{"data":{"id":"us/42-cfr-423.2744","jurisdiction":"us","citation":"42 CFR 423.2744","heading":"Prospective payments to Part D sponsors.","body":"(a) General rule. CMS will provide monthly prospective Manufacturer Discount Program payments to Part D sponsors for sponsors to advance manufacturer discounts as specified in § 423.2736(a) and reimburse network pharmacies as specified in § 423.2736(c).\n(b) Exception. CMS will not provide prospective Manufacturer Discount Program payments to employer group waiver plans.\n(c) Reconciliation. CMS will reconcile prospective Manufacturer Discount Program payments in accordance with subpart G of this part.\n(d) Manufacturer bankruptcy. In the event that an agreement holder declares bankruptcy, as described in title 11 of the United States Code, and as a result of such bankruptcy does not pay the invoiced amounts described in § 423.2756(a), CMS will adjust the Manufacturer Discount Program reconciliation amount for affected Part D sponsors to account for the invoiced amounts owed for the contract year being reconciled. The Government reserves the right to file a proof-of-claim and take any other action under bankruptcy law, as appropriate, to attempt to recover such unpaid amounts and any civil money penalties imposed by CMS under this part.","path":["Title 42—Public Health","CHAPTER IV—CENTERS FOR MEDICARE \u0026 MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES","SUBCHAPTER B—MEDICARE PROGRAM","PART 423—VOLUNTARY MEDICARE PRESCRIPTION DRUG BENEFIT","Subpart AA—Medicare Part D Manufacturer Discount Program"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-42.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:11Z","sha256":"9186d3d7ed6528a9c28387dd8269a2a3d2a2ba7d4bea9f9b351f651cacf0fea8","source_id":"us-cfr","stale":true,"prev":"us/42-cfr-423.2740","next":"us/42-cfr-423.2748"},"notice":"GroundRules: Original legal text. Not legal advice."}