RESOLVED, that the proper city officials are hereby authorized to execute and implement an addendum to the agreement with ClearScript, which will permit that company to provide medication therapy management services to the city’s group health plan effective March 11, 2008, with no increase in administrative fee paid to ClearScript, which agreement is on file in the office of the city clerk as Public Document No. __________.
FIN/ATTY LDW:nmj 2/29/2008
STATEMENT OF PURPOSE: This resolution authorizes the city of Duluth to execute an addendum to the agreement with ClearScript to provide medication therapy management services to the city’s group health insurance plans effective March 11, 2008. The labor-management insurance committee has studied the issue of the rising cost of health care and has recommended that the city implement medication therapy management services to reduce drug therapy issues and to reduce health care costs. ClearScript currently processes prescription drug care claims. The labor-management insurance committee recommends that ClearScript be approved to provide these medication therapy management services. The program is available to members with diabetes, certain other medical conditions or specified prescriptions. The number of eligible participants is approximately 862. The estimated cost of these services is $175,612 for the first year. The estimated savings to the city due to reduced hospital, emergency room visits and/or urgent care visits is $526,836 for the first year.