Use the Reduction Agreement – Reduction Agreement (VRBT_HDR) page to define general information about the reduction agreement. Define the supplier`s positions that apply to the reduction agreement. If you specify the locations of the suppliers, the discount agreement applies to orders placed for the specific location of the supplier. If no supplier site is defined for the discount contract, the discount contract applies to orders regardless of the supplier`s locations. Check and overwrite the ChartFields associated with the peopleSoft Receivables business unit that is associated with the discount agreement. By default, the system populates chartfields from the AR distribution code defined for the PeopleSoft Receivables division. PeopleSoft Receivables Chartfields are necessary if the billing method of the discount agreement is far from proof of adaptation. Enter the activities and due dates related to the discount agreement. You can also mark when these activities have been completed. Define items in a category that do not apply to this discount agreement. Enter the lump sum discount for each discount line through the Discount Amount box.
In order for their outpatient medications to be covered by Medicaid and Medicare Part B, drug manufacturers must enter into a national drug reduction agreement (“Agreement”) with the Department of Health and Human Services. The agreement requires the manufacturer to pay quarterly discounts to Medicaid public programs for units of the manufacturer`s drug that will be transferred to Medicaid recipients during the quarter and to provide monthly and quarterly reports containing certain price data used by CMS to calculate the unit discount. Today, CMS released a revised final agreement to replace the current one, which dates back to the introduction of the Medicaid Drug Rebate Program in January 1991 and has since been largely obsolete due to changes to the program. The new revision aligns the agreement with the 2010 changes to the Affordable Care Act to medicaid discount status and cms` final rule of application passed on February 1, 2016, and also contains additional changes that contain CMS guidelines adopted over the years. . . .