HomeMy WebLinkAbout~Master - Approving contract documents for Pharmacy Benefit Manager (PBM) Services with Wellmark Blue Cross Blue Shield of Iowa effective April 1, 2025RESOLUTION NO. 25-011
RESOLUTION PROVIDING FOR THE AWARD OF CONTRACT
FOR PHARMACY BENEFITS MANAGER SERVICES
FOR THE HUMAN RESOURCES DEPARTMENT, CITY OF AMES, IOWA
WHEREAS, after an extensive Request for Proposals (RFP) process, in January 2024, the
City contracted with CarelonRx to provide Pharmacy Benefits Manager (PBM) services.
CarelonRx was able to project exceptional savings over the course of three years, while Wellmark
Blue Cross Blue Shield (BCBS) was unable to be competitive with its pricing during the RFP; and,
WHEREAS, in the last twelve months with CarelonRx providing PBM services, the City
has experienced the projected savings. However, service levels have not met expectations even
after remedial efforts were made; and,
WHEREAS, in December, City Council authorized City staff to terminate the contract with
CarelonRx and to begin negotiations with Wellmark BCBS. City staff, with the assistance of
Gallagher Benefits Services, has engaged in negotiations with Wellmark BCBS to re-engage with
PBM services; and,
WHEREAS, Wellmark BCBS has provided a pricing and rebate structure that is
competitive.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the contract documents (including terminal rider, final alternate rates, and updated benefits
summary information for three City health insurance plans) from Wellmark BCBS to carry out
Pharmacy Benefits Manager services for the City by negotiating rates, creating pharmacy
networks, reviewing drug utilization, processing claims, and managing pharmacy-related
programs, effective April 1, 2025, are hereby approved.
ADOPTED THIS 14th day of January, 2025.
_________________________________ ___________________________________
Renee Hall, 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 14th day of January, 2025.