Your self-Funded clients who receive Rx rebates will see a new
line item on their Quarterly Paid Rebate Report starting with the Q2 2021
reports scheduled to be released on October 29, 2021. This new line item
depicts B&O Tax Withholdings for Rx rebates.
Premera Blue Cross pays B&O taxes on our Self-Funded revenue
including Rx rebates. During a recent review of these payments, it was decided
to begin passing through the tax for Rx rebates to align with our standard
corporate practices. Premera will not retroactively recoup taxes paid prior to quarter
two 2021.
The amount withheld is based on the 1.225% B&O tax which is the
corporate-wide tax rate Premera pays on Rx rebates. It is assessed as a flat
amount to all groups regardless of group and member location. The state does adjust
the rate periodically, and as such, we will adjust our rate passed on to groups
accordingly.
What is the impact?
This change impacts Washington Self-Funded groups that receive Rx
rebates only, including National Accounts. A summary of the Q2 2021 B&O
taxes by group is provided below.
For questions about this change, please contact your Premera
representative.