We are pleased to announce that CVS/caremark is issuing reimbursement of over $6.2 million dollars to AEPC participating member organizations. The reimbursement is the result of CVS/caremark’s internal audit of 2016 performance against the contracted AEPC pricing guarantees. Based on the AEPC contract performance guarantees, CVS/caremark must be able to meet the AEPC financial guarantees calculated three different ways. Based on those calculations CVS must pay out the greatest shortfall of all guarantee calculations.
Typically CVS/caremark would not issue payments until the conclusion of AEPC’s audit. However at our request, participating groups will receive payment early next week. In accordance with the AEPC Master and Participating Group agreements, one hundred (100) percent of pricing guarantee shortfalls are paid to participating AEPC member organizations. The amount paid to each member organization is based on each member organization’s actual claim utilization for the performance guarantee(s) that were not met (e.g. retail generic, retail brand, and mail generics).
AEPC’s consultant, Remedy Analytics, is completing an independent audit of CVS/caremark on behalf of our participating groups for 2015 and 2016. Remedy has completed their work and is in reconciliation discussions with CVS/caremark. Depending on the outcome of these discussions, participating organizations may receive additional reimbursement.
If you have any questions regarding the audit or AEPC programs, please do not hesitate to contact me.
Suzanne Daniels, Ph.D.
AEPC President
P.O. Box 1416
Birmingham, MI 48012
Office: (248) 792-2187
Email: [email protected]
