Lowest drug trend in 5 yearsby leveraging lower-cost generics, strategic formulary management and negotiated discounts and rebates for PBM members in 2017

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Increasing medical costs impose a heavy burden on patients and our health care system. National health expenditures currently account for 17.9% of our GDP and are expected to increase to 19.9% by 20251.

Tackling RisingDrug Prices

Addressing ChronicDisease Costs

Expanding Accessto Affordable Care

Improving CareCoordination

Learn more at: cvshealth.com/cost-of-care1 Centers for Medicare and Medicaid Services data: https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData /NationalHealthAccountsHistorical.html 2 IQVIA Institute: https://www.iqvia.com/institute/reports/medicine-use-and-spending-in-the-us-review-of-2017-outlook-to-20223 Partnership to Fight Chronic Disease Report: https://www.�ghtchronicdisease.org/latest-news/new-national-data-shows-projected-total-cost-chronic-disease-2016-2030- america-42 4 Gallup Survey: http://news.gallup.com/poll/212780/cost-healthcare-americans-top-�nancial-tconcern.aspx 5 OECD Report: https://www.cnbc.com/2017/01/12/shocking-truth-20-of-health-care-expenditures-wasted-in-us-and-other-nations.html

Solutions to help make health care moreaffordable for patients and taxpayers

Addressing Rising Health Care Costs

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CVS Health® is committed to lowering health care costs while delivering high-quality care to communities across the country.

1. Rising Drug PricesThe average price of brand prescription drugs increased 58% from $231 to $364 over the past �ve years2.

Savings passed directly to 10M membersnegotiated rebates provided at point-of-sale to 10M PBM members

~90% spent < $300 OOPnearly 90 percent of PBM members spent less than $300 out-of-pocket for their prescription medicines in 2017

$420 average annual savings per patientby identifying the lowest-cost medications through our Rx Savings Finder

We’re developing comprehensive programs to lower drug costs for patients and payors:

2. Chronic Disease CostsIf rates of diseases such as obesity, diabetes and heart conditions continue to rise,the cost to our health care system will reach $42 trillion between now and 20303.

$0 copayson medications for many chronic diseases through preventivedrug lists offered to payor clients

Increased adherenceas much as 1.8 percentage points in 2017 by designing plansthat connect chronic disease patients to lower-cost options

$3 saved for every $1 spenton personalized interventions for patients through ourPharmacy Advisor program

We’re implementing solutions to help manage costly chronic diseases and improve outcomes for patients:

3. Access to Affordable CareAmericans rank the cost of health care as the most important �nancial problem facing their family4.

80% lower cost of care through retail clinics (on average), compared to receivingcare through emergency rooms

Up to $3,000 savings per at-home infusion treatment course through Coram,compared to the same services provided in a health care facility

We’re expanding access to low-cost, high-quality health care in communities and in the home:

4. Care CoordinationWaste and inef�ciencies represent 20 cents of every dollar spent on health care5.

50% fewer preventable readmissions and an average of $1,300 savings per patient using pharmacist-led medication reconciliation following a hospital stay

More than 70 collaborationswith major health systems to support joint clinical programsand interoperable electronic health records

We’re providing savings by strengthening health care integration and improving inef�ciencies: