---
kind: "section"
citation: "42 U.S.C. § 1395w–114d"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1395w–114d"
heading: "Selected drug subsidy program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1395w-114d"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter XVIII — Health Insurance for Aged and Disabled"
  - "Part D — Voluntary Prescription Drug Benefit Program"
  - "Subpart 2 — prescription drug plans; pdp sponsors; financing"
---

# §1395w–114d. Selected drug subsidy program


With respect to [covered part D drugs](/usc/42/1395w–151.md?p=a-2) that would be applicable [drugs](/usc/42/11851.md?p=4) (as defined in [section 1395w–114c(g)(2) of this title](/usc/42/1395w–114c.md?p=g-2)) but for the application of [subparagraph (B)](/usc/42/1395w–114c.md?p=g-2-B) of such section, the [Secretary](/usc/42/1301.md?p=a-6) shall provide a process whereby, in the case of an applicable beneficiary (as defined in [section 1395w–114c(g)(1) of this title](/usc/42/1395w–114c.md?p=g-1)) who, with respect to a year, is enrolled in a [prescription drug plan](/usc/42/1395w–151.md?p=a-14) or is enrolled in an [MA–PD plan](/usc/42/1395w–151.md?p=a-9), has not incurred costs that are equal to or exceed the annual out-of-pocket threshold specified in [section 1395w–102(b)(4)(B)(i) of this title](/usc/42/1395w–102.md?p=b-4-B-i), and is dispensed such a [drug](/usc/42/11851.md?p=4), the [Secretary](/usc/42/1301.md?p=a-6) (periodically and on a timely basis) provides the [PDP sponsor](/usc/42/1395w–151.md?p=a-13) or the MA organization offering the plan, a subsidy with respect to such [drug](/usc/42/11851.md?p=4) that is equal to 10 percent of the negotiated price (as defined in [section 1395w–114c(g)(6) of this title](/usc/42/1395w–114c.md?p=g-6)) of such [drug](/usc/42/11851.md?p=4).


## Source credit

(Aug. 14, 1935, ch. 531, title XVIII, § 1860D–14D, as added Pub. L. 117–169, title I, § 11201(c)(1), Aug. 16, 2022, 136 Stat. 1888.)