Every year the IPBC conducts medical and pharmacy audits. It was recently discovered during the FY 2024-25 audit of ESI that rebates on specialty Limited Distribution Drugs (LDD) stopped being paid as of December 2024. In the rebates received during May 2026, ESI paid the IPBC $22,859,354 which included $8,282,810 of prior period rebates for July 2025 through December 2025. These additional rebates have had a very positive impact on the IPBC financial results for the year and lowered the overall loss ratios by 3.6% for the PPO plan, and by 3.3% for the HMO plan. ESI also made a special rebate distribution in June of $6,609,998 to pay the IPBC for the rebates due for the period of January 2025 through June 2025, which will further improve the FY 2025-26 financial results, and will be reflected in the June 2026 financial reports. |