Ed Feaver

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.a health and consumer services company making
peoples lives better
Pharmacy Management Prescription Solutions
Ed Feaver Prescription Solutions President CEO
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Historical Perspective

• PacifiCare-centric PBM which provided fully
  integrated services to PacifiCare and
  unaffiliated external accounts
• Minimal focus on external growth
• Exceptionally tight formulary management
  capability which supports aggressive cost
  management, purchasing and rebate strategy

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More than a PBM

• A pharmacy and medical management company
• Making the connection between pharmacy benefits
  and medical utilization
• Focused on providing the best clinical outcome at
  the lowest possible cost

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Vision/Goal

• The vision is to be nationally recognized as one
  of the top five Pharmacy and Medical Management
  companies (Pharmaceutical Services Company) by
  2006.

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Key Statistics FY2001

• Claims
• 65M claims processed
• 50M claims paid
• 4.2M mail service claims
• Call Centers
• 15,000 calls/day
• 750,000 Prior Authorization requests
• Contracting
• 1.9B of annual drug purchases
• 230M of annual rebates
• 54,000 pharmacies in network
• 750 employees

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Financial Highlights
1997 1998
1999 2000 2001
2002
(est.)
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Product Strategy

• Focused around market segment
• Product efforts targeted by segment
• Managed Care Organizations / Health Plans
• Employers
• Taft-Hartley / Union Trust Funds
• Government
• Consumers
• Pharmaceutical Manufacturers
• Non-profit Organizations

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Select Products by Market Segment

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Sales Strategy

• Segment Strategies
• MCOs
• Competitive on transaction-based commodity
  services then identify vertical sales
  opportunities once clients are on board
• Employers/TPAs
• Leverage relationships with consulting practice
  leaders
• Joint Venture Opportunities
• Evolution from PacifiCare-Centric
• Network Enhancement Strategy
• Formulary and Rebate Strategy
• Pricing Strategy

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Membership Projections
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Client Mix Change
2001 Client Mix PHS v. Non-PHS
25
2004 Client Mix PHS v. Non-PHS
75
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Pharmacy and Medical Management