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0 pointsrefurb4y ago0 comments

Huh? If a company gives you a $5 rebate for buying 5 bottles of shampoo, then it gets extra sales.

So if a $5 grocery rebate a kick-back?

0 comments

Increased sales, when paid by the same entity that gets the rebate, are not a kickback.

If a doctor took money to steer you to a specific hospital, that would be a kickback.

If a hospital gives you a rebate and you're paying, that's not a kickback. But if a hospital gives you a rebate and your insurance is paying based on the non-rebated price, that's probably a kickback.

refurbOP4y ago

Precisely. PBM rebates are based on sales as well. Drug company gets more sales by making their drug “preferred” and PBM gets a rebate. It’s not a kickback.

Dylan168074y ago

Precisely what? If the PBM gets money then that's not the customer. Being paid for marking something as preferred is a kickback.

If the PBM buys something themselves and gets money back, that wouldn't be a kickback.

Just like a customer buying something and getting money back.

But when you have a buyer on one side, and a separate entity getting the money back, that's probably a kickback.

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Dylan168074y ago

Increased sales, when paid by the same entity that gets the rebate, are not a kickback.

If a doctor took money to steer you to a specific hospital, that would be a kickback.

refurbOP4y ago

Precisely. PBM rebates are based on sales as well. Drug company gets more sales by making their drug “preferred” and PBM gets a rebate. It’s not a kickback.

Dylan168074y ago

Precisely what? If the PBM gets money then that's not the customer. Being paid for marking something as preferred is a kickback.

If the PBM buys something themselves and gets money back, that wouldn't be a kickback.

Just like a customer buying something and getting money back.

But when you have a buyer on one side, and a separate entity getting the money back, that's probably a kickback.

j / k navigate · click thread line to collapse