Frequently, we are asked how Estimated Return Values (ERV) are determined for pharmaceutical returns. With help from Sharon Curley, Director of Credit Reconciliation and Return Authorization, we have provided you with detailed information about how ERVs are determined.
When determining an Estimated Return Value (ERV) for a pharmaceutical return product at processing, our system uses the best available pricing information we have regarding that product. To this end, we subscribe to a pricing service, which is updated quarterly, and provides us with WAC and AWP pricing for most pharmaceutical products. Some manufacturers provide us with their product pricing directly and some large group customers give us their specific pricing.
Sometimes, however, the ERV assigned at the time of processing may differ from the customer’s actual purchase price because current pricing for a product may vary greatly from a purchase price from 18 months to 2 years ago, particularly if a product has come off patent, has been divested by one manufacturer to another, or has been newly formulated as generic.
The pricing available to us also does not include special contract pricing, one time discounts, etc. that may have impacted the customer’s actual purchase price. Therefore, it is always wise to review the Returnable and Non-returnable Manifests (sent to the customer shortly after processing is complete) to check for any product or pricing discrepancies and promptly alert GRX so they can be corrected.
Want to learn more? Ask Guaranteed Returns®.