Defined
(a) Defined. For purposes of the Manufacturer Discount Program, applicable discount means, subject to the requirements of this section, with respect to an applicable drug of a manufacturer dispensed during a year to an applicable beneficiary who has (1) Not incurred costs, as defined at 423.100, for covered Part D drugs (as defined at 423.100) in the year that are equal to or exceed the annual out-of-pocket threshold specified at 423.104(d)(5)(iii) for the year, 10 percent of the negotiated price of such drug; and (2) Incurred costs, as defined in 423.100, for covered Part D drugs (as defined at 423.100) in the year that are equal to or exceed the annual out-of-pocket threshold specified at 423.104(d)(5)(iii) for the year, 20 percent of the negotiated price of such drug.