M

Managed Pharmacy

Benefits Inc.

1100 N. Lindbergh Blvd., St. Louis, Mo. 63132; 314-585-5051;

fax: 314-872-5500

1996 revenues

Total gross revenues$500,000

PBM gross revenues$500,000

PBM Clients

Total362

Employer/group plans with direct service36

Lives Covered

Group Health:

Total1,700,000

Active enrollees1,300,000

through employers20%

through third-party vendors80%

Workers Compensation:

Active enrollees1,000

through employers10%

Retail Network

Pharmacy locations45,000

Mail-order services

Percentage of prescription volume7%

Generic usage

Percentage of prescription volume49%

Staff

Total35

Professionals20

Includes: 7 registered pharmacists

PBM services since: 1989.

Parent: Cardinal Health Inc.; primary business: prescription drug distribution.

Services: Retail pharmacy network, mail-order distribution*, claims processing, online claims processing, concurrent utilization review, disease management, retrospective utilization review, benefit design consulting, formulary management/review, monitoring of physician prescribing practices, patient education.

Formularies offered: Open, closed, restricted/customized.

Pharmacies contracted: Independently owned; retail chains, including Albertsons, City Market, King Sooper, Kmart, Medicine Shoppe, Leader Drug Stores, Payless United Drug, Revco, Thrift and Wal-Mart.

Reports provided: Physician prescribing patterns, generic vs. name brands dispensed analysis, employee utilization, ad hoc.

Service area: United States, nationwide; Puerto Rico.

Billing methods: Fee per claim. Volume discounts to employers.

Officers: Kent Friedman, vp/general manager; Dan Schneider, Hugh Mugfor, Rod McCann, managers-regional sales/marketing; Janet Rodgers, manager-administrative services; Dean Nicholson, controller.

**Subcontracted.

Merck-Medco Managed Care L.L.C.

100 Summit Ave., Montvale, N.J. 07645; 201-358-5400; fax: 201-358-5783

1996 revenues

PBM gross revenue$8,100,000,000

PBM Clients

Total2,000

Lives Covered

Group Health:

Total49,200,000

Pharmacy locations55,000

Staff

Total11,000

Includes: 1,200 registered pharmacists

PBM services since: 1983.

Parent: Merck & Co. Inc.; primary business: drug manufacturer.

Services: Retail pharmacy network, mail-order distribution, claims processing, online claims processing, concurrent utilization review, disease management, retrospective utilization review, benefit design consulting, formulary management/review, monitoring of physician prescribing practices, patient education.

Formularies offered: Open, closed, restricted/customized.

Pharmacies contracted: Independently owned, retail chains.

Reports provided: Physician prescribing patterns, generic vs. name brands dispensed analysis, employee utilization, ad hoc.

Service area: United States, nationwide; Puerto Rico.

Billing methods: Capitated rate, fee per claim. Volume discounts to employers.

Officers: Per Lofberg, president.