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PBM Transactions

PBM Transactions. Medicaid DRA Rule Proposed Rule AMP includes “Discounts, rebates or other price concessions to PBMs associated with sales for drugs provided to the retail pharmacy class of trade.”

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PBM Transactions

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  1. PBM Transactions • Medicaid DRA Rule • Proposed Rule • AMP includes “Discounts, rebates or other price concessions to PBMs associated with sales for drugs provided to the retail pharmacy class of trade.” • Best Price includes “Prices to any retailer, including PBM rebates, discounts, or other price concessions that adjust prices either directly or indirectly on sale of drugs.”

  2. PBM Transactions • CMS Response to Comments in the final rule: • “the administrative burden for manufacturers to gather confidential information from PBMs and others in the drug chain…is significant.” • “Manufacturers do not have to collect rebate data with respect to [PBM] transactions between such downstream entities.”

  3. PBM Transactions • Final Rule • AMP excludes “Discounts, rebates, or other price concessions to PBMs, except for their mail order pharmacy’s purchases.” • Best price excludes “PBM rebates, discounts or other price concessions except their mail order pharmacy’s purchases or where such rebates, discounts or other price concessions are designed to adjust prices at the retail or provider level.” • $64,000 question: What does “designed” mean? • Potential liability in connection with Best Price reporting.

  4. Part D Transparency • Part D transparency includes • Retail price of drugs on Plan Finder • Cost to beneficiary based on cost sharing • Premium price • Plan reporting includes: • Drug cost (ingredient cost + dispensing fee + sales tax) • Administrative cost • Profit/return on investment • Quarterly rebate and price concession information for each drug • Aggregate negotiated price concessions passed through

  5. Part D Transparency – Protection of Information • Section 1860D-15(d)(2) and 1860D-15(f) of Social Security Act– limit on use of payment related information CMS collects to payment purposes • Aggregate rebate information – data may not be disclosed in a form which discloses identity of manufacturer or price charged except to CBO or GAO (Medicaid rebate statute confidentiality applied through Section 1860D-2(d)(2))

  6. Part D Data Disclosure: CHAMP Provisions • Provided for disclosure of certain negotiated price, rebates, discounts, bid information, and prescription drug event data to congressional support agencies- CBO, GAO, MedPAC • Data cannot be disclosed in identifiable form which is defined as information that permits identification of a PDP, MA-PD plan, PBM, drug manufacturer, drug wholesaler or enrollee • Data can only be used by a Congressional Support Agency for carrying out the functions and activities of the agency mandated by Congress.

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