Agenda Item # 2
Columbus Consolidated Government
Council Meeting

September 27, 2016

Agenda Report # 44


TO: Mayor and Council

SUBJECT: Pharmacy Benefit Management Contract

INITIATED: Human Resources and Finance Department

Recommendation: Approval is requested authorizing a one-year pharmacy benefit management contract with Pharmavail Benefit Management, a Georgia Corporation and Columbus Consolidated Government.

Background: The City’s current PBM contract with Express Scripts, Inc. expires on December 31, 2016. The City’s benefit consultant conducted an RFP to select a PBM. A total of four PBMs submitted proposals. The benefit consultant has recommended Pharmavail Benefit Management to provide Pharmacy Benefit Management (PBM) services for Columbus Consolidated Government employees and dependents.

Pharmavail Benefit Management was founded in 2002. It’s home office is located in Woodstock, GA and they have three other offices located in Atlanta, GA, Fresno, CA and Memphis, TN. Pharmavail provides PBM services to nationwide health insurers, TPAs, unions, government plans and self-insured employers. The company provides PBM services for 1.3 million lives. Clients range from 250 – 18,000 lives. The pharmacy benefit management services include pharmacy network contracting, pharmacy claims processing, mail and specialty drug pharmacy, cost containment, clinical, safety, adherence, and other like programs, and formulary and rebate administration (“PBM Services”).

The pharmacy benefit management services will be provided in accordance with the terms of a contract negotiated by the City and the Contractor. This constitutes a one-year contract with the option to renew for four (4) additional twelve-month periods for services. The City Manager or his designee may agree to the one-year renewals on the City’s behalf.

Analysis: The pharmacy benefit management contract with Pharmavail Benefit Management is commensurate with the current market rate for similar services.

Financial Considerations: The pharmacy benefit management contract with Pharmavail is commensurate with the current market rate for similar services.

Legal: Authorization of Council to enter contract with Pharmavail Benefit Management for pharmacy benefit services is required.

Recommendation/Actions: The City Manager, City Attorney, Human Resources Department, Finance Department, and ShawHankins Benefits Consultant recommend approval of contract with Pharmavail Benefit Management.


A RESOLUTION
NO.____

A RESOLUTION AUTHORIZING APPROVAL FOR PHARMACY BENEFIT MANAGEMENT SERVICES WITH PHARMAVAIL BENEFIT MANAGEMENT, A GEORGIA CORPORATION AND COLUMBUS CONSOLIDATED GOVERNMENT.

WHEREAS, Pharmavail Benefit Management services, includes, among other things, national pharmacy network, competitive pharmacy contract rates, pharmacy claims processing, integrated mail order pharmacy and specialty drug pharmacy, formulary management and high rebate yields, flexible design with cost control recommendations, on-line/real-time claims processing (“PBM Services”); and,

WHEREAS, this Council desires to approve a one-year contract with Pharmavail Benefit Management for PBM services beginning January 1, 2017 and ending December 31, 2017 with the option to renew for four (4) additional twelve-month periods for services in accordance with the specifications of the contract reviewed and approved by the City and the proposal of Pharmavail Benefit Management. Contract renewal will be contingent upon the mutual agreement of the City and the Contractor.

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:

That the City Manager is hereby authorized to enter into a one-year contract for pharmacy benefit management services with Pharmavail Benefit Management beginning January 1, 2017 through December 31, 2017. Funds are budgeted in the Employee Health Insurance Fund-Human Resources-Health Insurance Fees-Contractual Services; 0850-220-3320-HLTH-6319. The City Manager or his designee may approve up to four one-year extensions of the contract.
_________________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of __________, 2016 and adopted at said meeting by the affirmative vote of ___________ members of said Council.


Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.



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Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor