Coverage Gap Discount Program (CGDP)
The CGDP, created as part of the Affordable Care Act (ACA) in 2010, makes Drug Manufacturer discounts available at point-of-sale (POS) for applicable Part D drugs for Medicare beneficiaries in the coverage gap.
These discounts are provided by Part D Sponsors and discounted payments are due between the Drug Manufacturers and Part D Sponsors with a quarterly invoice process, facilitated by the TPA.
Discarded Drug Program (DDP)
The Discarded Drug Program, created in response to Section 90004 of the Infrastructure Investment and Jobs Act (Pub. L. 117-58, November 15, 2021) which amended section 1847A of the Social Security Act, requires manufacturers to provide a refund to CMS for certain discarded amounts from a single dose container or single-use package drug.
CMS will issue annual reports, with the TPA facilitating the report publishing and payment processes for refund amounts due.
Manufacturer Discount Program (MDP)
The MDP, created as part of the Inflation Reduction Act (IRA) of 2022, requires drug manufacturers to pay discounts on certain brand-name drugs, biologics, and biosimilars in the initial coverage and catastrophic phase of the Medicare prescription drug benefit.
Starting in 2025, the MDP will replace the existing CGDP, with the TPA facilitating the invoice process for manufacturer discount amounts due between Drug Manufacturers and Part D Sponsors.