1. CMS Overview of Program Administration Medicare Coverage Gap Discount Program Public Meeting June 1, 2010

2. Topics Point-of-sale (POS) Discounts in 2011 Part D Sponsor role CMS role TPA role Manufacturer role 2010 Timeline 2

3. PlanPharmacyCMSTPAMFR Rx POS Discounts 3

4. Part D Sponsor Role Sponsor (PBM) identifies and adjudicates eligible claim online in real-time: Beneficiary Drug product Formulary status Benefit stage Cost sharing remaining in coverage gap Sponsor submits data (“PDE”) to CMS 4

5. CMS Role Issues guidance to beneficiaries, plan sponsors, and manufacturers Contracts with TPA Receives, edits and validates PDEs Provides data to TPA Monitors plan sponsor, TPA, and manufacturer compliance Monitors impacts on Part D program 5

6. TPA Role Facilitate the distribution of funds from manufacturers to Plans Develop & distribute invoices Collect & distribute EFT information Collect data on timely payments Support dispute resolution process Support audit process 6

7. Manufacturer Role Includes, but is not limited to: Negotiating formulary placement and rebates with plan sponsors Signing the Model Manufacturer Agreement Reimbursing discounts advanced at POS by plan sponsors 7

8. 2010 Timeline March 30 – Affordable Care Act April 30 – Draft Plan Guidance May 21 – Revised Plan Guidance May 21 – Draft Model Agreement July 15 – Target Date for Final Model Agreement August 15 – Target Effective Date of Model Agreement September 15 – Target Deadline for Signed Agreements October 1 – Publication of Covered Labeler Codes 8