The rapid expansion of the 340B Drug Pricing Program, combined with a lack of transparency, has created significant operational challenges for pharmaceutical manufacturers. One of the most critical risks is "duplicate discounting," where a manufacturer provides both a 340B discount and a Medicaid rebate for the same drug--a practice prohibited by program regulations.
This revenue leakage, often termed "double dipping," can have a substantial financial impact, with estimates suggesting that for every $100 million in sales, a manufacturer could lose over $230,000 for every 1% of overlap. This eBook provides a comprehensive overview of duplicate discounts and outlines data-driven strategies your organization can implement to identify, prevent, and dispute these claims effectively.
Key topics covered include:
The Mechanics of a Duplicate Discount: A clear explanation of how double dipping occurs within the complex transaction flow involving covered entities, contract pharmacies, and payers.
Challenges for Manufacturers: An analysis of why identifying these discounts is so difficult, including the explosive growth of the 340B program and the lack of data transparency.
Financial Impact: A breakdown of the potential cost, with industry data suggesting that over $1.5 billion in duplicate discounts may occur annually.
Strategies for Identification: A data-intensive approach to spotting duplicate discounts by analyzing chargebacks, claim-level detail, and provider relationships.
How Model N Can Help: An introduction to Model N solutions designed to protect revenue and reduce the compliance risks associated with duplicate discounts.
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