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Trust board approves PBM request for proposals to test market before renewal
Summary
Mohave County trustees authorized Gallagher to run a PBM request for proposals (RFP) for pharmacy benefit manager services after staff said the incumbent contract is in its final year and market pressure previously generated multi-year savings.
The Mohave County Employee Benefit Trust Board voted to proceed with a request for proposals for pharmacy benefit manager (PBM) services and to authorize Gallagher27s PBM specialty practice to manage the process.
Staff explained the incumbent Navitus is in the last year of its current three-year contract and the PBM market is dynamic. A benefits consultant told trustees that a prior RFP produced roughly $2 million in projected savings across a three-year renewal term compared with accepting a straight renewal. "The pressure of the RFP does have some potential positive results," the consultant said.
Board members asked whether an RFP could return higher pricing than the renewal offer; staff replied the RFP produces market data and the county can compare any vendor responses to the incumbent renewal terms. A staff member also said the RFP process is normally presented to bidders as a managed procurement and that Gallagher27s PBM specialty team typically includes implementation and audit fees in vendor pricing.
A trustee moved to approve issuing the PBM RFP to be facilitated by Gallagher's PBM specialty practice; the motion was seconded and the board voted in favor. The meeting record shows the motion passed unanimously.
