pharmacy rebates

[FranH-EH]

Is a longer time frame is being considered for pharmacy rebates receivables that do not originate from government plans, before nonadmittance?

[Glenn]

Hello Fran,
Continue to follow the guidance in SSAP 84 , paragraph 10 for Pharmaceutical rebates. Follow the existing non-admittance guidance. I am not aware of a proposal as you mention.

Here's excerpt from SSAP 84 paragraph 10 to follow:

Pharmaceutical Rebate Receivables

10. Pharmaceutical rebates receivables consist of reasonably estimated amounts and billed amounts. Both the billed amount and the estimated amount shall be admitted assets subject to the conditions specified below:

a. Estimated amounts shall be related solely to actual prescriptions filled during the 3 months immediately preceding the reporting date;

b. Billed amounts represent pharmaceutical rebate receivables that have been invoiced or confirmed in writing but not collected as of the reporting date. Billed amounts for an estimated amount under paragraph 10.a. shall be admitted only if the determination of the rebate, based on actual prescriptions filled, occurs and is invoiced or confirmed in writing within the 2 months following the reporting date of the estimated amount.

Adjustments to previously billed amounts related to prior periods shall be nonadmitted until invoiced or confirmed in writing. Pharmaceutical rebates that have not been collected within 90 days of the invoice date or confirmation date shall be nonadmitted. Furthermore, if accrued pharmaceutical rebate receivables are not invoiced or confirmed in writing in accordance with the contract provisions, the accrual shall be nonadmitted; and

c. Evaluation of the collectibility of pharmaceutical rebate receivables shall be made periodically. If in accordance with SSAP No. 5R?Liabilities, Contingencies and Impairments of Assets (SSAP No. 5R), it is probable the balance is uncollectible, any uncollectible receivable shall be written off and charged to income in the period the determination is made.

Regards
Glenn

[FranH-EH]

Are you available for brief discussion regard
1. SSAP 84 Health Care and Government Insured Plan Receivables - specifically Invoice date versus confirmation date.
2. SSAP 22 Leases – related to Sale Leaseback arrangements.

[Glenn]

Hello Fran,
Unfortunately not available as I am in Pittsburgh teaching this week at UPMC all week.
Possibly could discuss Monday 12/11. Then off to Indy and Oakland next two weeks. You can send me in email your question at
gsackett@bookeseminars.com
Then we can talk Monday , 12/11 in the afternoon

Thanks
Glenn