The Edge

During 2019, Kirk Curtis and Cornell Beck helped take CastiaRx service and operations to a new – and extreme – level. Kirk, AVP, Contact Center, and Cornell, VP, Pharmacy Operations, partnered with key areas such as Mail Order to understand which intersecting points needed a new approach. In conjunction with a professional trainer and various internal experts, their efforts pushed service beyond previous expectations.

“Members want their calls answered quickly and their mail order prescriptions delivered in a timely manner. That’s really what it’s all about,” Cornell says. “That’s the kind of service we deliver.”

During 2019, Mail Order improved the overall efficiency of all core processes, from QA to training to monitoring, shipping, process documentation and beyond. With a two-day turnaround time of nearly 99.5% for orders needing no intervention, the team pushed past its 98% goal. For more complicated orders requiring a call to a provider or other follow-up, 99% are completed within five days, exceeding the team’s 95% goal. For the St. Louis CastiaRx Pharmacy serving local walk-ins, process improvements resulted in an 89% reduction in wait time– dramatically improving the member experience.

“We live and breathe continuous improvement,” Cornell concludes. “During 2019, we improved the overall efficiency of all our core mail order processing, exceeding our goals. We are very proud of the results.”

Similar efforts took place throughout our operational areas. “In the Contact Center, we completely rebuilt our service offering,” says Kirk. “Enhancements included a focus on first-call resolution, less need for call transfers, superior training and hiring the best people. We call this Extreme Customer Service and we back it up with our carefully crafted 10 Commandments of Extreme Service, which we live by every day.”

The payoff has been significant. Quality measures tell the story of improved member satisfaction, which was up for 2019 at 81%. Based on member feedback, first call resolution for 2019 was 77% (industry standard 70%) and a CastiaRx service level of 84% (industry standard 80%) in 2019 further illustrates the positive results.

Beyond the Contact Center and Mail Order, further investments in operations and technology have moved the needle for client and member satisfaction. With nearly 15,000 users on the Member Center, we’ve spent 2019 enhancing their experience and providing new digital tools. Read more on our new texting platform, CastiaRx Connect, in our article below.

At the end of the day, people are our greatest resource and we continue to expand our Account Management team with experienced, knowledgeable people who can influence strategies that support cost savings and optimal member health. In particular, our Clinical team has expanded with new additions to our Clinical Account Executive (CAE) role. In this strategic position, our CAEs have the experience, knowledge and analytical skills to advise clients on the best path to the future, given their unique goals, circumstances and industry conditions.

When a large, national employer decided to address their previous PBM’s shortcomings in responsiveness, partnership and innovation, CastiaRx provided the solutions they needed. With 4,000 plan members across the US, better ways were needed to manage pharmacy costs while helping members adjust to changes in their normal process.

During onboarding for their January 2019 go-live, it was clear that less than 2% of the plan’s members drove 48% of the pharmacy costs with specialty medications in 2018. Our CastiaRx team took a close look at the data, member behaviors and goals for the plan, and developed an approach to deliver cost-savings, best-in-class specialty care and effective member communications.

To achieve their goals, the client opted to use the CastiaRx exclusion-based formulary, exclusive specialty with Diplomat patient care, Specialty Additional Value (SAV) program and a robust set of clinical programs including the Me Too Exclusions List, Prior Authorization (PA) List, Quantity Limits and ADHD Program.

For a smooth transition, our CastiaRx staff made outbound calls to 80 members who were likely to feel the most impact from the changes. Our clinical team helped members understand their preferred medication options and answered all their questions. Members also received letters with the information they needed to make informed decisions. On January 1, 2019, the CastiaRx Command Center watched every claim, ready to take action on any unforeseen pharmacy processing issues.

This comprehensive approach has worked well for many CastiaRx clients and it’s a win-win for both the client and member. In this case, members smoothly transitioned to cost-effective, appropriate medications with the help and guidance of an abundance of communications and the expertise of the entire team. With no change to actual benefit plan design and similar number of prescription claims, plan performance significantly improved in 2019:

• 16% decrease in plan costs (2018 v. 2019)
• 37% decrease in specialty costs (2018 v. 2019)
• $560K+ in SAV program savings (2019)
• $688K+ in PA savings (2019)

Are you taking advantage of our SAV program? Talk with your account team to learn more.

Last month, we announced that we entered into an agreement to combine with OptumRx. The deal is expected to close early 2020, subject to the satisfaction of certain closing conditions. This deal allows us to deepen our capabilities to better serve the needs of you and your members. For more information, please read the press release announcing the transaction.

Important Additional Information
This communication does not constitute an offer to buy or the solicitation of an offer to sell any securities. UnitedHealth Group Incorporated and Denali Merger Sub, Inc. have filed a Tender Offer Statement on Schedule TO with the U.S. Securities and Exchange Commission (the “SEC”) and have mailed an offer to purchase, letter of transmittal and related materials to the  shareholders of Diplomat Pharmacy, Inc. (the “Company”). The Company has filed a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC which has also been mailed to the Company’s shareholders. BEFORE MAKING ANY INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THESE MATERIALS AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION. These materials are available free of charge to Company shareholders, and may also be obtained by contacting the Company’s Investor Relations Department at 4100 S. Saginaw Street, Flint, Michigan 48507, (888) 720-4450 or tpowers@Diplomat.is or by contacting D.F. King & Co., Inc., the information agent for the tender offer, at (212) 269-5550 for banks and brokers or (866) 829-0135 for all others, or by email at DPLO@dfking.com. In addition, all of these materials (and all other tender offer documents filed with the SEC) are available at no charge from the SEC through its website at www.sec.gov.

Cautionary Statement Regarding Forward-Looking Statements
Forward-looking statements made herein with respect to the tender offer and related transactions, including, for example, the timing of the completion of the tender offer and the merger or the potential benefits of the tender offer and the merger, reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, the Company’s actual results may differ materially from its expectations or projections.

The following factors, among others, could cause actual plans and results to differ materially from those described in forward-looking statements. Such factors include, but are not limited to, the effect of the announcement of the tender offer and related transactions on the Company’s business relationships, operating results and business generally; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, and the risk that the merger agreement may be terminated in circumstances that require the Company to pay a termination fee; the outcome of any legal proceedings that may be instituted against the Company related to the transactions contemplated by the merger agreement, including the tender offer and the merger; uncertainties as to the number of shareholders of the Company who may tender their stock in the tender offer; the failure to satisfy other conditions to consummation of the tender offer or the merger, including the receipt of regulatory approvals related to the merger (and any conditions, limitations or restrictions placed on these approvals); risks that the tender offer and related transactions disrupt current plans and operations and the potential difficulties in employee retention as a result of the proposed transactions; the effects of local and national economic, credit and capital market conditions on the economy in general, and other risks and uncertainties; and those risks and uncertainties discussed from time to time in the Company’s other reports and other public filings with the SEC.

Additional information concerning these and other factors that may impact the Company’s expectations and projections can be found in its periodic filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2018. The Company’s SEC filings are available publicly on the SEC’s website at www.sec.gov, on the Company’s website http://ir.diplomat.is/investors/default.aspx or upon request via email to tpowers@Diplomat.is. The Company disclaims any obligation or undertaking to update or revise the forward-looking statements contained herein, whether as a result of new information, future events or otherwise.