Submitted By: Todd Swanson
presenter
Presentation By: Todd Swanson
end
Department: Human Resources and Risk Management
FORMAL TITLE:
title
Fifth amendment to the agreement with ElectRx and Health Solutions, LLC, renewing the contract for a two-year term in an amount not to exceed $800,000
end
OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
body
BACKGROUND:
On November 21, 2016, the City entered into a Memorandum of Understanding with ElectRx and Health Solutions, LLC, for the provision of a voluntary international and specialty mail-order pharmacy program to allow eligible employees and dependents access to maintenance and specialty medications at reduced net costs. The program supplements the City's self-insured health plan by providing an alternative for high-cost and maintenance medications that typically drive pharmacy spending.
Contract History:
* Original Agreement (2016): Approved November 21, 2016, establishing the City's ElectRx program for a two-year term beginning January 1, 2017.
* First Amendment (2017): Expanded the program to include specialty drug coverage.
* Second Amendment (2020): Extended the agreement through December 31, 2022, and authorized future renewal periods.
* Third Amendment (2023): Renewed the agreement through December 31, 2024.
* Fourth Amendment (2025): Corrected a scrivener's error and confirmed the renewal term through December 31, 2025.
FINDINGS AND CONCLUSIONS:
This Fifth Amendment extends the agreement for a two-year term, January 1, 2026, through December 31, 2027, and establishes a total compensation amount not to exceed $800,000. ElectRx has provided written consent to the renewal term as required under the Agreement.
The City has saved more than $500,000 in the last 15 months alone through this discount drug mail order program:
* 2024 savings of $480,538.70 = 334 RXs with an average savings per RX of $1438.73
* 2025 savings of $416,595.20 = 306 RXs with an avera...
Click here for full text