HomeMy WebLinkAbout~Master - Approving Pharmacy Benefit Manager Services Contract with Carelon Rx Effective January 1, 2024 RESOLUTION NO. 23-617
RESOLUTION APPROVING PHARMACY BENEFIT MANAGER SERVICES
CONTRACT WITH CARELON RX EFFECTIVE JANUARY 1, 2024,
FOR THE CITY OF AMES,IOWA
WHEREAS, a Pharmacy Benefits Manager(PBM) is a third-party company that functions
as an intermediary between insurance providers and pharmaceutical manufacturers. PBMs
negotiate rebates with manufacturers, process claims, create pharmacy networks, review drug
utilization, and manage mail-order specialty pharmacies. Since pharmaceutical costs are a
significant portion of the overall costs incurred by the City's Health Insurance Fund,the terms that
can be negotiated by a PBM can result in significant impacts to the City's costs; and,
WHEREAS, because pharmacy costs are the fastest growing portion of the City's health
care costs, staff enlisted Gallagher Benefit Services,Inc.to conduct a Request for Proposals(RFP)
seeking cost savings from a competitive process for a PBM. Gallagher considered five proposals
and identified Carelon Rx as the preferred vendor for the PBM; and,
WHEREAS, the proposal submitted by Carelon Rx provided transparency regarding drug
rebates and better pricing for drugs than the other proposals. Pricing with Carelon Rx is projected
to be approximately$1.5 million less than Wellmark's projected costs over a period of three years.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that acceptance of contract documents from Carelon Rx to serve as the City's Pharmacy Benefit
Manager by negotiating rebates with manufacturers, processing claims, creating pharmacy
networks, reviewing drug utilization, and managing mail-order specialty pharmacies for benefits
effective January 1, 2024, for three years is hereby approved.
ADOPTED THIS 12th day of December, 2023.
5 W- 4VIO 4:�e
Renee kall, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 12th day of December, 2023.