Discarded Drugs

Discarded Drugs
Notice:
Announcement

CMS sent discarded drug refund reports for CY 2023 “new refund quarters” (as defined at 42 CFR § 414.902) in December of 2024. These funds were deposited into the Supplementary Medical Insurance (SMI) Trust Fund, as required by law. The total refunds owed for new calendar quarters in 2023 amounts to over $139 million. The billing and payment codes for which a manufacturer (or manufacturers) paid a refund, and the amount of refund paid for all 2023 new refund quarters, are listed in the Previous Years’ Discarded Drug Refund Information - CY 2023 New Refund Quarters. 

Introduction

Discarded Drug Refund

Generally, when a separately payable drug from a single-dose container or single-use package is administered to an individual enrolled in Medicare Part B, Medicare pays the provider or facility for both administered and discarded amounts of the drug, up to the full labeled amount of the product. Section 90004 of the IIJA (Pub. L. 117–58, November 15, 2021) amended section 1847A of the Social Security Act (the Act) by adding provisions that require manufacturers to provide a refund to CMS for certain discarded amounts from a single-dose container or single-use package drug. Generally, the refund amount is the amount of payment for discarded amounts of a refundable drug (described below) that exceeds an applicable percentage, which is required to be at least 10 percent of total charges for the drug in a given calendar quarter. For specific calculations for new refund quarters and updated refund quarters, refer to 42 CFR § 414.940(c).

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Page Last Modified:
04/03/2025 10:56 AM