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CAREFIRST SPECIALTY PHARMACY COORDINATION PROGRAM 200+ ASO ACCOUNTS September 3, 2014 1 PROPRIETARY AND CONFIDENTIAL Key Takeaways • • • • What are Specialty medications and how are they driving pharmacy costs? How is Specialty Pharmacy Coordination (SPC) program differentiated in the market? How does Exclusive Specialty support SPC and why is it the most appropriate delivery system? How are SPC and Exclusive Specialty Network a proactive approach to controlling overall health care spend? 2 PROPRIETARY AND CONFIDENTIAL Agenda 1 Overview of Specialty Marketplace Specialty Pharmacy Coordination Program CareFirst’s Exclusive Specialty Network Communication Strategy Implementation Timeline and Requirements Appendix 3 PROPRIETARY AND CONFIDENTIAL By 2018, Specialty Will Represent 50 Percent of all Drug Spend1 • 6 of the top 10 drugs will be specialty2 • Pipeline has ~900 specialty drugs in development3 • 40% of patients do not adhere to their treatment regimens4 • Inflammatory conditions such as multiple sclerosis and cancer continue to account for two-thirds of specialty drug spend4 • Price inflation TOTAL INDUSTRY SPECIALTY SPEND1 $235B $92B 2012 2018 30% 50% Percent of Total Drug Spend – AWP increase 16% to 19% per year for certain 5 multiple sclerosis drugs Specialty adherence outpaces traditional retail pharmacy by an average of 9%4 1. NHE, Artemetrx, CVS Caremark internal analysis, 2013. 2. EvaluatePharma, “World Preview 2013, Outlook to 2018 Returning to Growth”, June 2013. 3. http://www.specialtypharmacycontinuum.com/ViewArticle.aspx?d=Operations+%26+Management&d_id=496&i=November+2013&i_id=1009&a_id=24394, accessed 1/17/14. 4. URAC Specialty Whitepaper, 2011. 5. CVS Caremark Internal Data. Enterprise Analytics 2012. 4 PROPRIETARY AND CONFIDENTIAL CareFirst Specialty Spend • • • January to June 2014: – 1.7% of utilizing plan members – 28.5% percent of the total drug cost Members who use specialty drugs also use the overall health care system at higher rates and are among the costliest to treat Specialty drugs can help to slow disease progression, prevent adverse events and improve the quality of life for members beyond what was possible without them Integration of medical and prescription lowers overall health care costs Source: Specialty RxInsights Report & CareFirst Specialty Pharmacy Coordination Program Guidelines 5 PROPRIETARY AND CONFIDENTIAL What are Specialty Medications? PRODUCTS THAT MAY HAVE SOME COMBINATION OF THE FOLLOWING CHARACTERISTICS: • Treat chronic, complex and/or rare disease states • Require special handling, storage inventory and/or administration • U.S Food and Drug Administration (FDA)-mandated safety programs • Require clinical assessment to optimize safety and adherence • Limited distribution • High cost 6 PROPRIETARY AND CONFIDENTIAL Top 10 Diseases and the PMPM Cost of Specialty Drugs Top 10 drug classes comprise 93.5% of your total drug cost PMPM=Per member per month; HIV=Human immunodeficiency virus; RA=Rheumatoid arthritis; MS=Multiple Sclerosis; HEPC or HCV=Hepatitis C Virus; ONCOL=Oncology or cancer; INFERTIL=infertility; HGH=human growth hormone; PAH= pulmonary arterial hypertension; CF=Cystic Fibrosis Source: Specialty RxInsights 7 PROPRIETARY AND CONFIDENTIAL About Three Million Adults In The United States Are Infected With HCV1 Baby boomers are five times more likely to have HCV1; CDC recommends they get tested2 99% of HCV patients have a directly-associated comorbid condition4 Genotype 1 accounts for 70% to 75% of all infections in the United States3 1 in 4 people infected with HIV are also infected with HCV5 Chronic Hepatitis C (CHC) infection is the leading indication for liver transplants*3 HCV prevalence varies widely from state to state, ranging from 1.3% to 0.4%6 Hepatitis C treatment is complex and presents a number of adherence challenges. *In the United States 1. http://www.cdc.gov/features/vitalsigns/hepatitisc/, accessed August 28, 2014. 2. http://www.cdc.gov/knowmorehepatitis/Media/PDFs/FactSheet-Boomers.pdf, accessed August 28, 2014. 3. http://www.cdc.gov/hepatitis/HCV/HCVfaq.htm, accessed August 28, 2014. 4. Louie KS, et al. The high comorbidity burden of the hepatitis C virus infected population in the United States. BMC Infectious Diseases 2012, 12:86 doi:10.1186/14712334-12-86 5. http://www.cdc.gov/hepatitis/Populations/hiv.htm, accessed August 28, 2014. 6. Milliman Report, “Health Care Reform and Hepatitis C: A Convergence of Risk and Opportunity”, December 10, 2013 8 PROPRIETARY AND CONFIDENTIAL Disease Progression Will Occur Without Treatment • • • HCV infection is a leading cause of cirrhosis, liver cancer (hepatocellular carcinoma; HCC) and liver transplantation1 10% to 20% of chronic HCV patients will develop cirrhosis and up to 5% will progress to liver cancer1 HCV affects nearly 50% of all liver transplants2 ANNUAL COSTS PER PATIENT BY CONDITION3, 4 $577,000 $160,000 $62,000 LIVER CANCER CIRRHOSIS LIVER TRANSPLANT SVR* reduces risk for HCC, end-stage liver disease, liver transplant, diabetes and mortality.5 *Sustained Virologic Response 1. H. Razavi1, A. El Khoury2, E. Elbasha2, C. Estes1, K. Pasini1, T. Poynard3, R. Kumar2, Chronic Hepatitis C Virus (HCV) Disease Burden And Cost In The United States, Hepatology. Jun 2013; 57(6): 2164–2170. 2. Wiley (2012, December 6). Aging hepatitis C population escalates demand for liver transplantation. ScienceDaily. http://www.sciencedaily.com/releases/2012/12/121206121902.htm. Accessed August 28, 2014. 3. Milliman Report: Consequences of Hepatitis C Virus: Cost of a Baby Boomer Epidemic of Liver Disease, May 2009; 4. Milliman Report: 2011 U.S. Organ and Tissue Transplant Cost Estimates and Discussion. 5. http://www.amcp.org/WorkArea/DownloadAsset.aspx?id=16750. Accessed August 8, 2014. 9 PROPRIETARY AND CONFIDENTIAL Launch Pricing Sovaldi™ $30,000 Revlimid® Tecfidera® Incivek® Copaxone® Enbrel® Humira® Source: Launch pricing available online. This slide contains references to brand-name prescription drugs that are trademarks or registered trademarks of pharmaceutical manufacturers not affiliated with CVS/caremark. 10 PROPRIETARY AND CONFIDENTIAL Agenda Overview of Specialty Marketplace 2 Specialty Pharmacy Coordination Program CareFirst’s Exclusive Specialty Network Communication Strategy Implementation Timeline and Requirements Appendix 11 PROPRIETARY AND CONFIDENTIAL Specialty Pharmacy Coordination (SPC) • • • Integration of Specialty Pharmacy and Care Management Teams High-touch, high quality management and support to assure the best outcomes 24 x 7 telephonic access to a specialty pharmacist or nurse – Support member questions – Help manage side effects – Reduce the possibility of unnecessary emergency room visits or hospitalizations • Links with Complex Case Managers (CCMs), Behavioral Health Case Managers or Local Care Coordinators (LCCs) for members managing other co-morbidities to holistically manage the chronic condition Integration with iCentric to assure continuity of care with primary care physician (PCP) 12 PROPRIETARY AND CONFIDENTIAL Identification of Members • Analysis of pharmacy and medical claims data – CVS Caremark Specialty Member: • Higher engagement outcomes because of the existing relationship with the CVS Caremark Specialty Team – Non-CVS Caremark Specialty Member: • Intro letter mailed to the member • Engagement outreach 5 to 6 days post letter (if phone number is on file) • Service requests placed for the SPC Program by CareFirst care coordinators (LCCs and CCMs) 33% higher engagement rates with Exclusive Specialty in place Source: Accordant data 13 PROPRIETARY AND CONFIDENTIAL SPC Offers Two Distinct Levels of Service SPECIALTY PHARMACY • Access to specialty medication • Medical/pharmacy benefits verification • Financial assistance consultation • Injection training coordination • Medication/dose appropriate management • Education on adherence and side effects CARE MANAGEMENT • Aligned with CareFirst Case Managers • Unique care plan including all clinical factors • Robust disease specific/co-morbidity education • Self-management, “stay healthy” behavior • Disease complication prevention • Safety compliance • Drug optimization • Drug-drug interaction review • Member support/coping skills • Inventory coordination to help reduce waste • Care Coordination • Refill reminders • Coordination of services, resources and interventions. CareFirst’s integration between Specialty Pharmacy and Care Management is unmatched in the market 1. CVS Caremark Data Warehouse 2010-2011 March 2012, CVS Caremark Specialty Analytics. 14 PROPRIETARY AND CONFIDENTIAL Our Clinical Model Extends Care Management Impact: MS Example SYMPTOMS SELF CARE • • • • • • • • • Flare-ups Pain Fatigue Disease progression SPECIALTY PHARMACY: MEDICATION MANAGEMENT • • • • Self-injection training Physical activity Nutrition Fall prevention Adherence reinforcement CO-MORBIDITIES Adherence Side effects Safety Financial assistance Patient • Depression • Diabetes • Osteoporosis CARE OPTIMIZATION • • • • Medical equipment Transportation Caregiver support Transition to home High-touch, high quality management and support to assure the best outcomes 15 PROPRIETARY AND CONFIDENTIAL How Care Management Supports Ellen • Ellen, 39, is married to Tom and their son is in first grade • She was diagnosed with MS three years ago • She worries that her condition will end her accounting career • Recently, her flare-ups have been more frequent and more severe • Her last flare-up required a hospital admission Patient story is represented for illustrative purposes only. Any resemblance to an actual individual is coincidental. All data sharing complies with applicable firewall and privacy laws. 16 PROPRIETARY AND CONFIDENTIAL Coordinated Pharmacist and Nurse Care 1 2 Ellen’s PCP prescribes new therapy New prescription reviewed for appropriateness; prior authorization obtained 4 3 Ellen’s MS CareTeam representative calls • Educates Ellen on her new therapy and introduces Care Management; schedules call • Offers to ship prescription to Ellen’s home, office or local CVS/pharmacy for pick-up* 5 Ellen’s nurse calls in two weeks; her flare-up is subsiding and she has a PCP appointment to discuss her depression Care Management nurse calls Ellen to assess condition and create a Disease Management Plan (DMP) • Alerts PCP by mail to signs of depression; PCP views DMP in iCentric 6 7 Before the next refill, Ellen’s CareTeam calls to assess adherence and side effects with the new therapy Ellen’s nurse calls to follow up and assess continued progress; updates record in iCentric Purple outline indicates Care Management services Blue outline indicates Specialty Pharmacy services Patient story is represented for illustrative purposes only. Any resemblance to an actual individual is coincidental. All data sharing complies with applicable firewall and privacy laws. *Where allowed by law. In-store pick up is not available in Arkansas, Oklahoma and West Virginia. Some states require first fill prescriptions to be transmitted directly to the dispensing specialty pharmacy. Other restrictions may apply. 17 PROPRIETARY AND CONFIDENTIAL Agenda Overview of Specialty Marketplace Specialty Pharmacy Coordination Program 3 CareFirst’s Exclusive Specialty Network Communication Strategy Implementation Timeline and Requirements Appendix 18 PROPRIETARY AND CONFIDENTIAL What is Exclusive Specialty Pharmacy? Specialty Pharmacy Coordination services can be accessed in two ways: • Through an Open Specialty Network (where members use any pharmacy in our network that is authorized to fill a specialty prescription) OR • Through the Exclusive Specialty Pharmacy Network (CVS Specialty Pharmacy or OncoSource Rx Specialty Pharmacy) Exclusive Specialty Pharmacy Network members MUST fill their specialty medications ONLY through CVS Caremark Specialty Pharmacy or OncoSource Rx Specialty Pharmacy • CVS Caremark and OncoSource were selected as our specialty network based on their ability to offer greater support and personalized services by a team of skilled clinicians . CVS Caremark Specialty Pharmacy provides services and skilled clinicians for all specialty drugs OncoSource Rx is a Cardinal Health specialty pharmacy, located in Columbia, MD, with experienced professionals in drug therapies requiring “specialty” drugs. These areas include oncology and related supportive care, in addition to rheumatology, gastroenterology and other auto-immune diseases. The effectiveness of the Specialty Pharmacy Coordination Program is substantially improved when specialty drugs are filled within the Exclusive network. 19 PROPRIETARY AND CONFIDENTIAL Exclusive Specialty Pharmacy Network Selling Points • Experienced clinical support to help improve member adherence and safety • Consistent and proactive care management • Flexible access to specialty medications through the CVS Caremark Specialty Connect™ Program • Access to limited distribution specialty products • 33% higher member engagement in the Specialty Pharmacy Program when members are using CVS Caremark Specialty Pharmacy • Better management of specialty spend to lower overall health care costs • Available at no additional cost to the account Exclusive Specialty supports CareFirst’s PCMH and TCCI initiatives 20 PROPRIETARY AND CONFIDENTIAL Specialty Connect™: Expanded Choice, Greater Access to Specialty Medications and Services THE CHALLENGE: TRADITIONAL RETAIL FAILS TO MEET MANY SPECIALTY PATIENTS’ NEEDS • 25% turned away/inadequate guidance1 • 7% to 10% fewer patients compliant to therapy2 • 20% fewer patients on therapy after one year2 OUR APPROACH: SIMPLIFIES ACCESS TO SPECIALTY PHARMACY CHOOSE WHERE TO SEND PRESCRIPTION CVS/PHARMACY* SPECIALTY PHARMACY RECEIVE 24/7 PERSONALIZED EDUCATION AND SUPPORT THERAPY-SPECIFIC SPECIALTY CARETEAMS COUNSEL PATIENT CHOOSE DELIVERY LOCATION CVS/PHARMACY* HOME/ LOCATION OF CHOICE** 1. 2011 New England Opinion focus group of specialty patients, calls to 150 retail pharmacies (CVS and competitors) on January 13-15, 2012 2. JP Morgan, Gill’s Guide to Specialty across the Rx Channel, May 2012. *In-store pick up is not available in Arkansas, Oklahoma and West Virginia. Some states require first fill prescriptions to be transmitted directly to the dispensing specialty pharmacy. Other restrictions may apply. **Where allowed by law 31856 21 PROPRIETARY AND CONFIDENTIAL Specialty Connect™ in Action: Improving Percent of Adherent Patients PERCENTAGE OF OPTIMALLY ADHERENT PATIENTS USING CVS/PHARMACY • Only company that seamlessly integrates local pharmacists with skilled specialty staff PILOT STORES BEFORE SPECIALTY CONNECT 13% 12-MONTH PILOT RESULTS improvement 79% 66% CVS Caremark Specialty Pharmacy Adherence 50% of patients preferred to pick up at retail Source: CVS/caremark internal analysis, 2013. 22 PROPRIETARY AND CONFIDENTIAL Agenda Overview of Specialty Marketplace Specialty Pharmacy Coordination Program CareFirst’s Exclusive Specialty Network 4 Communication Strategy Implementation Timeline and Requirements Appendix 23 PROPRIETARY AND CONFIDENTIAL Communication Strategy MEMBER AND PROVIDER OUTREACH INITIAL CLINICAL ASSESSMENT 60 days prior to launch (member mailing) Specialty CareTeam onboards member • Targeted member mailing and phone outreach to transition the member to specialty pharmacy • Proactive clinical assessment performed by specialty CareTeam to identify individual service and education needs • Member is notified of the added access and convenience of using • Shipment is confirmed and Exclusive Network pharmacy • Targeted contact with providers of impacted members who need to change their specialty meds to the Exclusive Network CLINICAL REASSESSMENT Ongoing clinical assessment • Member re-evaluated by Specialty CareTeam to identify any new issues or barriers with the prescribed treatment regimen, including: adherence, side effects and response to treatment scheduled 24 PROPRIETARY AND CONFIDENTIAL Mailings Only to Those Who are Not Currently Using CVS Caremark or OncoSource • • Mailings are only going to those employees who are NOT currently using CVS Caremark Specialty Pharmacy or OncoSource Rx Specialty Pharmacy (our Exclusive Specialty Network) It is estimated that less than 1% of members in a group will need to be contacted about changing to a pharmacy in the Exclusive Specialty Network Account Example with 5,000 Employees Sample Account of 5,000 Employees Count of Members 40 members will not receive letters; they can stay with their current provider CVS Caremark 30 OncoSource 10 Other Network Pharmacies 38 TOTAL 78 38 members will receive a letter indicating they need to move to CVS Caremark or OncoSource Rx (depending on the drug they are taking; see CareFirst Specialty Drug List) (two members in the original data pull had termed ) Most employees are probably already using a pharmacy in the CareFirst Exclusive Specialty Network Estimated less than 1% of employees will have to be contacted 25 PROPRIETARY AND CONFIDENTIAL Key Member Deliverables Communication Member Notification: CVS ONLY Description 60 day pre-notification letter which informs members: 1. Their specialty medications can ONLY be filled at CVS 2. Outlines the benefits and resources available Timing Mailed Letter Notifications and following support calls will launch in 3 phases to ensure no member is missed: Phase Member Notification:CVS and OncoSource RX Follow-up Support Calls 60 day pre-notification letter which informs members: 1. Their specialty medications can ONLY be filled at CVS or OncoSource RX 2. Outlines the benefits and resources available Member support calls occur the week after members receive their notification letter: 1. Ensures the member received and understands the letter 2. Offers support for managing the member’s condition 3. Collect member demographic information 4. Connect the member with a nurse or complete a new program questionnaire if the member doesn’t have time to speak to a nurse Target Range Data Pull Date Launch Date Followup Support Calls 1 5/5/14 – 10/16/14 10/17/14 10/27/1410/31/14 11/1/1412/31/14 2 10/17/1412/14/14 12/15/14 12/19/14 12/22/141/31/15 3 12/15/141/1/15 1/2/15 1/9/15 1/12/151/31/15 26 PROPRIETARY AND CONFIDENTIAL Key Member Deliverables Cont’d Communication Description Timing MyAccount Updates (supported by CVS) and Drug List • Article in the secure portal creates awareness of the program as well as benefits available • Specialty Drug List clarifies which pharmacy to use by drug-class and will be updated on CareFirst public member site quarterly. • • Secure sign-on article targeted for 11/30/14 Drug List Posted 8/12/14 (updated quarterly) Open Enrollment Education 1.Open Enrollment Book (Large Group) 2.Open Enrollment Fliers on ordering system for Sales and Brokers • Used at benefit and health fairs for members belonging to groups larger than 200 members • Brokers can use these fliers as well for smaller groups Updates to existing member-facing materials used during open-enrollment: • Creates awareness of Exclusive Specialty Program • Educates and outlines the benefits and resources available to members Targeting 10/1/14 27 PROPRIETARY AND CONFIDENTIAL Key Provider Deliverables Communication Exclusive Specialty Fax Blast Specialty Prescriber Telephonic Outreach Consultative Visit for Top Specialty Drug Prescribers Description Timing Communicate prescribing physicians: • CVS and/or OncoSource RX will be exclusive provider • Next steps and resources available • Include Exclusive Specialty drug list [Insert Timeline and Table if data-pull and phases are required] 1 5/5/14 – 10/17/14 10/27/14- Follow-up from fax blast: • Verbally ensure physician understands the fax blast • Address any questions 3 [Insert Timeline 12/15/14-and Table 1/2/15 if data-pull 1/9/15and 1/1/15 phases are required] Top prescribing physicians will have a personal 1x1 consultative visit to : • Walk-through the process • Update any necessary paperwork • Answer any questions Targeting November through December Phase Target Range Data Pull Date 10/16/14 2 10/17/1412/14/14 Fax Blast 10/31/14 12/15/14 12/19/14 Telephoni c Outreach 11/1/1412/31/14 12/22/141/31/15 1/12/151/31/15 28 PROPRIETARY AND CONFIDENTIAL Agenda Overview of Specialty Marketplace Specialty Pharmacy Coordination Program CareFirst’s Exclusive Specialty Network Communication Strategy 5 Implementation Timeline and Requirements Appendix 29 PROPRIETARY AND CONFIDENTIAL Exclusive Specialty Implementation Timeline Only applies for those accounts/members with pharmacy benefit Timeline October 1, 2014 January 1, 2015 (CORE turnkey) CareFirst House Account Pilot Fully Insured MD HMO and DC HMO and PPO (ALL sizes) 100-199 FACETS Standard Non-Risk January 1, 2015 Core Upon Renewal January 1, 2016 (CORE turnkey) 200+ Non-Risk (ALL products, ALL jurisdictions) Fully Insured MD PPO Virginia risk accounts are NOT eligible for Exclusive Specialty Pharmacy based on state regulations 30 PROPRIETARY AND CONFIDENTIAL Broker and Employer Constituent Communications Key Broker Objectives Ability to articulate the value of the exclusive specialty pharmacy program • Client-specific information/data enabling brokers to illustrate the value to our current clients 31 studies or proof points for prospective clients • Utilize case Key Employer Objectives Awareness of exclusive specialty pharmacy program value • Helping an employers manage their employees chronic conditions • Address any client concerns • Detail pharmacy care management services 31 PROPRIETARY AND CONFIDENTIAL Review of Key Takeaways • • • • What are Specialty medications and how are they driving pharmacy costs? How is Specialty Pharmacy Coordination (SPC) program differentiated in the market? How does Exclusive Specialty support SPC and why is it the most appropriate delivery system? How are SPC and Exclusive Specialty Network a proactive approach to controlling overall health care spend? 32 PROPRIETARY AND CONFIDENTIAL Agenda Overview of Specialty Marketplace Specialty Pharmacy Coordination Program CareFirst’s Exclusive Specialty Network Communication Strategy Implementation Timeline and Requirements 6 Appendix 33 PROPRIETARY AND CONFIDENTIAL Specialty Pharmacy Coordination Integrated Process Engagement Outreach*: PBM and Medical Claims data Identify patients eligible for specialty pharmacy coordination program Open Specialty Pharmacy Network Intro Letter •Introduce program *5 to 6 days post letter Pharmacy Outreach: CareFirst Exclusive Specialty Pharmacy Network • Provide standard patient care and schedule shipment • Introduce program • Obtain best time/day to call CareTeam• Document introduction results • Share results with SPC Nurse Patient Agreeable Ongoing Clinical Collaboration Nurse Outreach/Inbound: Data to CareFirst: • Member engagement (Contacts; dates; etc.) • Disease Management Plan • Encounters/assessments • Alerts to Care Coordinators • Supports Operations and Outcomes Reporting Data CareFirst iCentric Medical Health Record SPC Nurse • Specialty Pharmacy Coordination Nurse/CareFirst Nurse collaboration for patients w/active CarePlan • Nurse assesses patient for additional care needs – Care optimization – Symptoms – Specialty pharmacy – Self-care – Co-morbidities • Monitoring criteria is condition and drug specific • Nurse refer to plan’s ancillary programs based on need (behavioral health: Magellan, case management: CareFirst, wellness: TBD) 34 PROPRIETARY AND CONFIDENTIAL Basic Flow—Specialty Pharmacy Process – Members will be welcomed via letter and phone call to let them know they must go to a pharmacy in the CareFirst Specialty Exclusive Network – If a member attempts to fill a specialty prescription outside the network, the pharmacy will get a message guiding the member to call the dedicated CareFirst specialty phone number – If the need is urgent, an override can be entered to allow the fill – Overrides should only be provided for emergency situations only 35 PROPRIETARY AND CONFIDENTIAL Point of Sale Experience for Exclusive Specialty Pharmacy Member Trying to Fill at Non-Network Pharmacy Exclusive Specialty Pharmacy member tries to fill a specialty medication at a nonnetwork specialty pharmacy Actual point of sale reject message at pharmacy directing calls to CVS Caremark Specialty Customer Care: “Product/Service not Appropriate for This Location Specialty Drug: Call 855-264-3237” For an urgent need, an override can be entered through CVS Caremark Specialty Customer Care 36 PROPRIETARY AND CONFIDENTIAL CareFirst Specialty Pharmacy Drug List 37 PROPRIETARY AND CONFIDENTIAL