§1395w–153 — Title 42 The Public Health and Welfare | U.S. Code

§1395w–153 Condition for coverage of drugs under this part

Title 42 › Chapter CHAPTER 7— - SOCIAL SECURITY › Subchapter SUBCHAPTER XVIII— - HEALTH INSURANCE FOR AGED AND DISABLED › Part Part D— - Voluntary Prescription Drug Benefit Program › Subpart subpart 5— - definitions and miscellaneous provisions › § 1395w–153

Last updated Apr 6, 2026|Official source

Summary

To have a manufacturer’s drugs paid for under Medicare Part D, the drug maker must join certain discount programs and sign agreements with the Secretary. For drugs dispensed from January 1, 2011 through December 31, 2024, the maker must take part in the Medicare coverage gap discount program and have the agreement described under section 1395w–114a. For drugs dispensed on or after January 1, 2025, the maker must take part in the manufacturer discount program and have the agreement described under section 1395w–114c. The maker must also have, under terms the Secretary sets, a contract with a third party that the Secretary has contracted with under subsection (d)(3) of section 1395w–114a. The Secretary may decide these rules do not apply if the drug is essential to beneficiaries’ health or under a separate Secretary determination that begins on January 1, 2011. Paragraph (1)(A) does not apply for any period described in section 5000D(c)(1) of the Internal Revenue Code of 1986 for that manufacturer. The term “manufacturer” has the meaning given in section 1395w–114a(g)(5).

Title 42, §1395w–153

The Public Health and Welfare — Source: USLM XML via OLRC

(a)In order for coverage to be available under this part for covered part D drugs (as defined in section 1395w–102(e) of this title) of a manufacturer, the manufacturer must—

(1)participate in—

(A)for 2011 through 2024, the Medicare coverage gap discount program under section 1395w–114a of this title; and

(B)for 2025 and each subsequent year, the manufacturer discount program under section 1395w–114c of this title;

(2)have entered into and have in effect—

(A)for 2011 through 2024, an agreement described in subsection (b) of section 1395w–114a of this title with the Secretary; and

(B)for 2025 and each subsequent year, an agreement described in subsection (b) of section 1395w–114c of this title with the Secretary; and

(3)have entered into and have in effect, under terms and conditions specified by the Secretary, a contract with a third party that the Secretary has entered into a contract with under subsection (d)(3) of section 1395w–114a of this title.

(b)Paragraphs (1)(A), (2)(A), and (3) of subsection (a) shall apply to covered part D drugs dispensed under this part on or after January 1, 2011, and before January 1, 2025, and paragraphs (1)(B) and (2)(B) of such subsection shall apply to covered part D drugs dispensed under this part on or after January 1, 2025.

(c)(1)Subject to paragraph (2), subsection (a) shall not apply to the dispensing of a covered part D drug if—

(A)the Secretary has made a determination that the availability of the drug is essential to the health of beneficiaries under this part; or

(B)the Secretary determines that in the period beginning on January 1, 2011, and 11 So in original. Probably should be followed by “ending on”. December 31, 2011, there were extenuating circumstances.

(2)Paragraph (1)(A) shall not apply to a covered part D drug of a manufacturer for any period described in section 5000D(c)(1) of the Internal Revenue Code of 1986 with respect to the manufacturer.

(d)In this section, the term “manufacturer” has the meaning given such term in section 1395w–114a(g)(5) of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 5000D(c)(1) of the Internal Revenue Code of 1986, referred to in subsec. (c)(2), is classified to section 5000D(c)(1) of Title 26, Internal Revenue Code.

Amendments

2022—Subsec. (a)(1). Pub. L. 117–169, § 11201(e)(7)(A)(i), added par. (1) and struck out former par. (1) which read as follows: “participate in the Medicare coverage gap discount program under section 1395w–114a of this title;”. Subsec. (a)(2). Pub. L. 117–169, § 11201(e)(7)(A)(ii), added par. (2) and struck out former par. (2) which read as follows: “have entered into and have in effect an agreement described in subsection (b) of such section with the Secretary; and”. Subsec. (a)(3). Pub. L. 117–169, § 11201(e)(7)(A)(iii), substituted “section 1395w–114a of this title” for “such section”. Subsec. (b). Pub. L. 117–169, § 11201(e)(7)(B), added subsec. (b) and struck out former subsec. (b). Prior to amendment, text read as follows: “Subsection (a) shall apply to covered part D drugs dispensed under this part on or after

January 1, 2011.” Subsec. (c). Pub. L. 117–169, § 11001(b)(1)(G)(i), designated existing provisions as par. (1) and inserted heading, substituted “Subject to paragraph (2), subsection” for “Subsection” in introductory provisions, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), and added par. (2). 2010—Subsec. (b). Pub. L. 111–152, § 1101(b)(1)(A), substituted “

January 1, 2011” for “

July 1, 2010”. Subsec. (c)(2). Pub. L. 111–152, § 1101(b)(1)(B), substituted “

January 1, 2011, and

December 31, 2011,” for “

July 1, 2010, and ending on

December 31, 2010,”.