What does the supplemental rebate legislation mean to drug rebates?
• 3q1992 through 3q1993Supplemental rebates were owed pursuant to Senate Bill 485 for each of the labelers’ NDCs. The rebate amount calculation varies depending on the type of drug (single-source, innovator multi-source or non-innovator multiple-source). If an additional existing negotiated supplemental contract existed for any of their NDCs, a combination of the two was owed. • 3q1994 through 4q1996Supplemental rebates were owed pursuant to Assembly Bill 2377 for each of their NDCs. The rebate amount calculation was 10% of AMP. For manufacturers with separately negotiated supplemental contracts the combination of the two percentages should come up to the 10%. If the negotiated supplemental contract was for more than the 10%, no additional rebate was owed. When doing Supplemental dispute resolution activity, DHCS analysts verify that the 10% Supplemental RPU was calculated and paid correctly. • Types of supplemental contractsAs noted in the above, these contracts were either mandated b
