Placement: Consent Agenda
Action Requested: Motion / Vote
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Award Contract No. 20210075 Between the City of Port St. Lucie and Blue Cross Blue Shield of Florida, Inc. d/b/a Florida Blue for Healthcare Coverage
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Submitted By: Natalie Cabrera, Director, Human Resources
Strategic Plan Link: The City's Mission to be financially responsible.
Summary Brief (Agreements/Contracts only)
1. Prepared by: City of Port St. Lucie, Gehring Group, and Florida Blue.
2. Parties: City of Port St. Lucie and Blue Cross Blue Shield of Florida, Inc. d/b/a Florida Blue
3. Purpose: Award of contract between the City of Port St. Lucie and Florida Blue.
4. New/Renewal/Modified: Renewal with modifications to terms.
5. Duration: Five (5) year contract term (10/1/21-9/30/26).
6. Benefits to Port St. Lucie: Phenomenal health coverage, increased benefits, and better incentive programs available to City employees with the least financial impact to the City.
7. Cost to Port St. Lucie (Annual and Potential): Administrative Fees will increase incrementally over the 5 year term of the Contract. The total Administrative Fee expenditure over the 5 year term will amount to $3,713,415.00 broken down as follows: (1) $716,717.00 in FY 21-22; (2) $743, 213.00 in FY 22-23; (3) $743, 213.00 in FY 23-24; (4) $743, 213.00 in FY 24-25; and (5) $767,059.00 in FY 25-26. The Wellness Initiative expenditure over the 5 year term will amount to $375,000.00 ($75,000.00) per year. Additionally, effective October 1, 2020, enhanced prescription terms were negotiated with Florida Blue's prescription benefit management vendor, Prime, that generates enhanced claims savings to the City's self-funded plan. The enhanced terms increase the guarantees for the discount off the average wholesale price (AWP) and increased rebate that is passed through to the City. Over three (3) years, this is estimated to save the City approximately $2.125 million in prescription costs. Please note, savings referenced are in t...
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