Drug Cost Highlights » Manufacturer Rebate Arrangements Tuesday, September 07, 2010
 

 

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Manufacturer Rebate Arrangements

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Very few employers shared data about the type and amount of manufacturer rebate arrangements they have negotiated. The rebate amount per retail script ranges from $2.16 to $13.70. The rebate amount per mail script ranges from $4.32 to $45.60 as shown in Table 47. The number of employers reporting rebate amounts is small so findings are directional in nature.

Pharmaceutical manufacturers pay rebates to pharmacy benefit managers and their customers as an incentive to increase sales of their drugs. The 11.9% of employers who are able to report rebates have them calculated as a guaranteed amount per script or an actual amount per script. The rebate amount can vary by retail and mail pharmacy as well as for brand and generic prescriptions. Table 47 shows the range of rebate amounts received, along with the average amount for each rebate arrangement. This is a small data set so values shown in Table 48 are directional in nature with few changes over time.

 

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