Presentation Outline

1. Virginia Medicaid Preferred Drug List Educational Outreach Efforts:Overview and AccomplishmentsPresented to:PDL Implementation Advisory GroupMarch 16, 2004By: Barbara J. Dowd, R.Ph.First Health Services Corporation

2. Presentation Outline • Background on PDL Program • Communication Plan • PDL Implementation Advisory Group • Educational Efforts • Lessons Learned

3. Virginia Medicaid PDL: Why and How? • Appropriations Act 2003 established the PDL with requirements for consumer and provider education both prior to implementation and ongoing as the program evolved. • Public Input • Beginning in March 2003, DMAS met with over 40 stakeholder groups to solicit input on program design. • DMAS established a web site for notices and information. • DMAS has an e-mail address for comments. • P&T Committee Meetings are public meetings allowing attendance by the general public. • Request for Proposal (RFP) resulted in a contract with First Health Services Corporations(FHSC) to implement and administer the program.

4. RFP Requires FHSC to Implement PDL Educational Outreach Program • Development and implementation of broad-based educational effort for prescribers, pharmacy providers and affected enrollees • Develop and, following State approval, provide program materials to providers, enrollees, local DSS, advocacy groups and other interested parties regarding PDL and PA program • Design and implement targeted educational efforts, with State approval, to improve compliance and maximize effectiveness • Monitor and report on outcomes of educational efforts • Develop and make available web-based information for providers and enrollees to aid in program understanding and compliance

5. Communication Plan • Developed as a partnership between DMAS and FHSC with input from various stakeholders • Weekly meetings/conference calls for key DMAS and FHSC colleagues • Timelines established • Educational materials, both written and for presentation, developed, reviewed, and modified for DMAS Executive Management submission and approval • Presentation strategy designed and approved • Key groups identified for contact and presentation scheduling

6. PDL Implementation Advisory Group Plays Key Role in Education and PA Process • Established by DMAS to include representatives from pharmaceutical manufacturers, providers and advocates • First meeting of this group was September 2003 to summarize pharmacy programs and PDL concept with proposed PA process and educational plan • This Committee reviewed drafted written and presentation materials and the PA process as well as provided suggestions for the educational methods

7. Educational Impact of PDL Implementation Advisory Group • Communication strategy revised to include sending information for newsletters to PDL IAG members • Reminder postcard for providers • Regional trainings established for pharmacy providers • Clarification of the Appeals Process • Process for review of new drugs approved by the FDA • 72-hour supply of medication • Tri-fold for enrollees when medications changed as result of PDL • Members arranged training sessions for their colleagues and several participated in those sessions

8. PDL Program Enhanced: Default Prescriber ID Eliminated • Accurate evaluation of the PDL program is facilitated • Prescription claims must be submitted with valid Prescriber Medicaid ID number • Default numbers are available for use when Prescriber Medicaid ID number is unknown • 23% (2 million) claims were being submitted with a specific default number • Effective December 15, 2003, use of this number was discontinued • DMAS proactively worked with high utilizers of the number • Disruption to pharmacy providers operations has been minimal

9. FHSC Call Center Contributes to Smooth Program Implementation • Separate telephone lines established for providers and enrollees were operational on November 17, 2003 for PDL program questions • FHSC Call Centers were operational for pro-active PA requests on December 1, 2003 • PA requests can be initiated by letter, by fax or by telephone • Call volume has been steady since early February after sharp increases through the month of January • Length of calls has consistently been under 3.5 minutes with the most recent data less than an average of 3 minutes • Average speed to answer consistently less than 30 seconds • No abandonment activity in first three weeks of the program

10. PDL Prior Authorization Statistics During the first two months of the PDL Program: • No physician has been denied a prior authorization • Call center staff are handling calls efficiently • No Medicaid enrollee has been denied access to their prescribed medications

11. Mailings:Key Component of Educational Outreach • News Release in October 2003 for publication in December 2003 • Letters to State Agencies within Health and Human Resources Secretariat • Department of Social Services notified via DSS Alert • FHSC mailed enrollee materials on December 2, 2003 formatted in both English and Spanish • DMAS mailed provider materials on December 8, 2003 to include Medicaid Memo, PA Request Form, Provider FAQ Sheet, Hard-edit Phase-In Schedule and PDL “Quick List” • Reminder post card mailed the week of December 21, 2003

12. Web Sites • DMAS web site updated with PDL implementation information on December 1, 2003 • Medicaid Memo • PDL Quick List • Hard-edit Phase-In Schedule • PA Request Form • PDL PA Criteria • PDL PowerPoint Presentation • P&T Committee Information • General Assembly Presentations • FHSC web site maintained for DMAS with PDL information

13. Training Presentations • FHSC Education Manager trained DMAS staff from multiple departmental divisions and several FHSC clinical pharmacists to serve on training teams • FHSC Education Manager trained DMAS help line colleagues on program details • Presentations, given by a training team of at least one DMAS and one FHSC member, were scheduled around the State beginning in early December • Program goals were presented • Operational procedures were presented

14. Educational Outreach Presentations Target Key Groups • Regional Training Sessions for Pharmacy Providers • Richmond • Tidewater • Roanoke • Northern Virginia • Long-term Care Providers targeted by association presentations • Presentations to Community Service Board representatives • Presentations to major health systems reach prescribers, pharmacy providers, case managers and physician office administrators

15. Telephone Contacts • Top 150 prescribers utilizing non-preferred drugs for at least 25 of their Medicaid patients in last quarter 2003 • Particular focus to prescribers of Proton Pump Inhibitors (PPIs) and COX-2 Inhibitors • Direct contact with prescribers or their agents • Subsequent faxed provider profiles allow information on specific Medicaid enrollee utilizers for prescriber office use • This effort intervened on 36,794 claims for non-preferred drugs utilized by 11,582 enrollees

16. Conclusion • PDL was implemented using soft-edits, messages at Point-of-Sale, on January 5, 2004. • Hard-edits, denials of non-preferred drugs, were phased in weekly beginning on January 19, 2004 through February 23, 2004. • Educational effort was far reaching and successful. • Smooth hard-edit implementation was achieved over a shorter than usual timeframe. • FHSC has coordinated the Educational Outreach effort to include the input and hard work of many people from both DMAS and FHSC as well as key people from stakeholders including the members of this PDL Implementation Advisory Group.

17. Lessons Learned • Adherence to the past practice of mailing Medicaid Memos and related materials to chain drug store headquarters rather than to each individual pharmacy may be less efficient than desired. • Recipient calls to the FHSC Provider Call Center resulted in direct telephone contact by FHSC, at DMAS’ request, to the 15 pharmacies related to these recipients. • Action Plan: In the future, DMAS to incur expense of additional mailing costs to ensure that all pharmacy providers are efficiently informed of pharmacy program implementations and modifications.