HomeMy WebLinkAbout1999-12-21-0900AM-Regulart
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BRAZOS COUNTY
BRYAN. TEXAS
FILED FOR RECORD o
DATE
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NOTICE OF MEETING
AND AGENDA
BRAZOS COUNTY COMMISSIONERS COURT
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THE COMMISSIONERS WILL MEET IN REGULAR SESSION ON TUESDAY,
DECEMBER 21,1999 AT 9:00 A.M. IN THE COMMISSIONERS COURTROOM OF THE
BRAZOS COUNTY COURTHOUSE, 300 EAST 26" STREET, SUITE 115, BRYAN,
TEXAS.
1. Invocation - Judge Jones.
2. Pledge of Allegiance - Judge Jones.
Consider and take action on agenda items 3 - 23:
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3. Budget Amendment 99/00-9.
4. The reclassification of the open position in the Treasurer's Office, position 3, class code
1007, from 11.6 (current budget: $20,864.00) to 11.8 (821,920.00).
5. Personnel Changes of Status.
6. Approval of Recurring Payment Requests for the following:
a. Bryan-College Station Economic Development Corporation (2)
b. Leonard's Cleaning Service (2).
7. Payment of Claims.
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8. Implementing an Order Prohibiting Outdoor Burning.
9. Order designating the LaSalle Hotel within the City of Bryan (Lot 1, Block 256) as a
Historical Site pursuant to provisions of the Texas Property Tax Code, Section 11.24,
relating to historic sites and granting tax exemption for fifteen (15) years.
10. Instructing Commissioner Tony Jones to begin dialogue with the College Station
Independent School District on possible acquisition of real property.
11. The Managed Prescription Drug Program Agreement with Express Scripts, Inc.
12. Approval and authorization for County Judge to execute a "Release in Full."
13. Contract for Services with United Roofing regarding hail damage roof repairs.
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14. Adoption of a Vehicle Use Policy.
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Commissioners Court Mating Agenda
December 21, 1999
Page Two
15. Appointing a member to serve on the Mental Health Mental Retardation Authority of
Brazos Valley Board of Trustees.
16. Blanket Purchase Orders.
17. Approval of Exemption from Competitive Bidding Requirements for United Roofing.
18. Requisition from Capital Expenditure Funds, Equipment Minor, for typewriters for the
Tax Office.
19. Award of the following bids:
a. Bid #2000-018, Fencing Supplies - Annual Contract
b. Bid #2000-021, Purchase of Motor Graders.
20. Requisition for computers and equipment.
21. Requisition from Capital Expenditure Funds for computers.
22. Requisition from Capital Expenditure Funds for computer network equipment.
23. The Preliminary Plat of Fontana Addition, Block 1, Lots 1, 2, 3, 4, 5 and 6,15.047 acres,
Maria Kegans League. Site is located in Precinct 3.
24. Acknowledge receipt of monthly reports from elected officials and department heads.
25. Announcement of interest items and possible future agenda topics.
26. Call for citizen input and/or concerns.
27. Adjourn.
The Courthouse is wheelchair accessible. Handicap parking spaces are available. Any request for
sign interpretive services must be made two business days before the meeting. To make
arrangements, call (409) 361-4102.
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COMMISSIONERS' COURT
REGULAR MEETING
DECEMBER 21, 1999
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A regular meeting of the Commissioners' Court of Brazos
County, Texas was held in the Commissioners' Courtroom in
the Courthouse in Bryan, Brazos County, Texas, beginning at
9:00 a.m. on Tuesday, December 21, 1999, with the following
members of the Court present:
Alvin W. Jones, County Judge, Presiding;
Tony Jones, Commissioner of Precinct 1;
Wm.S. Thornton, Commissioner of Precinct 2;
Randy Sims, Commissioner of Precinct 3;
Carey Cauley, Jr., Commissioner of Precinct 4;
Mary Ann Ward, County Clerk.
The attached sheet contains the names of the citizens
and officials that were in attendance.
The County Judge gave the invocation and led the pledge
of allegiance.
The Court next considered Budget Amendment #99/00-9.1
which would reallocate funds for the County Auditor's
Office. On motion by Commissioner Cauley, seconded by
Commissioner Sims, the Court voted unanimously to approve
the budget amendment as submitted, a copy of which is
attached hereto.
The Court first considered the reclassification of the
open position in the Treasurer's Office, Position 3, Class
code 1007, from a Group 11, Step 6 (current budget
$20,864.00) to a Group 11, Step 8 (budgeted at $21,920.00).
On motion by Commissioner Sims, seconded by Commissioner
Jones, the Court voted unanimously to reclassify the
position.
The Court proceeded to consider the change of status of
employees as submitted on the attached Personnel Action
Requests. On motion by Commissioner Cauley, seconded by
Commissioner Sims, the Court voted unanimously to approve
the changes as submitted.
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office to process recurring payment requests for the
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Commissioners Court meeting December 21, 1999 2
The Court next considered authorizing the Auditor's
following :
a) Bryan-College Station Economic
Development Corporation (2)$2,600
b) Leonard's Cleaning Service $1,440
On motion by Commissioner Cauley, seconded by Commissioner
Jones, the Court voted unanimously to authorize the
Auditor's office to process all the previously noted
recurring payments.
The Court next considered the following Claims as
submitted by the County Treasurer for payment:
20002316 through 20002555
On motion by Commissioner Jones, seconded by Commissioner
Thornton, the Court voted unanimously to approve the Claims
as submitted.
The next matter for consideration by the Court was
implementing an order Prohibiting Outdoor Burning. On
motion by the County Judge, seconded by Commissioner Sims,
the Court voted unanimously to remove this item from the
agenda. It will not be put back on until necessary.
The Court next considered a request to designate the
LaSalle Hotel Property a Historical Site and provide tax
exemption. After much discussion and on motion by
Commissioner Sims, seconded by Commissioner Thornton, the
Court voted unanimously to table the matter until
Commissioner Sims visits with the City of Bryan.
The Court next considered authorizing Commissioner
Jones to begin dialogue with the College Station Independent
School District on possible acquisition of real property
located at 100 Anderson Street in College Station. Justice
of the Peace and Constable Precinct 6 are currently housed
in that location. On motion by the County Judge, seconded
by Commissioner Sims, the Court voted unanimously to
authorize Commissioner Jones to begin dialogue with the
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Commissioners Court meeting December 21, 1999
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College Station Independent School District on possible
acquisition of real property.
The Court next considered entering into a Managed
Prescription Drug Agreement with Express Scripts, Inc. On
motion by Commissioner Sims, seconded by Commissioner
Cauley, the Court voted unanimously to enter into agreement
with Express Scripts, Inc. and authorized the County Judge
to execute the Agreement on behalf of Brazos County. A copy
of the Agreement is attached.
The next item for consideration was the approval and
authorization for the County Judge to execute a "Release in
Full". On motion by the County Judge, seconded by
Commissioner Thornton, the Court voted unanimously to table
consideration.
The Court next considered entering into a Service
Contract with United Roofing concerning hail damage roof
repairs. On motion by the County Judge, seconded by
commissioner Jones, the Court voted unanimously to table
consideration.
The Court next considered adoption of a Vehicle Use
Policy. On motion by Commissioner Thornton, seconded by
Commissioner Jones, the Court voted unanimously to table
consideration.
The next matter before the Court was the appointment of
a member to serve on the Mental Health Mental Retardation
Authority of Brazos Valley Board of Trustees. On motion by
the County Judge, seconded by Commissioner Sims, the Court
voted unanimously to appoint Tammy H. Tiner, PhD. to serve
on the Mental Health Mental Retardation Authority of Brazos,
Valley Board of Trustees.
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Commissioners Court meeting December 21, 1999
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The Court proceeded to consider the following blanket
Purchase Orders:
Nationwide Papers Jail $ 500
Ecolab Jail $ 700
Bob Barker Jail $ 500
Cain's Coffee Jail $ 500
Lilly Dairy Jail $2,800
Butterkrust Jail $1,300
Ben E. Keith Jail $2,000
US Foodservice Jail $1,000
Performance Jail $7,525
Alliant Food Jail $7,525
Sysco Food Jail $7,650
Scarmardo Produce Jail $3,000
On motion by Commissioner Sims, seconded by Commissioner
Cauley, the Court voted unanimously to approve the Blanket
Purchase Orders as submitted.
The Court next considered an Exemption from Competitive
Bidding Requirements of Local Government Code, Section
262.024(a)(3). This is for the repair of hail damage only.
The Commissioners' Court determined that there was a need to
exempt United Roofing for work repairing the hail damaged
roofs. On motion by the County Judge, seconded by
Commissioner Cauley, the Court voted unanimously to approve
the Exemption of Competitive Bidding Requirements.
The Court next considered approval of a requisition
from the Capital Projects Fund for the following purchase:
a) 2 Typewriters for the Tax Office,
$578.22
On motion by Commissioner Sims, seconded by Commissioner
Cauley, the Court voted unanimously to approve the
requisition be paid from Capital Projects Fund.
The Court next considered awarding the following bids:
a) Bid No. 2000-018, Fencing Supplies Annual
Contract
John Hachmann, Purchasing Agent,
recommended acceptance of the bid
submitted by Hicks Post Company on items
1,2,3.1,3.2; Conroe Wood Products on
items 4.1 through 4.4; and Brazos Bottom
Crop Care on items 5.1 through 5.5. A
copy of the bid tabulation is attached.
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Commissioners Court meeting December 21, 1999
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b) Bid No. 2000-021, Purchase of Motor Graders
John Hachmann, Purchasing Agent,
recommended acceptance of the bid
submitted by Mustang Tractor with trade-
in. A copy of the bid tabulation is
attached.
On motion by Commissioner Cauley, seconded by Commissioner
Jones, the Court voted unanimously to accept the
recommendations of the Purchasing Agent and award the
contracts as noted.
The Court next considered approval of a requisition
from the District Attorney's Crime Fund for the purchase of
six (6) computers for the Narcotics Task Force. On motion
by Commissioner Sims, seconded by Commissioner Cauley, the
Court voted unanimously to approval payment of the
requisition in the amount of $11,107.00.
The Court next considered approval of a requisition
from the Capital Expenditures Fund for the following
purchase:
a) 5 Computers for Task Force $5,400.00.
On motion by Commissioner Sims, seconded by Commissioner
Cauley, the Court voted unanimously to approve the
requisition to be paid from Capital Expenditures Fund.
The Court next considered approval of a requisition
from the Capital Expenditures Fund for the following
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E purchase:
a) Computer Network Equipment $483.00.
On motion by Commissioner Sims, seconded by Commissioner
Cauley, the Court voted unanimously to approve the
requisition to be paid from Capital Expenditures Fund.
The Court next considered approval of the Preliminary f
Plat of Fontana Addition, Block 1, Lots 1,2,3,4,5&6 in
• - Precinct 3. Richard Vance, County Engineer, stated that he
had reviewed the plat and offered the following comments:
1) Addition of a "Private" notation next to
Winding Creek Road.
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Commissioners Court meeting December 21, 1999 6
On motion by Commissioner Sims, seconded by Commissioner
Thornton, the Court voted unanimously to approved the final
plat of the Fontana Addition subject to the developer
complying with the exception noted by the County Engineer.
The Court acknowledged receipt of the Extension Service
reports for November 1999 and acknowledged receipt of
reports from the following County and Precinct Offices
showing revenues collected and remitted to the County
Treasurer:
County Clerk
District Clerk
Justice of the Peace Precinct 2
Justice of the Peace Precinct 3
Justice of the Peace Precinct 4
Justice of the Peace Precinct 5
Justice of the Peace Precinct 6
Constable Precinct 4
Constable Precinct 5
Constable Precinct 6
Brazos County Events Facilities
County Attorney
Road & Bridge
Tax Assessor/Collector
A copy of the Officials' reports can be viewed in the County
Auditor's office.
There were no announcements of interest items and
possible future agenda topics.
There was no citizen input and/or concerns.
There being no further business to come before the
Court, the meeting was adjourned.
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The foregoing minutes of the Commissioners Court
meeting held December 21, 1999 have been examined and are
approved in open Court this the day of
20QQ, in Bryan, Brazos County, Texas.
Alvi
ZJones(
n W. Jones TonCounty Judge Commissioner, Precinct 1
Wm. S. Thornton
Commissioner, Precinct 2
Carey Cau ey, Jr.
Commissi er, Preci t
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oner, Precinct 3
ary Ward
County Clerk
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BRAZOS COUNTY COMMISSIONERS' MEETING ON' r44QSeta ,~p~, ZI /994 AT / A.M.
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wOUNTY COMMISSIONERS' MEETING ON UeS61,iJ,7~eG. Z IIMAT A.M.
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BRAZOS COUNTY, TEXAS
BUDGET AMENDMENT(S) FOR THE 1999-2000 BUDGET YEAR
NO. 99/00 09.1
On this the 2106 day of December 1999 at a regular meeting of the
Commissioners' Court, the following members were present:
Alvin W. Jones, County Judge, Presiding
Tony Jones, Commissioner, Precinct 1;
Wm. S. Thornton, Commissioner, Precinct 2;
Randy Sims, Commissioner, Precinct 3;
Carey Cauley, Commissioner, Precinct 4;
Mary Ann Ward, County Clerk.
The following proceedings were held:
THAT WHEREAS, on December 21, 1999 the Court heard and approved a
budget amendmezit for the 1999-2000 budget year for Brazos County, Texas.
WHEREAS, an expenditure is necessary due to the necessity to meet
unusual and unforeseen conditions which could not be reasonably included
in the original budget adopted September 9, 1999 the following
amendment(s) to the original are hereby authorized, as described on the
attached page(s).
ADOPTED AND APPROVED this the 21.6 day of December 1999.
THE COMMISSIONERS' COURT OF BRAZOS COUNTY, TEXAS.
By: Alvin W. Jones, County Judge
Original: County Clerk's Office and attached to the original
budget
Copies: County Auditor
County Treasurer
Commissioners' Court Minutes
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BRAZOS COUNTY, TEXAS
BUDGET AMENDMENTS
No. 99/00-9.1
12/21/99
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ACCT
PROD
DR/CR
ACCOUNT NAME
Increase
Decrease
01
160001
516400
Dr.
Hourly - Temporary
1,920.00
01
160001
513000
Cr.
Salary - Staff
1,100.00
01
160001
516100,
Cr.
Hourly - Staff
820.00
County Auditor - Adm
in.
To realloca
te salary in order to allow more hours for the temnorarv emolovees.
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PERSONNEL CHANGE OF STATUS
page I of 1
COURT DATE: December 21, 1999
DEPARTMENT: Personnel
PURPOSE: Approve Personnel Change of Status
4######i#4#444#i4i444##4#4#itiii#4#iii##i#ii444#ii44iiiiiii#iii4ii444444tiiiiiii4i##
DEPARTMENT NAME EMPLOYEE NAME
ACTION REQUESTED
i4#444##i#####iiii#ii#4ii4iii4#44#4###4###ii4444444#4iiii444444ii4ii4444i#444#4ii44i
BUILDING MAINT. LOVE SR, GEARRY
NEW HIRE-
PART TIME
MPO HARRIS, MICHAEL J
RESIGNATION
SHERIFF OFF - JAIL DIV SANDERS, JOSEPH I
NEW HIRE-FILLING
OPEN POSITION
MOODY, ROSHELETTE L
NEW HIRE-FILLING
OPEN POSITION
COUNTY TREASURER HARE, RHONDA L
TRANSFER FROM
PURCHASING
Approved In Commissioners' Court; December 21.19"
County Judge's or Commissioner's Signature!
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EXPRESS SCRIPTS, INC.
MANAGED PRESCRIPTION DRUG PROGRAM AGREEMENT
THIS MANAGED PRESCRIPTION DRUG PROGRAM AGREEMENT ("Agreement")
is entered into as of the I' day of November, 1999, by and between EXPRESS SCRIPTS, INC.,
a Delaware corporation ("ESI") and BRAZOS COUNTY, organized under the laws of the State
of Texas ("Sponsor").
RECITALS
1. ESI is in the business of providing, managing and administering prescription drug
programs, including the maintenance of a nationwide network of contracted retail pharmacies,
pharmacy claims administration, mail service pharmacy, preparation of prescription drug
management and utilization reports, compliance and disease management programs, and other
pharmacy benefit management services.
2. Sponsor desires to provide a prescription drug benefit program for Sponsor's
employees and their eligible dependents.
3. The parties to this Agreement desire to enter into and maintain an arrangement
whereby ESI will provide prescription drug benefit programs ("Prescription Drug Program") for
Sponsor's Members.
AGREEMENT
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SECTION I
DEFINITIONS
The following terms-shall have the meanings set forth below:
"Average Wholesale Price" or "AWP" means the average wholesale price of a prescription drug
as determined by ESI from the most current information provided to ESI by drug pricing services
such as Medispan, Redbook or other source generally recognized in the retail prescription drug
industry selected by ESI. The applicable AWP for prescriptions filled in the Mail Service
Pharmacy will be the AWP for the most commonly dispensed size for such drug.
"Benefit Summary" means a prescription drug benefit summary form ESI has provided to Sponsor
which, when completed by Sponsor, will describe the essential elements of Sponsor's pharmacy
benefit plan. Such summary may be amended only in accordance with Section 2.4(b) herein.
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"Copayment" or "Coinsurance" means that portion of the charge for each Covered Drug
dispensed to the Member that is the responsibility of the Member as indicated on the Benefit
Summary.
"Covered Drug(s)" means those prescription drugs, supplies and other items that are covered
under the Prescription Drug Program, as indicated on the Benefit Summary.
"Deductible" means the aggregate annual amount the Member is required to pay for Covered
Drugs before becoming entitled to the benefits under the Prescription Drug Program as indicated
on the Benefit Summary.
"Eligibility Files" means the list submitted by Sponsor to ESI in electronic or other mutually
acceptable form indicating persons eligible for the Prescription Drug Program.
"Formulary" means the list of FDA-approved prescription drugs and supplies, which designates
each item as "preferred," "non-preferred" or "neutral" for purposes of benefit design and
coverage decisions. The Formulary is developed by ESI's Pharmacy and Therapeutics Committee
taking into consideration safety, medical appropriateness, efficacy, quality of life and relative cost
indications within applicable therapeutic categories. The Formulary may be modified from time to
time in ESI's sole discretion, as a result of the factors described above and new therapeutic agents
that become available. %A copy of the Formulary as in effect from time to time will be delivered to
Sponsor.
"Formulary Savings" means retrospecrive rebates or discounts which are (i) paid to ESI pursuant
to the terms of a contract with a pharmaceutical manufacturer regarding formulary management
services; (6) directly attributable to the utilization of certain pharmaceuticals by Members for
which ESI has been compensated by Sponsor under this Agreement; and (iii) net of any data
management or administrative fees paid by a pharmaceutical manufacturer to ESI.
"Generic Drugs" means those pharmaceuticals which are "A" or "B" rated and FDA approved or
previously approved under state or federal law.
"Identification Card" means a printed identification card containing specific information about the
prescription drug benefits to which the Member is entitled. All Identification Cards shall have the
applicable ESI pharmacy network logos or other method of identifying the fact that ESI is the
provider of the prescription drug benefit in a form acceptable to ESI.
"Mail Service Pharmacy" means 'a duly licensed pharmacy operated by ESI or its subsidiaries, •
where prescriptions are filled and delivered to Members via the United States Postal Service,
United Parcel Service or other delivery service.
"Member' means each person who is eligible (as determined solely by Sponsor) to receive
prescription drug benefits under the Prescription Drug Program as indicated in the Eligibility Files.
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"Member Confidential Information" means a Member's name and social security number.
Member-specific medical or prescription information and any other Member-identifiable
information which may be deemed to be confidential from time to time under federal or state law.
"Member Submitted Claim" means (i) a claim submitted by a Member for Covered Drugs
dispensed by a pharmacy other than a Participating Pharmacy; (ii) a claim for Covered Drugs
filled at a Participating Pharmacy for which the Member paid cash; or (iii) subrogation claims
submitted by the United States or any state under Medicare, Medicaid or similar government
health care programs.
"Non-Participating Pharmacy" means any pharmacy that does not have an agreement with'ESI or
Sponsor for the applicable ESI pharmacy network to provide Covered Drugs to Members.
"Participating Pharmacy" means any licensed retail pharmacy with which ESI or Sponsor has
executed an agreement to provide Covered Drugs to Members.
"Preferred Product List" means drug products listed on the Formulary in a preferred or co-
preferred position relative to other products in the same therapeutic class. The Preferred Product
list shall be developed by ESI and is subject to change from time to time, in ESI's sole discretion.
A copy of the Preferred Product List as in effect from time to time will be delivered to Sponsor on
request.
"Prescription Drug Claim" means a Member Submitted Claim or claim for payment submitted to
ESI by a Participating pharmacy or Mail Service Pharmacy as a result of dispensing Covered
Drusts to a Member.
SECTION II
ESTABLISHMENT OF THE PRESCRIPTION DRUG PROGRAM
2.1 Exclusivity. Sponsor shall use ESI as Sponsor's exclusive provider of prescription drug
benefits and mail pharmacy services during the term of the Agreement.
2.2
( a) Sponsor shall provide ESI with an initial Eligibility File at least fifteen (15) days
prior to the effective date of its Prescription Drug Program containing the names of all Members
and any other information specified by ESI that is necessary to administer the Prescription Drug
Program. From time to time thereafter, but not less frequently than monthly, Sponsor and/or an
entity as designated by Sponsor, shall provide ESI with updated Eligibility Files which shall
specify the effective date for each Member who is added to or terminated from participation in
the Prescription Drug Program. All Eligibility Files shall be on tape or disk in a format that is
acceptable to ESI. Alternatively, by agreement of Sponsor and ESI, Sponsor and/or an entity as
designated by Sponsor, may enter Eligibility Files directly on-line to ESI's claims processing
system. Not more than three (3) business days (for tape or disk submisstion) or one (1) day (for
on-line submission) after ESI has received each Eligibility File, ESI shall enter the eligibility
data 3
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into its on-line claims processing system and thereafter shall accept claims for Covered Drugs that
are dispensed to new Members after the effective date of their eligibility and deny claims for
Covered Drugs that are dispensed to terminated Members after the effective date of their
termination.
(b) Sponsor or its agent shall pay all claims for Covered Drugs dispensed to a Member
on or before the later of (i) the date of the Member's termination, or (ii) the date three (3)
business days after ESI receives notification of the Member's termination in an Eligibility File and
other written notice, or the date one (1) business day after ESI receives such notification
electronically. Sponsor shall be solely responsible for ensuring the accuracy of its Eligibility Files,
and shall be obligated to pay ESI for claims accepted by ESI in accordance with the eligibility
procedures established in this Section 2.2. Sponsor bears the risk of fraudulent claims submitted
by Members or by unauthorized persons using a Member's Identification Card or identification
number.
2.3 Identification Cards. At the option of Sponsor and for the fees set forth in Exhibit A, ESI
shall print and deliver the Identification Cards to Sponsor within a mutually agreed upon time
frame. Sponsor shall be responsible for delivering the Identification Cards to Members, unless
Sponsor requests that ESI deliver the cards and pays the fees set forth on Exhibit for such
delivery.
2.4 Benefit Summary.
(a) Prior to the provision of any services under this Agreement, Sponsor will submit a
completed and executed Benefit Summary prepared with the assistance of ESI. By signing the
Benefit Summary, Sponsor certifies that the Benefit Summary accurately depicts the pharmacy
benefit provisions of Sponsor's Prescription Drug Program. Sponsor is solely responsible for any
liability arising in cofutection with its benefit design.
(b) If Sponsor elects to change certain benefit design features of the Prescription Drug
Program after initial setup, including but not limited to changes in Copayments, Covered Drugs,
prior authorization requirements, or otherwise, such change shall be communicated in writing by
Sponsor to ESI by notifying the account service manager for Sponsor's Prescription Drug
Program and submitting a new or revised Benefit Summary. ESI will acknowledge the request in
writing and notify Sponsor of (i) the proposed implementation date of the benefit design change
or that such change cannot be implemented as requested, and (ii) any additional fees due to ESI
by Sponsor as a result of. such change. Sponsor must accept the change and assume the
obligation of additional fees, if any, in writing prior to its implementation. Such benefit design
changes implemented in accordance with this Section shall be deemed incorporated into the
Agreement as of the implementation date of the change. No benefit design change shall be
retroactive unless approved by ESI in writing. ESI will not be responsible or otherwise liable to
Sponsor or a Member for costs or other damages for failing to a make benefit design change not
communicated to ESI as provided in this Section.
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SECTION III
CORE PBM SERVICES
3.1 Pharmacy Network.
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(a) Mail Service Pharmacy. If included in the Prescription Drug Program, Members
may have prescriptions filled through the Mail Service Pharmacy. Upon presentation of a
prescription by a Member, EST shall promptly determine whether the Member is eligible under the
Prescription Drug Program and whether the prescription is for a Covered Drug. EST shall charge
and collect from each Member the applicable Copayment, Coinsurance and/or any Deductible (or
portion thereof) based on the Benefit Summary. EST may promote the use of the Mail Service
Pharmacy to Members, provided, that EST shall bear the cost of any promotional incentives
offered to Members.
(b) Participating Pharmacies. Members may obtain prescriptions for Covered Drugs
through the network of Participating Pharmacies maintained by EST identified on Exhibit A. EST
will provide Sponsor with a list of Participating Pharmacies in such network(s) prior to the
effective date of the Prescription Drug Program and will make available an updated list from time
to time. Any additions or deletions to the network shall be in EST's sole discretion; provided that
EST shall provide wfitten notice to Sponsor of such deletions or additions that materially affect
the access of Members to Participating Pharmacies. EST shall require each Participating
Pharmacy to meet EST's credentialling requirements, including but not limited to, licensure,
insurance and provider agreement requirements. EST does not direct or exercise any control over
the professional judgment exercised by any pharmacist in dispensing prescriptions or otherwise
providing pharmaceutical related services at a Participating Pharmacy. Participating Pharmacies
are independent contractors of EST, and EST shall have no liability to Sponsor, any Member or
any other person or entity for any act or omission of any Participating Pharmacy or its agents or
employees.
(c) Filling a Prescription Through a Participating Pharmacy. A Member may have
prescriptions filled at Participating Pharmacies upon presentation of an Identification Card. Each
Participating Pharmacy is required to verify the Member's eligibility through EST's on-line claims
processing system. EST shall direct the Participating Pharmacy to charge and collect the applicable
Copayment, Coinsurance and/or any Deductible (or portion thereof) from Members for each
Covered Drug dispe ised., -
(d) Audits of Participating Pharmacies. EST shall maintain criteria, which it may
amend from time to time, to establish when and how a Participating Pharmacy shall be audited to
determine compliance with its agreement with EST. The audit may be conducted by EST's internal
auditors or its outside auditors, and at the pharmacy or at EST by a review of electronically
transmitted claims. To compensate EST for the cost of conducting such audits, EST shall charge
an audit fee equal to twenty percent (20%) of any overpayments attributable to the Prescription
Drug Program recovered from Participating Pharmacies. The balance of any such overpayments
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will be paid to Sponsor. EST shall not be required to institute litigation to collect any
overpayments. EST's obligations to attempt collection shall be EST's sole obligation and liability
with respect to remedying such overpayments.
3.2 Claims Processing.
(a) On-Line Claims Processing. EST will perform claims processing services for
Covered Drugs dispensed by a Participating Pharmacy and Mail Service Pharmacy. Such services
include (i) verifying eligibility; (ii) calculating benefits in accordance with the Benefit Summary,
and (iii) adjudicating the claims. In all cases, Sponsor shall have the final responsibility for all
decisions with respect to coverage of the Prescription Drug Program and the benefits allowable
i thereunder, including determining whether any rejected or disputed claim shall be allowed.
(b) Member Submitted Claims. If provided on the Benefit Summary, EST shall
process Member Submitted Claims. The Member (or Medicaid agency, as the case may be) shall
i be responsible for submitting such claims directly to EST on a form provided by EST no later than
one hundred eighty (180) days from the dispensing date subject to the limitations in Section 7.7.
When sufficient claim information is provided to EST in the proper format, EST shall process
Prescription Drug Claims submitted by Medicaid agencies and, if appropriate, EST shall reimburse
! such agency on behalf of Sponsor, the lesser of the amount invoiced by the agency or the amount
1 EST would have reimbprsed a Member for such claim in accordance with the applicable Benefit
Summary. Sponsor,shall reimburse EST for all amounts paid to Medicaid agencies under this
Section and the applicable Member Submitted Claim administrative fee set forth in Exhibit
Claims submitted by a Member or Medicaid agency after one hundred eighty (180) days from the
dispensing date will not be paid absent Sponsor's approval.
(c) While EST is responsible for processing Prescription Drug Claims, Sponsor shall be
solely financially responsible for providing funds for payment of Prescription Drug Claims,
including any taxes imposed in connection with such claims, submitted by Participating
' Pharmacies, Mail Service Pharmacy, government agencies or a Member.
3.3 Customer Service and Pharmacy Help Desk. EST will provide 24-hours a day, 7 days a
week telephone support via a toll-free number to assist Sponsor, Sponsor's agents and Members
with Member eligibility and benefits verification, location of Participating Pharmacies or other
related Member concerns. In addition, EST will provide 24-hour a day telephone support via a
toll-free number to assist Participating Pharmacies with Member eligibility verification and
questions regarding reimbursement, Covered Drug benefits under Sponsor's Prescription Drug
l Program, or other related concerns. '
ment.
3.4 Program Management.
(a) General Support and Consultative Services. ESI shall provide to Sponsor, upon
Sponsor's reasonable request, general support and consultative services regarding pharmacy
benefit design, general drug use and cost data, pharmacy network design, Member
communications, formulary design and implementation.
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(b) Management information Reports. Subject to the availability of on-line reporting
as further described in this Section, ESI will send Sponsor a hard copy of ESI's standard
management information reports containing information relating to the Prescription Drug
Program on a quarterly basis. As each standard report becomes available on-line, Sponsor shall
• be required to access such reports through the on-line system (through the use of a unique log-on
identification code) and ESI shall not be required to provide the hard copy. Sponsor shall be
responsible for obtaining any necessary hardware and software and bear the cost of any
telecommunication charges associated with such on-line access. Customized -reporting and
programming may be, developed and provided to Sponsor upon request from time to time for
ESI's standard hourly rates for such services or as otherwise agreed by the parties.
(c) Management Information System Enhancements. At the request of Sponsor, ESI
may, in its reasonable discretion provide qualified MIS personnel to meet the specific
programming needs of Sponsor in connection with the Prescription Drug Program, including but
not limited to developing special reporting packages and special program set-up requirements for
ESI's standard hourly rate for such services. Sponsor agrees to make its personnel available to
define the scope of Sponsor's programming needs and to participate in the testing and validation
of any such custom programming projects.
(d) Remote Access. Upon Sponsor's request, ESI will provide Sponsor on-line, real
time access to Member data. ESI will specify minimum standards or specifications for software
and hardware. Sponsor will pay any costs for necessary software, hardware, set-up and
telecommunications charges to perform such access. ESI will provide Sponsor the following
options:
(i) Claims Vew. ESI will permit Sponsor to call up screens and data
reflecting Member claims. Sponsor will not have on-line ability to add, modify, or delete any data
maintained by ESI.
(ii) On-line Eli ibility. ESI will permit Sponsor to call up actual eligibility
screens and data regarding its Members as well as to add, modify, or delete such data regarding
its Members on-line.
(iii) Prior Authorization. ESI will permit Sponsor to call up prior authorization
screens regarding its Member-specific overrides as well as to provide prior authorization for
certain drugs selected by Sponsor.
(e) RxWorkbenchm. Sponsor shall have the option to license ESI's RxWorkbence
proprietary desktop Decision Support System consisting of RxReports (an on-line reporting tool), •
and Physician Utilization Review (a physician report card tool). The terms and conditions of such
license are set forth in Exhibit hereto.
3.5 Medication Management. ESI provides certain standard medication management services
as described below for no additional fees, except as specifically stated for certain enhanced
services and optional programs.
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(a) Conc-rrrent Drug Utilization Review (tel. If Sponsor provides ESI with
Members' named dc,xndents in the Eligibility Files, ESI shall perform a standard concurrent DUR
analysis of each prescription filled through the Mail Service Pharmacy or submitted for processing
on-line by a Participating Pharmacy in order to assist the pharmacist in identifying potential drug
interactions, incorrect prescriptions or dosages, and certain other circumstances that may be
indicative of inappropriate prescription drug usage. ESI's DUR process is an educational
program designed to enhance information available to the pharmacist in filling prescriptions, and is
based only on the current claim for Covered Drugs and such Member information as has been
previously provided to ESI and is available in ESI's on-line claims processing system.
Furthermore, the DUR process depends, in part, on clinical drug data and information on
dispensing practices provided to ESI by third-party vendors, and is limited to certain drugs and
certain analytical criteria that are established by ESI from time to time. ESI's DUR process is not
intended to substitute for the professional judgment of the prescrioer, the dispensing pharmacist
or any other health care professional providing services to the Member. Accordingly, ESI
assumes no liability to Sponsor or any other person in connection with the DUR process,
including, without limitation, the failure of the DUR process to identify a prescription that results
in injury to a Member.
(b) Prior Authorization.
(i) Base and Standard. ESI shall provide base prior authorization services for
those drugs listed c n Exhibit at no charge to Sponsor ('Base PA"). Such drugs, which
typically are associated with low volume utilization, must be prior authorized before such drugs
are deemed to be Covered Drugs under the Prescription Drug Program. Sponsor also may
designate on the Benefit Summary that additional drugs (typically those associated with higher
volume utilization) be subject to prior authorization for the fees set forth in Exhibit A ("Standard
PA"). The criteria for coverage of Base PA and Standard PA drugs would be those of approved
FDA indications and uses generally accepted in the medical literature, which criteria are
incorporated into the prior authorization protocols developed by ESI ("Protocols") and which
Protocols must be approved by Sponsor prior to implementation of the Base PA and Standard PA
services.
(ii) - Enhanced. Upon request of Sponsor and for additional fees as set forth
in Exhibit ESI shall implement enhanced prior authorization programs ("Enhanced PA
Program") which would cover those drugs designated by Sponsor on the ESI Enhanced PA
Program list set forth on the Benefit Summary ("Enhanced PA Drugs"). The Enhanced PA Drug
list may be modified from time to time upon mutual agreement of ESI and Sponsor. The
Enhanced PA Program involves the application of the Protocols described in subsection (b)(i)
above, but the Protocols also would incorporate criteria specific to Members with specific disease
states, co-morbid conditions, concomitant lab tests or other specified conditions involving greater
communication with a Member's physician. The Protocols for Enhanced PA Drugs will be
developed by ESI and must be approved by Sponsor prior to implementation. '
(iii) Application of Protocols Upon receiving a prescription for a drug for
which prior authorization (whether Base, Standard or Enhanced) is required in the Mail Service
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Pharmacy, or a claim adjudication request for such drug through a Participating Pharmacy, ESI
will determine whether to authorize coverage of such drug in accordance with the applicable
Protocols. In determining whether to authorize dispensing of such drug under the Base, Standard
or Enhanced PA Programs, ESI may rely entirely upon information about the Member and the
diagnosis of the Member's condition provided to it from sources deemed reliable to ESI at the
time that the prescription is to be dispensed, and upon such prior authorization protocols.
Sponsor acknowledges that prior authorization programs are non-discretionary processing
techniques intended to provide better management of the Prescription Drug Program based on
objective criteria and the limited amount of patient information available to ESI. ESI shall not
undertake, and is n•)t required hereunder, to determine medical necessity, appropriateness of
therapies, to make 4iagnoses or substitute ESI's judgment for the professional judgment and
responsibility of the physician. Appeals of prior authorization denials shall be made to Sponsor.
Sponsor shall indemnify and hold harmless EST, its employees, directors, officers, and agents from
and against any and all awards, losses, claims, suits, damages, liability, judgments, fines, penalties;
settlement amounts, and expenses, including reasonable attorneys fees (collectively, "Damages")
arising from or as a result of ESI's decision to authorize or deny coverage of any such drug in
accordance with the Protocols, except to the extent that any such Damages arise from ESI's gross
negligence or willful misconduct.
(c) Medication Adherence Program. The Medication Adherence Program
retrospectively examinbs Mail Service and/or Participating Pharmacy prescription claims data to
identify Members taking drugs used for certain disease states where non-compliance may cause an
impact on medical costs. The Medication Adherence Program is aimed at improving Member
awareness of the medication and the impact of non-compliance on overall health. The Medication
Adherence Program includes mailings and/or phone calls to Members through a (i) New Patient
Letter Program (rredication compliance education and clinical information regarding the
-condition), (d) a Noi-Compliant Patient Program (refill delays are identified), and (iii) an Expired
Prescription Program (notice prior to prescription expiration). Medication Adherence Program
disease states may be added or deleted at ESI's sole discretion.
(d) Therapy Management Programs. Mail Service and Participating Pharmacy
prescription claims data are reviewed retrospectively to identify Members who appear to have
certain conditions (identified below) and may benefit from alternate therapies pursuant to
nationally accepted and established clinical guidelines. Medical materials, surveys and educational
information are sent to Members and/or their physicians periodically concerning applicable
prescription drug therapies. The disease states in the Therapy Management Program may include
asthma, congestive heart failure, hyperlipidemia, stroke, diabetes, glaucoma and women's health
concerns. Disease states or drug therapies may be added to or deleted from the program at ESI's
sole discretion.
(e) Emerging Therapeutic Issues. ESI may communicate in writing from time to time
with Sponsor, Me'nbers and Members' physicians, as appropriate, concerning emerging
therapeutic issues wizen the health and welfare of Members are at issue. Such communications
may involve, but shall not be limited to, information regarding drug or device recalls, additional
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warnings issued by a manufacturer or the FDA, or new therapies or indications approved by the
FDA which may impact Members or the Prescription Drug Program.
(t) ExprtssTherapeutice. At Sponsor's option and for additional fees, ESI shall
implement an enhanced drug utilization evaluation program, ExpressTherapeutice. This program
is designed to improve patient care and reduce unnecessary costs through an automated system
that identifies therapies outside established clinical guidelines or that present a risk to the Member.
The ExpressTherapeutic? program fees and terms are described on Exhibit -I hereto.
(g) Express Health Line. Sponsor shall have the option to implement Express Health
Line, a non-directional informed decision counseling service staffed by registered nurses and
available 24-hours a day, seven days a week. Express Health Line provides non-directional
informed decision counseling using on-line medical guidelines and protocols. The fees, terms and
conditions of Express Health Line are set forth on Exhibit C-2. If Sponsor elects to implement
the Patient Care Management program set forth on Exhibit D, Express Health Line is provided to
Members who enroll in the disease management programs at no charge to Sponsor.
(h) Patient Care Management. Sponsor shall have the option, for additional fees, to
implement the Patie nt Care Management Program described in Exhibit
D.
(i) Member Authorizations. Sponsor represents to ESI that it has or shall obtain
' Member authorizations required, if any, for ESI to perform the medication management or any
additional programs or services elected by Sponsor under this Agreement.
i 3.6 Formulary Management.
(a) Formula . Sponsor agrees that the Formulary shall be the exclusive formulary
program for Covered Drugs under Sponsor's Prescription Drug Program. Sponsor agrees that,
except in connection with the use of the Formulary for the Prescription Drug Program, Sponsor
shall at no time copy, distribute, sell or otherwise provide the Formulary to any third party
without ESI's written approval. Sponsor further agrees that ESI will be the exclusive formulary
administrator for the Prescription Drug Program during the term of the Agreement.
(b) Formulary Compliance Programs. ESI will implement ESI's formulary
compliance programs and procedures such as the Preferred Product List and OptiMed'° as further
described in this S,xtion 3.6, which may include communications to Members and/or their
physicians to encourage formulary compliance ("Formulary Compliance Programs"). Sponsor
agrees to permit ESI to contact Members, Members' physicians and Participating Pharmacies to
promote therapeutic and generic substitution opportunities. Sponsor shall provide ESI with
Members' addresses and such other information as may be reasonably necessary to facilitate the
substitution. ESI will notify Sponsor of any material changes to the Formulary Compliance
Programs.
(c) Preferred Product List ESI shall implement and manage the Preferred Product
List as part of the Prescription Drug Program. Sponsor shall pay ESI the Preferred Product List
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incentive 'fees specified in Exhibit . Sponsor agrees to permit EST to contact Members,
Members' physicians and Participating Pharmacies, consistent with professional judgment and
applicable medical and pharmaceutical laws and procedures, to encourage compliance with the
Preferred Product List.
• (d) OptiMed"". At Sponsor's option and for the fees on Exhibit EST shall
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implement the version of EST's OptiMed"" drug therapy management program selected by
Sponsor (i.e., Select 1, Select 2, Physician Preference with or without a copay-differential on
preferred and non-F -eferred products) as a part of the Prescription Drug Program. EST will
maintain an OptiMed"" List, identifying approximately 35 to 40 preferred and non-preferred drugs
in various therapeutic classes. The OptiMed'' List may be modified or amended from time to
time, in EST's sole discretion, to reflect developing clinical information, changes in FDA approved
indications, pharmaceutical pricing changes, available discounts and rebates and other relevant
factors.
Under Select 1, a non-preferred prescription presented by the Member at the Participating
Pharmacy or Mail Service Pharmacy will not be a Covered Drug. Under Select 2, the first
prescription for the non-preferred drug will be covered but thereafter will not be a Covered Drug.
The Physician Preference programs are voluntary to the physician. If the physician approves the
substitution of the preferred drug, then the non-preferred drug will not be a Covered Drug. If the
Member attempts to rbfill a prescription for a non-preferred drug at a Participating Pharmacy after
the prescribing physician has approved the substitution of the preferred Covered Drug but before
the Participating Pharmacy has received the new prescription, then EST may authorize an interim
prescription for up to a four (4) day supply of the originally prescribed drug and may waive the
Member's Copayme'-.t for this interim supply. In all cases the prescribing physician shall have
inallauthority over the drug that is dispensed to the Member.
• (e) Saying Certain of the Formulary Compliance Programs (e.g., OptiMed) and
others that may be implemented by EST from time to time are intended to result in savings to
Sponsor. In that regard, savings derived from the Formulary Compliance Programs will be shared
with EST in an amount not to exceed 35% ("ESI Share'). If no savings are generated, there shall
be no EST Share. In addition to the current Formulary Compliance Programs, EST may propose
other interventions from time to time which are designed to increase Formulary Savings and/or
reduce the costs of the Prescription Drug Program. Sponsor may decline to allow such
interventions, but in such event EST shall not be responsible for any loss of economic benefit
which results from the failure to implement the proposed interventions.
(f) Formulary Savings Program. Sponsor shall be eligible to receive Formulary
Savings in the amounts indicated on Exhibit upon meeting the following requirements of the
Formulary Savings Program. Sponsor's eligibility to receive Formulary Savings is based upon:
(i) the provisions of Sponsor's Prescription Drug Program as summarized in the Benefit
Summary, including implementation of the Preferred Product List and OptiMed" programs
and/or 3-tier copayments; (ii) conformance to the Formulary; and (iii) the provisions of EST
contracts with pharmaceutical manufacturers. Sponsor understands that its eligibility to receive
payments for Formulary Savings may change over time. Sponsor also understands that changes in
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its Prescription Drug Program, changes in ESI contracts with pharmaceutical manufacturers, or
the selection of certain services, such as prior authorization, or open formulary management may
disqualify Sponsor from eligibility or limit Sponsor's eligibility to receive Formulary Savings.
Sponsor further acknowledges that it may be eligible for Formulary Savings payments
under this Agreement only so long as Sponsor, its affiliates, or its agents do not contract directly
or indirectly with anyone else for pharmaceutical products or programs without the prior written
consent of ESI. Sponsor agrees that during the term of this Agreement, Sponsor shall not
negotiate or arrange or contract in any way for rebates on or the purchase of prescription drugs
from any pharmaceutical manufacturer. In the event that Sponsor negotiates or arranges with a
pharmaceutical manufacturer for rebates, but without limiting ESI's right to other remedies, ESI
may immediately terminate Sponsor's participation in Formulary Savings or terminate this
Agreement according to the terms of the material default under Section 7.3. In the event of such
termination of the Formulary Savings or this Agreement, ESI shall be entitled to keep 100% of
any and all Formulary Savings due to Sponsor which have not been paid to Sponsor as of the
effective date of termination.
3.7 Vision Program.
(a) Upon the option of Sponsor, Members will be eligible to receive savings on vision
exams and vision mat6rials, including eyeglass frames and lenses and contact lenses (collectively
"Vision Benefits") .through ESI's Vision Program, administered and serviced by Cole Vision
Providers/Optical Centers ("Vision Providers"). Members will be provided a toll-free number to
obtain a list of nearby Vision Providers participating in the Vision Program network.
(b) . Eligibility for the Vision Program will be derived from the eligibility information
Sponsor provides to'ESI under this Agreement. Members shall have unlimited use of the Vision
Program. ESI shall have no responsibility to provide information to Sponsor regarding the
Members' utilization of the Vision Program.
(c) ESI does not charge a fee to Sponsor for the Vision Program. Members shall bear
the full cost of the Vision Benefits they receive and shall be responsible for all payments to Vision
Providers. Neither ESI nor Sponsor shall be responsible for any fees of the Vision Providers.
ESI will supply standard communication material(s) regarding the Vision Program to Sponsor for
distribution to Members. If Sponsor requests communication material(s) be sent directly to
Members an additional charge will apply.
(d) Sponsor or ESI may terminate the Vision Program upon 30 days notice to the
other party; provided however, that the termination of such program shall not cause the
termination of this Agreement. Termination of this Agreement shall result in termination of the
Vision Program. ESI shall have no liability to Sponsor or Member or any third party for any
damages, injury or closts arising out of, or in connection with, the Vision grogram, including but
not limited to any ac.s or omissions by, or professional liability of, a Vision Provider.
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3.8 Additional Services and Program . From time to time, ESI may offer to Sponsor
programs that have varying purposes (e.g., health outcome improvement or cost containment).
Sponsor may, upon request, participate in any such program by meeting the qualifications for the
program, signing the,appropriate documents and paying any applicable fees. ESI retains the right,
upon sixty days written notice, to modify or replace such programs or to discontinue any existing
program without offering a substitute. In each case, Sponsor will have sixty days, following the
date of ESL's written notice, to discontinue a program or to transfer to a new one, as applicable.
SECTION IV
FEES; BILLING AND PAYMENT
4.1 Fees. The fees for the Prescription Drug Program provided hereunder shall consist of the
fees specified in Exhibit A and any applicable fees set forth in Exhibits B. C and/or D of this
Agreement ("Fees"). Sponsor shall be responsible to ESI for timely payment of all such fees.
4.2 Billing and Payments.
(a) illin . ESI will bill Sponsor weekly or twice per month, at ESI's discretion, for.
Covered Drugs dispensed by the Mail Service Pharmacy, less applicable
Copayments, Coinsurance and/or Deductibles;
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(i i) Covered Drugs dispensed to Members by Participating Pharmacies, and, if
applicable, for Member Submitted Claims, less applicable Copayments,
Coinsurance and/or Deductibles; and
(iii) for all other applicable Fees.
(b) Payment Method. Sponsor agrees to pay ESI by wire or ACH transfer within two
(2) business days from the date of Sponsor's receipt of the ESI invoice. Sponsor shall be
responsible for all costs of collection, and agrees to reimburse ESI for such costs and expenses,
including reasonable attorneys' fees. Any amounts not paid by the due date thereof shall bear
interest at the rate of eighteen percent (18%) per annum (1.5% per month) or, if lower, the
highest interest rate `permitted by law. If Sponsor disputes any item on any invoice, Sponsor shall
state the amount in dispute in writing within thirty (30) days of the date of the invoice. Sponsor
shall pay the full amount owed and shall notify ESI of the disputed amount.
(c) Deposit. In the event Sponsor is delinquent in payment of fees for two
consecutive months, ESI shall have the sole option to require Sponsor to provide ESI a deposit in
an amount equal to the average monthly invoice amount for the previous six (6) months or if there
is less than six (6) months billing history, then such deposit shall be based on the average monthly
invoice of the actual billing history. ESI shall retain the deposit until the termination of this
Agreement.
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4.3 Spo
nsor Audits.
(a) Provided that this Agreement has been duly executed by Sponsor, Sponsor or
Sponsor's third party auditor, as approved by EST ("Auditor"), may inspect prescription drug
claim data and billing records relating to the Prescription Drug Program not more frequently than
once each year. All audits shall be conducted during normal business hours at EST offices upon
sixty (60) day's prior notice. EST may designate the specific dates of availability for the audit,
none of which may be in December or January. Any and all costs and expenses associated with
Sponsor's audit shall be bonne by Sponsor including reasonable costs and expenses incurred by
EST to the extent the audit goes beyond EST's standard audit protocol. The scope of any audit
shall not exceed claims incurred during the eighteen (18) months immediately preceding the audit.
Audit materials or documentation provided by EST will be confined to Sponsor-specific
information.
(b) Con6entiality. EST requires its form of confidentiality agreement to be signed by
any approved third party auditor prior to commencing the audit. Any requests by Sponsor or a
third party auditor shall constitute Sponsor's direction and authorization to EST to disclose
Member information to the auditor, and Sponsor shall indemnify EST for any liability associated
with such disclosure. Contractual information concerning Participating Pharmacies and other
providers of products and services to EST is proprietary and confidential to EST and will not be
disclosed to Sponsor.
4.4 Claims Data Retention. EST will maintain Sponsor's claims data supporting invoices for
Covered Drugs adjudicated by EST during the term of this Agreement and for a period of six (6)
months thereafter in their original forms, on microfilm, microfiche or other form determined by
EST. During such period and upon request of Sponsor, EST shall provide such data to Sponsor in
a format determined by EST. EST shall use reasonable efforts to cooperate with Sponsor for
purposes of meeting Sponsor's Prescription Drug Program-related reporting obligations under
applicable law. After expiration of the six (6) month period, EST may archive or otherwise
dispose of such data~n accordance with its standard policies and practices and applicable state and
federal law.
SECTION V
OWNERSHIP AND ACCESS TO RECORDS; CONFIDENTIALITY
5.1 Ownership and Use of Prescription Drug Records.
(a) All records and other data provided to EST by Sponsor, other than records that
EST is required to maintain by law (including, but not limited to, records required to be maintained
by the Mail Service Pharmacy) shall remain the property of Sponsor; provided, that Sponsor
hereby permits EST to use such data to perform its obligations under this Agreement, including,
but not limited to, medication and formulary management, disease management programs and
related services. In addition, it is contemplated by this Agreement that Member Confidential
Information will be obtained by EST in providing services under this Agreement (e.g., through
adjudication of Pres ription Drug Claims through the Mail Service Pharmacy and Participating
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Pharmacies and therapy management programs) and that such confidential information will be
obtained from and/or distributed to Sponsor, Participating Pharmacies and Members' physicians
for drug utilization evaluation and other purposes relating to the Prescription Drug Program.
(b) Sponsor irrevocably grants ESI permission to use both during and after the term of
this Agreement and/or transfer to third parties the anonymized (non-Member specific) drug and
related medical datr collected by ESI or provided to ESI by Sponsor for research, provider
profiling and other databases for benchmarking, drug trend, cost analyses, cost comparisons or
other business purposes of ESI and its affiliates, all without charge to ESI. ESI shall retain full
ownership rights over all compilations, analyses and reports prepared by ESI (other than those
reports prepared specifically for Sponsor under this Agreement).
5.2 Confidentiality of Member Information
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(a) ESI shall maintain confidentiality of Member Confidential Information to the
extent required by applicable law and regulations. In no event will ESI release or disclose to third
parties Member Confidential Information or otherwise identify Sponsor when using the data as set
} forth in Section 5.1(b) above without the approval of Sponsor. ESI shall indemnify and hold
harmless Sponsor from any and all claims, penalties, liabilities, losses, damages, settlements or
costs ("Damages") which may arise from ESI's breach of its confidentiality obligations in this
Section 5.2(a). .
(b) Sponsor shall maintain the confidentiality of any Member Confidential Information
in accordance with any applicable laws and regulations. Sponsor hereby represents and warrants
to ESI that, as Sponsor of a health plan, Sponsor is legally entitled to receive Member
Confidential Information relating to the Member's prescription drug utilization. Sponsor further
represents and warrants that it has or shall obtain the Member authorizations required, if any, for
ESI to perform the services under this Agreement and release Member Confidential Information
to Sponsor. All Member Confidential Information, records, reports and other data provided by
ESI to Sponsor under this Agreement are solely for Sponsor's use in managing its health benefit
plans, and ESI disclaims all liability arising out of Sponsor's receipt, use or dissemination of such
information, records, reports or data. Sponsor shall indemnify, defend and hold ESI harmless
from any and all Damages which may arise (i) from ESI's provision of Member information to
Sponsor, Participating Pharmacies, or Mail Service Pharmacy or (ii) from Sponsor's use of
Member Confidential Information.
5.3 Proprietary Information.
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(a) ESI F:roprietary Information. Sponsor agrees that all confidential and proprietary
information of ESI, including, but not limited to, ESI's reporting packages, system formats,
! databanks, clinical or formulary management operations or programs, Formulary Savings,
Participating Pharmacies, and other system information, proprietary software and related user
documentation, clinical and other manuals, prior authorization and prescription drug evaluation
criteria, information and documents related to the Preferred Product List, drug pricing
information, and Participating Pharmacy agreements (collectively, "ESI Proprietary
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Information'). are confidential and proprietary to ESI. Sponsor shall not use EST Proprietary
Information, or disclose it to any third party. at any time during or after termination of this
Agreement, except as specifically contemplated by this Agreement or upon EST's prior written
consent. Upon termination of this Agreement, Sponsor shall cease using all EST Proprietary
Information, and all such information, along with any other EST systems, manuals, procedures and
equipment provided to Sponsor shall be returned to EST immediately upon EST's request.
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(b) Sponsor's Proprietary Information. EST agrees that all confidential and proprietary
information of Sponsor, including, but not limited to, Sponsor's Member information files,
business operations and strategies (collectively, "Sponsor Proprietary Information"), are
confidential and proprietary to Sponsor. Except as provided in Section 5.1 above, EST shall not
use Sponsor Proprietary Information, or disclose it to any third party, at any time during or after
termination of this Agreement, except as specifically contemplated by this Agreement or upon
Sponsor's prior written consent. Except as provided in Section 5.1 above, upon termination of
this Agreement, EST shall cease using all Sponsor Proprietary Information, and all such
information, along with any other Sponsor systems, manuals, procedures and equipment provided
to EST shall be returned to Sponsor immediately upon Sponsor's request.
5.4 Trademarks. Each party acknowledges each other party's sole and exclusive ownership of
its respective trade names, commercial symbols, trademarks, and servicemarks, whether presently
existing or later established (collectively "Marks"). No party shall use the other party's Marks in
advertising or promotional materials or otherwise without the owner's prior written consent;
provided, however, that the parties may publicize the fact that EST provides this Prescription
Drug Program to Sponsor.
SECTION VI
LIABILITY INSURANCE; COMPLIANCE WITH LAW
6.1 Liability Insurance. Each party shall maintain such policies of general liability,
professional liability and other insurance of the types and in amounts customarily carried by their
respective businesses. Proof of such insurance shall be available upon request. EST agrees, at its
sole expense, to maintain during the term of this Agreement or any renewal hereof,
comprehensive general liability insurance coverage in an amount of not less than $2,500,000 per
occurrence, and in the aggregate, including pharmacist's professional liability protection from such
claims for bodily injury as may arise from operation of the Mail Service Pharmacy under this
Agreement. EST does not maintain liability insurance on behalf of any Participating Pharmacy, but
does require such Participating Pharmacies to maintain a minimum amount of commercial liability
insurance or, when deemed acceptable by EST, to have in place a self-insurance program.
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6.2 Compliance with Law: Change in Law.
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(a) Each party shall be responsible for ensuring its compliance with any laws and
regulations applicable to its business, including maintaining any necessary licenses and permits.
Sponsor shall be responsible for any governmental or regulatory charges and taxes imposed upon
this Prescription Drug Program, other than taxes based on the net income of EST. If EST's
performance of its duties under this Agreement is made materially more burdensome or expensive
due to a change in federal, state or local laws or regulations or the interpretation thereof, the
parties shall negotiate an appropriate adjustment to the fees paid to EST. If the parties cannot
agree on an adjusteC fee, then EST may terminate the Prescription Drug Program on thirty (30)
days' prior written notice to Sponsor.
(b) Sponsor shall ensure that its activities in regard to the Prescription Drug Program
are in compliance with the Employee Retirement Income Security Act, as amended, 29 U.S.C.
§1001 et seq. ("ERISA" Sponsor acknowledges and agrees that it is responsible for disclosing
to Members any and all information relating to the Prescription Drug Program as required by law
r to be disclosed, including any information relating to the calculation of Copayments, Coinsurance
and/or Deductibles, and any other program coverage and eligibility requirements in connection
with the Prescription Drug Program, and any other information concerning commissions, rebates,
discounts or provider discounts referred to in Section 6.3 hereof. In providing services under this
Agreement, EST is not acting as a fiduciary (as defined in Section 3.21(a) of ERISA) of the
Prescription Drug Program, and Sponsor shall not name EST as a plan fiduciary. EST has no
power to make any decisions as to Prescription Drug Program policy, interpretations, practices or
procedures, but rather provides administrative services for the Prescription Drug Program within
a framework of policies, interpretations, rules, practices, and procedures chosen by Sponsor.
Sponsor acknowledges that EST does not have discretionary authority or control respecting
management of the Prescription Drug Program and does not exercise any authority or control
respecting management or disposition of the assets of the Prescription Drug Program, if any exist.
Sponsor further acknowledges that all such discretionary authority is retained by Sponsor or some
other person or entity.
6.3 Disclosure of Certain Financial Matters. From time to time EST may receive formulary
savings and other fees from pharmaceutical manufacturers with respect to certain Covered Drugs
dispensed to Members by Participating Pharmacies and by EST's Mail Service Pharmacy. In
addition, EST contracts with Participating Pharmacies at various rates that are renegotiated from
time to time, and charges Sponsor at a uniform rate that may be greater or less than the actual rate
paid to Participating Pharmacies. In negotiating such fees and rates, EST acts on its own behalf,
and not for the benefit of or as agent for the Sponsor, Member or any benefit plan in which a
Member may participate. Except as may be expressly provided otherwise in this Agreement,
Sponsor acknowledges and agrees that EST will retain all such payments from pharmaceutical
manufacturers and ail such provider discounts, if any, in addition to any administrative and other
fees paid by Sponsor, as EST's compensation for administering the Prescription Drug Program
described herein. Sponsor acknowledges, for itself, Members and any benefit plan, that, except as
may be expressly provided herein, neither it, nor Members, nor any benefit plan in which a
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Member may participate in, has a right to receive, or possesses any beneficial interest in, any such
discounts or payments.
SECTION VII
TERM AND TERMINATION; DEFAULT AND REMEDIES
7.1 Term. The initial term of this Agreement shall begin on November 1, 1999, and end on
October 31, 2000, and may be terminated earlier or extended in accordance with the terms hereof.
Not less than ninety (90) days prior to the end of the initial or any renewal term of this Agreement
either party may noti;y the other party in writing that it wishes to terminate this Agreement. If no
such written notification is given, this Agreement shall continue with the same terms and
4 conditions as set forth herein for an additional one (1) year term, subject to the right of
! termination as otherwise provided herein.
7.2 Renegotiation of Charges and Fees. For renewal periods after the initial term, ESI may
provide written notice of new fees for the renewal period not less than one hundred twenty (120)
days prior to the start of the renewal period. Unless the Agreement is terminated under Section
! 7.1, the new fees shall become effective at the beginning of the applicable renewal period.
Refunds and/or credits granted by ESI after the initial term of this Agreement shall be based upon
the fees in effect at thettime of the original transaction(s).
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7.3 Termination for Breach or Default. Either party may give the other written notice of a
material, substantial and continuing breach of this Agreement. If the breaching party has not
cured said breach within thirty (30) days from the date such notice was sent, this Agreement may
be terminated at the option of the non-breaching party. If the amount of time commercially
reasonable for the breach to be cured is longer than thirty (30) days, this Agreement may not be
terminated by the non-breaching party pursuant to this provision until such commercially
reasonable period of time has elapsed; provided, however, that in no event shall such period
exceed sixty (60) days.
7.4 Termination for Non-Payment.
(a) Notwithstanding Section 7.3, ESI may terminate or suspend its performance
hereunder immediately and cease providing or authorizing provision of Covered Drugs to
Members without any written notice if Sponsor fails to pay ESI or provide a deposit, if required,
in accordance with the terms of this Agreement. ESI also may suspend Mail Service Pharmacy
service to a Member who is in default of payment of any Copayments, Coinsurance or
Deductibles in the Mail Service Pharmacy.
(b) If ESI has reasonable grounds for insecurity as to the ability of Sponsor to meet its
financial commitments hereunder based on payment record, Sponsor's latest financial information
or claims volume, ESI may require adequate assurance of Sponsor's future performance, which
may include the requirement that Sponsor provide security to ESI in accordance with Section
4.2(c) or an amount equal to $20.00 per eligible Member.
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7.5 Termination for Insolvent. To the extent permitted by applicable law, ESI may terminate
this Agreement, or suspend performance hereunder, upon the insolvency of Sponsor, and Sponsor
may terminate this Agreement upon the insolvency of ESI. The "insolvency" of a party shall
mean the filing of t' petition commencing a voluntary or involuntary case (if such case is an
involuntary case, then only if such case is not dismissed within sixty (60) days from the filing
thereof) against such party under the United States Bankruptcy Code; a general assignment by
such party for the benefit of creditors; the inability of such party to pay its debts as they become
due; such party's seeking or consenting to, or acquiescence in, the appointment of any trustee,
receiver or liquidation of it, or any material part of its property; or the commencement against
such party of an involuntary case under the United States Bankruptcy Code; or a proceeding
under any receivership, composition, readjustment, liquidation, insolvency, dissolution, or like law
or statute, which case or proceeding is not dismissed or vacated within sixty (60) days.
7.6 Remedies.
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(a) A party's right to terminate this Agreement under this Section 7 shall not be
exclusive of any other remedies available to the terminating party under this Agreement or
otherwise, at law or in equity.
(b) ESI shall not be liable in any manner for any delay or failure to perform its
obligations hereunder which are beyond ESI's reasonable control, including, without limitation,
any delay or failure due to strikes, labor disputes, riots, earthquakes, storms, floods or other
extreme weather conditions, fires, explosions, acts of God, embargoes, war or other outbreak of
hostilities, government acts or regulations, or the failure or inability of carriers, suppliers, delivery
services, or telecommunications providers to provide services necessary to enable ESI to perform
its obligations hereunder.
(c) ESI's liability to Sponsor hereunder shall in no event exceed the actual proximate
losses or damages to Sponsor caused by ESI's breach of this Agreement, up to the amount of
administrative fees paid to ESI by Sponsor hereunder for the one (1) year period preceding the
date on which the claim arose. In no event shall either party or any of their respective affiliates,
directors, employees or agents, be liable for any indirect, special, incidental, consequential,
exemplary or punitive damages, or any damages for lost profits relating to a relationship with a
third party, however caused or arising, whether or not they have been informed of the possibility
of their occurrence.
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7.7 Obligations Upon Termination. Sponsor or its agent shall pay ESI in accordance with this
Agreement for all claims for Covered Drugs dispensed and services provided to Sponsor and
Members on or before the effective date of termination. Claims submitted by Participating
Pharmacies or Member Submitted Claims filed with ESI after sixty (60) days from the
Termination Date shall be forwarded to Sponsor or. Sponsor's designee for adjudication and
payment. Sponsor shall pay all fees or other charges due and payable to ESI under this
Agreement within ninety (90) days after the Termination Date. Notwithstanding the preceding,
ESI may (a) delay payment of any final Formulary Savings to allow for any final adjustments. or
(b) request that Sponsor pay a reasonable deposit in the event ESI is requested to process after
the Termination Date claims incurred on or prior to such date.
7.8 Survival. The parties' rights and obligations under the last sentence of Sections 3.1(b),
3.2(b), 3.5(a), and 3.5(b)(iii), 3.7(d) and Articles IV and V, and Sections 6.2 and 7.6(b) shall
survive the termination of this Agreement for any reason.
SECTION VIII
MISCELLANEOUS
8.1 Notice. Any notice or document required or permitted to be delivered pursuant to this
Agreement must be in writing and shall be deemed to be effective upon mailing and must be either
(a) deposited in thi United States Mail, postage prepaid, certified or registered mail, return
receipt requested, or (b) sent by recognized overnight delivery service, in either case properly
addressed to the other party at the address set forth below, or at such other address as such party
shall specify from time to time by written notice delivered in accordance herewith:
Express Scripts, Inc.
Attn: President
ti3900 Riverport Drive
' Maryland Heights, Missouri 63043
With copy to Legal Department
Brazos County
Attn: Loraine Nichols
300 East 26`h Street, Suite 117
Bryan, Texas 77803-5327
8.2 - independent' artie . No provision of this Agreement is intended to create or shall be
construed to create any relationship between ESI and Sponsor other than that of independent
entities contracting with each other solely for the purpose of effecting the provisions of this
Agreement. Neither party, nor any of their respective representatives, shall be construed to be the
partner, agent, fiduciary, employee, or representative of the other and neither party shall have the
right to make any representations concerning the duties, obligations or services of the other
except as consistent with the express terms of this Agreement or as otherwise authorized in
writing by the party about which such representation is asserted.
8.3 Successors and Assigns. This Agreement will be binding upon, and inure to the benefit of
and be enforceable by, the respective successors and permitted assigns of the parties hereto,
provided that this Agreement may not be assigned by Sponsor without the prior written consent
of ESI. ESI may assign this Agreement or delegate any rights or obligation hereunder to any
entity affiliated with ESI.
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8.4 Integration: Amendments. This Agreement and any Exhibits hereto constitute the entire
understanding of the parties hereto and supersedes any prior oral or written communication
between the parties with respect to the subject matter hereof. No modification, alteration, or
waiver of any term, covenant, or condition of this Agreement shall be valid unless in writing and
signed by both parties or the agents of the parties who are authorized in writing.
8.5 Choice of C £w* Venue. This Agreement shall be construed and governed in all respects
according to the laws in the State of Missouri, without regard to the rules of conflict of laws
thereof. Any legal action regarding this Agreement shall be brought in the State of Missouri in St.
Louis County.
8.6 Waiver. The failure of either party to insist upon the strict observation or performance of
this Agreement or to exercise any right or remedy shall not be construed as a waiver of -any
subsequent breach of this Agreement or impair or waive any available right or remedy.
8.7 Severability. In the event that any provision of this Agreement is invalid or unenforceable,
' such invalid or unenforceable provision shall not invalidate or affect the other provisions of this
Agreement which shall remain in effect and be construed as if such provision were not a part
hereof; provided that if the invalidation or unenforceability of such provision shall, in the opinion
of either party to the Agreement, have a material effect on such party's rights or obligations under
this Agreement, then'the Agreement may be terminated by such party upon thirty (30) days
written notice by such party to the other party.
8.8 Third Party Beneficiary Exclusion. This Agreement is not a third party beneficiary
.
contract, nor shall this Agreement create any rights on behalf of Members as against ESI.
Sponsor and ESI reserve the right to amend, cancel or terminate this Agreement without notice
to, or consent of; any Member.
8.9 uthorit . Each party has full power and authority to execute this Agreement, and the
execution and performance of this Agreement is a valid and binding obligation which does not
conflict with the parties' respective articles of incorporation, by-laws, or any other agreements to
which such party is bound.
21
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IN WITNESS WHEREOF, the undersigned have executed this Managed Prescription
Drug Program Agreement as of the day and year first above written.
EXPRESS SCRIPTS, INC.
BRAZOS COUNTY
j By. -
By:
Printed Name:
Printed me: Alvi W. Jones
Title:
Title: County Judge
Phone: 409/361-4102
Stuart L Bascomb
Fax: 409/82,3-699'
Executive Vice President
Federal ID Number: 74-6000-433
Phone: 314-702-7245
Fax: 314702.7055
6 /002
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EXHIBIT A
PRESCRIPTION DRUG PROGRAM FEES
1. Prescription claims through Participating Pharmacies PERxSelectsm Network:
A. Ingredient Cost and Dispensing Fee
The lower of
(1) An ingredient cost of AWP less 13% or, if lower, the MAC, plus a
dispensing fee of $2.50 per prescription, plus any preferred product or generic
incentive fee payable to the Participating Pharmacy under its provider agreement
with ESI, plus applicable sales or excise tax or other governmental surcharge, if
' any; or
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(2) The Usual and Customary Retail Price of the Participating Pharmacy
dispensing the prescription drugs, plus applicable sales or excise tax or other
governmental surcharge, if any.
If ESIpays a particular Participating Pharmacy a higher rate because Sponsor has
requested such pharmacy be included in the network, the rate charged to Sponsor
shall be the net ingredient cost plus the dispensing fee paid by ESI to such
pharmacy, plus applicable sales or excise tax or other governmental surcharge, or
arry preferred product or generic incentive fee, if any.
If any change in Federal or applicable state law or regulation (including the
interpretation of existing laws or regulations by a court or administrative agency)
first occurs after July 1, 1994, and in consequence thereof ESI increases payments
for Covered Dnigs to Participating Pharmacies in the applicable jurisdiction under
its provider agreements, the Prescription Drug Program fees set forth above will be
increased by the same amount.
For purposes of this Exhibit A, "Usual and Customary Retail Price" means the
retail price charged by the Participating Pharmacy for the particular drug in a cash
transaction on the date the drug is dispensed as reported to ESI by the
Participating Pharmacy.
For purposes of this Exhibi "Maximum Allowable Cost" or "MAC" means the
maximum price for a generic pharmaceutical which is bio-equivalent to branded
phardiaceuticals. ESI, in its sole discretion, periodically updates the MAC to
reflect changes in generic drug prices.
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B. Claims Administration Fee
$0.35 per submitted claim, subject to increase as provided in Section 8 below.
2. Prescription claims through Mail Service Pharmacy:
A. Ingredient Cost
Brand Drugs: AWP less 17%, plus applicable sales or excise tax or other
governmental surcharge, if any
Generic Drugs: AWP less 5001a, plus applicable sales or excise tax or other
governmental surcharge, if any
B. Dispensing Fee
$1.75 per prescription, subject to increase as provided in Section 8 below. This
fee is subject to adjustment from time to time for increases in postage and delivery
charges upon notice to Sponsor.
C. Claims Administration Fee
No additional charge.
D. Preferred Product List Incentive Fee
$0.50 per prescription filled with a preferred drug.
3. Member Submitted Claims:
A. Ingredient Cost and Dispensing Fee.
The fees set forth in Exhibit A, Section IA or such other amount set forth in the
Benefit Summary.
B. lairrs Administration Fee.
$1.50 per submitted claim.
4. Prior Authorization Fee:
A. Base PA Program- No charge per request for the following drugs: Growth
Hormone (Protropin, NuTropin, NuTropin AQ, Humatrope); Octreotide
(Sandostatin); Alglucerase (Ceredase); Erythropoetin (Epogen); Filgrastim
(Neupogen); GM-CSF (Leukine); Fertility Medications (Pergonal, Profasi)
24
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B. Standard PA Program (optional) - $7.50 per authorization request
C. Enhanced PA Program (optional) - $20.00 per authorization request
i.
5. Implementation Fees: l
There is no charge for implementation of the Prescription Drug Program if Sponsor
provides ESI with Member eligibility on electronic medium in ESI's format. If ESI must create a
Member eligibility file by manually entering employee data, there will be a S I.00 per Member
implementation fee.
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6. Identiftcatior. Cards:
ESI will provide up to two (2) paper Identification Cards per employee at no charge to
Sponsor. Additional Identification Cards will be provided for $0.25 per card. On initial
implementation and renewal there is no charge for bulk shipment of Identification Cards to
Sponsor. If Sponsor requests that such cards be mailed to Members, Sponsor will pay ESI a
distribution charge of $1.00 per Member.
7. OptiMed':
In those cases"in which ESI's intervention with the prescribing physician or dispensing i .
pharmacy results iri a switch to a preferred drug, Sponsor will pay ESI the fees specified below
applicable to the OptiMed" program selected. ESI's bills to Sponsor will reflect the applicable
Optli Med' management fee for the applicable billing period, and if applicable, the savings used in
the calculation of ESI's management fee.
Program Management Fee Fee to Pharmacy
Select 1 None None
Select 2 $3.00 for each Member None
communication when a non-
preferred product is dispensed
Physician Preference (with or 35% of total cost savings' $0.50 (PERxSelectsm) or $1.00
without eopay differential) (PerxCare®) each time a preferred
brand drug is dispensed
1 Percensage anlte toW oast savings that result from the successful imadunge of the preferred drug in place of the non-preened drug each
time the Member receives me preferred drug during the 12 moruhs beginning an the date the preferred drug is fuss dispensed. ToW oat is bued upon
t ingredratt oast phis all fees payable to the dispensing phanrucy plus any administrative fee plus applicable ala or excise tau or other governmental
serclurge, if any
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8. Formulary Savings Credit:
ESI has reduced the Claims Administration Fee set forth in Section 1B of this Exhibit A
and the Dispensing Fee set forth in Section 2B of this Exhibit A by $0.40 per claim and $0.75 per
prescription, respec'avely (the "Credit"), to compensate Sponsor for its share of Formulary
Savings paid by ph srmaceutical manufacturers to ESI with respect to those Covered Drugs
dispensed to Members for which ESI receives Formulary Savings. ESI will retain Formulary
Savings collected by it as its fee for developing, implementing and managing the Formulary.
Sponsor acknowledges its requirement to adopt the Formulary Compliance Program set
forth in Section 3.6 of the Agreement in order to be eligible for Formulary Savings. Sponsor
further acknowledges that pharmaceutical manufacturers may discontinue payment of Formulary
Savings at will; that laws governing prescription drug pricing (including Formulary Savings) may
change; and that Formulary Savings are affected by physician prescribing and other factors. If
any such event, or any other event whether or not similar to the foregoing, shall occur and
Formulary Savings payable to ESI are materially reduced, then at ESI's option any Credit may be
reduced or eliminated upon thirty (30) days' prior written notice to Sponsor, and the
Administrative Fee and/or Dispensing Fee shall be increased by an amount not to exceed the
amount of the respective Credit.
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TO: John Reynolds, County Auditor
FROM: Alvin W. Jones, County Judge
RE: EXEMPTION FROM COMPETITIVE BIDDING REQUIREMENTS
OF LOCAL GOVERNMENT CODE, SECTION 262.024(a)(3).
Please be advised that on this 21 day of _December 1998, at s e la Session of the
Commissioners' Court on which the following members were present:
Alvin W. Jo County Judge
Tony Jones Commissioner, Precinct 1
Bill Thornton Commissioner, Precinct 2
Randy Sims Commissioner, Precinct 3
Carey Cauley, Jr. Commissioner, Precinct 4
The Commissioners' Court has determined that there is a need to exempt United Roofing
for work repairing hail damage only , because of unforeseen damage to public property.
This exemption applies gay to the repair of any "hail" damaged roof.
The Commissioners' Court hereby grants an exemption from the competitive
bidding requirement as provided in the Local Government Code Section 262.024(a)(3).
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BID TABULATION 2000.018
FENCING SUPPLIES • ANNUAL CONTRACT
12,'15119994215!2000
1
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BRAZOS BOTTOM
CONROEW000
HICKS POST
PRODUCER'S
ay
CROPCARE
PRODUCTS
COMPANY
COOPERATIVE
FURROWS
1A
BARBED WORE
100 reh
Vlo red Dubs pace-29.15
UntPrbK
3 3730
3 32.00
3 31.25
NB
Sb*t.
NB
23625
Fed Per Rat
1320
1320
2.0
BARBLESS WIRE
100 rob
UntPFIW
NB
s 30.70
3 2900
s 32.50
NB
~dct
23635
Fed Per Rot
1320
1320
3A
METAL TEE POSTS
&I
6-U2'TeePosb
1.000
NB
3 210
UetPd=
s 2.66
s 2.20
NB
Sbdkt
100perbd
23655
32
Tee Poeb
1000
I1dlPdm
NB
3 2.66
s 259
3 245
K43
Sbdkt
10D perbd
23660
4.0
WOODEN POSTS
4.1
Vt6.WWooden
3 7,17
Pads.4000A
1,000
NB
i 3.65
UnlPdce:
s 3.20
NR
Sbckt
23770
43
6W-.4000A
1,000
NB
UntPdae:
3 6.52
s 9.20
s $99
NB
Sbclt.
23m
43
rt F-.4000A
1.000
NB
UntPdce:
l 10.65
s 11.30
3 11A5
WB
Sbakr.
23795
4.1
6'x'•.4000A
1,000
NB
UntPdos
13.53
s
1130
s
13.95
3
NB
S10dtt
237%
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BRAZOS BOTTOM
CONROE WOOD
HICKS POST
PRODUCERS
41tr
CROPCARE
PRODUCTS
COMPANY
COOPERATIVE
FURROWS
5 CEDAR POSTS
5.14'x61/7CedvPosb
1,000
2399YARD
UnRPdox
L45 WIRE
S 3.41
NIB
NIB
HIM
Sbrkt
52
5'x8.1/7
1,000
325YARDPOST
Un8 Pft
285 WIRE POST
$ 4.19
NIB
HIS
Sbdt
NIB
5.3
6'x8'
1.000
8.90 EACH
Utdt Pem
S 9.81
NIB
NB
HIS
Smelt
5.4
rxv
1,000
10.90 EACH
UnRPdm
$ 1235
WB
HIS
NIB
Sbt#t
5.5
8'x8'
1,000
12901EACH
unkpdm
$ 15.04
NO
HR
Sbdct
mm am r{xs
PmdUC+rasAdd522.00
Hicks Post Co.: 1,2, 3.1, 3.2 ` wbWfwd*wy
RECOMMENDATION: Conroe Woad Products: 4,1-0.4
Brazos Bottom Crap Care: 5.1-5.5
AWARD DATE: /2 -z ,
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130 TABULATION 2000-021
PURCHASE OF MOTOR GRADERS
ITOTALCOST 90
I oQnu
fyEAR_j
BIDDER PURdNSE GMXR GIITCR
L
5
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GWIVR
JYEARS
GWIXR
`
GMTCR
GRP
GRP
Yf
GRP
GRP
GRP
TCB
TCB
iC8
iC8
iC8
TANGTRACTOR 1176,
1200 NO
B NOBID
f
5,1S000
S
TOS000
1
59
HOED
Ip
gp
pp
D
~
IS
5
D8INTIOfS
,
NTIDD000
SI1T60000
f11100000
NO
NOB
fIT
i 062W
iH,96200
GY=-OtIIRANIMEDSAMM TOTAL COST OF REPAIRS FORM" BRADCS COIIRYPAIl BE RESPONSIBLE
GRP-0UWRTEE AEKIRpIASEPRICE THATVENDORAGREES TOOFFER FOREOUIPMENTONABIN-BACK OPTION
TOO- TOTAL COST BID PER LUT AT END OF SPECIM TllB: p XAK PLIRWASE PRIM - GYTCR.G RATCB)
L OPnONAL BASE COST BID
EXCEPTIONS lQj
S SANNIMP{IPITS
YAHCEI S18,43961(INADVAII(1 +
i
~rnx iuw ~ .
I
110TORGRADEAA IgTORGRADERB LgTORGRAOEAC TORGRADER0
5,75000 Is 10IL75000 s 11275000 f 110.750 DD
AEOOM9TENDAl10k MUSTANGTRACTCR TRADE-"
AWARD I Z • 21- qT__
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