- 0.8x
- 1x
- 1.2x
- 1.5x
- 2x
National CooperativeRx’s member-owned, not-for-profit cooperative model provides additional financial benefits for members. This includes 100% pass-through of rebate true-up, retired equity, and excess revenue in the form of patronage dividends. The following report breaks down the 2024 distributions.
Patronage Dividends: Excess money after operating costs. Declared by member Board of Directors after review of financial audits. Patronage dividends from 2023 were paid in 2024.
Retired Equity: A portion of patronage dividends held in reserve for Cooperative operating expenses. Retired by member Board of Directors after review of financial audits. Members of National CooperativeRx in 2018 received their attributable retired equity in 2024.
Rebate True-Up: Rebate money collected over and above the quarterly rebate guarantees. Our aggressive contract with CVS Caremark ensures 100% of rebates are returned to members. Members who experienced rebate returns over the guarantee in 2022 shared the attributable overperformance dollars in 2024.
Please Note: Every year, the Cooperative hires a third party to conduct an independent Audit to ensure the terms of our contract are met. We do this for 100% of claims, for all members, with all recoveries going back to plan sponsors. We are currently working through a disagreement with CVS Caremark over the 2021 claims audit. Should a distribution materialize, it will be sent to members at a later date. The 2022 audit is also in progress and 2023 will follow.
National CooperativeRx’s annual distributions highlight our commitment to maximizing value for our members, one of the many advantages of being a part of our Cooperative.
As our Cooperative grows with each new member group, we gain more negotiating power for our master PBM contract. This allows us to secure industry-leading discounts, rebates, and terms, while also providing exceptional clinical oversight, dedicated member support, and unmatched financial returns. Our new PBM contract effective January 1, 2025, offers these benefits along with improvements to definitions, specialty discounts, support, and more. With just a few weeks remaining until the deadline for membership notification, we encourage you to consider the added value National CooperativeRx provides its members.
Thank you to our members and partners for your ongoing support and trust. We look forward to another successful year and are eager for you to experience the benefits of our new PBM contract.
