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The program offers rebates based both on volume and on increases in use.
What is more, drugmakers promote new and highly competitive -- often more expensive -- products by giving the pharmacy benefit managers rebates based on sales.
In return for Omnicare's efforts, the drug maker allegedly paid the pharmacy company kickbacks in the form of rebates based on the market share of some Johnson & Johnson drugs, sponsorship of Omnicare meetings, grants and payments for Omnicare data, like the prescribing habits of doctors, of the kind that Omnicare had previously provided the drug maker for free, the complaint said.
New Jersey's program offers scaled rebates based on wattage capacity, meaning that the more juice your system can generate, the more the subsidy is worth.
It also provides rebates based on the amount spent each month.
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The rebate based on increased usage ranges from 1 percent to 1.5 percent.
For instance, several big manufacturers have a scheme that gives retailers an annual rebate based on overall sales.
For small businesses, the money goes to the employer and the company is expected to share the rebate, based on the percentage workers contribute to their annual premiums.
When the rebate of 9% (entry rebated) or 14% (cumulative rebate based on the entry one and additional 5% based on sales) was incorporated into the calculation of daily drug cost, rivaroxaban was found to be much more cost saving alternative relative to VKA (-€468 and -€650 for 9% and 14% respectively).
More specifically, the drug unit costs were based on the social security reimbursement prices minus the patient co-payment, a rebate of 9% imposed upon manufacturers to get into the positive drug list and another rebate based on volume which can be up to 8% depending on quarterly sales (law 4052/2012, Government Gazette).
(This year's rebates are based on the share of premiums that went to administrative costs in 2011).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com