Title
Pharmacy Benefit Management Services - RFP HR 22-001 - Request for Award (Ordinance S-49593)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Elixir Rx Solutions, LLC to provide Pharmacy Benefit Management Services for the City's eligible Employees, Non-Medicare Retirees and their eligible dependents. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contract will not exceed $215,000,000.
Report
Summary
Elixir Rx Solutions, LLC will partner with the City and selected Health Plan Third Party Administrators (TPAs) to find sustainable and affordable solutions to optimize the pharmacy care experience of eligible plan participants while keeping costs contained. Other services include efficient claims adjudication, quality customer service to include dedicated onsite representative, Opioid Safety program, experience reporting, pass-through network rates at retail reimbursements, and competitive discounts in all areas to include Retail 30 and 90 days, Mail, Brand and Generic medications with performance guarantees in place. The current contract with Elixir is set to expire Dec. 31, 2023.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
RFP HR 22-001 was conducted in accordance with Administrative Regulation 3.10. The Human Resources Department received nine proposals. The Notice of Solicitation was emailed to 1,232 vendors registered in ProcurePHX and known vendors in the pharmacy benefit manager health care industry.
The offers were scored using the following criteria: Qualifications, Experience and References (250 points), Method of Approach (450 points) and Pricing (300 points). Two of the nine offers received were deemed non-responsive. The evaluation occurred by a five-person panel. The panel determined that three offers were within the competitive range. Finalist presentations were conducted with all offers in the competitive range, and Best and Final Offers (BAFOs) were conducted with two offers. After reviewing the BAFO response, it was the consensus of the evaluation committee to recommend award to Elixir Rx Solutions, LLC. The BAFO resulted in an overall reduction over the five year contract period of $8.4 million.
The consensus scores are as follows:
Caremark PCS Health, LLC: 879 points
Elixir Rx Solutions, LLC: 956 points
Express Scripts, Inc: 882 points
IngenioRx, Inc.: 860 points
Magellan Rx Management, LLC: 902 points
Navitus Health Solutions, LLC: 726 points
OptumRx, Inc.: 890 points
After reaching consensus, the evaluation committee recommends award to Elixir Rx Solutions, LLC., as the highest scored, responsive and responsible offer most advantageous to the City.
Contract Term
The five-year contract term shall begin on or about Jan. 1, 2024.
Financial Impact
The aggregate five-year contract value for these services shall not exceed $215 million and will be paid by the City's Health Care Benefits Trust Fund. No General Funds are needed.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Human Resources Department.