What are Unclaimed Funds?
The term “Unclaimed Funds” (UF) refers to money that your pharmacy earned in prior years, but that you have not received for a variety of reasons. The term Unclaimed Funds does not include your current accounts receivable. In many instances, the Pharmacy Benefits Manager (PBM) has mailed a check that for some reason was not deposited by your pharmacy. PBMs may be holding "un-deposited" funds in their accounts, without making any effort to tell you about it.
Our UF letter demands that the PBMs provide us with a list of all un-deposited checks payable to your pharmacy over the past eight (8) years. We know the grievance procedure for all of the major PBMs and many of the PBMs’ legal departments know us well. Accordingly, we are in a unique position to obtain swift and effective results.
What Kind of Results has Frier Levitt Achieved Regarding Unclaimed Fund Cases?
In a recent case in 2010, we collected $281,000 in Unclaimed Funds that were four (4) years old and being improperly held by a major PBM. The pharmacy was unaware that it had not received these Unclaimed Funds and that it was entitled to make a claim for them. Within a couple weeks of sending our demand letter to the PBM, the pharmacy will be reissued checks in the amount of $281,000.
Your pharmacy may not be aware that the PBMs are your holding substantial hard-earned dollars. To ensure that your pharmacy is not losing out on receiving all of its unclaimed funds, contact us. We can help.
What is a Contingency Fee?
In a contingency fee agreement, Frier & Levitt, LLC will not charge your pharmacy any up-front fees or expenses. Rather, we will agree to accept a certain percentage of the money we collect on your behalf. If we are unable to collect any Unclaimed Funds on behalf of your pharmacy in response to our Unclaimed Funds letter, you will not have to pay F&L any fees or costs for its legal services.
In some cases, F&L must file an arbitration or lawsuit against the PBM to collect your pharmacy’s Unclaimed Funds. We will only take this action if: 1) our Unclaimed Funds demand letter to the PBM does not result in a recovery of your pharmacy’s Unclaimed Funds, and 2) you authorize us, in writing, to file such an action. If we file the action, F&L shall agree to handle the matter on a contingency fee basis and your pharmacy would only be responsible for paying any arbitration/court expenses. These anticipated expenses are set forth in detail in our contingency fee agreement.
What Will Frier & Levitt, LLC do to collect my UF?
Initially, our attorneys will send a demand letter to the PBMs on your behalf seeking information on all un-deposited checks in the PBMs’ system going back 8 years. We will then follow up with the PBMs to verify a response. Depending on the response and your underlying agreement with the PBM, F&L may take different courses of action.
Often, the PBM will require some additional information from your pharmacy including documents and/or a representation from your pharmacy that you have not received the Unclaimed Funds, and that your pharmacy is entitled to the funds. In some cases, F&L will be forced to file arbitration proceedings or a lawsuit seeking the return of your pharmacy’s Unclaimed Funds. If that occurs, F&L will obtain your consent in writing prior to taking any action.
How Do I get Started?
In order to get started, F&L will send you a contingency fee engagement agreement explaining to you the scope of our representation, and providing information regarding our fees and costs. We are required to provide you with this engagement agreement under the rules of professional ethics. If you choose to engage F&L, all you need to do is sign/date the engagement agreement and return it to us along with the following information: (1) your pharmacy name and address, (2) your pharmacy’s NABP/NCPDP #, and (3) a list of the PBMs with whom your pharmacy deals. If you own multiple pharmacies or your pharmacy has multiple locations, please be sure to provide us with the above information for each pharmacy so that we can demand Unclaimed Funds information on behalf of each pharmacy.
You can provide us with the above-referenced information by completing our unclaimed funds information form and returning it to us by fax (973) 618-0650.