Agenda

Return

C. 67

To:	Board of Supervisors
From:	William Walker, M.D., Health Services Director
Date:	December 15, 2015

Contra

Costa

County

Subject:

Amendment Agreement #27-633-12 with PerformRx, LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/15/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Patricia Tanquary, 313-6004
cc:	A Floyd M Wilhelm

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: December 15, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

Approve and authorize the Health Services Director, or his designee, to execute, on behalf of the County, Contract Amendment #27-633-12 with PerformRx, LLC, a limited liability company, effective December 1, 2015, to amend Contract #27-633-11, to increase the payment limit by $20,000,000, from $65,000,000 to a new payment limit of $85,000,000, with no change in the original term of May 1, 2015 through April 30, 2016.

FISCAL IMPACT:

This amendment is funded 100% Contra Costa Health Plan Enterprie Fund II. (No rate increase)

BACKGROUND:

On April 21, 2015, the Board of Supervisors approved Contract #27-633-11 with PerformRX, LLC, for the provision of pharmacy administration services for Contra Costa Health Plan members, for the period from May 1, 2015 through April 30, 2016, including a mutual indemnification clause for the parties to hold each other harmless for any claims arising out of the performance of this contract. Contra Costa Health Plan (CCHP) continues to experience an increasing Medi-Cal population consisting mainly of seniors and persons with disabilities with complex medical needs. Pharmacy utilization continues to increase on a monthly trend to support this increased Medi-Cal population. CCHP is also experiencing a very sharp increase in pharmacy costs due to the newly approved and extremely expensive drugs to treat Hepatitis C. Approval of Contract Amendment #27-633-12 will allow the Contractor to provide additional pharmacy services for an expanded population due to the Affordable Care Act and higher Hepatitus C drug costs.

CONSEQUENCE OF NEGATIVE ACTION:

If this amendment is not approved, Health Plan members will not have access to pharmacy benefits as required by existing State and Federal contracts.

CHILDREN'S IMPACT STATEMENT:

If this amendment is not approved, Health Plan members will not have access to pharmacy benefits as required by existing State and Federal contracts.