Section 423.154 - Appropriate dispensing of prescription drugs in long-term care facilities under PDPs and MA-PD plans(a)In general. Except as provided in paragraph (b) of this section, when dispensing covered Part D drugs to enrollees who reside in long-term care facilities, a Part D sponsor must-(1) Require all pharmacies servicing long-term care facilities, as defined in § 423.100 to- (i) Dispense solid oral doses of brand-name drugs, as defined in § 423.4 , to enrollees in such facilities in no greater than 14-day increments at a time;(ii) Permit the use of uniform dispensing techniques for Part D drugs dispensed to enrollees in long-term care facilities under paragraph (a)(1)(i) of this section as defined by each of the long-term care facilities in which such enrollees reside; and(2) Not penalize long-term care facilities' choice of more efficient uniform dispensing techniques described in paragraph (a)(1)(ii) of this section by prorating dispensing fees based on days' supply or quantity dispensed.(3) Ensure that any difference in payment methodology among long-term care pharmacies incentivizes more efficient dispensing techniques.(4) Collect and report information, in a form and manner specified by CMS, on the dispensing methodology used for each dispensing event described by paragraph (a)(1) of this section.(b)Exclusions. CMS excludes from the requirements under paragraph (a) of this section-(1) Solid oral doses of antibiotics; or(2) Solid oral doses that are dispensed in their original container as indicated in the Food and Drug Administration Prescribing Information or are customarily dispensed in their original packaging to assist patients with compliance (for example, oral contraceptives).(c)Waivers. CMS waives the requirements under paragraph (a) of this section, except paragraphs (a)(2) and (3) o this section, for pharmacies when they service intermediate care facilities for individuals with intellectual disabilities (ICFs/IID) and institutes for mental disease (IMDs) as defined in § 435.1010 and for I/T/U pharmacies (as defined in § 423.100 ).(d)Applicability date. The applicability date for this section is January 1, 2013. Nothing precludes a Part D sponsor and pharmacy from mutually agreeing to an earlier implementation date.(e)Unused drugs returned to the pharmacy. The terms and conditions that must be offered by a Part D sponsor under § 423.120(a)(5) must include provisions that address the disposal of drugs that have been dispensed to an enrollee in a long-term care facility but not used and which have been returned to the pharmacy, in accordance with Federal and State regulations, as well as whether return for credit and reuse is authorized where permitted under State law. 76 FR 21573 , Apr. 15, 2011, as amended at 80 FR 7963 , Feb. 12, 2015; 88 FR 22337 , Apr. 12, 2023