Lone Star MedsVoluntary Prescription Savings Program

General Overview

YOUR PRESCRIPTION PROGRAM IS BREAKING YOUR HEALTHCARE BUDGET

Prescriptions are your fastest growing health costName Brand meds are increasing at a rate of 13%The top 50 Generic meds have increased 373% the past 4 years

YOUR EXISTING SYSTEM ISN’T WORKING

Do not know your true prescription costsReporting is hard to acquire and almost impossible to understandTrue transparency is clouded by hidden fees and promises of hard to pin down rebates

HIGH COPAYS AND DEDUCTIBLES DON’T WORK

If patients can't afford their out of pockets that causes medication non-adherence…which in turn costs you a lot of money!20% of hospitalizations are due to medication non-adherenceThe average hospital stay is $30k

MEDICTION NON-ADHERENCE FACTS

20% of patients never fill the first prescription60% of patients skip refills to save money31% of prescriptions for chronic conditions are never filled Medication non-adherence leads to worse medical treatment outcomes; higher, avoidable hospitalization rates; and increased overall healthcare costs

Researchers estimate that eliminating copayments for patients at medium to high risk of heartdisease would improve adherence sufficiently to avoid 90,000 hospitalizations and generatesavings exceeding $1 billion.

A Few Quick Facts

A PROGRAM EXISTED WHERE:

Employers were able to save substantial amounts of money – without compromising benefits?

Employees were able to receive their medications for a Zero$Copay?

Both employees AND employers reduce their costs – significantly

Your current Rx program isn’t replaced – it merely enhances it.

INTRODUCING THE ZERO$COPAY PROGRAM

An International Mail Order Pharmacy Program

No cost for the employer to set up No monthly charges for the employer or employeeEmployees can receive their maintenance medications for a Zero$CopayEmployers are able to save between 60% - 70% Completely voluntary for employees90 day supply mail order program

It’s a true WIN/WIN for everyone involved.

What If……..

Drug Name

Plan Cost Rank

Plan Cost Rx Count Rank Rx Count Ingredient

CostCost Per

Order

Abilify 25 $39,737 441 26 $43,566 $1,675

Crestor 28 $35,885 59 100 $44,654 $446

Januvia 21 $42,382 136 62 $46,773 $754

ORDERING THROUGH OUR PROGRAM

Drug Name New Cost Per Order Savings Per Order % Savings

Abilify $314.37 $1360.63 81%

Crestor $104.15 $341.85 77%

Januvia $144.95 $609.05 80%

Based on this small sample – the employer saves over $2,300 and the employee receives them at no cost!

Average Total Savings = 80%!

Imagine How This Looks When We Analyze All Of Your Rx Costs!

Here is a snapshot of three popular maintenance medications….taken from a recent PBM report for a group……the employer is actually paying these $ numbers……….

How Much Does an Employer Actually Pay for Prescription Medications?

The substantial savings opportunities that LoneStarMeds provides are due to the prices negotiatedbetween most developed nations (excluding the United States) and the multi- national drugconglomerates. In the U.S. market, prescription costs for brand name medications most often exceed200% of the world average price. The United States has chosen not to negotiate a lower cost. As aresult of heavy lobbying in Washington, these multi-national companies report record earnings yearafter year reaping upwards of over 50% of their profits in the United States.

LoneStarMeds can make a difference. Most programs achieve over 45% in savings while supplyingthe same high quality, medications that Americans purchase today.

LoneStarMeds Management includes health care executives who are committed to settingindustry standards for client safety, product quality, as well as, secure and efficient deliverysystems. These professionals are committed to providing the highest quality, lowest costprescription medications available today.

LoneStarMeds has developed programs based on voluntary individual participation in order tocomply with FDA directives that allow members to obtain medications for personal use in up to a90 day supply per order.

LoneStarMeds has contracted with government-licensed pharmacies in Canada, the UnitedKingdom, Australia, New Zealand, India and Ireland. Medications, packaged by the originalmanufacturer, are delivered directly from these contracted pharmacies to the patient.

LONESTARMEDS ADVANTAGES:

Cost savings are derived from government-negotiated pricingGovernment certified products only (Canadian & International)Uniform pricingUniform safety standards & accredited dispensing proceduresOnly Accredited Pharmacies are utilizedTotal program administrationEmployee introduction & promotionsReduced co-pays & member incentivesSubstantial savings for the employer

Substantial Savings

PRODUCT SOURCING - LoneStarMeds has developed a formulary of over 250 widely used maintenance medications.

Specifically excluded from this list are:

Acute medications (antibiotics)Controlled substances (narcotics)Targeted substances (benzodiazepines)Medications requiring refrigerationMedications which require ongoing monitoring/adjustments by primary care physiciansPrecursor substances (Allegra-D)

In certain circumstances, customization of the formulary may take place according to yourbenefit structure to obtain the maximum potential out of this program. Canadian andInternational sourcing from certified pharmacies ensure a consistent supply of qualitymedications.

Our primary goal is to ensure public safety. Medications are packaged by the manufacturer,distributed by government-regulated wholesalers, labeled and dispensed by licensedpharmacists and delivered directly to the end user by the U.S. Postal Service through itsapproved international affiliates.

UNIFORM PRICING - LoneStarMeds commits to a single price for all employee groups regardless of size.

LoneStarMeds pricing is based on the following costs:

Foreign Government negotiated medication costsLocal physician feesDispensing feesShipping fees

Substantial Savings

PROGRAM SUPPORT SERVICES - LoneStarMeds provides the following launch and ongoing support services:

Seminars and employee group meetingsDedicated toll free telephone and fax numbersCall center services – Monday to Friday, 9:00am-5:00pm EST/EDTCustomized enrollment forms and materials for distributionWebsite design and hosting including:

1. Program introductions2. Enrollment materials3. Full medication listings4. Incentive initiatives for low co-pay benefit programs5. Frequently Asked Questions & Answers

SUMMARY

Employees enjoy a $0 copay for their medicationEmployer realizes substantial savings (50-60%)Easy and seamless implementationWorks along side your existing PBMMedication non-adherence improvesStop-loss carriers reduce their rates

There is a better way to reduce risk, reduce cost, and improve the sustainability of your health plan.

LoneStarMeds provides a safe, low cost alternative to ever-increasing health care expenses.LoneStarMeds option of purchasing otherwise expensive maintenance medications through safeand reliable international sources, provides participants with an opportunity to eliminate co-payswhile reducing health plan costs. Our system is truly a win / win scenario for all concerned.

We look forward to the opportunity of meeting with your own experts to fully explain our systemthat is already saving millions of dollars for other municipalities, school boards, counties andprivate sector health plans

Substantial Savings