What is a common element found in rebate contracts between manufacturers and PBMs?

In rebate contracts between manufacturers and Pharmacy Benefit Managers (PBMs), a common element is that payments are often based on the volume of branded drug sales. This structure incentivizes PBMs to promote certain medications, as higher sales volumes lead to larger rebate payments from manufacturers. The rebates serve as a financial mechanism that encourages the inclusion of specific drugs on formularies or preferred lists, thereby potentially influencing prescribing patterns and patient access.

The relation between sales volume and rebate payments aligns with the overall goal of maximizing profits while negotiating more favorable drug pricing to offer to insured patients. Essentially, the more of a particular branded drug that is sold through a PBM's network, the greater the rebate that PBM can negotiate, which can lead to lower costs for health plans and, subsequently, patients.

Other options present concepts that do not align with common rebate contract elements. Guaranteed profits for PBMs and fixed fees suggest a level of financial certainty that is typically not a characteristic of rebate arrangements, which are inherently variable and contingent on drug utilization and sales patterns. The reference to a percentage of sales to patients confuses transactional relationships; rebates are not directly tied to patient sales but rather to the volume of drugs sold through sector channels.