The IRA requires CMS to establish a new Part D manufacturer discount program beginning on January 1, 2025 as part of the redesign of Part D.
CMS is committed to engaging our partners and the communities we serve throughout the policymaking and implementation process. The implementation of the Inflation Reduction Act includes many opportunities for public engagement and comment on issues related to the law.
Part D Redesign Elements – Manufacturer Discount Program
The IRA requires CMS to establish a new Part D manufacturer discount program beginning on January 1, 2025 as part of the redesign of Part D. In May, CMS released draft guidance for comment that proposed to largely align the new policy and agreements with those already in place for the existing Coverage Gap Discount Program, which sunsets on December 31, 2024.
Today, CMS released the final guidance for the new Manufacturer Discount Program. This memo provides final program guidance to drug companies and Part D plan sponsors for implementing the new Medicare Part D Manufacturer Discount Program that begins on January 1, 2025. CMS received comment letters from health plans, drug companies, pharmacies, pharmacy benefit managers (PBMs), and trade associations. This memo includes a summary of public comments received on the draft guidance and CMS responses and establishes final policies for 2025 and 2026. CMS may supplement this guidance with further program instruction as necessary to implement the program for 2025 and 2026.