Pharmacy Inventory, Billing and Reimbursement

Question 1

Gross profit

Answer 1

Gross profit is selling price minus purchase price. For net profit you also need to subtract the dispensing cost as well.

Question 2

Biennial inventory

Answer 2

Biennial inventory are conducted every 2 years of all controlled substances. Initial is an accurate inventory of all controlled substances take before a new pharmacy opens. Perpetual reflects exactly what is on hand. Physical is conducted on a basis to determine exactly what is on hand.

Question 3

Medicare Part C

Answer 3

Medicare Part C or Advantage Plan contracts with Medicare to provide Part A and Part Benefits through HMO and PPO.

Question 4

Medicare Part A

Answer 4

Medicare Part A covers inpatient hospital care

Question 5

Medicare Part B

Answer 5

Medicare Part B covers physician services and outpatient care

Question 6

Medicare Part D

Answer 6

Medicare Part D covers prescription medications

Question 7

AAC

Answer 7

The actual acquisition cost is what the pharmacy paid for the medication

Question 8

AWP

Answer 8

AWP is average wholesale price and is the price the wholesalers sell a medication;

Question 9

MAC

Answer 9

MAC is maximum allowable cost is used in calculating the reimbursement formula for generic medication.

Question 10

Prime Vendor Agreement

Answer 10

formed when a pharmacy agrees to purchase a majority of its goods from a wholesaler