PBM Use Case

Verify Pharmacy Benefit & Rebate Logic at Scale

Pharmacy benefit rules and rebate contracts are complex, interdependent, and constantly changing. This platform translates that logic into an executable model and verifies that claims and rebates follow the rules as written.

Claims Adjudicated

All systems reporting normal

2.4M

Claims/mo

99.2%

Processed

0

Errors

what verification reveals
Tier mismatches
847 claims
Rebate leakage
$1.2M/qtr
Accumulator errors
156 members
Contract violations
12 clauses
Total exposure$3.8M

Hidden until disputed or audited

The Problem

PBM Logic Is Hard to Verify

Pharmacy benefits involve layered rules — plans, formularies, networks, rebates. Each layer interacts. Errors hide in the gaps.

Formulary logic drifts from contracts

Tier assignments, step therapy rules, and exclusions change — but downstream systems don't always sync.

Rebate calculations are opaque

Complex formulae with thresholds, exclusions, and lookbacks. Hard to verify even with source data.

Errors compound silently

A single misconfigured rule affects thousands of claims before anyone notices.

Where Logic Errors Hide

Plan DesignAccumulator resets
FormularyTier assignments
NetworkPharmacy rates
RebatesManufacturer terms

One misconfigured rule → thousands of incorrect claims

The risk isn't bad intent. It's invisible logic drift — and by the time it surfaces, you've already paid.

The Gap

Why PBM Errors Persist

Every PBM has tools for managing pharmacy benefits. But they each check something different — and none of them verify whether the claim actually followed your contracted logic.

Rule engines encode your intent

Audits sample a small %

Analytics flag outliers

But contract logic violations? They slip through every layer.

Claims flow

Rule Engines
checks syntax
Audits
checks samples
Analytics
checks anomalies

Logic errors

pass through undetected

Contract logic violations aren't in any tool's scope

Your PBM Logic

Formulary

Accumulators

Rebates

Verification Engine

Every claim × Every rule × Every edge case

What Surfaces

Verified correct
96.8%
Logic violations
847 claims
Rebate mismatches
$1.4M at risk

How It Works

From Contracts to Verified Claims

We add a verification layer above your PBM systems — without replacing them. Your pharmacy benefit logic becomes an executable specification.

Your rules become executable

Formularies, tiering, accumulators, rebate clauses — all machine-verifiable.

Claims map to logic automatically

NDCs, days supply, member status, pricing — aligned with your rules.

Every claim gets verified

Violations, contradictions, and edge cases surface automatically.

What We Verify

Every Layer of PBM Logic

Each verification answers a specific question about whether the claim followed the rules as contracted — not just whether it "looks right."

Formulary & Tier Logic

Accumulator Behavior

Channel & Network Rules

Rebate Eligibility

Overrides & Exceptions

Sample Verification Output

Claim

#PBM-2024-847291

Member

Plan A / Tier 2

NDC: 00000-0000-0030 day supplyRetail
Formulary tier
Correct
Accumulator applied
Correct
Rebate eligibility
Mismatch
Channel pricing
Correct

Issue Detected

Claim qualifies for rebate under Exhibit B, §4.2(b) but was not flagged in rebate file. Est. impact: $47.20

This runs on

every claim, automatically

Illustrative Examples

The Kind of Issues Verification Catches

These scenarios represent common patterns that surface when pharmacy benefit logic is verified against actual claims.

Tier Assignment

Specialty drug on wrong tier after formulary update

A January formulary change moved 12 NDCs to Tier 4. The claims system was updated, but the accumulator logic still references Tier 3 copay amounts for these drugs.

What Verification Surfaces

Affected claims847
Date rangeJan 15 – Feb 28
Member cost share variance$45 avg per fill

Root cause: Formulary update didn't propagate to accumulator tier mapping table.

These examples are illustrative. Actual findings depend on your specific logic and data.

The Outcome

From Reactive to Proactive

Instead of waiting for disputes to reveal issues, verification surfaces them while there's still time to act.

Without Verification

×

Issues found during external audits — after payments settled

×

Disputes escalate before root cause is understood

×

Plan sponsors ask questions you can't fully answer

With Verification

Issues caught before they scale across claims

Root cause traced to the exact rule that failed

Confidence to show sponsors exactly how logic is applied

Reduce audit exposure, increase sponsor trust

Verification creates a defensible record of rule execution.

Getting Started

Start With One Slice of Logic

Most PBM engagements begin with a narrow scope:

One planOne formulary ruleOne rebate clauseOne claim cohort

No system replacement. No workflow disruption.