TITLE
Title
Approval of Award to Optum Rx for Prescription Benefit Management Services for three (3) years from 1/1/2020 to 12/31/2022
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BACKGROUND INFORMATION
Due to the complex nature of procuring pharmaceutical services for our employees, it was necessary and Board approved to enter into Contract with Gallagher Pharmacy Procurement Services on 1/22/2019 to conduct an extensive RFP for the Prescription Benefit Management Services and analysis of the marketplace. 8 vendors were contacted. 6 responded and 2 declined due to size. The analysis and best and final offers were presented to the Health Insurance Committee on 5/30/2019. The Committee selected Optum Rx based on formulary disruption, network disruption, financial offers, rebates, allowances and credits. Optum Rx agreed to a rate guarantee of the initial rates and minimum guarantee discounts for 36 months. The Rx claims for 2020 are estimated at $3 Million. The administration fees for the Plan Year 1/1/2020 to 12/31/2020 are $39,690.00.
BUDGET INFORMATION
Item Budgeted? YES
Total Cost: $39,690.00 for PY 1/1/2020 to 12/31/2020
Budget Coding: 0712.7730.310.9802.0001
Requisition Attached?
CONTRACT INFORMATION
Contract with: Optum Rx
Contract value: $39,690.00 for PY 1/1/2020 to 12/31/2020
Budget coding: 071.7730.310.9802.0001
Contract Purpose / Description: To provide the administration of Prescription Plan Management Services
Contract Originator: Kathryn Flannery, x53342, Employee Benefits & Risk Management
Board Meeting Date: July 23, 2019
RECOMMENDATION
Recommendation
Approval of RFP Award to Optum Rx for Prescription Plan Management Services for an initial 36 month contract from 1/1/2020 through 12/31/2022. It shall be the option of the School Board to negotiate a one (1) year additional renewal.