Pharmacy Benefit Auditors will review 100% of pharmacy claims processed by the Pharmacy Benefit Manager (PBM) to determine the accuracy of the claims processing as compared to the agreed upon benefit design. Some of the components of the PBM audit are:
Contract Analysis
Average Wholesale Price Validation
Generic Drug Pricing
Lessor of Usual and Customary (U&C)
Dispensing Fee
Day's Supply
National Drug Code(NDC) Accuracy
Rebates
Over the Counter (OTC) Medications
Specialty Drugs
Mail Order Performance
Fraud and Abuse
Invoice Reconciliation
Areas in which we find significant contract noncompliance are as follows:
Generic and Brand discounts applied incorrectly
Lesser of U&C, MAC, or AWP Pricing not followed
Dispensing Fees incorrectly charged
Incorrect Copayments collected
Terminated Members receiving Prescriptions
Spread Pricing
Rebates Incorrectly Calculated and Paid
Days’ Supply Parameters not being followed
Excluded Drugs being Covered
Invalid NDCs being Covered
Zero-balance Copayments being charged
Reversals not Credited
Deductibles and Accumulators not being calculated correctly
Plan’s Generic Drug Policies not being followed correctly
Paper Claims Submitted by members not processed correctly
Prior Authorization’s and Exceptions to Plan Design not Documented
Timely Submission and Filing of Claims not followed correctly
High Dollar Claim limits being exceeded
Fraud and Abuse
Sales taxes charged to the plan sponsor
Metric decimal quantities rounded in favor of the PBM and much more....................