Document

Statutory Updates to Branded Prescription Drug Fee Regulations

This document proposes amendments to regulations regarding the annual fee imposed on covered entities engaged in the business of manufacturing or importing certain branded presc...

<html>
<head>
<title>Federal Register, Volume 91 Issue 1 (Friday, January 2, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 1 (Friday, January 2, 2026)]
[Proposed Rules]
[Pages 93-97]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-24153]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 51

[REG-103430-24]
RIN 1545-BR16


Statutory Updates to Branded Prescription Drug Fee Regulations

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document proposes amendments to regulations regarding the 
annual fee imposed on covered entities engaged in the business of 
manufacturing or importing certain branded prescription drugs. In 
response to the replacement of the Coverage Gap Discount Program with 
the new Manufacturer Discount Program by the Inflation Reduction Act of 
2022, the proposed regulations would make updates regarding the 
discounts, rebates, and other price concessions used to determine 
branded prescription drug sales under Medicare Part D and would update 
for prior statutory changes. These proposed regulations would affect 
persons engaged in the business of manufacturing or importing certain 
branded prescription drugs.

DATES: Written or electronic comments and requests for a public hearing 
must be received by March 3, 2026. Requests for a public hearing must 
be submitted as prescribed in the ``Comments and Requests for a Public 
Hearing'' section.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically via the Federal eRulemaking Portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (indicate IRS and REG-103430-24) by following the 
online instructions for submitting comments. Once submitted to the 
Federal eRulemaking Portal, comments cannot be edited or withdrawn. The 
Department of the Treasury (Treasury Department) and the IRS will 
publish for public availability any comments submitted to the IRS's 
public docket. Send paper submissions to: CC:PA:01:PR (REG-103430-24), 
Room 5503, Internal Revenue Service, P.O. Box 7604, Ben Franklin 
Station, Washington, DC 20044. A plain language summary of the proposed 
regulations will be made available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
contact Julia Barlow at (202) 317-6855 (not a toll-free number); 
concerning the submission of comments and requests to participate in 
the public hearing, contact the Publications and Regulations Section by 
phone at (202) 317-6901 (not a toll-free number) or by email at 
<a href="/cdn-cgi/l/email-protection#d4a4a1b6b8bdb7bcb1b5a6bdbab3a794bda6a7fab3bba2"><span class="__cf_email__" data-cfemail="e39396818f8a808b8682918a8d8490a38a9190cd848c95">[email&#160;protected]</span></a> (preferred).

SUPPLEMENTARY INFORMATION:

Authority

    This document contains proposed amendments to the Branded 
Prescription Drug Fee Regulations (26 CFR part 51).
    The proposed regulations are issued under the express delegation of 
authority under section 9008(i) of the Patient Protection and 
Affordable Care Act, Public Law 111-148, 124 Stat. 119 (2010), as 
amended by section 1404 of the Health Care and Education Reconciliation 
Act of 2010, Public Law 111-152, 124 Stat. 1029 (2010). These acts are 
collectively referred to in this preamble as the ``ACA.'' All 
references in this preamble to ``section 9008'' are

[[Page 94]]

references to section 9008 of the ACA. Section 9008(i) provides that 
the Secretary of the Treasury or the Secretary's delegate (Secretary) 
``shall publish guidance necessary to carry out the purposes of 
[section 9008].''
    The proposed regulations are also issued under the express 
delegation of authority under section 7805(a) of the Internal Revenue 
Code (Code), which provides that the Secretary ``shall prescribe all 
needful rules and regulations for the enforcement of [the Code], 
including all rules and regulations as may be necessary by reason of 
any alteration of law in relation to internal revenue.''

Background

I. Overview

    The branded prescription drug fee was enacted by section 9008. 
Section 9008 did not amend the Code but cross-references specific Code 
sections.
    Under section 9008(a)(1), each covered entity engaged in the 
business of manufacturing or importing branded prescription drugs must 
pay an annual fee to the Secretary.
    Section 9008(b) provides rules for determining the amount of the 
annual fee for each covered entity. Specifically, section 9008(b)(1) 
provides that the annual fee for each covered entity for calendar years 
2019 and thereafter shall bear the same ratio to $2.8 billion as (i) 
the covered entity's branded prescription drug sales taken into account 
during the preceding calendar year to (ii) the aggregate branded 
prescription drug sales of all covered entities taken into account 
during the same year.
    Section 9008(d)(1) generally defines the term ``covered entity'' to 
mean any manufacturer or importer with gross receipts from branded 
prescription drug sales. Section 9008(e)(1) defines the term ``branded 
prescription drug sales'' to mean sales of branded prescription drugs 
to any specified government program or pursuant to coverage under such 
program. Section 9008(e)(2)(A) generally defines the term ``branded 
prescription drug'' to mean (i) any prescription drug the application 
for which was submitted under section 505(b) of the Federal Food, Drug, 
and Cosmetic Act (21 U.S.C. 355(b)), or (ii) any biological product the 
license for which was submitted under section 351(a) of the Public 
Health Service Act (42 U.S.C. 262(a)). Section 9008(e)(2)(B) defines 
the term ``prescription drug'' for purposes of section 9008(e)(2)(A)(i) 
to mean any drug which is subject to section 503(b) of the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 353(b)).
    Section 9008(e)(4) defines the term ``specified government 
programs'' as the Medicare Part D program, the Medicare Part B program, 
the Medicaid program, any program under which branded prescription 
drugs are procured by the Department of Veterans Affairs (VA), any 
program under which branded prescription drugs are procured by the 
Department of Defense (DOD), and the TRICARE retail pharmacy program, 
which are collectively referred to in this preamble as the 
``Programs.''
    Section 9008(g) requires the Secretary of Health and Human Services 
(Secretary of HHS), the Secretary of Veterans Affairs, and the 
Secretary of Defense to report to the Secretary the total branded 
prescription drug sales for each covered entity with respect to each 
specified government program. Section 9008(g)(1) specifies the 
information that the Secretary of HHS shall report for the Medicare 
Part D program. Section 9008(g)(1)(A) specifies that the costs of 
prescription drug plans and Medicare Advantage prescription drug plans 
reported by the Secretary of HHS is reduced by ``any per-unit rebate, 
discount, or other price concession provided by the covered entity.'' 
Section 9008(b)(3) requires the Secretary to use the data provided by 
the Programs to calculate the fee.
    The Branded Prescription Drug Fee Regulations (TD 9684, 79 FR 43631 
(July 28, 2014), as amended by TD 9823, 82 FR 34611 (July 26, 2017)), 
provide the method by which each covered entity's annual fee is 
calculated. The regulations also define terms and provide rules for the 
administration of the fee. See 26 CFR 51.1 through 51.11 and 51.6302.
    Section 51.2 explains the terms used in 26 CFR part 51 for purposes 
of the fee imposed by section 9008 on branded prescription drugs. 
Section 51.2(b) defines the term ``Agencies'' to mean the Centers for 
Medicare & Medicaid Services of the Department of Health and Human 
Services (CMS), the VA, and the DOD. Section 51.2(i) defines 
``manufacturer or importer'' as the person identified in the Labeler 
Code of the National Drug Code (NDC) for a branded prescription drug.
    Section 51.4 sets forth the methodologies that the Agencies are 
required to use to calculate the drug sales amount for each specified 
government program. Section 51.4(b)(1) requires CMS to determine 
branded prescription drug sales under Medicare Part D by aggregating 
the ingredient cost reported in the ``Ingredient Cost Paid'' field on 
the Prescription Drug Event (PDE) records at the NDC level, reduced by 
discounts, rebates, and other price concessions provided by the covered 
entity, for each sales year. Under Sec.  51.2(m), the term ``sales 
year'' means the second calendar year preceding the fee year.
    Section 51.4(b)(2) provides that for purposes of Sec.  51.4(b)(1), 
``discounts, rebates, and other price concessions'' means (A) any 
direct and indirect remuneration (DIR) (within the meaning of Sec.  
51.4(b)(2)(ii)), which includes any DIR reported on the PDE records at 
the point of sale and any DIR reported on a Detailed DIR Report (within 
the meaning of Sec.  51.4(b)(2)(iii)); and (B) any coverage gap 
discount amount (within the meaning of Sec.  51.4(b)(2)(iv)).
    Section 51.4(b)(2)(iv) provides that for purposes of Sec.  
51.4(b)(2)(i)(B), the term ``coverage gap discount amount'' means a 50-
percent manufactured-paid (sic) discount on certain drugs under the 
Coverage Gap Discount Program described in section 1860D-14A of the 
Social Security Act (SSA) (42 U.S.C. 1395w-114a). The Coverage Gap 
Discount Program described in section 1860D-14A of the SSA initially 
required a 50-percent manufacturer-paid discount on applicable drugs in 
certain instances. In section 53116(b) of the Bipartisan Budget Act of 
2018 (BBA), Public Law 115-123, 132 Stat 64 (February 9, 2018), 
Congress expanded the discount to 70 percent for plan years after plan 
year 2018. See 42 U.S.C. 1395w-114a(g)(4)(A).

II. Inflation Reduction Act of 2022 Changes to Medicare Part D 
Discounts

    Section 11201 of Public Law 117-169, 136 Stat. 1818 (August 16, 
2022), commonly known as the Inflation Reduction Act of 2022 (IRA), 
redesigned the Medicare Part D benefit, including sunsetting the 
Coverage Gap Discount Program described in section 1860D-14A of the SSA 
as of January 1, 2025. Section 11201(c)(1) of the IRA amended the SSA 
by adding section 1860D-14C (42 U.S.C. 1395w-114c) to establish the new 
Manufacturer Discount Program beginning January 1, 2025, which requires 
participating manufacturers to provide discounted prices for applicable 
drugs of the manufacturer that are dispensed to applicable 
beneficiaries who are in the initial and catastrophic coverage phases 
of the Part D benefit. Under section 1860D-43(a) of the SSA, in order 
for coverage to be available under Part D for covered Part D drugs of a 
manufacturer beginning January 1, 2025, the manufacturer must 
participate in the Manufacturer Discount Program by entering into and 
having in effect a Manufacturer Discount Program agreement under which 
the

[[Page 95]]

manufacturer agrees to provide discounted prices for applicable drugs 
of the manufacturer that are dispensed to applicable beneficiaries.
    Section 11201(c)(2) of the IRA amended section 1860D-14A of the SSA 
to sunset the Coverage Gap Discount Program for applicable drugs 
dispensed on or after January 1, 2025, but the provisions (including 
all responsibilities and duties) of the Coverage Gap Discount Program 
continue to apply with respect to applicable drugs dispensed before 
January 1, 2025.

Explanation of Provisions

    To reflect statutory changes made by the BBA, the proposed 
regulations would update the percentage discount amount for the 
Coverage Gap Discount Program to reflect the statutory change from a 50 
percent manufacturer-paid discount to a 70 percent manufacturer-paid 
discount (for plan years after plan year 2018). The proposed 
regulations would also correct ``manufactured-paid'' in the current 
Sec.  51.4(b)(2)(i)(B) to ``manufacturer-paid.'' To reflect statutory 
changes made by the IRA, the proposed regulations would add references 
to the Manufacturer Discount Program to the rules regarding the 
discounts, rebates, and other price concessions that CMS uses to 
determine branded prescription drug sales under Medicare Part D, for 
purposes of the Branded Prescription Drug Fee.
    The proposed regulations would not remove the Coverage Gap Discount 
Program from the rules regarding the discounts, rebates, and other 
price concessions because, due to the manner in which the fee is 
calculated, the discounts that the Coverage Gap Discount Program 
provides through December 31, 2024, may still be used to calculate the 
fee for sales that occurred while the Coverage Gap Discount Program was 
effective. Beginning in the 2027 fee year, it is expected that there 
will be no Coverage Gap Discount Program discounts to take into 
account.
    The Treasury Department and the IRS are considering whether to 
include a sunset for using the Coverage Gap Discount Program in the 
final regulations. The Treasury Department and the IRS request comments 
about whether the final regulations should include a sunset for using 
the Coverage Gap Discount Program for applicable drugs dispensed on or 
after January 1, 2025.

Proposed Applicability Date

    Because these regulations reflect statutory changes that took 
effect at the beginning of 2025, these regulations are proposed to 
apply to fees calculated based on sales years beginning with calendar 
year 2025, which will also be sales years ending on or after the date 
these proposed regulations are filed in the Federal Register.

Special Analyses

I. Regulatory Planning and Review--Economic Analysis

    Executive Orders 12866 and 13563 direct agencies to assess costs 
and benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). Executive Order 13563 
emphasizes the importance of quantifying both costs and benefits, 
reducing costs, harmonizing rules, and promoting flexibility.
    The proposed regulations have been designated by the Office of 
Management and Budget's (OMB's) Office of Information and Regulatory 
Affairs (OIRA) as subject to review under Executive Order 12866 
pursuant to the Memorandum of Agreement (MOA, July 4, 2025) between the 
Treasury Department and the OMB regarding review of tax regulations. 
OIRA has determined that the proposed rulemaking is significant and 
subject to review under Executive Order 12866 and section 1(b) of the 
Memorandum of Agreement. Accordingly, the proposed regulations have 
been reviewed by OMB.
A. Need for Regulation
    Section 9008 of the Patient Protection and Affordable Care Act, 
Public Law 111-148, 124 Stat. 119 (2010), as amended by section 1404 of 
the Health Care and Education Reconciliation Act of 2010, Public Law 
111-152, 124 Stat. 1029 (2010) (ACA) imposes an annual fee on covered 
entities engaged in the business of manufacturing or importing branded 
prescription drugs. The amount of the annual fee is set by statute. For 
calendar years 2019 and thereafter, the amount of the annual fee is 
$2.8 billion. See section 9008(b)(4). Each covered entity's share of 
the annual fee is calculated by determining the ratio of the covered 
entity's branded prescription drug sales taken into account during the 
preceding calendar year to the aggregate branded prescription drug 
sales of all covered entities taken into account during the same year. 
Under section 9008(e)(1), branded prescription drug sales are sales of 
branded prescription drugs to any specified government program or 
pursuant to coverage under such program. Section 9008(g) requires the 
Secretary of Health and Human Services (Secretary of HHS), the 
Secretary of Veterans Affairs, and the Secretary of Defense to report 
to the Secretary the total branded prescription drug sales for each 
covered entity with respect to each specified government program.
    Existing regulations in 26 CFR part 51 specify the method by which 
each covered entity's share of the annual fee is calculated. Section 
51.4(b)(1) specifies the method by which the Centers for Medicare & 
Medicaid Services of the Department of Health and Human Services (CMS) 
is required to determine branded prescription drug sales under Medicare 
Part D. Two subsequent statutes altered inputs that CMS uses to 
determine Medicare Part D sales for this purpose. First, the Bipartisan 
Budget Act of 2018 (BBA), Public Law 115-123, 132, Stat. 64 (February 
9, 2018), increased the Coverage Gap Discount Program manufacturer 
discount rate from 50 percent to 70 percent for plan years after 2018. 
Second, the Inflation Reduction Act of 2022 (IRA), Public Law 117-169, 
136 Stat. 1818 (August 16, 2022), sunsets the Coverage Gap Discount 
Program effective January 1, 2025, and establishes the Manufacturer 
Discount Program.
    The proposed regulations update existing regulations so that they 
are consistent with the statute and with how the covered entities have 
been calculating their share of the annual fee since enactment of the 
BBA and the IRA. The proposed regulations reflect the BBA's increase to 
a 70-percent manufacturer discount (as applicable) and add the IRA's 
Manufacturer Discount Program discounts to the list of reductions CMS 
uses when computing branded prescription drug sales under Medicare Part 
D. Because fees are calculated using sales from prior years, Coverage 
Gap Discount Program discounts provided through December 31, 2024, may 
still enter fee computations for several sales years. Beginning in the 
2027 fee year, no Coverage Gap Discount Program discounts are expected 
to be taken into account. The updates are necessary to align the 
regulations with statutory changes so that CMS-reported Medicare Part D 
sales accurately incorporate the discount programs in effect for the 
relevant sales years.
B. The Statute and the Proposed Regulations
    The proposed regulations update the existing regulations regarding 
the discounts, rebates, and other price

[[Page 96]]

concessions that CMS uses to determine branded prescription drug sales, 
to reflect changes made by the BBA and IRA and to reflect how covered 
entities are currently calculating their share of the fee. The proposed 
regulations add the Manufacturer Discount Program, which was 
established by the IRA, to the list of reductions that CMS uses to 
calculate branded prescription drug sales. The proposed regulations 
also update the percentage discount amount used for the Coverage Gap 
Discount Program to reflect the statutory change made by the BBA for 
plan years after plan year 2018.
C. Baseline
    The Treasury Department and the IRS have assessed the benefits and 
costs of the proposed regulations relative to a no-action baseline 
reflecting anticipated Federal income tax-related behavior in the 
absence of these proposed regulations.
D. Affected Entities and Taxpayers
    The Branded Prescription Drug Fee affects manufacturers and 
importers of branded prescription drugs with sales to specified 
government programs (Medicare Part D, Medicare Part B, Medicaid, 
Department of Veterans Affairs programs that procure branded 
prescription drugs, Department of Defense programs that procure branded 
prescription drugs, and TRICARE). Based on records from tax year 2024, 
the Treasury Department and the IRS estimate the fee impacts roughly 
300 affected entities. The proposed regulations apply to how other 
Federal agencies compile and transmit data, not to new reporting 
requirements for these affected entities.
E. Economic Effects of the Proposed Regulations
    The primary effect of the proposed regulations would be improved 
administrative alignment and clarity. Under the baseline, existing 
regulations would continue to reference only the Coverage Gap Discount 
Program and a 50-percent discount, which would not reflect post-2018 
discount levels or the post-2024 Medicare Part D discount program. That 
mismatch would increase uncertainty about how agency data should be 
compiled after changes made by the IRA and BBA. The proposal clarifies 
which Medicare Part D discounts reduce branded prescription drug sales 
for fee computations--ensuring the regulations mirror the BBA and IRA 
changes. Because the rule clarifies information-collection procedures 
that already occur at other Federal agencies, Treasury and IRS expect 
minimal impact on affected entity compliance costs since the covered 
entities are calculating fees according to the statute. Affected 
entities are expected to benefit from clearer rules that reduce policy 
uncertainty and the risk of disputes about discount treatment, but, in 
aggregate, Treasury and IRS expect these benefits to be small. The 
regulations will also improve administrative efficiency for CMS and the 
IRS through consistent data definitions across years. Minor one-time 
administrative costs incurred by CMS to reflect the updated 
Manufacturer Discount Program are already part of CMS's program 
implementation under the IRA and are not imposed by this regulation.
F. Alternatives Considered
    The Treasury Department and the IRS considered the alternative 
option of taking no action to update the existing regulations in 26 CFR 
part 51 to reflect the changes made by the IRA and BBA. This 
alternative would leave uncertainty as to how CMS data will be reported 
to the IRS for purposes of calculating each covered entity's share of 
the Branded Prescription Drug Fee. Therefore, the approach to issue 
proposed regulations to update the existing regulations to align with 
changes made by the IRA and BBA was selected over the alternative 
option of taking no action.

II. Paperwork Reduction Act

    This rulemaking does not contain a collection of information from 
the public, and therefore it is not required to be reviewed and 
approved by the Office of Management and Budget in accordance with the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)). An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a valid control number.

III. Regulatory Flexibility Act

    It is hereby certified that these regulations will not have a 
significant economic impact on a substantial number of small entities. 
These regulations do not affect small entities because they merely 
clarify procedures that already occur at another Federal agency. 
Affected entities exclude the first $5 million in sales and exclude 90 
percent of sales that are over $5 million and not more than $125 
million, which minimizes or completely eliminates any additional burden 
these proposed regulations might impose on small businesses. Entities 
engaged in pharmaceutical manufacturing or drug wholesaling with 
aggregate branded drug sales more than $5 million may benefit from 
clearer rules, but these impacts are not substantial. Entities with 
aggregate branded drug sales not more than $5 million will not be 
impacted.

IV. Section 7805(f) of the Code

    Pursuant to section 7805(f) of the Code, this notice of proposed 
rulemaking will be submitted to the Chief Counsel for the Office of 
Advocacy of the Small Business Administration for comment on its impact 
on small businesses.

V. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires that agencies assess anticipated costs and benefits and take 
certain other actions before issuing a final rule that includes any 
Federal mandate that may result in expenditures in any one year by a 
State, local, or Tribal government, in the aggregate, or by the private 
sector, of $100 million in 1995 dollars, updated annually for 
inflation. The final regulations do not include any Federal mandate 
that may result in expenditures by State, local, or Tribal governments, 
or by the private sector in excess of that threshold.

VI. Executive Order 13132: Federalism

    Executive Order 13132 (Federalism) prohibits an agency from 
publishing any rule that has federalism implications if the rule either 
imposes substantial, direct compliance costs on State and local 
governments, and is not required by statute, or preempts State law, 
unless the agency meets the consultation and funding requirements of 
section 6 of the Executive order. These proposed regulations do not 
have federalism implications and do not impose substantial direct 
compliance costs on State and local governments or preempt State law 
within the meaning of the Executive order.

Comments and Requests for a Public Hearing

    Before the proposed amendments to the regulations are adopted as 
final regulations, consideration will be given to comments that are 
submitted timely to the IRS as prescribed in the preamble under the 
ADDRESSES section. The Treasury Department and the IRS request comments 
on all aspects of the proposed regulations. All commenters are strongly 
encouraged to submit comments electronically. The Treasury Department 
and the IRS will publish for public availability any comment submitted 
electronically or on paper to

[[Page 97]]

its public docket on <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
    A public hearing will be scheduled if requested in writing by any 
person who timely submits electronic or written comments. Requests for 
a public hearing are encouraged to be made electronically. If a public 
hearing is scheduled, a notice of the date and time for the public 
hearing will be published in the Federal Register. Announcement 2023-
16, 2023-20 I.R.B. 854 (May 15, 2023), provides that public hearings 
will be conducted in person, although the IRS will continue to provide 
a telephonic option for individuals who wish to attend or testify at a 
hearing by telephone. Any telephonic hearing will be made accessible to 
people with disabilities.

Statement of Availability of IRS Documents

    Announcement 2023-16 is published in the Internal Revenue Bulletin 
and is available from the Superintendent of Documents, U.S. Government 
Publishing Office, Washington, DC 20402, or by visiting the IRS website 
at <a href="http://www.irs.gov">http://www.irs.gov</a>.

Drafting Information

    The principal author of these regulations is Julia Barlow of the 
Office of the Associate Chief Counsel (Energy, Credit, and Excise Tax). 
However, other personnel from the Treasury Department and the IRS 
participated in its development.

List of Subjects in 26 CFR Part 51

    Drugs, Reporting and recordkeeping requirements.

Proposed Amendment to the Regulations

    Accordingly, the Treasury Department and the IRS propose to amend 
26 CFR part 51 as follows:

PART 51--BRANDED PRESCRIPTION DRUG FEE

0
Paragraph 1. The authority citation for part 51 is amended by revising 
the general authority to read as follows:

    Authority: 26 U.S.C. 7805(a); sec. 9008(i), Pub. L. 111-148, 124 
Stat. 119.
* * * * *
0
Par. 2. Section 51.4 is amended by:
0
1. Removing the word ``and'' at the end of paragraph (b)(2)(i)(A);
0
2. Removing the period at the end of paragraph (b)(2)(i)(B);
0
3. Adding the language ``; and'' at the end of paragraph (b)(2)(i)(B);
0
4. Adding paragraph (b)(2)(i)(C);
0
5. In paragraph (b)(2)(iv), by removing the word ``manufactured-paid'' 
and adding the word ``manufacturer-paid'' in its place, and adding the 
language ``or 70-percent (as applicable)'' after the language ``50-
percent''; and
0
6. Adding paragraph (b)(2)(v).
    The additions read as follows:


Sec.  51.4  Information provided by the agencies.

* * * * *
    (b) * * *
    (2) * * *
    (i) * * *
    (C) Any manufacturer discount program discount (within the meaning 
of paragraph (b)(2)(v) of this section).
* * * * *
    (v) Manufacturer discount program discount. For purposes of 
paragraph (b)(2)(i)(C) of this section, the term manufacturer discount 
program discount means a manufacturer-paid discount on certain drugs 
under the Manufacturer Discount Program described in section 1860D-14C 
of the Social Security Act.
* * * * *
0
Par. 3. Section 51.11 is amended by revising the section heading and 
adding paragraph (c) to read as follows:


Sec.  51.11  Applicability dates.

* * * * *
    (c) Section 51.4(b)(2)(i)(C) and (b)(2)(v) apply for fees 
calculated based on sales years beginning on and after January 1, 2025.

Frank J. Bisignano,
Chief Executive Officer.
[FR Doc. 2025-24153 Filed 12-31-25; 8:45 am]
BILLING CODE 4831-GV-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>

Legal Citation

Federal Register Citation

Use this for formal legal and research references to the published document.

91 FR 93

Web Citation

Suggested Web Citation

Use this when citing the archival web version of the document.

“Statutory Updates to Branded Prescription Drug Fee Regulations,” thefederalregister.org (January 2, 2026), https://thefederalregister.org/documents/2025-24153/statutory-updates-to-branded-prescription-drug-fee-regulations.