5653-0 ArrayRx Overview.pdf

March 2023

ArrayRxSolutions.com

An overview of ArrayRx

Pharmacy solutions created for states, by states

Introduction

ArrayRx is a collaboration of state partners that was created with one common goal: to create pharmacy solutions that are accessible to the people in our communities. By providing transparent and value-based pharmacy solutions that are overseen and administered by states for public sector purchasers of prescription drugs, ArrayRx focuses on true program transparency where stewardship of tax dollars is the highest priority.

Organizations that participate in ArrayRx include state employee groups, Medicaid programs, workers compensation programs, participating state, county and city organizations and facilities, not for profit entities, and private employer groups. Residents in Oregon, Washington and Nevada can also participate in ArrayRx using a state-sponsored discount card.

While any organization can join, ArrayRx programs are especially intended for U.S. states, commonwealths, territories, and municipalities to address the specific pharmacy needs of public purchasers.

History of ArrayRx

ArrayRx is the result of a commitment by the states of Oregon and Washington, later joined by Nevada, to collaborate and provide solutions to organizations grappling with increasing costs for prescription drugs and the lack of transparency in the pharmaceutical supply chain.

In the early 2000s, Oregon and Washington passed legislation that established Prescription Drug

Programs for their residents. These programs were intended to create a state-sponsored prescription drug purchasing program for residents who lacked prescription coverage, or who required additional safety-net protection. The programs were intended to leverage the purchasing power of each state to help curb the rising costs of pharmaceuticals for people requiring assistance but who did not qualify for

Medicaid.

Over time, the administrators of Oregon and Washington’s Prescription Drug Programs recognized an opportunity to leverage purchasing beyond just their respective state-backed Prescription Drug

Programs and formed the Northwest Prescription Drug Consortium (Consortium). Establishing the

Consortium allowed state organizations, local governments, Medicaid, and private and public entities to join together and pool the purchasing capacity of their programs. This was important since, as the pool of participating programs grew, the Consortium’s ability to achieve price improvements and enhanced manufacturer rebates also increased.

In 2022, in response to interest expressed by other states about participating in the Consortium, and in response to the increased use of interstate agreements among states to facilitate collaboration, the

Consortium rebranded itself as ArrayRx. Under this new name, ArrayRx represents a unifying brand that extends the value proposition of the programs it has developed, “for states, by states”, to a broader public sector market. ArrayRx services are designed for the specific pharmacy needs of public purchasers and are now available to all U.S. states, territories, and municipalities nationwide.

At the end of 2022, the Consortium represented over 660 thousand individuals and over 900 million dollars in annual pharmacy purchases across Oregon, Washington, and Nevada.

ArrayRx programs

ArrayRx includes a broad suite of programs designed to assist states and participating programs with administering their pharmacy programs:

• ArrayRx Pharmacy Benefit Management (PBM) Program. This is a full-service pharmacy benefits administration service for public and private groups, including public employee programs and school districts. Participating programs enjoy complete state-of-the-art pharmacy benefit administration services that includes complete program transparency, and 100% pass-through on pharmacy costs and manufacturer rebates. ArrayRx represents the next generation of transparent PBM services, ensuring no “spread” on pharmacy transactions, detailed reporting and analytics, and offers customizable options to meet specific individual program needs.

• ArrayRx Discount Card Program. The discount card program provides prescription drugs and over-the-counter medications at discounted prices for state residents using a state-sponsored prescription discount card. The program allows residents to benefit from the pharmacy network and financial discounts that are negotiated by ArrayRx for states that participate in its programs.

The ArrayRx Discount Card is available to any resident in a participating state.

• ArrayRx Prescription Drug Voucher Program. The voucher program can be used by any facility

(correctional, state hospital, public health department, county health department, jail, etc.) that needs to ensure continuity in prescription drug therapy for people in their communities. The program allows sponsors to create a drug voucher for the individuals they serve that can be used at any participating pharmacy to have a medication filled at no cost to the individual. Covered medications are paid for by the facility at a discounted price that has been established by

ArrayRx with participating pharmacies.

• ArrayRx Workers’ Compensation Services. Workers’ compensation services help keep costs down while managing appropriate drug use as part of effective treatment plans for injured workers.

ArrayRx Workers’ Compensation Services is a highly customizable program that enables organizations to operate their workers’ compensation program to meet state requirements.

Flexibility can be built into their pharmacy solutions to meet a state’s specific need using an extensive pharmacy network and transparent program operations.

• ArrayRx Administrative Services Only (ASO) Rebate Program. The ArrayRx ASO Rebate Program allows organizations to benefit from the availability of manufacturer rebates on prescription drugs paid for by their organization. ArrayRx works with the organization to identify the covered drugs that meet rebate criteria for contracts ArrayRx has access to with manufacturers. Being able to benefit from manufacturer rebates on their eligible claims allows organizations to lower the cost of providing prescription drug benefits to individuals covered by their program.

ArrayRx operating principals

ArrayRx’s goal is to provide participating programs with pharmacy solutions that meet their needs.

Backed by strong oversight and governance, public entities have extra confidence in the knowledge that as a public entity, ArrayRx’s interests are aligned with theirs to ensure program funding is used as efficiently as possible.

To support its program management goals, ArrayRx has developed fundamental operating principals that guide the delivery of its services to clients. These principals provide organizations the predictability, transparency and auditability that are critical to ensuring the wise use of limited taxpayer funds.

Operating principals include:

• Programs designed for public sector and other purchasers

• Fully transparent operations

• Pure pass-through pricing from pharmacies

• 100% pass-through of all manufacturer rebates and fee payments

• Fixed administration fee (per pharmacy paid claim or Per Member per Month)

• Annual market checks performed by an independent third-party consultant

• Comprehensive audit rights

• Ability to customize formularies and clinical services

• Medical and pharmacy alignment and site of care services

Program transparency is validated using detailed performance reports that document the pass-through nature of its programs, as well as by performing annual market assessments to ensure financial guarantees are not only being achieved, but that they remain market competitive. In addition, ArrayRx programs include provisions that support audits of financial terms and performance on contractual guarantees, claim adjudication, and manufacturer rebates. Independent third-party audits are also available at reduced rates. These terms ensure that participating programs can be confident that

ArrayRx is working on their behalf.

ArrayRx partners

ArrayRx contracts with Moda Health Plan, Inc. (Moda) as the program administrator to oversee the delivery and management of its programs and services. Moda is responsible for ensuring the delivery and performance of the Pharmacy Benefit Management services, as well as overseeing its PBM subcontractor for services that have been delegated to it. A summary of the ArrayRx partners includes:

• Moda Health Plan, Inc. (Moda) — Contract Administrator. Moda is a comprehensive provider of medical, dental and pharmacy benefit plans, business solutions, insurance products, and administrative services for public and private clients and individuals representing nearly two million lives throughout the U.S. Moda has served as the administer for ArrayRx programs since 2007 and has been renewed in this capacity over multiple competitive public procurements.

Moda provides day-to-day account management, including operational oversight, customer service, benefit design, formulary selection, clinical management, rebate administration, and analytics and reporting. Moda collaborates with its PBM sub-contractor, Navitus Health

Solutions, LLC., to provide other services traditionally required of a PBM.

• Navitus Health Solutions, LLC. (Navitus). Navitus is a nationally recognized transparent, independent, and full disclosure PBM that ensures complete alignment with ArrayRx and

Moda's public-sector clients' goals. Located in Madison, WI with offices in Appleton, WI; Austin, TX; and Phoenix, AZ, Navitus is sub-contracted to provide services relating to prescription claim processing, pharmacy network management, eligibility verification, rebate management and certain other PBM services. Moda and Navitus have an integrated team that supports ArrayRx clients.

ArrayRx governance

ArrayRx is overseen by a Steering Committee that is exclusively comprised of public officials who are employed by the originating states (Oregon and Washington) as well as a representative from each member state. Taken together, the Steering Committee has over 100 years of aggregated experience in various sectors of pharmacy benefit management and contracting. This experience provides the knowledge, expertise and proficiency necessary to provide direction and governance for ArrayRx programs.

The ArrayRx Steering Committee meets weekly to discuss overall program topics and performance.

Twice monthly, program reviews are held with the ArrayRx contract administrator to review overall status and discuss open items. Regularly scheduled strategy meetings are conducted by the Steering

Committee with participation from the ArrayRx contract administrator and sub-contractor(s) to discuss future enhancements and program requirements.

Like many states that are responsible for using public funds to achieve the best taxpayer value, ArrayRx has conducted regular public procurements to select and manage the ArrayRx contract administrator for its programs. The contract administrator, and its associated sub-contractors, are held to high program and performance standards and are required to operate using transparent and accountable systems to ensure program integrity and openness. These high standards for performance ensure delivery of the greatest possible value for the public partners and participating programs in ArrayRx. Steering

Committee governance includes the active oversight of ArrayRx programs and performance to ensure contract compliance, and appropriate performance and outcomes.

taylorm Cross-Out

The statutory authority of the ArrayRx originating states encourages interstate collaboration and synergy in pharmacy purchasing. The Steering Committee believes that by collaborating with other state and public entities, public programs can more effectively administer the programs, services, customization, and flexibility required to meet unique public program requirements.