Submitted By: Devan Kikendall
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Presentation By: Devan Kikendall
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Department: Human Resources and Risk Management
STAFF RECOMMENDATION (Motion Ready):
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Approve contract amendment for a two-year renewal with ElectRx and Health Solutions, LLC for an employee prescription drug supply program
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION
N/A
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BACKGROUND:
The City of Ocala is self-insured for health insurance and pharmacy drug claims and has provided ElectRx as a cost savings measure to both the City and its employees. Employees and retirees enrolled in the City's health insurance plan are able to purchase certain brand names and specialty drugs at a lower co-pay and no deductible, with the remaining cost absorbed by the City's self-insured plan.
When a prescription is filled through ElectRx, the City's cost is significantly reduced because of ElectRx's business model of providing the same brand name and specialty drugs from suppliers outside of the United States.
FINDINGS AND CONCLUSIONS:
There are approximately 80 plan participants who utilized ElectRx in 2023, resulting in significant savings to the City and employees when compared to having the same prescriptions filled through the traditional pharmacy methods.
Total savings in 2020: $242,373
Total savings in 2021: $247,587
Total savings in 2022: $391,782
FISCAL IMPACT:
Expenses associated with health insurance claims costs, including pharmacy drug claims, have been budgeted for and are available in account 627-099-999-590-81-45020.
PROCUREMENT REVIEW:
The amendment has been reviewed and approved for compliance with the City’s procurement policies.
LEGAL REVIEW:
The amendment will be reviewed and approved for form and legality by the City Attorney, William E. Sexton.
ALTERNATIVE:
Table or Deny