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Committee approves RFPs to review flexible spending and pharmacy benefit administration
Summary
The committee unanimously approved two resolutions directing the Department of Employee Relations to issue RFPs to review administration of the city's flexible spending/HRA accounts and prescription drug benefits; procurement will benchmark fees, evaluate service and transparency, and time work for fall open enrollment.
The Finance & Personnel Committee approved two companion resolutions asking the Department of Employee Relations to issue requests for proposals to (1) administer the city's flexible spending and health reimbursement arrangements and (2) administer the city's prescription drug benefits.
Molly King of the Department of Employee Relations said the RFPs will benchmark fees and rates, evaluate service quality and claims turnaround, consider mobile tools and user support, and explicitly request greater transparency from pharmacy benefit managers (PBMs) including disclosure of fees and rebates. She said the current flexible-spending contract ends at year-end and the PBM contract (Optum/UnitedHealthcare) ends Dec. 31, 2026, so the RFPs were timed to allow contract transition before open enrollment.
Committee members moved and the committee adopted both resolutions without objection. The motions were recorded in the Feb. 25 committee minutes as adoptions of items 2 and 3 on the agenda.
