Under the duplicate discount prohibition, a covered entity may receive rebates from drug manufacturers and Medicaid rebates simultaneously.

Under the duplicate discount prohibition, a covered entity may receive rebates from drug manufacturers and Medicaid rebates simultaneously.

• A. True
• B. False
• C. Only manufacturer rebates
• D. Only Medicaid rebates

Answer: (B)

The idea being tested is that you cannot stack discounts on the same drug unit for a Medicaid patient. This is the duplicate discount prohibition. In practice, a covered entity must not receive both a manufacturer discount and a Medicaid rebate for the same unit of drug. If the drug is purchased at a 340B price, the MDRP rebate is not applied to that unit; if the drug is not 340B-priced, Medicaid rebates can apply, but not both on the same dispensed unit. Because you can’t have more than one discount on the same sale to a Medicaid patient, the statement that rebates from manufacturers and Medicaid rebates can occur simultaneously is false.

The idea being tested is that you cannot stack discounts on the same drug unit for a Medicaid patient. This is the duplicate discount prohibition. In practice, a covered entity must not receive both a manufacturer discount and a Medicaid rebate for the same unit of drug. If the drug is purchased at a 340B price, the MDRP rebate is not applied to that unit; if the drug is not 340B-priced, Medicaid rebates can apply, but not both on the same dispensed unit. Because you can’t have more than one discount on the same sale to a Medicaid patient, the statement that rebates from manufacturers and Medicaid rebates can occur simultaneously is false.