Title
Resolution to Approve Agreements with Express Scripts to Provide Prescription Drug Coverage ($66,640.00)
Memorandum
The attached Resolution authorizes the City Administrator to execute the renewal of Pharmacy Benefit services contracts with Express Scripts, the City's Pharmacy Benefit service provider. Employees, dependents, and retirees, through their labor agreements or in accordance with the City's employee benefit plans, have the availability of using Express Scripts for their Prescription Drug service needs. The plan is administered by Express Scripts. This contract continues services now in effect.
New fees and premium effective 3/1/15 through 12/31/15 are:
$2.00 Aggregate premium per member per month ($5,380,847 annual aggregate attachment point).
The overall costs for the program will fluctuate monthly depending on the number of employees and retirees enrolled in the program during any given month and the amount of incurred claims actually paid during any given month.
Express Scripts complies with the requirements of the nondiscrimination and living wage ordinances.
The estimated annual cost of providing prescription drug coverage is approximately $3,000,000. The cost projections are in accordance with the approved Fiscal Year 2014 - 2015 budget.
Staff
Prepared by: Kelly Beck, Employee Benefits Supervisor
Reviewed by: Robyn Wilkerson, HR and Labor Relations Director
Body
Whereas, The City provides Health Care coverage to City employees, their eligible dependents, and retirees and their eligible dependents, in accordance with the employee benefits program and various labor contracts at an estimated annual cost of approximately $3,000,000.00;
Whereas, The City's contract with Express Scripts is due for renewal on January 1, 2016;
Whereas, Human Resources Services recommends the Amendment to this contract and the addition of the aggregate excess loss reinsurance of this contract;
Whereas, Funds have been a...
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