classes of drugs, or their medical uses, which may be excluded from coverage or otherwise restricted under , other than subparagraph (E) of such section (relating to smoking cessation agents), other than subparagraph (I) of such section (relating to barbiturates) if the barbiturate is used in the treatment of epilepsy, cancer, or a chronic mental health disorder, and other than subparagraph (J) of such section (relating to benzodiazepines), or under , as such sections were in effect on . Such term also does not include a drug when used for the treatment of sexual or erectile dysfunction, unless such drug were used to treat a condition, other than sexual or erectile dysfunction, for which the drug has been approved by the Food and Drug Administration.
Medicare covered drugs
A drug prescribed for a part D eligible individual that would otherwise be a covered part D drug under this part shall not be so considered if payment for such drug as so prescribed and dispensed or administered with respect to that individual is available (or would be available but for the application of a deductible) under part A or B for that individual.
Application of general exclusion provisions
Medically accepted indication defined
In general
Conflict of interest
section 1396r–8(g)(1)(B)(i)(III) of this title3
Update
section 1396r–8(g)(1)(B)(i) of this titlesection 1395x(t)(2)(B) of this titleFor purposes of applying subparagraph (A)(ii), the Secretary shall revise the list of compendia described in as is appropriate for identifying medically accepted indications for drugs. Any such revision shall be done in a manner consistent with the process for revising compendia under .
Aug. 14, 1935, ch. 531 Pub. L. 108–173, title I, § 101(a)(2)117 Stat. 2075 Pub. L. 109–91, title I, § 103(a)119 Stat. 2092 Pub. L. 109–432, div. B, title II, § 202(b)120 Stat. 2986 Pub. L. 110–275, title I122 Stat. 2581 Pub. L. 111–148, title III124 Stat. 467 Pub. L. 111–152, title I, § 1101(a)(2)124 Stat. 1037–1039 Pub. L. 115–123, div. E, title XII, § 53116(a)132 Stat. 306 Pub. L. 117–169, title I136 Stat. 1852 Pub. L. 117–328, div. FF, title IV, § 4131136 Stat. 5918 Pub. L. 118–158, div. C, title II, § 3209138 Stat. 1766 Pub. L. 119–4, div. B, title II, § 2209139 Stat. 44 Pub. L. 119–37, div. F, title II, § 6211139 Stat. 634 Pub. L. 119–75, div. J, title II, § 6217140 Stat. 655 (, title XVIII, § 1860D–2, as added , , ; amended , , ; , , ; , §§ 175(a), 182(a)(1), , , 2583; , §§ 3301(c)(1), 3314(a), 3315, , , 478, 479; , (b)(3), (d), , ; , , ; , §§ 11001(b)(1)(D), 11201(a), (e)(1), 11202(a), (b), 11401(a), (c)(2), 11406(a), , , 1877, 1891, 1893, 1895, 1896, 1898, 1902; , , ; , , ; , , ; , , ; , , .)
Editorial Notes
References in Text
section 1101(d)(1) of Pub. L. 111–152Section 1101(d)(1) of the Health Care and Education Reconciliation Act of 2010, referred to in subsec. (b)(4)(B)(i)(V), is , which amended this section.
act July 1, 1944, ch. 373 58 Stat. 682 section 201 of this titleThe Public Health Service Act, referred to in subsec. (b)(4)(C)(iii)(I)(dd), is , . Part B of title XXVI of the Act is classified generally to part B (§ 300ff–21 et seq.) of subchapter XXIV of chapter 6A of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.
section 7002(e)(4) of Pub. L. 111–148section 262 of this titleSection 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009, referred to in (b)(9)(C), is , which is set out in a note under .
Amendments
Pub. L. 119–752026—Subsec. (e)(1)(C). substituted “” for “”.
Pub. L. 119–372025—Subsec. (e)(1)(C). substituted “” for “”.
Pub. L. 119–4 substituted “” for “”.
Pub. L. 118–1582024—Subsec. (e)(1)(C). substituted “” for “”.
Pub. L. 117–169, § 11201(e)(1)(A)2022—Subsec. (a)(2)(A)(i)(I). , substituted “or, for a year preceding 2025, an increase in the initial” for “, or an increase in the initial”.
Pub. L. 117–169, § 11406(a)(1)(A)Subsec. (b)(1)(A). , substituted “paragraphs (8) and (9)” for “paragraph (8)” in introductory provisions.
Pub. L. 117–169, § 11401(a)(1)(A), substituted “Subject to paragraph (8), the coverage” for “The coverage” in introductory provisions.
Pub. L. 117–169, § 11406(a)(1)(B)(i)Subsec. (b)(2)(A). , substituted “paragraphs (8) and (9)” for “paragraph (8)” in introductory provisions.
Pub. L. 117–169, § 11401(a)(1)(B)(i), inserted “and paragraph (8)” after “and (E)” in introductory provisions.
Pub. L. 117–169, § 11202(a)(1)(A), substituted “, (D), and (E)” for “and (D)” in introductory provisions.
Pub. L. 117–169, § 11201(a)(1)(A), inserted “for a year preceding 2025 and for costs above the annual deductible specified in paragraph (1) and up to the annual out-of-pocket threshold specified in paragraph (4)(B) for 2025 and each subsequent year” after “paragraph (3)” in introductory provisions.
Pub. L. 117–169, § 11406(a)(1)(B)(ii)Subsec. (b)(2)(C)(i). , substituted “, (8), and (9)” for “and (8)” in introductory provisions.
Pub. L. 117–169, § 11401(a)(1)(B)(ii), substituted “paragraphs (4) and (8)” for “paragraph (4)” in introductory provisions.
Pub. L. 117–169, § 11201(a)(1)(B)(i), inserted “for a year preceding 2025,” after “paragraph (4),” in introductory provisions.
Pub. L. 117–169, § 11201(a)(1)(B)(ii)Subsec. (b)(2)(C)(ii)(III). , substituted “through 2024” for “and each subsequent year”.
Pub. L. 117–169, § 11406(a)(1)(B)(iii)Subsec. (b)(2)(D)(i). , substituted “, (8), and (9)” for “and (8)” in introductory provisions.
Pub. L. 117–169, § 11401(a)(1)(B)(iii), substituted “paragraphs (4) and (8)” for “paragraph (4)” in introductory provisions.
Pub. L. 117–169, § 11201(a)(1)(C)(i)(I), inserted “for a year preceding 2025,” after “paragraph (4),” in introductory provisions.
Pub. L. 117–169, § 11201(a)(1)(C)(i)(II)Subsec. (b)(2)(D)(i)(I)(bb). , substituted “each of years 2019 through 2024” for “a year after 2018”.
Pub. L. 117–169, § 11201(a)(1)(C)(ii)Subsec. (b)(2)(D)(ii)(V). , substituted “each of years 2019 through 2024” for “2019 and each subsequent year”.
Pub. L. 117–169, § 11202(a)(1)(B)Subsec. (b)(2)(E). , added subpar. (E).
Pub. L. 117–169, § 11406(a)(1)(C)Subsec. (b)(3)(A). , substituted “(8), and (9)” for “and (8)” in introductory provisions.
Pub. L. 117–169, § 11401(a)(1)(C), substituted “(4), and (8)” for “and (4)” in introductory provisions.
Pub. L. 117–169, § 11201(a)(2)(A), inserted “for a year preceding 2025,” after “and (4),” in introductory provisions.
Pub. L. 117–169, § 11201(a)(2)(B)Subsec. (b)(3)(A)(ii). , substituted “for each of years 2007 through 2024” for “for a subsequent year”.
Pub. L. 117–169, § 11406(a)(1)(D)Subsec. (b)(4)(A)(i). , substituted “paragraphs (8) and (9)” for “paragraph (8)” in introductory provisions.
Pub. L. 117–169, § 11401(a)(1)(D), substituted “Subject to paragraph (8), the coverage” for “The coverage” in introductory provisions.
Pub. L. 117–169, § 11201(a)(3)(A)(i), inserted dash after “is equal to” in introductory provisions, designated remainder of existing provisions as subcl. (I), inserted “for a year preceding 2024,” before “the greater of—”, redesignated former subcls. (I) and (II) as items (aa) and (bb), respectively, of subcl. (I) and realigned margins, and added subcl. (II).
Pub. L. 117–169, § 11201(a)(3)(A)(ii)section 1395w–114(a)(1)(D)(iii) of this titleSubsec. (b)(4)(A)(ii). , substituted “clause (i)(I)(aa) shall be” for “clause (i)(I) shall be” and inserted at end “The Secretary shall continue to calculate the dollar amounts specified in clause (i)(I)(aa), including with the adjustment under this clause, after 2023 for purposes of .”
Pub. L. 117–169, § 11201(a)(3)(B)(i)(I)Subsec. (b)(4)(B)(i)(V). , struck out “or” at end.
Pub. L. 117–169, § 11201(a)(3)(B)(i)(II)Subsec. (b)(4)(B)(i)(VI). , substituted “for each of years 2021 through 2024” for “for a subsequent year” and semicolon for period at end.
Pub. L. 117–169, § 11201(a)(3)(B)(i)(III)Subsec. (b)(4)(B)(i)(VII), (VIII). , added subcls. (VII) and (VIII).
Pub. L. 117–169, § 11201(a)(3)(B)(ii)Subsec. (b)(4)(B)(ii). , substituted “clause (i)” for “clause (i)(II)”.
Pub. L. 117–169, § 11202(a)(2)(A)Subsec. (b)(4)(C). , substituted “subparagraph (E) or subparagraph (F)” for “subparagraph (E)” in introductory provisions.
Pub. L. 117–169, § 11201(a)(3)(C)(i)Subsec. (b)(4)(C)(i). , substituted “and, for a year preceding 2025, for amounts” for “and for amounts”.
Pub. L. 117–169, § 11201(a)(3)(C)(ii)Subsec. (b)(4)(C)(iii). , inserted dash after “if such costs” in introductory provisions, designated remainder of existing provisions as subcl. (I), redesignated former subcls. (I) to (IV) as items (aa) to (dd), respectively, of subcl. (I) and realigned margins, and added subcl. (II).
Pub. L. 117–169, § 11401(c)(2)section 1395w–115(h) of this titleSubsec. (b)(4)(C)(iii)(I)(dd). , added item (dd) referring to .
Pub. L. 117–169, § 11201(a)(3)(D)Subsec. (b)(4)(E). , substituted “For each of years 2011 through 2024, in applying” for “In applying”.
Pub. L. 117–169, § 11202(a)(2)(B)Subsec. (b)(4)(F). , added subpar. (F).
Pub. L. 117–169, § 11401(a)(1)(E)Subsec. (b)(8). , added par. (8).
Pub. L. 117–169, § 11406(a)(1)(E)Subsec. (b)(9). , added par. (9).
Pub. L. 117–169, § 11201(e)(1)(B)Subsec. (c)(1)(C). , struck out “at initial coverage limit” after “payment for costs” in heading and inserted “for a year preceding 2025 or the annual out-of-pocket threshold specified in subsection (b)(4)(B) for the year for 2025 and each subsequent year” after “subsection (b)(3) for the year” in introductory provisions and in cl. (i).
Pub. L. 117–169, § 11202(b)Subsec. (c)(4). , added par. (4).
Pub. L. 117–169, § 11401(a)(2)Subsec. (c)(5). , added par. (5).
Pub. L. 117–169, § 11406(a)(2)Subsec. (c)(6). , added par. (6).
Pub. L. 117–169, § 11201(e)(1)(C)Subsec. (d)(1)(A). , substituted “or, for a year preceding 2025, an initial” for “or an initial”.
Pub. L. 117–169, § 11001(b)(1)(D)(i)Subsec. (d)(1)(B). , inserted “, subject to subparagraph (D),” after “negotiated prices”.
Pub. L. 117–169, § 11001(b)(1)(D)(ii)Subsec. (d)(1)(D). , added subpar. (D).
Pub. L. 117–328Subsec. (e)(1)(C). added subpar. (C).
Pub. L. 115–123, § 53116(a)(1)section 1395w–114a(g)(4)(A) of this title2018—Subsec. (b)(2)(D)(i)(I). , amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “equal to the difference between the applicable gap percentage (specified in clause (ii) for the year) and the discount percentage specified in for such applicable drugs; or”.
Pub. L. 115–123, § 53116(a)(2)Subsec. (b)(2)(D)(ii)(V), (VI). , substituted “2019” for “2020” in subcl. (VI), redesignated subcl. (VI) as (V), and struck out former subcl. (V) which read as follows: “2019 is 80 percent; and”.
Pub. L. 111–152, § 1101(b)(3)(A)2010—Subsec. (b)(2)(A). , substituted “Subject to subparagraphs (C) and (D), the coverage” for “The coverage”.
Pub. L. 111–152, § 1101(b)(3)(B)Subsec. (b)(2)(B). , substituted “subparagraphs (A)(ii), (C), and (D)” for “subparagraph (A)(ii)”.
Pub. L. 111–152, § 1101(b)(3)(C)Subsec. (b)(2)(C), (D). , added subpars. (C) and (D).
Pub. L. 111–152, § 1101(b)(3)(D)Subsec. (b)(3)(A). , substituted “paragraphs (2)(C), (2)(D), and (4)” for “paragraph (4)”.
Pub. L. 111–148, § 3315(1)Pub. L. 111–152, § 1101(a)(2), which directed substitution of “paragraphs (4) and (7)” for “paragraph (4)” in introductory provisions, was repealed by . See Construction of 2010 Amendment note below.
Pub. L. 111–152, § 1101(d)(1)Subsec. (b)(4)(B)(i)(II) to (VI). , added subcls. (II) to (V) and redesignated former subcl. (II) as (VI).
Pub. L. 111–148, § 3314(a)section 1395w–114 of this titleSubsec. (b)(4)(C). , in cl. (ii), substituted “subject to clause (iii), such costs shall be treated as incurred only if” for “such costs shall be treated as incurred only if” and struck out “, under , or under a State Pharmaceutical Assistance Program” after “on behalf of the individual),”, and added cl. (iii).
Pub. L. 111–148, § 3301(c)(1)(A), substituted “Except as provided in subparagraph (E), in applying” for “In applying” in introductory provisions.
Pub. L. 111–152, § 1101(b)(3)(E)Subsec. (b)(4)(E). , inserted before period at end “, except that incurred costs shall not include the portion of the negotiated price that represents the reduction in coinsurance resulting from the application of paragraph (2)(D)”.
Pub. L. 111–148, § 3301(c)(1)(B), added subpar. (E).
Pub. L. 111–152, § 1101(d)(2)Subsec. (b)(7). , added par. (7).
Pub. L. 111–148, § 3315(2)Pub. L. 111–152, § 1101(a)(2), which directed addition of par. (7), was repealed by . As enacted, text read as follows:
In general“(A) .—For the plan year beginning on , the initial coverage limit described in paragraph (3)(B) otherwise applicable shall be increased by $500.
Application“(B) .—In applying subparagraph (A)—
“(i) except as otherwise provided in this subparagraph, there shall be no change in the premiums, bids, or any other parameters under this part or part C;
“(ii) costs that would be treated as incurred costs for purposes of applying paragraph (4) but for the application of subparagraph (A) shall continue to be treated as incurred costs;
“(iii) the Secretary shall establish procedures, which may include a reconciliation process, to fully reimburse PDP sponsors with respect to prescription drug plans and MA organizations with respect to MA–PD plans for the reduction in beneficiary cost sharing associated with the application of subparagraph (A);
“(iv) the Secretary shall develop an estimate of the additional increased costs attributable to the application of this paragraph for increased drug utilization and financing and administrative costs and shall use such estimate to adjust payments to PDP sponsors with respect to prescription drug plans under this part and MA organizations with respect to MA–PD plans under part C; and
“(v) the Secretary shall establish procedures for retroactive reimbursement of part D eligible individuals who are covered under such a plan for costs which are incurred before the date of initial implementation of subparagraph (A) and which would be reimbursed under such a plan if such implementation occurred as of .
No effect on subsequent years“(C) .—The increase under subparagraph (A) shall only apply with respect to the plan year beginning on , and the initial coverage limit for plan years beginning on or after , shall be determined as if subparagraph (A) had never applied.”
See Construction of 2010 Amendment note below.
Pub. L. 110–275, § 182(a)(1)(A)section 1396r–8(k)(6) of this title2008—Subsec. (e)(1). , substituted “(as defined in paragraph (4))” for “(as defined in )” in concluding provisions.
Pub. L. 110–275, § 175(a)Subsec. (e)(2)(A). , inserted “other than subparagraph (I) of such section (relating to barbiturates) if the barbiturate is used in the treatment of epilepsy, cancer, or a chronic mental health disorder, and other than subparagraph (J) of such section (relating to benzodiazepines),” after “agents),”.
Pub. L. 110–275, § 182(a)(1)(B)Subsec. (e)(4). , which directed amendment of subsec. (e)(1) in the matter following subpar. (B) by adding par. (4) at the end, was executed by adding par. (4) at end of subsec. (e), to reflect the probable intent of Congress.
Pub. L. 109–432section 262 of this title2006—Subsec. (e)(1). inserted “(and, for vaccines administered on or after , its administration)” after “” in concluding provisions.
Pub. L. 109–91, § 103(a)(2)2005—Subsec. (e)(2)(A). , inserted at end “Such term also does not include a drug when used for the treatment of sexual or erectile dysfunction, unless such drug were used to treat a condition, other than sexual or erectile dysfunction, for which the drug has been approved by the Food and Drug Administration.”
Pub. L. 109–91, § 103(a)(1), inserted before period at end “, as such sections were in effect on ”.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–148, title III, § 3301(c)(2)124 Stat. 468
Pub. L. 111–148, title III, § 3314(b)124 Stat. 479
Effective Date of 2008 Amendment
Pub. L. 110–275, title I, § 175(b)122 Stat. 2581
Pub. L. 110–275, title I, § 182(a)(2)122 Stat. 2583
Effective Date of 2005 Amendment
Pub. L. 109–91, title I, § 103(c)119 Stat. 2092
Construction of 2022 Amendment
Pub. L. 117–169, title I, § 11401(d)136 Stat. 1898
Construction of 2010 Amendment
Pub. L. 111–152, title I, § 1101(a)(2)124 Stat. 1037
Construction
Pub. L. 109–91, title I, § 103(b)119 Stat. 2092
Pub. L. 117–169Implementation of for Certain Years
Pub. L. 117–169, title I, § 11201(f)136 Stat. 1892
Pub. L. 117–169, title I, § 11202(c)136 Stat. 1895
Pub. L. 117–169, title I, § 11401(e)136 Stat. 1898
Pub. L. 117–169, title I, § 11406(d)136 Stat. 1904
Payment for Administration of Part D Vaccines in 2007
Pub. L. 109–432, div. B, title II, § 202(a)120 Stat. 2986