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File #: 20-0060    Version: 1 Name: 2/3/20 - Resolution to Approve Amendment to Pharmacy Benefit Management Agreement
Type: Resolution Status: Passed
File created: 2/3/2020 In control: City Council
On agenda: 2/3/2020 Final action: 2/3/2020
Enactment date: 2/3/2020 Enactment #: R-20-030
Title: Resolution to Approve an Amendment to the Pharmacy Benefit Management Agreement with Express Scripts Inc. ($8,580,812.00)
Attachments: 1. 121219 City of Ann Arbor - 2020 KPPC ESI Amendment.pdf
Title
Resolution to Approve an Amendment to the Pharmacy Benefit Management Agreement with Express Scripts Inc. ($8,580,812.00)
Memorandum
The attached Resolution authorizes the City Administrator to execute the attached amendment and renewal of the City's contract for pharmacy benefit management services with Express Scripts Inc. ("Express Scripts"). 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, 2020 through December 31, 2020.

Budget/Fiscal Impact: The City's agreement with Express Scripts is on a calendar basis. Cost projections for the amendment were budgeted in the FY2020 and FY2021 budgets; The estimated annual cost for the calendar year of this employee benefit is $8,580,812.00 for 2020.

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.

Fees remain the same and Rx rebates have been enhanced slightly in the City's favor for 2020. 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.

Prepared by: Jessica Hull, Employee Benefits Supervisor
Reviewed by: John Fournier, Interim 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 $8,580,812.00 for 2020, which is in line with current pharmacy trends;

Whereas, The City's contract with Express Scripts Inc. was due for renewal on January 1, 2020;

Whereas, Human Resources Services rec...

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