Caremark Bulk Purchase Notification
PAAS National® analysts continue to see a large volume of Caremark invoice audits. Remember that Caremark will only review aggregate purchases over the selected date range plus the 30 days prior to. If pharmacies want Caremark to consider purchases made prior to the selected date range, then there must be a “bulk purchase notification” on file in accordance with Section 8.05 of the Caremark Provider Manual. Since future audit date ranges cannot be known in advance, it is in your best interest to report any purchase that is subjectively “large” based on your normal purchase patterns – consider quarter or year-end bulk purchase if you are trying to meet wholesaler rebate thresholds or inventory that you are purchasing with intention to last greater than one month.
If your pharmacy plans to make any large purchases, be sure to …
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- Pharmacy NCPDP
- Contact email address
- Drug name
- NDC
- Total quantity purchased
- Name of wholesaler used
Pharmacies should submit notifications to the addresses provided below.
Email: PharmacyAudit@CVSHealth.com
Mail: CVS Caremark
Attn: Bulk Purchase Notification, MC 020
9501 E. Shea Boulevard
Scottsdale, AZ 85260
Pharmacies do not need to include cost information when submitting. Some pharmacies have received a notification back stating that their purchase was routine in nature and would not be considered a bulk purchase. This is laughable, since Caremark doesn’t clearly define what constitutes ‘bulk’. This response can actually be used in the pharmacy’s defense and should not deter pharmacies from reporting. PAAS recommends continuing to inundate CVS with notifications for ‘bulk’ purchases.
During Caremark invoice audits, it is typical that Caremark will only consider purchases for the selected date range upon initial review. During the audit appeal, Caremark will factor in purchases made during the 30-day period prior to the selected date range as well as any bulk purchase products that were on hand more than 30 days in advance.
PAAS Tips:
- See previous PAAS resources for additional background information
- December 2022 Newsline article Caremark Bulk Purchase Requirements
- June 2022 Newsline article Understanding Caremark’s Restrictions on Bulk Purchases
- June 15, 2022 on-demand webinar Caremark’s Bulk Purchasing Requirements
I obtained my PharmD from the University of Wisconsin-Madison School of Pharmacy and worked for a major chain as well as various LTC and independent pharmacies, before coming to PAAS.
I am passionate about learning and teaching. I strive to learn something new about PBM audits every day, so that PAAS can be more knowledgeable to better serve our members! In 2018, I started traveling to state pharmacy conferences to present audit seminars and meet our wonderful members in person.
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