Envision Pharmaceutical Services ''Lives Up to the Promise'' at Sheet Metal Workers' International Association 2006 Business Managers Conference.

BOSTON -- At The Sheet Metal Workers' International Association 2006 Business Managers Conference (SMWIA), it was announced that Envision Pharmaceutical Services is "living up to the promise" of one year ago: to bring drug costs down, put money back in the pockets of union workers and to provide better service to members. An independent audit conducted by Pharmacy Outcomes Specialists and paid for by Sheet Metal Workers International Association revealed that Envision has met or exceeded every contractual term and condition under the contract with Local Funds.

"Pharmacy Outcomes Specialists was hired as our watch dog to make sure Envision did what they promised," said Michael Sullivan, SMWIA's President. "It is clear that not only were the contractual terms met, these terms were exceeded in lower generic costs and greater rebates. We couldn't be more happy with the results and urge every Local and other International Union Organization to join in our success." The program is available to all Sheet Metal Workers Local Funds as well as any other International or Local Union Fund. "In terms that union members can relate to, one Fund in Sacramento (Local 162) had savings under the plan that resulted in $.18 to $.23 per hour reductions in contributions, reducing hourly contributions to $7.93 instead of over $8 which was projected," stated Sullivan.

"Last year we conducted a thorough analysis of the market place and as a result ended up with a contract that provides extremely aggressive retail network, mail order and specialty drug discounts, generic drug pricing and rebate guarantees," said Susan Hayes, Principal of Pharmacy Outcomes Specialists. "Had the results of the audit not been positive, the Local Funds would have recourse for huge penalties -- so either way the audit turned out -- the Funds would have financially benefited. However, good news is always more welcomed and the news wasn't just good, it was great."

During the presentation Wednesday, Ms. Hayes revealed the following audit findings. Retail and mail order discounts for brand drugs were 15% and 22% respectively. But, generic discounts were 64.5% for retail claims and an astonishing 81.2% for mail order claims. Ms. Hayes urged Local Funds to move as much volume to mail order generics as possible, considering the results. Rebate guarantees were $3 for retail prescriptions and $10 for mail order. However, audit results revealed an average of $4.47 for retail claims and $16.18 for mail order claims. The combination of high rebates and high generic savings is almost unheard of in today's environment where higher rebates mean less generic discounts as high cost brands are used instead of lower cost generic drugs.

Ms. Hayes further stated that "this year's audit results become next year's guarantees, a highly unusual feature of the contract" developed by Ms. Hayes and Linda Cahn, an attorney specializing in pharmacy benefit management contracting. Ms. Cahn also assisted in drafting amendments that will greatly aid the Local Fund in recovering any claims that are a result of fraud, waste or abuse, key under the new Medicare Part D coverage.

Envision, with offices in Ohio, Florida and California was incorporated in 2001 and introduced transparency and full disclosure into the PBM marketplace. The company provides comprehensive pharmacy benefits including formulary management, rebate administration, claims processing, discount card arrangements, pharmacy network development, mail order and specialty pharmacy services to SMWIA's national membership.

"The program we delivered is truly one of the most unique and cost effective programs in the industry," said Kevin Nagle, Envision's President and CEO. "For Funds where we have 2005 claims data, we can see that claim costs are less this year -- some Funds by as much as 30%. Considering a 12% trend in the industry, these savings then translate to a 40% to 50% reduction in costs."

SMWIA is one of the most innovative union cooperatives to formulate a national group purchasing strategy and leverage its buying power in response to the ever growing increase in pharmacy costs.

"We believe that this innovative partnership with Envision and our leadership has and will continue to serve as a catalyst for change in the traditional business model," Mike Sullivan added.

Michael J. Sullivan, General President of the union acknowledged that the Sheet Metal Workers' International Association (SMWIA) maintains a network of local unions and training centers throughout the United States, Canada and Puerto Rico to provide skilled union members for work in the sheet metal and heating, ventilation and air conditioning industry, building construction, manufacturing operations, railroads, ship construction, and on numerous residential, commercial and industrial projects. The SMWIA represents 150,000 members and is headquartered in Washington, DC. Additional information can be accessed at www.smwia.org.