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Investor Presentaiton

Figure 8: CCOS currently contract with six entities who provide pharmacy benefits CCO Advanced Health PBM(s)7 Medimpact AllCare Medimpact Cascade Health Alliance MedImpact Columbia Pacific OptumRx Eastern Oregon Navitus (Oregon Prescription Drug January 2023 enrollment 27,204 61,884 25,520 35,344 71,475 Program) Health Share Multiple8 427,339 InterCommunity Health Network OptumRx 80,126 Jackson Care Connect OptumRx 62,681 PacificSource- Central CVS Caremark 73,117 PacificSource- Columbia Gorge CVS Caremark 16,841 PacificSource- Lane CVS Caremark 89,098 PacificSource- Marion/Polk CVS Caremark 140,073 Trillium Community Health- Southwest Envolve Pharmacy Solutions 35,874 Trillium Community Health- Tri- Envolve Pharmacy Solutions 38,381 County Umpqua Health Alliance Yamhill Community Care FFS Total Medimpact Providence N/A 36,797 34,778 129,230 1,385,762 Source: OHA PBM and Medicaid enrollment information Pharmacy benefits continue to be a large spending category for CCOS OHA estimates about 14% of each monthly capitated payment sent to CCOS is for prescription drugs. It is important to note this estimate does not include drugs given in a hospital setting or drugs administered by physicians. Mental health drugs are also excluded, as they are paid under the FFS model, even if the person is enrolled in a CCO.9 In 2021, about 11.8 million Medicaid prescriptions were dispensed at pharmacies, and CCOs reported spending $767 million on prescription drug benefits, while FFS drug expenditures were $208 million. 10 Generic drugs are the most prescribed medications, but specialty drugs make up a disproportionate share of total expenditures. There is no single agreed-upon definition of a specialty drug between PBMs and insurers. Definitions vary, but can include high-cost medications, drugs that require special handling, availability limited to certain pharmacies, and drugs that treat rare diseases. Some generic drugs can cost $2 or less, while some specialty drugs can cost over $100,000 per prescription. Generics 7 Some CCOs have changed PBMs in the past five years. Figure 7 reflects the CCO-PBM relationships as of January 2023. 8 Health Share has multiple subcontractors, each with their own pharmacy benefit relationship. These include OHSU, Providence, Kaiser, CareOregon, Optum Rx, and Legacy/Pacific Source. 9 Per OAR 410-141-3855, mental health drugs in Standard Therapeutic Classes 7 and 11 are carved out from coordinated care benefits. Providers bill OHA directly for these medications. 10 The total amount paid does not reflect any rebates received that would reduce the total amount spent. FFS and CCO claims are both subject to federally mandated rebates. Oregon Secretary of State Report 2023-25 | August 2023 | page 9
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