Label
Optum Rx
Pharmacy Benefit Manager Services
Human Resources
Director Michael Niedzielski (x2182)
Revised
Title
Authorizing the mayor to enter into an agreement with Optum Rx for pharmacy benefits manager services for the City of Toledo's covered employees for a period of one (1) year; and further authorizing the expenditure of funds; waiving the competitive procurement requirements of Toledo Municipal Code Chapter 187; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
In 2022, the Department of Human Resources sought competitive proposals for pharmacy benefit manager services and received three (3) responsive proposals. Each proposal was reviewed and evaluated with consultation from representatives of the Department of Law, the Department of Finance, McGohan Brabender (the City's benefits consultant team), and the Healthcare Cost Containment Committee. It was determined that Optum Rx presented the lowest and best proposal. In accordance with Ord. 69-22, the City of Toledo's contract with Optum Rx will expire on May 31, 2025. In order to sufficiently prepare for and complete the bidding process, and prevent member disruption, the Department of Human Resources is requesting to waive competitive bidding and renew the agreement with Optum Rx for one (1) additional year, to May 31, 2026.
It is estimated that the administrative fee cost associated with this agreement will be approximately $115,000 per year.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Mayor is authorized to enter into an agreement with OptumRx, to provide Pharmacy Benefit Manager Services for a period of one (1) years, commencing June 1, 2025, and ending May 31, 2026. Such agreement shall contain terms and conditions deemed proper and requisite according to the Mayor, the Director of Law, and the Director of Human Resources.
SECTION 2. That expenditures for pharmacy benefit management services are authorized from Account Code 7083-17100-1156001STDSTD. That said costs shall then be allocated to Account Code 517400 (Medical Insurance) within the various City organization units.
SECTION 3. That this Council finds and determines that it is in the best interest of the City to waive the competitive procurement provisions of Toledo Municipal Code Chapter 187 for the reason that OptumRx is the current provider and extending the agreement for an additional year will avoid member disruption.
SECTION 4. That the Director of Finance is authorized to draw their warrant or warrants against the above account code in payment of the authorized obligations upon presentation of the proper voucher(s).
SECTION 4. That this Ordinance is declared to be an emergency measure and shall be in force and effect from and after its passage. The reason for the emergency lies in the fact that same is necessary for the immediate preservation of the public peace, health, safety, and properly, and for the further reason that the ordinance must be immediately effective in order to maintain quality drug prescription coverage for the City of Toledo’s employees and their dependents, and as mandated by the City’s applicable collective bargaining agreements.
Vote on emergency clause: yeas 10, nays 0.
Passed: September 25, 2024, as an emergency measure: yeas 10, nays 0.
Attest:
Julie A. Gibbons Carrie Hartman
Clerk of Council President of Council
Approved: September 25, 2024
Wade Kapszukiewicz
Mayor