Number
061573
Version
Original
Reference
Sponsor
ALD. MURPHY
Title
Resolution authorizing agreement between the City of Milwaukee and Navitus Health Solutions, the City’s contracted Prescription Benefit Manager, to provide a Drug Review Program.
Body
Whereas, The City of City of Milwaukee has a contract with Navitus Health Solutions to provide prescription benefit management services; and
Whereas, Navitus Health Solutions has been providing services to help Basic Plan members and the City to reduce the costs of prescription medications; and
Whereas, Navitus is currently providing better discounts than the previous Prescription Benefit Manager (PBM), a Medicare D plan for medicare retirees, voluntary pill splitting, use of four specific over the counter (OTC) medications, use of mail order, and elimination of non-network pharmacies; and
Whereas, Navitus has proposed and the Department of Employee Relations is recommending a voluntary “preferred Formulary Retrospective Drug Utilization Review Program to reduce members’ and City’s drug costs; and
Whereas, Navitus would communicate with members’ doctor (prescriber) with a letter indicating the doctor is currently prescribing a higher cost brand drug when a lower cost preferred drug in the same therapeutic category is available; and
Whereas, Members are not required to change to the lower cost preferred drug because the program is voluntary; and
Whereas, Navitus projects up to 25% of members may change, and this change would result in savings of $20,000 per month for the City and $5,000 per month for the members collectively; and
Whereas, Navitus agrees to execute this program at their own expenses so there are no up front costs or risks to the City, but only a 25% of actual savings within four months of the initial letter from Navitus; now, therefore, be it
Resolved, That the Department of Employee Relations is authorized to enter into an agreement with Navitus to provide this Drug Review Program to members in the Basic Plan in 2007.
Drafter
DER
MB
3/22/07