When are formulary rebates typically credited to clients?

Formulary rebates are typically credited to clients within 6 months after the end of the period. This timeframe allows for the careful processing and reconciliation of invoice data, ensuring that all relevant prescription drug utilization and associated costs are accurately accounted for and verified.

The rebate process often involves negotiations and arrangements made between pharmaceutical manufacturers and pharmacy benefit managers (PBMs), which can take time to finalize and communicate to clients. Therefore, the 6-month period provides a reasonable window for the detailed reconciliation processes that need to occur to ensure that rebates are properly attributed and accurately calculated based on actual utilization data.

Other timeframes, such as those shorter than 6 months, do not align with industry practices observed in the management of formulary rebates. Shorter durations might not account for the complexities of data collection and auditing that are essential to the integrity of the rebate system.