how do pharmaceutical rebates work

Pharmaceutical rebates are post-sale payments drug manufacturers make to pharmacy benefit managers (PBMs) or health plans in exchange for favorable formulary placement. The rebate size depends on negotiated contracts and market competition, and it affects net drug cost but not the NADAC benchmark. For PBM contract details, see <a href="https://rxpbm.ai" rel="noopener">RxPBM</a>.