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TO: BOARD OF SUPERVISORS
FROM: Harry D . Cisterman, Director of Personnel Contra
Colosta
DATE: May 16 , 1989@ *
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SUBJECT: Cancellation of 1st Choice Pharmacy Contracts lM�
SPECIFIC REQUESTS) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
Recommendation:
It is ordered that the Director of Personnel be authorized to
cancel 1st Choice preferred pharmacy contracts effective the date of the
implementation of new contract agreements as authorized by Board Order dated
December 13, 1988.
Background-
The County is negotiating new pharmacy contracts with current
and new providers and will need to cancel current contracts to eliminate
conflicting contract provisions. New contracts will :
o expand the current network service areas to meet the needs of
members and their dependents;
o implement a mandatory generic prescription drug program;
o increase the co-payments for non-generic prescriptions;
o decrease the County's dispensing fee costs to the preferred
pharmacy network.
Fiscal Impact:
It is anticipated that the above changes will reduce County
pharmacy costs depending upon member utilization. Overall , estimated savings
from this program will assist in further reducing health care costs for the
1st Choice Health Plan.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE 15 1.
ACTION OF BOARD ON ALIN 9'1989 APPROVED AS RECOMMENDED OTHER
7
i
VOTE CW SUPERVISORS '
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYgS; NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
originating dept: Personnel - Benefits Division JUN 6 1989
" CC: County Administrator ATTESTED
County Counsel PHIL BATCHELOR. CLERK OF THE BOARD OF
Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR
BY (/ /'///� DEPUTY
M382/7-83