To: Board of Supervisors
From: Human Resources
Meeting Date: July 11, 2017
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Department Contact: |
Heidi Dunham |
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234-6600 |
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Department Contact: |
Jason Claunch |
Phone: |
234-6600 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Amendment to Agreement Number RH-B11 57A with Keenan and Associates Amending the Fee Schedule for Membership in the Keenan Pharmacy Purchasing Coalition to Negotiate Reduced Fees with Express Scripts, Inc., Effective January 1, 2017
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Recommended Action/Motion:
recommendation
Approve amendment to Agreement number RH-B11 57A with Keenan and Associates amending the fee schedule for membership in the Keenan Pharmacy Purchasing Coalition to negotiate reduced fees with Express Scripts, Inc., effective January 1, 2017; authorize the Human Resources Director to approve future amendments to the fee schedule that do not exceed 10% annual increase over existing rates until such time as the next marketing is conducted; and authorize Chair to sign same.
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Previous Board/Board Committee Actions:
The Board of Supervisors is to approve all Agreements that do not contain a maximum contract amount.
Summary of Request:
The County’s Health Plan Consultant, Keenan and Associates, through the Keenan Pharmacy Purchasing Coalition (KPPC), negotiates directly with the County’s pharmacy provider, Express Scripts, Inc. (ESI). The direct negotiation results in maximum savings to ESI customers. To receive the benefit of these negotiated fees and services, the County must be a member of the KPPC. Membership is obtained by signature of an agreement and payment of a monthly fee calculated on a per-member, per month (PEPM) basis. The PEPM is currently $1.30, for employer groups under 2,000 members. It is estimated that the County’s Self-Funded Health Plan will realize a $60,000 savings in prescription costs compared to costs that were incurred in calendar year 2016. Staff is further requesting Board authorization for the Human Resources Director to approve future amendments to the fee schedule that do not exceed a 10% annual increase over existing rates until such time as the next marketing is conducted in July 2019.
Alternative Action/Motion:
Return to Human Resources with further direction.
Supplemental Information Available Online at: N/A
Fiscal Impact:
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Source of Funding: HI 0715 862189 |
Budgeted in Current F/Y: Yes |
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Current F/Y Cost: $30,000 (est. F/Y 16/17) |
Annual Recurring Cost: $30,000 (est. FY 17/18) |
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Supervisorial District: All |
Vote Requirement: Majority |
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Agreement/Resolution/Ordinance Approved by County Counsel: Yes
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CEO Liaison: Janelle Rau, Deputy CEO |
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CEO Review: Yes |
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Comments:
FOR COB USE ONLY
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Executed By: Nicole French |
Final Status:Approved |
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Date: July 14, 2017 |
Executed Item Number: Agreement 17-060 |
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Note to Department: 2 originals to dept (i/i), 1 original to Auditor (i/i) |
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