To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #77-822 with MedImpact Healthcare Systems, Inc.
?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 Service Agreement (County Contract #77-822) with MedImpact Healthcare Systems, Inc., a corporation, in an amount not to exceed $250,000,000, to provide hosted prescription drug benefit management and administrative services, to Contra Costa Health Plan (CCHP) Commercial and Medicare Advantage Dual Eligible Special Needs Plan (D-SNP) members for the period from July 14, 2026, through December 31, 2029, and for successive two (2) year-terms thereafter until terminated per the terms of the agreement.
FISCAL IMPACT:
This Contract will result in contractual service expenditures of up to $250,000,000 over a 3.5-year period and will be funded 100% by CCHP Enterprise Fund II revenues.
BACKGROUND:
This Contract meets the needs of the County by delegating a Pharmacy Benefit Manager and prescription pharmacy administrator for CCHP's Commercial and Medicare Advantage D-SNP members prescription benefits. CCHP currently delegates its prescription pharmacy benefit administration to PerformRx, which will cease operations in California as of December 31, 2026. CCHP, as a health plan, offers prescription drug coverage to members enrolled in the County's CCHP Commercial Plan A and Plan B medical benefit plans, as well as its Medicare Advantage D-SNP benefit plan. To fulfill its regulatory obligations as promulgated by the Department of Managed Health Care (DMHC) and the Centers for Medicare and Medicaid Services (CMS), CCHP has identified Contractor as an alternative PBM beginning in calendar year 2027.
This Contractor was approved by the Public Works Department's Purchasing Division on March 2, 2026.
A summary of service contract deliver...
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