Expert Tip from Cervey

Unlike the current point-of-sale model where discounts are realized at the time of purchase, the rebate structure may introduce a significant lag between dispensing a drug and receiving reimbursement. This delay could affect how quickly covered entities recognize savings and may create short-term financial strain if not accounted for. By anticipating this gap, entities can better prepare their operations and avoid disruptions in budgeting, purchasing, or patient care.

Now is the time to build rebate timing into your financial forecasts and cash flow models. Work closely with your finance team to model different scenarios for payment delays and identify how they might impact working capital. Establishing reserve funds, evaluating lending options, adjusting procurement strategies, and engaging leadership early can help soften the impact of delayed reimbursements. Covered entities that proactively plan for cash flow shifts will be better positioned to maintain program stability.