Updates Medicare Part D rules so that certain orally administered drugs do not have to provide the manufacturer discount. To qualify for this exclusion, a drug must be FDA‑approved under a standard new drug application and must have been granted a narrow CMS exception to be treated as a noninnovator multiple source drug under the Medicaid drug rebate program.

This is a targeted change aligning how some oral drugs are treated across Medicare and Medicaid. It could reduce required discounts from manufacturers on a small set of drugs and may slightly shift costs among drugmakers, Part D plans, and some beneficiaries.