---
kind: "section"
citation: "42 C.F.R. § 423.2744"
title: "42"
number: "423.2744"
heading: "Prospective payments to Part D sponsors."
url: "https://uscodex.org/cfr/42/423.2744"
---

# §423.2744. Prospective payments to Part D sponsors.

- (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)](/cfr/42/423.2736.md?p=a) and reimburse network pharmacies as specified in [§ 423.2736(c)](/cfr/42/423.2736.md?p=c).
- (b) **Exception.** CMS will not provide prospective Manufacturer Discount Program payments to employer group waiver plans.
- (c) **Reconciliation.** CMS will reconcile prospective Manufacturer Discount Program payments in accordance with subpart G of this part.
- (d) **Manufacturer bankruptcy.** In the event that an agreement holder declares bankruptcy, as described in [title 11](/cfr/11.md) of the United States Code, and as a result of such bankruptcy does not pay the invoiced amounts described in [§ 423.2756(a)](/cfr/42/423.2756.md?p=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.

## Notes

### Source

Source: 91 FR 17594, Apr. 6, 2026, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302, 1306, 1395w-101 through 1395w-152, and 1395hh.

### Source

Source: 70 FR 4525, Jan. 28, 2005, unless otherwise noted.