This white paper analyzes the financial effects of Medicare’s Maximum Fair Price rebate model on pharmacy cash flow. Using modeled payment timelines, it estimates interest costs and liquidity impacts associated with delayed manufacturer rebates. The study compares the MFP rebate model with proposed 340B rebate approaches and finds that interest costs under MFP are modest but nontrivial. It highlights operational risks for pharmacies with limited access to credit and discusses policy implications for CMS and manufacturers. The paper concludes that rebate design choices will significantly influence system efficiency and stakeholder burden.

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