A sponsor must pass disgorged money to the Secretary and seek reimbursement
What the document says“disgorge to the Secretary any amounts disgorged to the PDP sponsor by a pharmacy benefit manager under paragraph (1)(A)(v);”
Each sponsor must hand to the Secretary any amounts a manager handed to it, must require in a written agreement that the manager or affiliate reimburse the sponsor for any civil money penalty imposed because the manager failed to meet the requirements, and must require that the manager or affiliate be subject to punitive remedies for breach of contract for such a failure.
What the document actually says“disgorge to the Secretary any amounts disgorged to the PDP sponsor by a pharmacy benefit manager under paragraph (1)(A)(v);”
Money the middleman hands to the plan must then go to the health chief. The plan does not keep it.
The plan must also make the middleman repay any fine the plan takes for the middleman's fault. The deal must carry that promise.
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