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CONSENT <br />INDIAN RIVER COUNTY <br />MEMORANDUM <br />TO: Jason Brown <br />County Administrator <br />FROM: Suzanne Boyll �k <br />Human Resources Director <br />DATE: August 9, 2016 <br />SUBJECT: Approval of Purchase Agreement with Kannact Inc. for Diabetes Management <br />Supplies and Services <br />BACKGROUND: <br />The County is self-insured in its Group Medical Insurance Program and on June 14, 2016 the <br />Board of County Commissioners approved recommended adjustments to the County's Health <br />Insurance Program to manage the increasing cost for health care. One of the proposed <br />adjustments was to implement a diabetes management program through Kannact Inc. in an effort <br />to reduce the medical costs and slow the progression of the disease. <br />ANALYSIS: <br />Last year, diabetic care costs for the health plan were approximately $1,050,000. Kannact <br />provides a health coach, real-time monitoring, tracking with a cellular device, and support to <br />help members with diabetes manage their condition. Through its comprehensive diabetes <br />management system, Kannact and Gehring Group project a savings to our health plan of <br />approximately 10% of the diabetic care costs due to reduced hospital visits and managing and <br />slowing the progression of the disease for a projected savings of approximately $105,000. <br />RECOMMENDATION: <br />Staff recommends that the Board approve the Purchase Agreement with Kannact Inc. effective <br />October 1, 2016 through September 30, 2019 and authorize the Chair to execute the Agreement. <br />ATTACHMENTS: <br />Kannact Purchase Agreement <br />APPROVED AGENDA ITEM <br />BY: <br />Jason Bfow4, County ?Coministrator <br />FOR: Auuust16.201 <br />140 <br />