Title
Resolution to Approve Amendment to Member Services Agreement with Keenan & Associates ($88,000.00)
Memorandum
The attached Resolution authorizes Amendment and extension of the City's Member Services Agreement with Keenan & Associates. The Member Services Agreement granted the City membership in the Keenan Pharmacy Purchasing Coalition ("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 option to use Express Scripts Network for their pharmacy service needs.
Budget/Fiscal Impact: Coalition membership is on a calendar basis. Cost projections for the Amendment were budgeted in the FY20 budget and will be budgeted in the FY21 budget through the end of the 2020 calendar year. No additional funds are anticipated to 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 Coalition membership benefits, an annual market check is performed to ensure that Coalition members receive the highest level of savings for the pharmacy programs. Pricing adjustments are made when identified.
Fees and premiums have remained the same for the period of January 1, 2020 through December 31, 2020:
$1.75 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 claims actually paid during any given month.
Staff
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