HomeMy WebLinkAboutAgenda Report - July 17, 1991 (110)OF
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COUNCIL COMMUNICATION
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AGENDA TITLE: Contract to Provide Prescription Service Under the City
Insurance Coverage
MEETING DATE: July 17, 1991
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION: The City Council authorize self insuring prescription
drugs and to contract for administration of the program.
BACKGROUND INFORMATION: Under the City's contract with Foundation Health Plan
for medical insurance, prescription drugs have been
included.
Out present cost - 1990/91 - for the prescription portion of the plan is $28.90
per month per family. The City has been notified that the cost will be $51.85
effective August 1,1991. That is an increase of 79.4%. The increase for
medical services will increase 8.2%.
The City presently has 405 family units insured and 78 single persons covered
under our plan. The proposed premiums will be in excess of $270,000 per year.
We are confident we can self -insure the same level of benefits for less than
$51.85. If the experiment becomes a failure we can revert back to the
Foundation Health Plan.
We have been in contact with two organizations which provide administration of
pharmaceutical services - SAVMART Supermarkets (Fry's) and Valley Pharmacy Group.
I have received a written proposal from SAVMART which meets all of our needs. I
have not received a written proposal from Golden West (Valley Pharmacy Group),
but am confident that they too can provide a high level of service to our
employees.
I will make a formal recommendation at the Council meeting on July 17 after
reviewing both proposals.
FUNDING: N/A
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Jerry L. Glenn
Assistant City Manager
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CCCOM255/TXTA.07A
APPROVED: _ — / ^<* -LA.
THOMAS A. PETERSON
City Manager
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