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File #: 21-0693    Version: 1 Name: 5/3/21 Resolution to Approve Amendment with Express Scripts Inc.
Type: Resolution Status: Passed
File created: 5/3/2021 In control: City Council
On agenda: 5/3/2021 Final action: 5/3/2021
Enactment date: 5/3/2021 Enactment #: R-21-155
Title: Resolution to Approve an Amendment to the Pharmacy Benefit Management Agreement with Express Scripts Inc. ($9,202,623.00)
Attachments: 1. City of Ann Arbor- 2021 KPPC ESI Employer Group Amendment-tg.pdf
Title
Resolution to Approve an Amendment to the Pharmacy Benefit Management Agreement with Express Scripts Inc. ($9,202,623.00)
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, 2021 through December 31, 2021.

Public Act 106, requires the City to competitively bid our medical, dental and vision coverage every three years. March and McLennan Agency, our healthcare advisor, conducts the bidding on our behalf and recommends a service provider. We completed this bidding process for plan year 2020. Keenan / Express Scripts remained the best option for prescription drug claims processing. The group pharmacy portion of the City's medical coverage will be bid in 2021 for 2022 as a diligence exercise.

Budget/Fiscal Impact: The City's agreement with Express Scripts is on a calendar basis. Cost projections for the amendment were budgeted in the FY2021 and FY2022 budgets; The estimated annual cost for the calendar year of this employee benefit is $9,202,623.00 for 2021.

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, while Rx 'discounts' and rebates have been enhanced slightly (estimated -6% improvement in overall net pricing terms) in the City's favor for 2021, in alignment with the market in general. 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
Prepared by: Jessica Hull,...

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