To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #27-633-24 with PerformRX, LLC
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #27-633-24, containing mutual indemnification, with PerformRx, LLC, a limited liability company, in an amount not to exceed $50,000,000, to provide pharmacy program administration services for Contra Costa Health Plan (CCHP), for the period January 1, 2024 through December 31, 2025.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $50,000,000 over a two-year period and will be funded 100% by CCHP Enterprise Fund II revenues. (No rate increase)
BACKGROUND:
Both the State Department of Health Services and the Federal Centers for Medicare and Medicaid Services (CMS) require a Pharmacy Benefits Manager that can develop, maintain, and manage a large pharmacy network and monitor the correct dispensing of drug benefits, co-pays under multiple group product lines adhering to the required Health Plan Formulary and Health Plan Prior authorization protocol. This contractor has been providing these services and fostering a deep understanding of the CCHP organizations mission, values, and long-term objectives since May 1, 2006.
This contract is entered into under and subject to the following legal authorities: California Government Code ?? 26227 and 31000; Health and Safety Code ? 1451. Health Services Personnel approved this contract to ensure no conflicts with labor relations. This contractor was selected to provide pharmacy program administration services to CCHP's Pharmacy and Utilization units to help establish and maintain a utilization management program that promotes appropriate utilization for CCHP's pharmacy benefits program, and continually reviews updated utilization management procedures to ...
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