Title
A Resolution to Approve the Change In Pharmacy Benefit Managers
Summary
Description of Topic: (who, what, where, when, why and how much)
Discuss changing pharmacy benefit managers (PBM). Health care costs continue to rise, and pharmaceutical costs are a main cause. HR has been working with our benefit brokers to look into changing PBMs. An audit and RFP process was handled by an independent firm specializing in PBM oversight, Truveris. The Truveris RFP resulted in the identification of National CooperativeRx as the best option for the City of Foley. The projected savings for Foley over the next 3 years (starting 1/1/22) averages approximately $230,000 per year, or a 19% reduction in the City’s pharmacy costs. There will be a formulary (drug list) change resulting from the move away from ESI/RxBenefits, but there are always formulary changes during the year, whether or not the PBM changes. There will be no issues with pharmacy access, as most all pharmacies currently utilized are in-network (the audit identified one nominally utilized specialty pharmacy in Tampa as out-of-network). All fees for audit, RFP and PBM oversight by Truveris are to be paid by National CooperativeRx, not the City of Foley.
Budgetary Impact: N/A
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_____ Yes, described as __________________________, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ No, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
Body
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, authorizes the change in pharmacy benefit managers from ESI/RxBenefits to National CooperativeRx through the oversight by Truveris, effective January 1, 2022. This Resolution shall become effective immediately upon its adoption as required by law.