Number
260259
Version
SUBSTITUTE 1
Reference
251764, 190021
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the Department of Employee Relations to execute a contract for administration of the City’s prescription drug benefits.
Analysis
This resolution authorizes the Department of Employee Relations (DER) to execute a contract for the City’s pharmacy benefit manager (PBM) for prescription drug benefits with contract terms commencing January 1, 2027.
Body
Whereas, The current contracts with UnitedHealthcare, for the administration of pharmacy benefits, expire on December 31, 2026; and
Whereas, Common Council Resolution File Number 251764 authorized the Department of Employee Relations to complete a request for proposal process for the administration of pharmacy benefits; and
Whereas, The City's benefits consultant, Gallagher Benefits Services, led a request for proposal process which included evaluation of proposal responses by a review and selection committee comprised of employees from the Department of Employee Relations, the budget office, the mayor’s office, the Former and retired Benefits Director, and the Employes’ Retirement System; and
Whereas, The review committee evaluated each proposal using a holistic assessment of the factors affecting the Plan's long-term success, including financial performance, clinical integration, member experience, operational efficiency, implementation risk, and full integration with the health plan, and recommends continuing with OptumRx's carve-in pharmacy benefits through UnitedHealthcare (UHC), recognizing that the recommendation reflects the best overall value to the Plan and not simply the lowest gross cost; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Employee Relations is authorized to execute a three-year contract with UnitedHealthcare for health plan administration and pharmacy benefit management services commencing January 1, 2027, with the option of a two-year contract extension for health plan administrator services only.
Drafter
Department of Employee Relations
Molly King
7/27/2026