National CooperativeRx is distributing over $3.1 million to our members in 2023 for patronage, retired equity, rebate true-up, and audit recoveries.
As a not-for-profit Cooperative, we put our members first. Therefore, we pass through 100% of rebates, 100% of audit recoveries, and return any excess revenue to them.
Our membership puts their trust in us to make sound business decisions on their behalf. We are delighted to demonstrate our financial diligence by returning excess revenue in the form of patronage dividends to them. This patronage dividend was declared by our Board of Directors after review of the 2022 financial audit.
All members of National CooperativeRx in 2016 and 2017 will receive retired equity attributable to those years. Our Board of Directors voted to retire this equity based on the Cooperative’s strong financial position.
A significant differentiator of National CooperativeRx’s master contract is our rebate pass-through language. Members receive industry-leading rebate guarantees, and members who experience rebate returns over the guarantee share the overperformance dollars. Unlike many other joint purchasing arrangements, National CooperativeRx returns to members 100% of excess dollars collected. For 2020, additional true-up was collected. This is in addition to the 2020 true-up that was already sent to members in 2022. At this time, there is no overperformance, thus no true-up for 2021.
We go the extra mile to ensure the PBM upholds our pricing guarantees and contract terms. We enlist an independent auditor to conduct a claims audit annually and return all recoveries to members. This is another example of National CooperativeRx’s commitment to ensuring our members receive the financial benefits we negotiated on their behalf.
National CooperativeRx members continue to see positive returns on their pharmacy benefit investments year over year. Our success would not be possible without the power of our membership size. Thank you, members and partners, for your continued support. We look forward to passing along financial benefits again next year.