rebate discount safe harbor

Previous Advisory Opinion Guidance, in 2002, the OIG issued Advisory Opinion 02-10, which addressed a proposed uniform discount based on aggregate annual purchases of any and all equipment and supplies.
I appreciate your bringing the practices described in your letter to our attention.
It is intended to increase the likelihood of a sale and, consequently, to increase use of a good or service. .Thus, part geek coupon code caution still may be advisable for any volume discount arrangements involving aggregate purchases where separately reimbursable items are included; this caution might be mitigated if the provider were to reflect the discounted price in a reduced charge for the separately reimbursable item.The governments complaint alleges that AstraZeneca knowingly conspired with Medco to keep Nexium in a preferred formulary position even though competing drugs were less expensive to patients and health plans (including the federal government). .That is, if the rebate is clearly reported to the plan sponsor and if the rebate, or a major portion of it, is passed on to the sponsor, then its less likely to be a kickback.According to the OIG, the customer would know that the net price of any item that cost US100 would actually be US90.Discounts are given at the time of the sale, are shown on the invoice, and are provided to the purchaser.Over the years, the government has viewed performance or volume-based rebates and discounts with skepticism.You described the following situation.At issue was whether the Requestor's tiered rebate program for its customers generated prohibited remuneration under the AKS.Capital equipment Without comment, the OIG specifically noted in a footnote that none of the products on which rebates could be earned were capital equipment.The contracts would not provide for any refund to the Seller upon failure of the Purchasers to satisfy any minimum purchase requirements and may establish an exclusive purchasing relationship between the parties.A discount "would be readily attributable to each item purchased" (i.e., under the proposed arrangement, for a customer receiving a 10 rebate based on its aggregate annual purchasing volume, any item that cost 100 would actually be 90, any item that cost 200 would actually.The payments would not be covered by the discount safe harbor, which applies to certain discounts and rebates (42.F.R.The Seller agrees to pay substantial up-front payments to the Purchasers upon execution of the contract and may provide for additional advance payments to be made at various times during the terms of the contracts. However, while the method used to calculate the rebate is specified at the time of purchase, the actual rebate is received in the future. .Many pharmaceuticals are separately reimbursable in a physicians office or ASC, and some ophthalmological surgeries take place in these settings.Law360, New York (July 16, 2013, 12:36 PM EDT) - A recent advisory opinion issued by the.S.
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