10/2/09 2:45 PM

Cost Effective has sent out the second adjusted price update, since the AWP price factor change on September 26th.

The Cost Effective MediSpan update will continue to download and update your prices as always. When you receive the new files, the message "AWP prices Adjusted using factor list!" will print on top of the summary page if the update used the pre 09/26/09 factor markup. The message "AWP prices NOT Adjusted, Call Cost Effective" will print if the new 9/26/09 factor was used.

Example:

Date         WAC    *    Markup    =    AWP

---

9/25/09     $120     *    1.25        =    $150
9/26/09     $120     *    1.2          =    $144 With Adjustment
9/26/09     $120     *    1.2          =    $150 Without Adjustment

Cost Effective has the capability of offering either option for both the MediSpan price updates and updates you receive from your wholesalers. The price updates can be set to use the pre 9/26/09 markup as in the example of 1.25 above, or use the new, lower 9/26/09 markup. The options are described in more detal below.

MediSpan Price Update

1. Use the pre 09/26/09 markup factors to calculate an AWP price close to the prices you had on 9/25/09. This is the default setting for this update.
**This pricing method will help you to get the maximum reimbursement from third parties.**
**This pricing method may inflate cash prices higher than you want them to be.**

2. Use the new, lower AWP price structure.
**Please call Cost Effective if you want to use this option.**

Wholesaler Price Update

1. Use the AWP price given to you from your wholesaler. This is the default setting for the wholesaler update.
**This method is desired if your wholesaler is not using the new AWP Prices as of 9/26/09.**

2. Use the pre 9/26/09 markup factors to raise the price the wholesaler is using.
**Please call Cost Effective if you want to use this option.**
**Before choosing this option, you need to verify that your wholesaler is using the new 9/26/09 AWP Prices.**