Ann Arbor logo
Share to Facebook Share to Twitter Bookmark and Share
File #: 19-0442    Version: 2 Name: 4/15/19 - Amendment to the Pharmacy Benefit Management Agreement with Express Scripts Inc
Type: Resolution Status: Passed
File created: 4/15/2019 In control: City Council
On agenda: 4/15/2019 Final action: 4/15/2019
Enactment date: 4/15/2019 Enactment #: R-19-173
Title: Resolution to Approve an Amendment to the Pharmacy Benefit Management Agreement with Express Scripts Inc.
Attachments: 1. ESI 2019 Amendment - Completed.pdf
Title
Resolution to Approve an Amendment to the Pharmacy Benefit Management Agreement with Express Scripts Inc.
Memorandum
The attached Resolution authorizes the City Administrator to execute the attached amendment to the City's Agreement with Express Scripts, Inc. ("Express Scripts") for Pharmacy Benefit Management Services. Express Scripts will continue to provide pharmacy benefit management service, including administrative claims processing services for the City's health plan for the period of January 1, 2019 through December 31, 2019.

Budget/Fiscal Impact: The City's agreement with Express Scripts is on a calendar basis. Cost projections for the Amendment were budgeted in the FY2019 and FY2020 budgets. The estimated annual cost for the calendar year of this employee benefit is $8,324,975.00 for 2019. Express Scripts' fees remain the same as they were under the 2018 Amendment to the ESI Agreement (Legistar File No. 18-1639) but the attached 2019 Amendment allows prescription rebates to be enhanced slightly in the City's favor for 2019. 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.

The Express Scripts Network, or its equivalent, is provided for under current labor agreements and our employee benefits program. This contract continues services now in effect.
...Staff
Prepared by: Jessica Hull, Employee Benefits Supervisor
Reviewed by: Robyn Wilkerson, HR and Labor Relations Director
Approved by: Howard S. Lazarus, City Administrator
...Body
Whereas, The City provides pharmacy benefits 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 $8,324,975.00 for 2019, which is in line with current pharmacy trends;

Whereas, ...

Click here for full text