MTAC – Association Presentation

August 1, 2007

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

About PCMA

The Pharmaceutical Care Management Association (PCMA) is the national association representing Pharmacy Benefit Managers (PBMs). PCMA is dedicated to enhancing the proven tools and techniques that PBMs have pioneered in the marketplace and working to lower the cost of prescription drugs for more than 210 million Americans with coverage provided through Fortune 500 employers, health insurers, labor unions, and Medicare Part D.

As a trade association, PCMA offers member companies a full range of lobbying, advocacy, and business networking services.

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

PCMA Members

 

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

What PBMs DoPCMA continues to lead the effort in further promoting PBMs and the proven tools they utilize which are recognized by consumers, employers, policymakers, and others as a key driver in lowering prescription drug costs while also increasing access. The tools and techniques pioneered by PBMs are projected to save Medicare and the commercial market more than $1.3 trillion dollars on prescription drug costs from 2008 to 2017. These tools include:

Generic substitution; Mail-service pharmacy; Pharmacy and therapeutic (P&T) committee formulary development

and review; Pharmacy network management; Negotiation and administration of product discounts, including

manufacturer rebates; Drug utilization review (DUR); Clinical prior authorization and step therapy; Consumer and physician education; Disease management; and Consumer compliance programs.

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

PCMA Affiliates

PBMs work closely with pharmaceutical manufacturers on a wide array of issues, including issues surrounding cost reduction, safety, and delivery.

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

MTAC Members

Arnie Epstein - Express Scripts

Tom Underkoffler – Medco

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

MTAC Benefits – USPS Usage Membership utilizes many USPS products

– Parcels Express Mail Priority Mail First Class Standard Parcel Select

– Letters First Class Standard

– Flats First Class Standard

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

PBM Statistics - 2006

Mail Order exceeded 194M Rx’s

Retail exceeded 1.3B Rx’s

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

PBM Statistics Placed end to end, 2006 packages would

wrap around the earth at the equator – with overlap

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

Which Number is Higher?

Hummingbird Heartbeat at Rest

2006 PackagesDelivered per Second

A Bor

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

Hummingbird Heartbeat at Rest

2006 PackagesDelivered per Second

A B

4.2 Beats / Sec

* During Delivery Hours

11.9 Packages / Sec

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

PBM Information Industry has seen steady growth

– Drives increased mail volume

MTAC – Source of pertinent information– Arena to learn and share– Opportunity to participate in workgroups– Expect to have increased MTAC exposure

PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION

www.pcmanet.org