Difference between revisions of "Accounting Finance:Rebate Process"
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VERE – vendor rebate percentage, is the PA % as provided by the Class 010 vendor |
VERE – vendor rebate percentage, is the PA % as provided by the Class 010 vendor |
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| − | '''Brand Pharmaceutical Rebate''' |
+ | '''Brand Pharmaceutical Up-charge Rebate''' |
| − | All brand pharmaceuticals receive a two percent (2%) cash discount if paid within ten (10) days of statement date. An additional rebate is paid on brand pharmaceuticals to shareholders that nets the up-charge to either 3.25% if a store's total brand pharmaceutical purchases are less than $1.0 million or 2.75% if a store's brand pharmaceutical purchase are greater than $1.0 million. |
+ | All brand pharmaceuticals receive a two percent (2%) cash discount if purchases are paid within ten (10) days of statement date. An additional rebate is paid on brand pharmaceuticals to shareholders that nets the up-charge to either 3.25% if a store's total brand pharmaceutical purchases are less than $1.0 million or 2.75% if a store's brand pharmaceutical purchase are greater than $1.0 million. |
*For brand pharmaceuticals with an eight percent (8%) up-charge the brand rebate will be 2.40% or 2.85% |
*For brand pharmaceuticals with an eight percent (8%) up-charge the brand rebate will be 2.40% or 2.85% |
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| − | + | Brand pharmaceuticals with a five percent (5%) up-charge and a cost greater than $5,000 will have a net up-charge of 2.50%. *The brand rebate for these products will be 0.38%. |
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| − | The rebate percentage plus the two percent (2%) cash discount nets the up-charge on these brand pharmaceuticals to either 3.25% if a store’s total brand pharmaceuticals sales are less than $1.0 million or 2.75% if greater than $1.0 million. Current rebate percentage is either 2.40% or 2.85% based on pharmaceutical sales. |
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| + | The net up-charges and brand rebates for specific brand pharmaceuticals are as follows; |
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| + | *Lucentis has a net up-charge of 1.00% and a brand rebate of 1.60% |
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| + | *Eylea has a net up-charge of minus 1.00% and a brand rebate of 3.48% |
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| + | '''Class 010 Generic Program Up-charge Rebate''' |
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| + | All generic pharmaceuticals receive a two percent (2%) cash discount if purchases are paid within ten (10) of statement date. An additional rebate is paid on Class 010 generic pharmaceuticals to shareholders that nets the up-charge to 0.00%. Based on the up-charge applied with BC, YT and AB, the generic up-charge rebate is as follows; |
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| + | *BC up-charge rebate is 5.40% |
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| + | *AB up-charge rebate is 6.83% |
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| + | *YT up-charge rebate is 9.72% |
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[[Category:Shareholder Rebates]] |
[[Category:Shareholder Rebates]] |
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Latest revision as of 11:47, 8 November 2019
Monthly Profit Sharing (‘MPS’)
Rebates generated from the pharmaceutical generic formulary program referred to as the Class 010 Program (‘Program’). All generic molecules included in the Program are assigned a rebate percentage based on the professional allowance (‘PA’) percentage received from the Program vendors for these generic molecules.
The vendors Professional Allowance amount is based on a percentage applied to the cost of the molecule whereas the MPS paid to shareholders is a based on a percentage applied to the selling price of the molecule. For example; a molecule with a cost of $100, a professional allowance of 50% and a selling price $108, then uniPHARM receives a PA of $50 from the vendor and pays a MPS at 45.00% based on selling price or $48.60. These percentages are set-up as CURE – 45.00% and VERE – 50.00%.
CURE – customer rebate percentage, calculated as the vendor PA % less the ‘tens’ digit; e.g. 50% - 5% = 45% VERE – vendor rebate percentage, is the PA % as provided by the Class 010 vendor
Brand Pharmaceutical Up-charge Rebate
All brand pharmaceuticals receive a two percent (2%) cash discount if purchases are paid within ten (10) days of statement date. An additional rebate is paid on brand pharmaceuticals to shareholders that nets the up-charge to either 3.25% if a store's total brand pharmaceutical purchases are less than $1.0 million or 2.75% if a store's brand pharmaceutical purchase are greater than $1.0 million.
- For brand pharmaceuticals with an eight percent (8%) up-charge the brand rebate will be 2.40% or 2.85%
Brand pharmaceuticals with a five percent (5%) up-charge and a cost greater than $5,000 will have a net up-charge of 2.50%. *The brand rebate for these products will be 0.38%.
The net up-charges and brand rebates for specific brand pharmaceuticals are as follows;
- Lucentis has a net up-charge of 1.00% and a brand rebate of 1.60%
- Eylea has a net up-charge of minus 1.00% and a brand rebate of 3.48%
Class 010 Generic Program Up-charge Rebate
All generic pharmaceuticals receive a two percent (2%) cash discount if purchases are paid within ten (10) of statement date. An additional rebate is paid on Class 010 generic pharmaceuticals to shareholders that nets the up-charge to 0.00%. Based on the up-charge applied with BC, YT and AB, the generic up-charge rebate is as follows;
- BC up-charge rebate is 5.40%
- AB up-charge rebate is 6.83%
- YT up-charge rebate is 9.72%