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2024-136
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2024-136
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Last modified
11/26/2024 2:04:55 PM
Creation date
7/11/2024 11:58:20 AM
Metadata
Fields
Template:
Official Documents
Official Document Type
Addendum
Approved Date
06/18/2024
Control Number
2024-136
Agenda Item Number
12.C.1.
Entity Name
RxBenefits, Inc. (f/k/a Prescription Benefits, Inc.)
Subject
Addendum to Administrative Services Agreement for Group Insurance FY 24/25
Document Relationships
2024-137
(Cover Page)
Path:
\Official Documents\2020's\2024
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Docusign Envelope ID: 4C195600 -904A-41 DA-A041-3005C422FD42 <br />DocuSign Envelope ID: 7CEFABOO-59DE-49DA-BC56-D8DB41083547 <br />(172024 Version) <br />When traditional pricing is prohibited, or state law mandates a pharmacy dispensing fee, any charges, <br />expenses, or fees associated with applicable Claims or otherwise assessed by PBM will be passed through to <br />Client by Administrator. <br />Guarantees will be measured and reconciled on an annual basis within 180 days of the end of each Contract <br />Year. The guarantees are annual guarantees - if this Agreement is terminated prior to the completion of the <br />then current contract year or if the applicable Term or Renewal Term being reconciled is less than twelve <br />(12) months in length (hereinafter, a "Partial Contract Year"), then the guarantees will not apply for such <br />Partial Contract Year. Furthermore, in the event Client terminates the Agreement outside the terms and <br />conditions in the Agreement, Client forfeits the right to receive any shortfall payments for financial <br />guarantees. To the extent Client changes its benefit design or Formulary during the Term of the Agreement, <br />the guarantee will be equitably adjusted if there is a material impact on the discount achieved. If Client <br />changes to a different pricing option during a contract year (for example, Rebate Reinvestment to Standard), <br />Administrator will have the right to offset the performance of the multiple partial year measurements against <br />one another within the same component during the annual reconciliation. Subject to the remaining terms of <br />this Agreement, Administrator will pay the difference of Client's cost for any shortfall between the actual <br />result and the guaranteed result. Shortfall payments for financial guarantees, if any, will not be paid until <br />this Agreement, including any applicable Client Application, and any amendment(s) or addenda to this <br />Agreement or Client Application, is signed. For purposes of measurement of any pricing guarantee in this <br />Agreement or Amendments to this Agreement, over performance in any component will not be used to offset <br />performance in any other measured pricing component. <br />Notwithstanding anything in this Agreement to the contrary, the Generic Drug guarantees set forth above <br />will include only those Prescription Drug Claims that processed to Client for payment where the underlying <br />prescription drug product was identified by Medi -Span as having a Multi -Source Indicator code identifier of <br />"Y" on the date dispensed (or was identified by Medi -Span as having a Multi -Source Indicator identifier of <br />an "M," "N," or "O" on the date dispensed, but was substituted and dispensed by the ESI Mail Pharmacy as <br />its "house generic"), unless such Prescription Drug Claim is otherwise excluded above. The Brand Drug <br />guarantees set forth above will include only those Prescription Drug Claims that processed to Client for <br />payment where the underlying prescription drug product was identified by Medi -Span as having a Multi - <br />Source Indicator code identifier of "M", "N", or "0" on the date dispensed (except in cases where the <br />underlying prescription drug product was substituted and dispensed by the ESI Mail Pharmacy as its "house <br />generic"), unless such Prescription Drug Claim is otherwise excluded above. The application of brand and <br />generic pricing may be subject to certain "dispensed as written" (DAW) protocols and Client or Plan defined <br />Plan Design and coverage policies for adjudication and Member Copayment purposes. If Medi -Span <br />discontinues reporting Multi -Source Indicator identifiers, Administrator reserves the right to make an <br />equitable adjustment as necessary to maintain the parties' relative economics and the pricing intent of this <br />Agreement. Notwithstanding anything in this Agreement to the contrary, any rebate guarantees set forth in <br />this Agreement will be reconciled using the BGA. <br />Any generic claim that is considered a Single Source Product will be included in the generic reconciliation. <br />(c) If Client elects PBM's Price Assure program, PBM will automatically integrate the <br />GoodRx discount card at the point of sale for certain non -specialty retail generic claims at <br />in -network retail pharmacies under contract to support the program. Client acknowledges <br />and agrees that PBM may share Client/Member information with GoodRx while providing <br />these services. Member cost for applicable generic claims will be either Client's current <br />Member cost share or the GoodRx market price. GoodRx's cost calculation methodology <br />may not be audited. If not otherwise excluded, Price Assure claims will be included in <br />Client's existing ingredient cost and dispensing fee guarantees. Notwithstanding anything <br />in this Agreement to the contrary, Client understands and agrees that any surplus value on <br />retail generic claims within the Agreement will be applied towards meeting other retail <br />channel guarantees in the Agreement between Client and Administrator. Client <br />acknowledges and agrees that it is solely responsible for ensuring that its implementation <br />of Price Assure complies with any applicable federal and state law including, but not <br />13 <br />NOT FOR DISTRIBUTION. THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL, PROPRIETARY <br />AND CONSTITUTES TRADE SECRETS OF ESI AND RXBENEFITS <br />
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