---
kind: "section"
citation: "42 C.F.R. § 423.894"
title: "42"
number: "423.894"
heading: "Construction."
url: "https://uscodex.org/cfr/42/423.894"
---

# §423.894. Construction.


Nothing in this part must be interpreted as prohibiting or restricting:

- (a) A Part D eligible individual who is covered under employment-based retiree health coverage, including a qualified retiree prescription drug plan, from enrolling in a Part D plan;
- (b) A sponsor or other person from paying all or any part of the monthly beneficiary premium (as defined in [§ 423.286](/cfr/42/423.286.md)) for a Part D plan on behalf of a retiree (or his or her spouse or dependents);
- (c) A sponsor from providing coverage to Part D eligible individuals under employment-based retiree health coverage that is—
  - (1) Supplemental to the benefits provided under a Part D plan; or
  - (2) Of higher actuarial value than the actuarial value of standard prescription drug coverage (as defined in [§ 423.104(d)](/cfr/42/423.104.md?p=d)); or
- (d) Sponsors from providing for flexibility in the benefit design and pharmacy network for their qualified retiree prescription drug coverage, without regard to the requirements applicable to Part D plans under [§ 423.104](/cfr/42/423.104.md), as long as the requirements under [§ 423.884](/cfr/42/423.884.md) are met.

## Notes

### 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.