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All of the pharmacy guarantees listed on the previous page are effective January 1, 2019, for a term of <br />3 years, and the following apply: <br />We can revise our price quote or alter the terms of the guarantees if one of the following <br />occurs: <br />The client does not notify Anthem of the offer acceptance 45 days prior to the effective <br />date. <br />The client does not implement the recommended clinical and cost -of -care management <br />programs that are part of the Plan. <br />The client does not adopt our formulary. <br />• A change in the proportionate mix of the client's retail and home delivery prescription <br />drug claims of more than 10%. <br />• A change in pharmacy utilization patterns of more than 10%. <br />• A change results in Anthem no longer being the exclusive source of drug rebates for the <br />client. <br />• Anthem is no longer the sole administrator for the pharmacy benefit portion of client's <br />Plan. <br />• The client has an onsite pharmacy with 340b designation or any such designation where <br />the pharmacy receives upfront pricing discounts from pharmaceutical manufacturers, <br />which was not disclosed or known by Anthem as of the effective date of the ASO <br />Agreement. <br />o Any excess achieved in a pharmacy financial guarantee will be used to make up for, and <br />offset, a shortfall in other pharmacy financial guarantees. <br />o Network guarantees will be calculated on the total eligible claim paid claims. <br />o Our guarantees exclude the following claims: Prescriptions filled in Massachusetts, Alaska, <br />Hawaii, or Puerto Rico, or filled in any state which imposes some form of Most Favored <br />Nations limitations on pharmacy reimbursement; Vaccines; Prescriptions filled through the <br />Employers on -site pharmacy; Over-the-counter drugs; Dispense As Written Claims; Drugs <br />subject to patent litigation; Government Reimbursement Claims. <br />o If there are changes in the AWP reporting source or if there are changes in how AWP is <br />calculated, including changes in the mark-up factor used to calculate AWP, the terms of any <br />financial relationship between the parties that relate to AWP will be modified. <br />o Our formulary will be provided to members and providers. <br />o Guarantees apply to commercial claims only. Medicare EGWP claims are excluded from all <br />guarantees. <br />o Guarantees applies only as long as there are at least 25,000 Annualized Adjusted <br />Prescription Drug Claims. <br />o As a portion of our reasonable compensation for services provided, we will retain the <br />difference, if any, between the invoiced amount to the employer and the amount paid to the <br />PBM for prescription drugs dispensed to members. <br />o The client must use Anthem recommended formulary to be eligible for rebates, whether the <br />rebates are paid or applied as a credit. Pricing guarantees do not apply to claims processed <br />