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