# 42 C.F.R. § 447.500 (2026): Basis and purpose

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_500

## Section

- **Citation:** 42 C.F.R. § 447.500 (2026)
- **Heading:** Basis and purpose
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 42 CFR: Public Health / Chapter IV: CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES / Part 447: PAYMENTS FOR SERVICES / Subpart I: Payment for Drugs / § 447.500: § 447.500   Basis and purpose.

## Text

(a)
Basis.
This subpart:
(1) Interprets those provisions of section 1927 of the Act that set forth requirements for drug manufacturers' calculating and reporting average manufacturer prices (AMPs) and best prices and that set upper payment limits for covered outpatient drugs.
(2) Implements section 1903(i)(10) of the Act with regard to the denial of Federal financial participation (FFP) in expenditures for certain physician-administered drugs.
(3) Implements section 1902(a)(54) of the Act with regard to a State plan that provides covered outpatient drugs.
(4) Implements section 1903(m)(2)(A)(xiii) of the Act, in part, and section 1927(b) of the Act with regard to rebates for covered outpatient drugs dispensed to individuals eligible for medical assistance who are enrolled in Medicaid managed care organizations (MCOs).
(5) Implements section 1902(a)(30)(A) of the Act with regard to the efficiency, economy, and quality of care in the context of payments for covered outpatient drugs.
(b)
Purpose.
This subpart specifies certain requirements in the Social Security Act, including changes from the Affordable Care Act and other requirements pertaining to Medicaid payment for drugs.

## Nearby sections

- [42 C.F.R. § 447.500 (2026) § 447.500   Basis and purpose.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_500.md)
- [42 C.F.R. § 447.502 (2026) § 447.502   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_502.md)
- [42 C.F.R. § 447.504 (2026) § 447.504   Determination of average manufacturer price.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_504.md)
- [42 C.F.R. § 447.505 (2026) § 447.505   Determination of best price.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_505.md)
- [42 C.F.R. § 447.506 (2026) § 447.506   Authorized generic drugs.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_506.md)
- [42 C.F.R. § 447.507 (2026) § 447.507   Identification of inhalation, infusion, instilled, implanted, or injectable drugs (5i drugs).](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_507.md)
- [42 C.F.R. § 447.508 (2026) § 447.508   Exclusion from best price of certain sales at a nominal price.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_508.md)
- [42 C.F.R. § 447.509 (2026) § 447.509   Medicaid drug rebates (MDR).](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_509.md)
- [42 C.F.R. § 447.510 (2026) § 447.510   Requirement and penalties for manufacturers.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_510.md)
- [42 C.F.R. § 447.511 (2026) § 447.511   Requirements for States.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_511.md)
- [42 C.F.R. § 447.512 (2026) § 447.512   Drugs: Aggregate upper limits of payment.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_512.md)
- [42 C.F.R. § 447.514 (2026) § 447.514   Upper limits for multiple source drugs.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_514.md)
- [42 C.F.R. § 447.516 (2026) § 447.516   Upper limits for drugs furnished as part of services.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_516.md)
- [42 C.F.R. § 447.518 (2026) § 447.518   State plan requirements, findings, and assurances.](https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_518.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T42_P447_S447_500. Check the current official text before relying on it. Not legal advice.