COST PROPOSAL_West Virginia PEIA Solicitation ARFP PEI2500000002_05.23.2025.xlsx

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PHARMACY BENEFITS MANAGEMENT
Solicitation number
ARFP-0225-PEI2500000002-2
Issued by
Kanawha County, West Virginia

About this file

This is a Cost Proposal for a Pharmacy Benefit Management (PBM) Services Request for Proposal (RFP) issued by the West Virginia Public Employees Insurance Agency (PEIA). The solicitation number is ARFP PEI2500000002, with an RFP release date of May 23, 2025, and a proposal due date of July 11, 2025. The contract is set to be effective from July 1, 2026, and spans three years, running through June 30, 2029, with the potential for future renewals or extensions.

The pricing proposal includes detailed pass-through pricing for various pharmacy channels, including retail (1-83 and 84+ days' supply), mail order, open and preferred specialty pharmacies, and limited distribution drugs. Pricing is based on NADAC (National Average Drug Acquisition Cost) plus a fixed fee, with guaranteed discounts off Average Wholesale Price (AWP) for brand and generic medications. The proposal includes comprehensive sections on rebates, biosimilar strategies, cost containment approaches, administrative fees, network disruption analysis, and formulary impact assessments. Key financial components include an all-inclusive Per Member Per Month (PMPM) administrative fee, rebate guarantees, and specific pricing strategies for specialty and limited distribution drugs.

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Cover Page

CONFIDENTIAL & PROPRIETARY

Request for Proposal for
PHARMACY BENEFIT MANGEMENT SERVICES
Solicitation Number: ARFP PEI2500000002

COST PROPOSAL (Pricing Workbook)

West Virginia Public Employees Insurance Agency

RFP Release Date: May 23, 2025 ID#AAABiq4exCE tc={B52BAED1-7943-4234-93A8-50EF5EDE5EFD} (2025-04-30 14:54:39) [Threaded comment]

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Comment:

Dates will be updated throughout once ready to release.

RFP Due Date:July 11, 2025
Effective Date:July 1, 2026
CONFIDENTIALITY NOTICE
This Request for Proposal and the information contained herein is confidential. No part of this Request for Proposal may be reproduced or shared with anyone outside of your organization without prior written consent.

Pass-Through Pricing Template

CONFIDENTIAL & PROPRIETARY
COMPLETION OF PASS THROUGH AND PMPM TABS REQUIRED FOR RFP SUBMISSION
PASS-THROUGH PRICING TEMPLATEYear 1Year 2Year 3
07/01/2026 -
06/30/202707/01/2027 - 06/30/202807/01/2028 - 06/30/2029
* If pricing is based on NADAC or other source, please provide your AWP equivalent.
RETAIL 1-83 (NON-SPECIALTY)
Guaranteed minimum overall brand discount off AWP
Guaranteed minimum overall generic discount off AWP
Guaranteed maximum dispensing fee per brand claim
Guaranteed maximum dispensing fee per generic claim

West Virginia Domiciled Pharmacies NADAC + $10.49 NADAC + $10.49 NADAC + $10.49

RETAIL 84+ (NON-SPECIALTY)
Guaranteed minimum overall brand discount off AWP
Guaranteed minimum overall generic discount off AWP
Guaranteed maximum dispensing fee per brand claim
Guaranteed maximum dispensing fee per generic claim

West Virginia Domiciled Pharmacies NADAC + $10.49 NADAC + $10.49 NADAC + $10.49

MAIL ORDER - ALL DAYS' SUPPLY (NON-SPECIALTY)
Guaranteed minimum overall brand discount off AWP
Guaranteed minimum overall generic discount off AWP
Guaranteed maximum dispensing fee per brand claim
Guaranteed maximum dispensing fee per generic claim
OPEN SPECIALTY 1-30 DAYS' SUPPLY
Guaranteed minimum overall brand discount off AWP
Guaranteed minimum overall generic discount off AWP
Guaranteed maximum dispensing fee per brand claim
Guaranteed maximum dispensing fee per generic claim

West Virginia Domiciled Pharmacies NADAC + $10.49 NADAC + $10.49 NADAC + $10.49

PREFERRED SPECIALTY 1-30 DAYS' SUPPLY

(Note: Preferred specialty should be compliant with legislation)

Guaranteed minimum overall brand discount off AWP
Guaranteed minimum overall generic discount off AWP
Guaranteed maximum dispensing fee per brand claim
Guaranteed maximum dispensing fee per generic claim
West Virginia Domiciled PharmaciesNADAC + $10.49NADAC + $10.49NADAC + $10.49
PBM Specialty PharmacyNADAC + $10.49NADAC + $10.49NADAC + $10.49

LIMITED/EXCLUSIVE DISTRIBUTION DRUGS

ID#AAABiq4exCA tc={D1ED2938-798F-4395-B5DE-0670FA5CE518} (2025-04-30 14:54:39) [Threaded comment]

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Comment:

Preference would be to include in specialty guarantees.

Are limited distribution drugs considered specialty?
Confirm limited distribution drugs will be included in the pricing and rebate guarantees?
Guaranteed minimum overall brand discount off AWP
Guaranteed minimum overall generic discount off AWP
Guaranteed maximum dispensing fee per claim
Please confirm you will comply with reimbursement to West Virginia domiciled pharmacies at NADAC + $10.49.
Please confirm you will provide reimbursement at PBM specialty pharmacies at NADAC + $10.49. Note: Currently PBM Specialty is NADAC + $10.49.
If you do not agree to the days' supply limits listed above, please provide days' supply limits by channel and outline the discounts/dispensing fees/rebates that claims outside of the provided range are to receive.Days SupplyProposed Days SupplyProposed Financials

(Discount, Fees, Rebate)

Retail 1-83
Retail 84+
Mail Order (All Days)
Open Specialty 1-30
Preferred Specialty 1-30
What is your default pricing for any new drugs being added to the specialty drug list? Include the AWP discount and any fees that will apply. If days' supply has impact or differentiates discounts, please outline clearly.
Please state any applicable dispensing fees charged for LTC, Home Infusion, Compound, VA, and ITU claims.

PMPM Pricing Template

CONFIDENTIAL & PROPRIETARY
COMPLETION OF PASS THROUGH AND PMPM TABS REQUIRED FOR RFP SUBMISSION
Year 1Year 2Year 3
PMPM Guarantee07/01/2026 -
06/30/202707/01/2027 -
06/30/202807/01/2028 -

06/30/2029

PMPM Guarantee Guidelines:
PMPM Guarantee Guidelines:CONFIRM/
DO NOT CONFIRMADDITIONAL INFORMATION, IF NOT CONFIRMING
It is expected that the PMPM guarantee includes all drugs and channels except for NEW catastrophic claims as noted below.
It is expected that your PMPM guarantee utilizes your formulary that is most closely aligned to WVPEIA's current formulary (formulary with exclusions).
Your PMPM guarantee should only assume current programs as being in place (i.e. SaveOn)
Your PMPM guarantee does NOT require additional clinical or other programs to be implemented.
Your PMPM guarantee only excludes NEW catastrophic claims (claims over $30,000/claim) that are not currently in the claims data.
- Adjunctive Specialty List
- Cost Watch List
- Active Management List

Independent Review Organization Carve-Out

Trademark Codes

CONFIDENTIAL & PROPRIETARY
Definitions - Trademark Code Classification
If your PBM's brand and generic definitions include reference to the MediSpan Trademark Code, you are required to complete the classification table below.
*For PBMs using these codes, your specific classification must be confirmed.
Please complete based on your classification, responding with "Brand" or "Generic"
Multi-Source CodeBrand Name Code*PBM Classification
M,NT
OT
OB, G
YT
YB, G
M,NG
M,NB

Specialty Pricing

CONFIDENTIAL & PROPRIETARY
SPECIALTY PHARMACY PRICING
Provide a detailed list of all products currently treated as Specialty, Limited Distribution (LDD), and Biosimilar Drugs by NDC 11 with the applicable discounts. Identify differences in pricing for Preferred versus Open plans. Please provide as Attachment in Excel format.
SPECIALTY, LIMITED DISTRIBUTION DRUG, AND BIOSIMILAR PRICING LIST
Drug NameNDC-11IndicationBrand/Generic IndicatorFormulary StatusAWP Discount - OpenAWP Discount - PreferredLimited Distribution (Yes/No)Biosimilar (Yes/No)

Rebates

CONFIDENTIAL & PROPRIETARY
REBATES
Rebates guarantees should be based on a minimum per brand claim. Deviations that require an average 30 or 90 days supply must be documented below.
1. Please complete the tables below to include the following formulary that best aligns with WV PEIA's current formulary.
2. List any exclusion(s) to your rebate guarantees and provide non-trended rebate estimates.
PROVIDE FORMULARY NAME (WITH EXCLUSIONS):
3 TIER BRAND
YearRetail
(1-83 Days' Supply)Retail
(84+ Days' Supply)Mail Order
(All Days' Supply)Open Specialty
(1-30 Days' Supply)Preferred Specialty

(1-30 Days' Supply)

7/1/2026-6/30/2027
7/1/2027-6/30/2028
7/1/2028-6/30/2029
REBATE ESTIMATE
Please provide your non-trended rebate estimate(s) for each year of the agreement.
Formulary NameContract YearNon-Trended Rebate Estimate
7/1/2026-6/30/2027
7/1/2027-6/30/2028
7/1/2028-6/30/2029
Additional Rebate Questions:
Estimated Biosimilar Rebate Credit (Clawback) 2026$
Estimated AMPCap Rebate Credit (Clawback) 2026$

Biosimilars

CONFIDENTIAL & PROPRIETARY
BIOSIMILARS
Please outline your biosimilar formulary and conversion strategy.
Please outline your projected conversion rate to biosimilars with your strategy.
Please complete the table below based on your pricing and rebates for the utilization within the RFP specific claims file.
# of RxsAverage Gross

Cost/Rx (based on your discounted costs and dispensing fees) Total Gross Cost

(based on your discounted costs and dispensing fees)Total Projected (non-trended) rebates
(based on your expected rebates net of credits or clawbacks)Total Net Cost

(Gross less rebates)

Humira
Biosimilar(s) for Humira
Stelara
Biosimilar(s) for Stelara

Discount & Rebate Exclusion

CONFIDENTIAL & PROPRIETARY
DISCOUNT AND REBATE EXCLUSIONS FOR PASS THROUGH PRICING GUARANTEES
DISCOUNT AND DISPENSING FEE GUARANTEE EXCLUSIONS
Select if the following claim types are excluded or included from discount and dispensing fee guarantees.
Note: All other claim categories are expected to be included in the guarantees.
Paper or Member Submitted
Compound Products
COB or Secondary Payor
Subrogation Claims
Claims Dispensed from an on-site or WV PEIA owned pharmacy
Vaccines
State or government mandated pharmacy reimbursement claims

Silent exclusions are prohibited. All exclusions from guarantees have been provided.

REBATE EXCLUSIONS
Select if the following claim types are excluded or included from rebate guarantees.
Note: All other claim categories are expected to be included in the guarantees.
Paper or Member Submitted
Compound Products
COB or Secondary Payor
Subrogation Claims
Vaccines

Silent exclusions are prohibited. All exclusions from guarantees have been provided.

Provide the following related to the rebate guarantee offer utilizing the claims data provided:
Number of claims by channel (i.e. Mail Brand) that qualify for a rebate guarantee.Days Supply
Retail 1-83:
Retail 84+:
Mail Order (All Days):
Open Specialty 1-30
Preferred Specialty 1-30:
Number of claims excluded from the rebate guarantees with the applicable exclusion reason.

Cost Containment Savings

CONFIDENTIAL & PROPRIETARY
COST CONTAINMENT STRATEGIES
Please complete the following table relative to each of your proposed cost containment strategy(ies).
SPECIALTY MANUFACTURER ASSISTANCE PROGRAM
Name of PBM's Manufacturer Assistance Program:
Analysis Timeframe:
Estimated Net Savings ($):
Estimated Rebate Impact ($) (if applicable):
Would you be willing to guarantee the projected savings? If so, please provide details on your guarantee.
Annualized Impacted Script Count:
Annualized Unique NDC Count:
Program Fees:
Confirm the program fees are factored into estimated net savings?
Plan Design Changes/Requirements:
OTHER PROPOSED PROGRAMS & SAVINGS
Program TypeMaximum Savings ($)Conversion Rate (%)*Conversion Rate Savings ($)Estimated Rebate Impact ($)Estimated Net Savings ($)
Manufacturer Assistance/Copay Card
Patient Assistance Program/Alternative Funding
Diabetes Management
GLP-1 Management
Other
use additional lines as necessary

* expected conversion rate based on experience

Confirm your programs include a true out of pocket accumulator?
Please provide details.
OTHER COST CONTAINMENT STRATEGIES

Adminstrative Fees

CONFIDENTIAL & PROPRIETARY
ADMINISTRATIVE FEESYear 1Year 2Year 3
07/01/2026 -
06/30/202707/01/2027 -
06/30/202807/01/2028 -

06/30/2029 All Inclusive PMPM Admin Fee $ $ $

SERVICECONFIRM INCLUDED IN ADMIN FEEIF NOT INCLUDED IN ALL-INCLUSIVE ADMIN FEE, NOTE FEES HERE
ID Cards (NOTE: PEIA's TPA handles currently. Provide a cost if PBM is ever required to support)
Standard 2nd Level Appeals Processing (NOTE: PEIA handles currently. Provide a cost if PBM is ever required to support).
Clinical Prior Authorization and Standard 1st Level Appeals for Non- Specialty (Note: PEIA does not require, but may need support - need to know cost if support is needed).
Independent Review Organization Appeals (IRO) (Note: PEIA does not require, but may need support - need to know cost if support is needed).
Clinical Prior Authorization Specialty, Tier Exceptions and Formulary Exceptions
Standard 1st Level Appeals Processing and Determination - Specialty, Tier Exceptions and Formulary Exceptions
Urgent Appeals Processing
On-line standard Reporting
Ad-Hoc Reporting
Administrative Prior Authorizations
Member Portal
Client Portal
DUR Programs
Dedicated Account Services and Account Management
Implementation/Transition Assistance
Customer Satisfaction Survey
Dedicated Member Services and Call Center
Plan Specific Internet Website
Member Enrollment Packages ("packet")
Network Management
Eligibility Administration
Electronic Claims Processing
Mail Services Claims Integration
Specialty Pharmacy Claims Integration
Claim Forms
Vaccine Services
Paper Claims
E-Prescribing
Electronic Prior Authorizations
Toll Free Phone Lines for Participants, Pharmacies, and Providers
Electronic Data Transfer to Data Warehouse and to third party vendors, TPA, TruData, etc.
Data Integration with Health Plan Administrator
Data Integration with WV University School of Pharmacy Rational Drug Therapy Program
Prospective/Concurrent/Retro DUR
Standard Reports and Data Management
Access to Web-based Reporting
COB Program
Medicaid Subrogation Claims
Medicare Seconday Payer Claims
Dose Optimization Program
Prior Authorization Program
Step Therapy Program
Quantity Limitations
Custom System Overrides
Annual EOB Statements
Retro Termination Letters
Drug Notification Letters to Member and Provider
Formulary Administration/Management
Access to Pharmacy Directories and Other Member Materials (Note: Must provide PEIA specific full formulary, PDL, MDL, Preventive Drug List, spec drug list, diabetes waived copay list, medical specialty inj PA list, others if necessary to PEIA for website)
Online Formulary/Preferred Drug Listings Customized
Participant Online Access
Dedicated Clinical Service Team
Disease Management Program Support
Abuse/Fraud Program Development and Management
Rebate Management/Administration
Data Processing
Systems Maintenance
HIPAA Compliance
Actuarial, Underwriting, and Consulting Services
Printing and Mailing Costs Related to Pharmacy Benefits
Overrides
Audit Recovery Fees
Contracting
Compound Drug Management
Corporate and Other Overhead
Taxes
add'l lines if needed
add'l lines if needed

Credits & Allowances

CONFIDENTIAL & PROPRIETARY
CREDITS & ALLOWANCES
Please outline any credits/allowances you are providing to the client as part of your overall offer.
AmountFrequency*Details
Implementation Credit
Pharmacy Management Allowance
Audit Allowance
Other
* monthly, annually, PEPM, PMPM, etc.

Formulary Disruption

CONFIDENTIAL & PROPRIETARY
FORMULARY DISRUPTION
Please fill out the provided summary template for proposed formulary(ies), including formulary name and type (open/closed).
Completion of this tab is a requirement of the RFP. The full detailed formulary impact analysis should be included as an attachment.
Please use most recent 4 months of data based on maintenance medications only.
PBM Formulary Name:
Formulary Type:
Moving to Non-Formulary (Negative Disruption)
# of Utilizers Impacted
% of Utilizers Impacted
# of Rxs Impacted
% of Rxs Impacted
Moving to Excluded
# of Utilizers Impacted
% of Utilizers Impacted
# of Rxs Impacted
% of Rxs Impacted

Network Disruption

CONFIDENTIAL & PROPRIETARY
NETWORK DISRUPTION
Please provide your Network Disruption including the number of impacted pharmacies, utilizers and Rxs in the provided attachment format. Additionally, complete the Network Disruption summary below.
ATTACHMENT FORMAT
Pharmacy ID (NABP/NCPDP)Pharmacy NameRx CountMember CountIn Network (Yes/No)

NETWORK DISRUPTION SUMMARY

Total # of Pharmacies ImpactedTotal # of
Rxs ImpactedTotal # of Utilizers Impacted
Total % of Pharmacies ImpactedTotal % of
Rxs ImpactedTotal % of Utilizers Impacted

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