What is the term for post-purchase discounts returned to PBMs or plans?

• A. Drug Rebates
• B. Net Price
• C. Access Rebate
• D. Performance Rebate

Answer: (A)

The concept being tested is how manufacturers reduce a payer’s cost after the sale through rebates. Drug rebates are the post-purchase price concessions that a drug manufacturer pays to a PBM or health plan after a prescription is dispensed, lowering the payer’s net cost. While net price refers to the amount the payer ultimately pays after applying rebates and other discounts, the actual post-purchase discount mechanism is the drug rebate itself. Access rebate or performance rebate aren’t the standard terms for this general mechanism, though some rebates can be tied to access or performance targets.