Res 2016-077/approving an administrative services agreement with United Healthcare Services, Inc. for the provision of medical, pharmacy, dental, flexible spending accounts (fsa), retiree, online enrollment tool and cobra benefits administration in a tot

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we 0-0` M, MM., x Definition Pharmacy rate guarantees. Measurement _ 01/01/2017 01/01/2018 01/01/2019! and Criteria Combined Discount Guarantee Retail Brand, Average Wholesale Price (AWP) less 17.0% 17.0% 17.0% Retail Generic - 30 Day, AWP less 72.0% 72.0% 72.0% Mail Order Brand, AWP less 19.9% 19.9% 19.9% Mail Order Generic, AWP less 74.5% 74.5% 74.5% The Guaranteed Discount amount will be determined by multiplying the AWP by the guaranteed discount off AWP by each component and adding the amounts together. Dispensing Fee Guarantee Retail Brand $1.25 $1.25 $1.25 Retail Generic $1.15 $1.15 $1.15 Dispensing fee totals are calculated by multiplying the actual scripts for each type by the contracted rate for that script type. Fees Pharmacy Administration Fee (PEPM) $0.68 $0.68 $0.68 Administrative Fee Credit (PEPM) $21.24 $21.24 $21.24 Level Customer Specific Period Annually Payment Annually Period Payment The amount the actual discounts are less than the combined guaranteed discount amount. Amount -- Discounts Payment The amount the combined actual dispensing fee exceeds the combined guaranteed dispensing fee. Amount -- Dispensing Fees Payment The amount the combined actual Rebate amount are less than the combined guaranteed Rebate amount. Amount -- Rebates Conditions Discount Specific Conditions • Discounts are based on actual Network Pharmacy brand and generic usage of retail and mail order drugs The guaranteed discount amount will be determined by multiplying the AWP by the contracted discount rate off AWP by component. • Does not apply to items covered under the Plan for which no AWP measure exists. • Discounts calculated based on AWP less the ingredient cost; discount percentages are the discounts divided by the AWP. Discounts for retail and mail order generic prescriptions represent the average AWP based on savings off Maximum Allowable Cost (MAC) pricing for MAC generics and percentage discount savings off AWP for non -MAC generics. All other discounts represent the percentage discount savings off of AWP. - • The arrangement excludes all specialty drugs, generic medications launched as an 'at-risk' product, generic medication with pending _ litigation, compound drugs, retail out of network claims, mail order drugs (for dispensing fee arrangement) and non -drug items. _ • The retail and mail order generic discounts exclude any generic drug that has only one generic manufacturer; _ the retail and mail order brand discounts include any generic drug that has only one generic manufacturer. Rebate Specific Conditions United reserves the right to modify or eliminate this arrangement as follows based upon changes in Rebates: • if changes made to United's PDL, for the purpose of achieving a lower net drug cost for Customer and i Tnited's nther AqO we