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.
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: Coalition membership is on a calendar basis. Cost projections for the Amendment were budgeted in the FY21 budget and will be budgeted in the FY22 budget through the end of the 2021 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...
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