Manatee County Government Administrative Center Honorable Patricia M. Glass Chambers, First Floor 9:00 a.m. - October 22, 2019
October 22, 2019 - Regular Meeting
Agenda Item #20

Amendment No. 3 to Prescription Drug Benefit Administration Agreement


Contact and/or Presenter Information

Contact: Jacob Erickson, Procurement Manager - Procurement Division, x3053

Presenter: Kim Stroud, Director - Human Resources Department, x3813

Action Requested
Authorize the County Administrator, or designee, to execute Amendment No. 3 to Prescription Drug Benefit Administration Agreement with OptumRx, Inc., for an aggregate not-to-exceed Agreement total of $645,000.

Enabling/Regulating Authority
Manatee County Code of Laws

Background Discussion

On January 1, 2017, the County entered into a two year Prescription Drug Benefit Administration Agreement with OptumRx, Inc., to provide administrative, management, consultative, claims processing and other general pharmacy benefit management support services in conjunction with administration and operation of the County's benefit plan offered to employees and their families by the County's Employee Health Benefits Division. The estimated Agreement total was within the Procurement Official's approval authority to execute.

On December 28, 2018, the parties entered into Amendment No. 1 that revised the term of the Agreement to incorporate a four year renewal option and incorporate Section 3.9, Market Check, into the Agreement.

On August 13, 2019, the parties entered into Amendment No. 2 which incorporated an enhanced savings program addendum in the Agreement.

To date the County has expended $411,800 with the expectation of additional expenditures for services through the Agreement term of December 31, 2019. Based on spend for the past two years and the variable nature of the costs under the Agreement, an additional $233,200 in funding is requested. 

Amendment No. 3 establishes an aggregate Agreement not-to-exceed total of $645,000 which requires Board approval under the current thresholds. 

County Attorney Review
Not Reviewed (No apparent legal issues)

Explanation of Other

Reviewing Attorney

Instructions to Board Records

Originals to Board Records.

Copies to:

OptumRx, Inc. - Sarah Bujak (sarah.bujak@optum.com)

Human Resources Department - Kim Stroud (kim.stroud@mymanatee.org) and Janet Speno-Bodner (janet.speno-bodner@mymanatee.org)

Procurement Division - Jacob Erickson (jacob.erickson@mymanatee.org)


Cost and Funds Source Account Number and Name
$215,000 - 506-0004100 / Human Resources Health Self Insurance EHB Administration

Amount and Frequency of Recurring Costs

Attachment:  Amendment No. 3 for OptumRx.pdf