---
kind: "section"
citation: "42 C.F.R. § 427.505"
title: "42"
number: "427.505"
heading: "Deadline and process for payment of rebate amount."
url: "https://uscodex.org/cfr/42/427.505"
---

# §427.505. Deadline and process for payment of rebate amount.

- (a) **Rebate amounts owed by a manufacturer.** For a rebate amount owed by a manufacturer, payment is due no later than 11:59 p.m. Pacific Time (PT) on the 30th calendar day after the date of receipt of information regarding the rebate amount on—
  - (1) A Rebate Report as set forth in [§ 427.501(c)](/cfr/42/427.501.md?p=c) or § [427.502(c)(1)](/cfr/42/427.502.md?p=c-1) or [(2)](/cfr/42/427.502.md?p=c-2); or
  - (2) A report of a reconciled rebate amount as set forth in [§ 427.501(d)](/cfr/42/427.501.md?p=d) or [§ 427.502(c)(2)(ii)](/cfr/42/427.502.md?p=c-2-ii).
- (b) **Failure to pay a rebate amount.** Failure to pay a rebate amount due timely and in full may result in an enforcement action as described in subpart G of this part.
- (c) **Refund to the manufacturer.** If a reconciled rebate amount for an applicable calendar quarter as set forth in [§ 427.501(d)](/cfr/42/427.501.md?p=d) or [§ 427.502(c)(2)(ii)](/cfr/42/427.502.md?p=c-2-ii) is less than what the manufacturer paid for that applicable calendar quarter, CMS will initiate the process to provide a refund equal to the excess amount paid within 60 days of the date of receipt of the report with such reconciled rebate amount.

## Notes

### Authority

Authority: 42 U.S.C. 1395w-3a(i), 1302, and 1395hh.

### Source

Source: 89 FR 98578, Dec. 9, 2024, unless otherwise noted.