Title
Resolution to Approve Amendment to Member Services Agreement for Keenan Pharmacy Purchasing Coalition ($75,000.00)
Memorandum
The attached Resolution authorizes membership in the Keenan Pharmacy Purchasing Coalition through the City's current Pharmacy Benefit Manager, Express Scripts, Inc. The Coalition represents employer groups by negotiating discounts for pharmacy products for city employees and retirees and their respective dependents. Employees and retirees, through their labor agreements or in accordance with the City's employee benefit plans, have the availability of using the Express Scripts Network for their pharmacy service needs.
Budget/Fiscal Impact: Membership is on a calendar basis. Cost projections for the program were budgeted in the FY2017 budget for 2017 and will be budgeted in the FY2018 budget for the remainder of the calendar year. .Barring any unforeseen circumstances, no additional funds will be required to provide pharmacy coverage to City employees, retirees and their respective dependents.
The Express Scripts Network, or its equivalent, is provided for under current labor agreements and our employee benefits program. The plan is administered by Express Scripts.
As part of the City's membership benefits an annual market check is performed to ensure that Coalition members receive the highest level of saving for the pharmacy programs. Pricing adjustments are made when identified. The 2016 market check resulted in a pricing adjustment effective January 1, 2017 for all Coalition members. The amendment updates fee schedules and reflects the new reduced rates.
Fees and premium remain unchanged for the period of January 1, 2017 through December 31, 2017:
$1.50 per member/per month - Keenan Fee
$0.29 per member/per month - Sub-Broker Fee
The overall costs for the program will fluctuate monthly depending both on the number of employees and retirees enrolled in the program during any given month, and the amount of incurred cla...
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