We have been receiving numerous enquiries from pharmacies regarding the reporting of Professional Allowance monies received. Following is the clarification we have been providing to pharmacies.

Clarification for Pharmacies Reporting Professional Allowances Received or Receivable from Manufacturers

The total amount of Professional Allowances to be reported by pharmacies in the first report is based on the Professional Allowances earned as a result of the pharmacy’s prescription drug sales during the period of July to September, 2007. The first report is due by November 20, 2007.

For example, if the pharmacy’s prescription drug sales total (ODB and non-ODB) was $100,000 for the months of July, August, and September, the pharmacy would report the Professional Allowances earned as a result of such sales in the report for the July to September, 2007 reporting period. The amount reported should be the total amount of monies received for sales during that period. If the amount includes a future payment that will be provided after September 30, 2007 and the pharmacy knows the exact payment amount to be received then the “receivable” payment should be included in this reporting period. If you are not certain what the receivable amount is then this should be deferred to the next reporting period. This applies to sales for public and private claims and direct patient care initiatives for public and private claims.

Professional Allowances earned and expended as a result of prescription drug sales prior to July 1, 2007 are not to be included in the report for the July to September, 2007 reporting period.

Professional Allowances earned and expended as a result of prescription drug sales in the October to December, 2007 timeframe are to be reported in the second report which must be submitted no later than February 29, 2008.

Clarification for Manufacturers Reporting Professional Allowances Paid or that are Owing to Pharmacies

The total amount of Professional Allowance payments or amounts owing which are to be reported by manufacturers in the first report are relevant to Professional Allowances paid to pharmacies as a result of the pharmacy’s prescription drug sales in the July to September, 2007 timeframe. The first report is due by November 20, 2007.

For example, if a pharmacy’s prescription drug sales total was $100,000 for the months of July, August, and September, the manufacturer would report the Professional Allowances paid to the pharmacy as a result of such sales in the report for the July to September, 2007 reporting period. The amount reported should include both Professional Allowances that have been actually paid for such prescription drug sales, and those that have been earned for such prescription drug sales which are to be paid at a later date.

Professional Allowances earned by pharmacies as a result of prescription drug sales prior to July 1, 2007 are not to be included in the report for the July to September, 2007 reporting period.

Professional Allowances earned by pharmacies as a result of prescription drug sales in the October to December, 2007 timeframe are to be reported in the second report which must be submitted no later than February 29, 2008.

• Pharmacy Professional Allowances Reporting Template  [Excel]
• Pharmacy Professional Allowances Reporting Template Appendix A  [Excel]

• Manufacturer Professional Allowances Reporting Template  [MS Word]
• Manufacturer Professional Allowances Reporting Template Appendix A  [Excel]