Kern County supervisors deny WellDyneRx protest, direct staff to continue CVS Health negotiations

The Kern County Board of Supervisors voted unanimously to deny a protest from WellDyneRx LLC over the county's selection of CVS Health as the pharmacy benefits manager for the county's legacy health plans and directed staff to continue contract negotiations with CVS Health.

The protest by WellDyneRx challenged the county's request-for-proposal (RFP) process and scoring, alleging inconsistent evaluation, biased committee membership and mathematical errors in weighting. The issue came before the board after the county's human resources division recommended denying the protest and proceeding with CVS Health.

The RFP for pharmacy benefit management services was issued Aug. 12, 2024; the county received 15 proposals, seven of which met the minimum qualifications, the county said. Elsa Martinez, assistant county administrative officer over human resources, told the board the county covers “about over 50,000 employees, retirees, and their family members” on its plans and that annual prescription costs are about $30,000,000. The evaluation committee recommended CVS Health after a review assisted by consultants from Alliant and Seagull, Martinez said.

Phil Bisesi, general counsel for WellDyneRx, told the board the county failed to follow its RFP procedures and cited “California Public Contract Code” provisions in arguing that the procurement was arbitrary and capricious. He said evaluators applied inconsistent scoring, gave full scores to a partial bidder (Teladoc), and allowed what he called “significant deviations” in CVS Health’s proposal from the RFP’s Exhibit B master terms and conditions without penalty. Bisesi also said the county delayed producing documents requested under the California Public Records Act, hampering a timely protest.

Martinez said the county provided nonexempt records as soon as possible and that proprietary information required redaction. She noted the RFP stated the evaluation committee may “consider any information they deem relevant” and that consultants assisted the county but did not score proposals. Jessica Dominguez Madich, a pharmacy benefits consultant with Alliant, added that Alliant has assisted Kern County on multiple PBM procurements and that the county used consistent weighting and scoring processes across prior RFPs.

Supervisor Couch asked staff to clarify whether the incumbent was penalized on transition planning; Martinez said the county required planning given contract timelines and that she did not believe the incumbent was penalized. After discussion, a motion to affirm staff’s recommendation to deny WellDyneRx’s protest was made and seconded; the board recorded the motion as approved with “all ayes.” All five supervisors were present for the vote.

The county told the board that CVS Health’s proposal was provided to WellDyneRx on March 4 and that WellDyneRx’s contract with Kern County runs through April 1, 2026. The board did not order a reissue of the RFP and directed the chief human resources officer to continue negotiations with CVS Health.

Votes at a glance: the board voted to deny the protest and proceed with contract negotiations with CVS Health; the motion passed unanimously (5-0).