42 CFR § 427.505 - Deadline and process for payment of rebate amount.

---
identifier: "/us/cfr/t42/s427.505"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 427.505 - Deadline and process for payment of rebate amount."
title_number: 42
title_name: "Public Health"
section_number: "427.505"
section_name: "Deadline and process for payment of rebate amount."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "MEDICARE PROGRAM"
part_number: "427"
part_name: "MEDICARE PART B DRUG INFLATION REBATE PROGRAM"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1395w-3a(i), 1302, and 1395hh."
regulatory_source: "89 FR 98578, Dec. 9, 2024, unless otherwise noted."
cfr_part: "427"
---


# 427.505 Deadline and process for payment of rebate amount.

(a) *Rebate amounts owed by a manufacturer.* For a rebate amount owed by a manufacturer, payment is due no later than 11:59 p.m. Pacific Time (PT) on the 30th calendar day after the date of receipt of information regarding the rebate amount on—

(1) A Rebate Report as set forth in § 427.501(c) or § 427.502(c)(1) or (2); or

(2) A report of a reconciled rebate amount as set forth in § 427.501(d) or § 427.502(c)(2)(ii).

(b) *Failure to pay a rebate amount.* Failure to pay a rebate amount due timely and in full may result in an enforcement action as described in subpart G of this part.

(c) *Refund to the manufacturer.* If a reconciled rebate amount for an applicable calendar quarter as set forth in § 427.501(d) or § 427.502(c)(2)(ii) is less than what the manufacturer paid for that applicable calendar quarter, CMS will initiate the process to provide a refund equal to the excess amount paid within 60 days of the date of receipt of the report with such reconciled rebate amount.