Relevant to: Pharmaceutical Manufacturers; All Part D Plan Sponsors
This memorandum provides pharmaceutical manufacturers and Part D plan sponsors with important information about the Medicare Part D Manufacturer Discount Program (Discount Program) that begins on January 1, 2025. CMS is implementing the Discount Program, codified in sections 1860D-14C and 1860D-43 of the Social Security Act (the Act), under the program instruction authority in section 11201(f) of the Inflation Reduction Act of 2022 (P.L. 117-169) (IRA). On November 17, 2023, through Health Plan Management System (HPMS) memoranda, CMS released the “Medicare Part D Manufacturer Discount Program Final Guidance” (Final Guidance) and the “Medicare Part D Manufacturer Discount Program: Methodology for Identifying Specified Manufacturers and Specified Small Manufacturers” (Methodology).