Subject:
Title
Ranking of firms and agreement with Express Scripts, Inc. for requirements of prescription drug administrative services.
label
Recommended Action:
Recommended Action
Approval of the ranking of firms and agreement with Express Scripts, Inc. (ESI) for requirements of prescription drug administrative services.
• This agreement provides County employees and dependents with prescription drug benefits.
• Three responsive firms submitted proposals; ESI was selected as the highest ranked firm and I recommended for award by the Human Resources Department.
• The agreement has a term of sixty-months with a service start date of January 1, 2022 with a total anticipated expenditure of $68,000,000.00.
• The annual administrative services amount is $400,000.00 with a sixty-month administrative services contract value of $2,000,000.00 and is included in the total anticipated expenditure of $68,000,000.00.
• This contract replaces the current contract held by ESI that expires on December 31, 2021.
Contract No. 21-0180-P(LN) in the annual administrative services amount of $400,000.00 for a sixty-month administrative services contract value of $2,000,000.00. Authorize the Chairman to sign and the Clerk of the Circuit Court to attest.
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Strategic Plan:
Create a Quality Workforce in a Positive, Supportive Organization
1.3 Make workforce safety and wellness a priority
1.4 Maintain a fair and competitive compensation package.
Summary:
Summary
This contract continues to provide prescription drug benefits to County employees and dependents. The schedule of benefits and network of pharmacies is unchanged from the current agreement.
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Background Information:
A two-step RFP was released on January 22, 2021, requiring qualifications in step-one. Three (3) responsive submittals were received in step-two with ESI selected as the highest ranked firm. Step-two contained an analysis provided by Human Resources consultant, Willis Towers Watson, which was utilized to evaluate the firms. Negotiating of fees and rebates realized a financial improvement of $4,939,000.00 total savings over the five (5) year contract term.
The firms in order of ranking are attached on the ranking spreadsheet.
Fiscal Impact:
Estimated sixty (60) month claims liability not to exceed: $66,000,000.00
Sixty (60) month Administrative fees not to exceed: $2,000,000.00
Total estimated expenditure not to exceed: $68,000,000.00
Funding for the Agreement is derived from the Human Resources employee benefits fund.
Staff Member Responsible:
Kimberly Crum, Director, Human Resources Department
Merry Celeste, Division Director, Purchasing and Risk Management, Administrative Services
Joe Lauro, Director, Administrative Services
Partners:
N/A
Attachments:
Services Agreement
Ranking Spreadsheet