# 42 CFR § 447.508: Exclusion from best price of certain sales at a nominal price

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-42-447.508

## Section

- **Citation:** 42 CFR § 447.508
- **Heading:** Exclusion from best price of certain sales at a nominal price
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 42—Public Health > CHAPTER IV—CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES > SUBCHAPTER C—MEDICAL ASSISTANCE PROGRAMS > PART 447—PAYMENTS FOR SERVICES > Subpart I—Payment for Drugs

## Text

(a) Exclusion from best price. Sales of covered outpatient drugs by a manufacturer at nominal prices are excluded from best price when purchased by the following entities:
(1) A covered entity as described in section 340B(a)(4) of the PHSA.
(2) An ICF/IID providing services as set forth in § 440.150 of this chapter.
(3) A State-owned or operated nursing facility providing services as set forth in § 440.155 of this chapter.
(4) A public or non-profit entity, or an entity based at an institution of higher learning whose primary purpose is to provide health care services to students of that institution, that provides family planning services described under section of 1001(a) of PHSA, 42 U.S.C. 300.
(5) An entity that:
(i) Is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of that Act or is State-owned or operated; and
(ii) Is providing the same services to the same type of population as a covered entity described in section 340B(a)(4) of the PHSA but does not receive funding under a provision of law referred to in such section.
(b) Nonapplication. This restriction does not apply to sales by a manufacturer of covered outpatient drugs that are sold under a master agreement under 38 U.S.C. 8126.
(c) Rule of construction. Nothing in this section is construed to alter any existing statutory or regulatory prohibition on services for an entity described paragraph (a)(5) of this section, including the prohibition set forth in section 1008 of the PHSA.

## Nearby sections

- [42 CFR § 447.1 § 447.1 Purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.1.md)
- [42 CFR § 447.10 § 447.10 Prohibition against reassignment of provider claims.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.10.md)
- [42 CFR § 447.15 § 447.15 Acceptance of State payment as payment in full.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.15.md)
- [42 CFR § 447.20 § 447.20 Provider restrictions: State plan requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.20.md)
- [42 CFR § 447.21 § 447.21 Reduction of payments to providers.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.21.md)
- [42 CFR § 447.25 § 447.25 Direct payments to certain beneficiaries for physicians' or dentists' services.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.25.md)
- [42 CFR § 447.26 § 447.26 Prohibition on payment for provider-preventable conditions.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.26.md)
- [42 CFR § 447.30 § 447.30 Withholding the Federal share of payments to Medicaid providers to recover Medicare overpayments.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.30.md)
- [42 CFR § 447.31 § 447.31 Withholding Medicare payments to recover Medicaid overpayments.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.31.md)
- [42 CFR § 447.40 § 447.40 Payments for reserving beds in institutions.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.40.md)
- [42 CFR § 447.45 § 447.45 Timely claims payment.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.45.md)
- [42 CFR § 447.46 § 447.46 Timely claims payment by MCOs.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.46.md)
- [42 CFR § 447.200 § 447.200 Basis and purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.200.md)
- [42 CFR § 447.201 § 447.201 State plan requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-42-447.201.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-42-447.508. Check the current official text before relying on it. Not legal advice.