SUBSTITUTE AGENDA ITEM
Public Hearing: YES ☐ NO ☒ Department: Finance - Risk Management
SUBJECT:
Title
Commission District(s): All Commission Districts
Healthcare, Pharmacy & Spending Account RFP
Body
Information Contact: Larry Jacobs, Finance Department
Phone Number: 404-371-2050
PURPOSE:
Anthem and CVS/Caremark contracts are set to expire in 2024. An RFP was conducted to determine the highest quality healthcare vendor with a competitive cost structure.
NEED/IMPACT:
The self-funded health insurance plan, Pharmacy Benefit Manager and Health Spending accounts provide an integral part of the employee and early retiree benefit program. Over 45% of all employees and early retirees participate in these programs. The RFP is designed to identify the best and broadest network, competitive pharmacy benefits with broad retail access and a low-cost spending account administrator.
FISCAL IMPACT:
Estimated $44 million per year. This is a self-funded healthcare plan. Cost may change each year.
RECOMMENDATION:
Recommended Action
Recommend contract award to the following firms: Anthem - Active & Pre-65 Retiree health plans - $35,000,000 (estimated) CVS/Caremark/Employers Health - Pharmacy Benefit Manager $8,500,000 (estimated)WEX - Spending Account Services - $20,000.00 (estimated)