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HomeMy WebLinkAbout~Master - Authorizing Termination of Contract with CarelonRx and Negotiation with Wellmark for Pharmacy Benefit Manager ServicesRESOLUTION NO. 24-673 RESOLUTION AUTHORIZING TERMINATION OF CONTRACT WITH CARELONRX AND NEGOTIATION WITH WELLMARK FOR PHARMACY BENEFIT MANAGER SERVICES FOR THE CITY OF AMES, IOWA WHEREAS, in 2023, the City's health insurance consultant, Gallagher, conducted an analysis of the City's pharmacy benefit management services, which indicated an opportunity to mitigate substantial future cost increases by seeking competitive proposals for pharmacy benefit management services. CarelonRx was selected for the City's Pharmacy Benefits Manager (PBM) as a result; and, WHEREAS, CarelonRx has been able to meet the City's expectations on savings. However, the disruption to employees and covered dependents has been significant. CarelonRx's customer service has been addressed on several occasions in the last year, and the service remains unacceptable; and, WHEREAS, in early December, CarelonRx informed City employees and dependents that a major pharmacy would no longer be in Carelon's network. The potential disruption to employees from this change is significant. The notice was sent to employees and dependents without advance warning or consultation; and, WHEREAS, discussions with the City’s health insurance consultant indicate that Wellmark, which previously provided the service, may be able to preserve a significant amount of the savings that the City enjoyed by carving PBM services out and do so in a manner that is less disruptive to employees and their dependents. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that authorization of staff to terminate the contract with CarelonRx and to negotiate with Wellmark for pharmacy benefits manager services is hereby approved. ADOPTED THIS 17th day of December, 2024. _________________________________ ___________________________________ Renee Hall, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Junck Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 17th day of December, 2024.