Drug Reimbursement Coding and Pricing Guide ® G-2009

1. Drug Reimbursement Coding and Pricing Guide® G-2009 R·J Health Systems International, LLC

2. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide® • The Drug Reimbursement Coding and Pricing Guide® is the only comprehensive system which uses a consistent and proven methodology to accurately update the price of over 41,000 drug codes (NDC’s).

3. R·J Health Systems International, LLCDrug Reimbursement Coding and Pricing Guide®The Problem • Many health plans reimburse via a formula unique to each plan based on AWP - no consistency. • This lack of consistency leads to a number of problems: • Negative financial impact on payer • Negative financial impact on providers • Disharmony amongst payer, providers, members, and employers (self-funded) • Inability to accurately contract or forecast • Increased administrative costs • Regulatory violations

4. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide®The Problem (cont’d) 5 Possible Scenarios 1) Providers may be under/over paid. 2) Providers use one source for AWP information and payers use a different source leading to mismatch of AWPs and an increase in administrative costs to resolve issues. 3) Claim is rejected leading to disharmony amongst payer, provider, patient, employer and may have regulatory implications for payer. 4) New drugs and vaccines fall into “unclassified” HCPCS and CPT category and claims are often paid incorrectly. 5) Bill correctly, reimburse correctly

5. R·J Health Systems International, LLCDrug Reimbursement Coding and Pricing Guide®The Solution • What is it? • The only comprehensive coding and pricing guide for CMS (Centers for Medicare & Medicaid Services) developed HCPCS (Healthcare Common Procedure Coding System) drug codes - including J, A, B, C, K, P, Q, S and WW Codes as well as relevant AMA (American Medical Association) developed CPT (Common Procedural Terminology) codes for vaccines, immune globulins, and toxoids. • What does it do? • The Drug Reimbursement Coding and Pricing Guide® provides managed care organizations (MCOs), provider groups and hospitals with a fast and efficient means to obtain up-to-date drug coding, pricing and reimbursement information.

7. R·J Health Systems International, LLCDrug Reimbursement Coding and Pricing Guide®R•J Health Systems' Research • Issues with current National Data Sources (Medi-Span, FDB, Red Book) • Variations in calculation of AWP among sources • WAC plus % • Manufacturer’s suggested AWP • Direct Price plus % • Hospital List Price (plus %) • Wholesaler Surveys • No consistency within a single source (in both base price used and in percent mark-up). • Timeliness of updates (not all sources update data at the same time) • Brand vs generic classification (need to review multiple fields in the National Data Sources to determine accurate product status)

9. R·J Health Systems International, LLCDrug Reimbursement Coding and Pricing Guide®R•J Health Systems' Validation Process • Use multiple sources to verify status of NDCs • Use multiple sources to verify accuracy of AWP/WACs • Continual maintenance of NDC to HCPCS/CPT Drug Code crosswalk • Accurate designation of brand vs generic • Compare product availability to code descriptor

10. R·J Health Systems International, LLCDrug Reimbursement Coding and Pricing Guide®R•J Health Systems' Solution • Customization • RJHS provides Code Price, Code Price -5%, -10%, -15%, -20% as base rates along with Medicare Allowable rates. These rates can be customized to meet the needs of any user (payor, provider, etc.) • Customized databases are available in electronic and website formats • Services • RJHS provides complete customer service functions related to drug coding and pricing • RJHS can act as a direct call center or through referrals from your organization

11. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide®Highlights • CMS HCPCS Drug Code descriptions • J-Codes - permanent code for drugs billable under Medicare • Q-Codes - temporary codes for drugs billable under Medicare • G-Codes – drug administration codes • P-Codes – blood related products (albumin, plasma protein fraction) • A-Codes - miscellaneous supplies (needles/syringes, glucose test strips, etc.) and radiopharmaceuticals • B-Codes – enteral nutritional products • S-Codes - temporary codes for commercial carrier use • C-Codes - services paid under the Outpatient Prospective Payment System • K-Codes - assigned to Durable Medical Equipment Regional Carriers (DMERC) and miscellaneous drugs • E-Codes - codes for Durable Medical Equipment (Glucometers, etc.)

12. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide®Highlights (cont’d) • CPT Codes for Vaccines, Toxoids and Immune Globulins and drug administration • Multiple search options (Drug Name, Drug Code, NDC, ICD-9-CM) • History of AWP price changes since 1/1/2000 • WAC Code Price added in July 2008 • Medicare Allowable Pricing as defined by the Medicare Prescription Drug Improvement and Modernization Act (MMA) of 2003 • ASP (Average Sales Price) plus 6% (can be customized) • APC (Ambulatory Payment Classification) codes and rates and related Status Indicator and Revenue Codes for Hospital Outpatient use

13. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide®Highlights (cont’d) • How to bill using a CMS 1500 and UB-04 form in various scenarios • Code Status (sections for New Codes, Deleted Codes, Code Description Changes) • Monthly newsletter - summary of latest updates to the Drug Reimbursement Coding and Pricing Guide® /Database • Monthly report for all Code Price changes which includes dollar and percent change from previous price • Identification of NDCs at or below the Code Price (AWP based) for each code • Coding/Pricing Updates - provided on a monthly (website, electronic media) or quarterly (electronic media, hardcopy) basis 13

14. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide®Highlights (cont’d) • All oncology products and some non-chemotherapeutic products coded with the appropriate ICD-9-CM Codes (clinical information is also provided) • NDC crosswalk file for the 41,000+ NDCs in our database providing: • NDC crosswalk by drug code; listing all NDCs which are billable under that code • For each NDC in the crosswalk; the number of billable units as related to the drug code description per vial/ampule/syringe, etc. as well as per package • NDC crosswalk for all NOC (Not Otherwise Classified) codes including NDC level AWP/WAC information

15. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide®Highlights (cont’d) • New Drugs, Biologicals and Vaccines (without an assigned drug code) • If a code has not been assigned, a product specific Clinical and Billing document is provided which details coding, pricing and clinical information for the drug product • Grouping by therapeutic class (e.g. Oncology products) • CPT Code/G-Code Administration Crosswalk – crosswalk for each HCPCS and CPT drug code identifying appropriate CPT and G-Code administration codes for drugs in that code • Quarterly AWP to ASP comparison report

16. R·J Health Systems International, LLCDrugReimbursement Coding and Pricing Guide®In Development • ICD-9-CM cross reference for all HCPCS and CPT drug codes • Section for: • FDA approved • Compendium approved indications (American Hospital Formulary Services [AHFS], DrugDex, Clinical Pharmacology, National Comprehensive Cancer Network [NCCN]) • FDA approved dosing ranges for each HCPCS/CPT drug code

17. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide® In Development (cont’d) • MAC pricing for HCPCS/CPT Codes when generic products are available • Trending reports/measurement tools (e.g. significant price changes in commonly used products) • Patient Drug Information Leaflets on website for provider use in patient counseling

18. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide®Benefits to Payor Accurately updated Drug Codes and Prices: • Prevents over/under payment and inaccurate coding • Decrease claims challenges/number of claims submitted for “reconsideration” • Decreases calls to/from provider relations • Allows processing of claims more quickly • Improves efficiency of staff • Provides accurate information for forecasting and contracting

19. R·J Health Systems International, LLC Drug Reimbursement Coding and Pricing Guide®Benefits to Provider • Informs provider of exactly what they will be reimbursed • More accurate claims submission • Claims are processed more quickly • Decrease in rejected claims • Allows for accurate forecasting and contracting • NDC’s converted to J-codes and vice-versa • Improves staff efficiency

20. R·J Health Systems International, LLCDrugReimbursement Coding and Pricing Guide®Available Formats • Hard Copy - Book Form for quick reference (provided quarterly) • Electronic Media – ASCII/Excel files of current pricing for system downloading - for claim adjudication (provided monthly or quarterly - determined by client) • Internet Access to www.ReimbursementCodes.com via Assigned Password - can be linked to and from other websites