BRAND MANUFACTURERS

Chargeback Processing


Ensure cost-effective reconciliation of low volumes of chargebacks. Use a robust processing solution when volume grows.

chargebacks and chargeback processingBrand pharmaceutical manufacturers typically have very limited exposure to chargebacks and chargeback processing. However, it’s likely that pharmaceutical brands will have some chargebacks that come from the federal Public Health Services Program (PHS) and/or VA Federal Supply Schedule utilization. Products are typically sold to wholesalers at the full Wholesale Acquisition Cost (WAC), and manufacturers will sell product as a result of participation in several of these government programs at a reduced price. The difference between WAC and the contracted price results in a chargeback to the manufacturer.

When a wholesaler distributes products through to an entity that has a direct contract with the pharma manufacturer for a price lower than WAC, a chargeback invoice will be generated by the wholesaler and submitted back to the manufacturer for verification and credit on the wholesaler’s normal invoice from the manufacturer.

Download a summary of our services for brand pharmaceutical manufacturers.

Summary of Services

How we support chargeback processing needs.

Prescription Analytics reconciles the invoiced lines against contracts that may be eligible and the specific pricing terms of the agreement to verify if the chargeback is legitimate. This makes a great deal of sense if the chargeback volumes are minimal, as the cost of implementing a full chargeback solution can be significant. We will work with you to assess volumes. If they increase significantly, we can introduce a best-in-class chargeback processing solution to support the larger volumes.

Services provided for chargeback support.

When chargeback volumes increase to the point where you need a full software solution, we will implement a more robust system. This strategy is is an effective way to control the higher fixed costs associated with chargeback processing. Both of our methodologies will include:

  • Continuous customer and contract setup and maintenance

  • Processing and verification of all submitted line items

  • Account maintenance and membership eligibility

  • Issue resolution with trading partners
  • Oversight and reporting by specific contract

  • Full data integration with client reporting system

Chargeback