An economic model was constructed to estimate the impact of passing through a share of negotiated manufacturer rebates to patients with commercial insurance at the point of sale (POS). (Exhibit 1) The goal of the study is to estimate how the beneficiaries’ adherence to diabetes drugs changes with the reduced out-of-pocket drug expense and the subsequent budget impact due to improved population health. The model was populated using state-level data on commercially insured adults with diabetes aged 18 to 64 from the Center for Disease Control and Prevention (CDC) 1. The subpopulation of interest for the study – type 2 diabetes beneficiaries on brand diabetes medicines eligible for rebates — was derived using multiple sources1,2,3,4,& 5 (Exhibit 2 and Exhibit 3).