POLICY AND PROCEDURE DEPARTMENT: Pharmacy Operations

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PAGE: 1 of 5 SCOPE: Centene Corporate Pharmacy Solutions, Centene Corporate Pharmacy and Therapeutics Committee, Health Plan Pharmacy Departments, Health Plan Pharmacy and Therapeutics Committees, Pharmacy Benefit Manager PURPOSE: To define the process of Centene Corporate (DUR). POLICY: The standard prospective and retrospective DUR programs utilize clinical standards, criteria, protocols and procedures established by the mutual agreement of the Centene Corporate Pharmacy and Therapeutics Committee, with recommendations provided by Health Plan Pharmacy Departments, and the designated Pharmacy Benefit Manager (PBM), Envolve Pharmacy Solutions, and in accordance with applicable state and federal requirements and NCQA standards. The DUR program is submitted for review and approval to the Centene Corporate and Health Plan Pharmacy and Therapeutics Committees annually. The DUR program is designed to alert prescribers and/or dispensing pharmacists of overuse, underuse, inappropriate or medically unnecessary care, potential drug interactions, and other safety concerns associated with specific drugs. The program will identify opportunities to improve quality of care, including, but not limited to adherence to prescribed therapies, while improving a patient s medication regimen consistent with their diagnoses or conditions. The results of any retrospective DUR program may also be used to initiate additional claims review and analysis within individual health plans. In addition, follow-up studies may be performed to assess the impact and outcomes of retrospective DUR interventions. PROCEDURE: Selection of DUR Projects: DUR projects will be initiated from review of current clinical literature and monthly trends in utilization that may prompt the need for analysis and potential intervention. DUR projects are carefully chosen to maintain a high level quality of care for members by initiating interventions with prescribers and dispensing pharmacists to reduce inappropriate prescribing and to improve drug therapy based on recognized standards of care. Data generated from prescriber responses is used to modify and improve DUR projects as well as report outcome data that aids in measuring the effectiveness of DUR projects. PROCESS: Clinical Pharmacists at the health plan should be notified by the contracted Pharmacyrescription Benefit Manager either monthly or quarterly, dependening on the clinical intent of the DUR

PAGE: 2 of 5 project, of members identified as meeting the requirements for a potential DUR intervention. If appropriate, communications are initiated to providers by phone, fax or via intervention letters. Faxes and intervention letters may include patient prescription profiles for prescribers to review along with outcome checklists to monitor practitioner response. In most cases a brief but definitive provider communication is sent notifying prescribers of potential concerns or suggestions for improved therapy and offering further detail upon request. Interventions are documented in the care management application. Prospective DUR Guidelines: Prospective DUR functions are provided at the point-of-sale (POS) and will include real-time messaging that can effect dispensing. A compiled database provided by Medispan, will generate electronic alerts to dispensing pharmacies via standard POS messaging when potential drug conflicts exist. In most cases, a passive notification is used to augment the dispensing pharmacy s internal DUR dispensing application to avoid interruption or delays in drug therapy. PASSIVE DUR POS MESSAGING Drug-Related Problem Related Concurrent DUR Alert Medication Overuse Medication Underuse Non-compliance - Poor adherence/failure to receive medication - Underuse precaution Subtherapeutic dosage - Low dose alert - Insufficient duration alert Adverse Drug Events (ADE) Drug interaction - Drug-food interaction - Drug-alcohol interaction In some cases system edits may require the dispensing pharmacist to override the edit confirming that the issue of concern has been addressed. The prospective DUR system edits use predetermined standards based upon peer-reviewed medical literature and references such as American Hospital Formulary Service Drug Information, United States Pharmacopoeia Drug Information, Clinical Pharmacology and Facts and Comparisons. Drug-Related Problem Medication Overuse Overdose/toxicity DUR REJECTIONS Related Concurrent DUR Alert - Overuse precaution - Therapeutic duplication

PAGE: 3 of 5 Improper drug selection Adverse Drug Events (ADE) Drug interaction - Drug-age precaution - Drug-pregnancy alert - Drug-gender alert - Drug-drug interaction (significant) Retrospective DUR Guidelines: All standard retrospective DUR programs adhere to current standards of drug based screening elements for medications that have limited clinical documentation supporting combination use, carry high risk warnings for concomitant drug therapy, identify overuse, identify underuse or sub-therapeutic dosing of medication, suggest possible fraud and abuse potential or offer other opportunities to improve patient care. Standard retrospective drug utilization review goals include: Improving prescribing practices by educating prescribers on current practice standards and guidelines and by making recommendations to improve medication therapy. Alerting prescribers to potential problems, such as drug interactions, drug non-adherence, overutilization, multiple prescribers, and therapeutic duplication with dual objectives to provide high quality drug benefit and drug utilization. Educating and communicating to prescribers on the safety, efficacy and pharmacoeconomics of drugs placed on the Preferred Drug List (PDL). Identifying areas of abuse, misuse or fraud by prescribers or members. Improving adherence with essential medications to treat chronic diseases such as diabetes, hypertension, hyperlipidemia, heart failure and asthma. Patient Specific Review: The plan pharmacist performs an ongoing evaluation of prescription claims to review claims history for potential therapeutic issues using plan specific pharmacy claims data provided by the Pharmacy Benefit Manager. The plan pharmacist reviews the monthly claims data to look for patient- or drug-specific claims information that may indicate inappropriate pharmacy benefit utilization or patient safety concerns. The plan pharmacist may refer members to case management nurses for member intervention. REFERENCES: N/A ATTACHMENTS: N/A DEFINITIONS: N/A

PAGE: 4 of 5 REVISION LOG REVISION DATE Removed completed in accordance with Centene Health Plan s Utilization 06/07 Management/Quality Management Work Plan and inserted delegated to the pharmacy benefit manager (PBM) utilizing the standards, criteria, protocols and procedures established by Centene, and in accordance with applicable State and federal requirements and NCQA standards. The DUR program has been established and administered in accordance with Centene Health Plan s Utilization Management/Quality Management Work Plan in the Policy section. Inserted in conjunction with the PBM in the Pregnancy/Drugs 06/07 Contraindicated in Pregnancy section. Removed The plan pharmacist, in conjunction with in the Drug-Drug/Disease 06/07 State Interactions section. Deleted Outliers will receive a person visit from the clinical pharmacist and/or 06/07 plan medical director from the Patient Specific Review section. Made the following changes in the Excessive Cost Prescription Claims 06/07 section: change $500 to $1,500, added finding are forwarded to the PBM for pharmacy outreach, deleted generate summary reports and, and deleted Drugs that are routinely billed incorrectly are monitored on a quarterly basis. All claims for the product under review are scanned. Claims billed with incorrect quantities are reviewed and reversed. Inserted the following sentence to the Policy section, Each DUR project topic 07/07 is selected and approved by the Health Plan prior to delegation to the PBM for completion. Inserted chosen by the Health Plan in the Selection of DUR Projects section. 07/07 The DUR program is delegated to US Script while working with Corporate 08/08 Pharmacy and the Health Plans. US Script has completely revamped their DUR process. They are rolling out new DUR projects for each quarter of 2008. The new US Script DUR Program required substantial rewording of CC.PHAR.04 to align with the new process. Moving forward the DUR P&P will be updated at the end of each calendar year to reflect the upcoming DUR programs. Complete reworking of the document to integrate the policies and procedures in 02/09 place at the Health Plans with those at US Script. Included the current US Script Retrospective 2009 DUR Schedule in the 02/09 PROCESS section.

PAGE: 5 of 5 Revisions completed at this time were made to address clerical errors, align with 02/10 NCQA standards and language, and represent the work processes in place at both the Plan level and at US Script. Teratogenic edit clarified. Other clerical changes made. 02/11 No changes. 02/12 Removed the term CCMS and replaced with the more general term care 02/13 management application. Made changes to the table regarding which DUR situations would trigger a 02/14 passive DUR alert versus which would cause a reject causing a call to USS. No changes necessary at this time. 08/14 Updated to remove the term Corporate Pharmacy Solutions from policy. 08/15 Annual Review 08/16 Changed US Script to Envolve Pharmacy Solutions 11/16 EPS Compliance updates: Removed Envolve Pharmacy Solutions name from 05/17 scope and other obligations and replaced with Pharmacy Benefit Manager, Rrevised policy for organizational structure, Removed Pregnancy Drug Contraindication paragraph. POLICY AND PROCEDURE APPROVAL Pharmacy & Therapeutics Committee: V.P., : SR. V.P. Medical Affairs or Chief Medical Officer: NOTE: The electronic approval is retained in Compliance 360.