423.1—Basis and scope.
        
        (a) Basis.
        
        (1) 
         This part is based on the indicated provisions of the following sections of the Social Security Act:
    
    
         1106. Disclosure of Information in Possession of Agency.
    
    
         1860D-1. Eligibility, enrollment, and information.
    
    
         1860D-2. Prescription drug benefits.
    
    
         1860D-3. Access to a choice of qualified prescription drug coverage.
    
    
         1860D-4. Beneficiary protections for qualified prescription drug coverage.
    
    
         1860D-11. PDP regions; submission of bids; plan approval.
    
    
         1860D-12. Requirements for and contracts with prescription drug plan (PDP) sponsors.
    
    
         1860D-13. Premiums; late enrollment penalty.
    
    
         1860D-14. Premium and cost-sharing subsidies for low-income individuals.
    
    
         1860D-15. Subsidies for Part D eligible individuals for qualified prescription drug coverage.
    
    
         1860D-16. Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund.
    
    
         1860D-21. Application to Medicare Advantage program and related managed care programs.
    
    
         1860D-22. Special rules for Employer-Sponsored Programs
    
    
         1860D-23. State pharmaceutical assistance programs.
    
    
         1860D-24. Coordination requirements for plans providing prescription drug coverage.
    
    
         1860D-31. Medicare prescription drug discount card and transitional assistance program.
    
    
         1860D-41. Definitions; treatment of references to provisions in Part C.
    
    
         1860D-42. Miscellaneous provisions.
    
    
        
        (2) 
         The following specific sections of the Medicare Modernization Act also address the prescription drug benefit program:
    
    
         Sec. 102 Medicare Advantage conforming amendments.
    
    
         Sec. 103 Medicaid amendments.
    
    
         Sec. 104 Medigap.
    
    
         Sec. 109 Expanding the work of Medicare Quality Improvement Organizations to include Parts C and D.
    
    
        
        (b) Scope.
         This part establishes standards for beneficiary eligibility, access, benefits, protections, and low-income subsidies in Part D, as well as establishes standards and sets forth requirements, limitations, procedures and payments for organizations participating in the Voluntary Medicare Prescription Drug Program.
    
    [70 FR 4525, Jan. 28, 2005, as amended at 73 FR 30683, May 28, 2008]