Medicare Prescription Drug Coverage

(Medicare Part D)
CFDA 93.770 Active Cooperative Agreement
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$200.55B FY2026
$120.64B
FY24
$158.21B
FY25
$200.55B
FY26*
* estimated

Program Objective

To provide prescription drugs to Medicare beneficiaries through their voluntary participation in prescription drug plans, with an additional subsidy provided to lower-income beneficiaries.

Eligibility

Eligible Applicants

  • State

An entity organized and licensed under State law as a risk-bearing entity eligible to offer health insurance in each State in which it is to offer a plan, meeting the requirements in 42 CFR 423.504 and 42 CFR 423.505. The entity may offer prescription drug coverage in conjunction with a Medicare Advantage plan or as a separate standalone benefit.

How to Apply

Award Procedure

Payment will be made by CMS to the prescription drug plan sponsors.

Up to six months for plan sponsors.

Program details & compliance

Description

To provide prescription drugs to Medicare beneficiaries through their voluntary participation in prescription drug plans, with an additional subsidy provided to lower-income beneficiaries.

Mission Categories

Primary: General Health and Medical

Use of Funds

Allowed Uses

Payments will be made to participating prescription drug plans.

Reporting & Compliance

Audit Required
Yes — Determined at Time of Award
Records Retention
3 years

Contacts

Tiffany Walker — Budget Analyst
4107864724
7500 Security Boulevard, Baltimore, MD 21244
Data from SAM.gov Federal Assistance Listings. Source published: 2026-01-09. Spec v2.0. Last synced: 2026-05-30 02:34:57.