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The rebate amount may be reduced in accordance with subpart E of this part or adjusted in accordance with subpart F of this part
If the manufacturer submits a complete and timely extension request, and CMS determines that the information submitted warrants an extension of the rebate reduction, the total rebate amount would be reduced by 75 percent for a second consecutive applicable period for that manufacturer's generic Part D rebatable drug in accordance with proposed 428.303(b)(2)
This allows the ACO to calculate the total amount of funding they are permitted to spend on each allowable use at the start of each performance year
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