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County Administrator's Report 9. 34.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	09/24/2020
Issue: Change Order to Purchase Order 200673 to Florida Blue
From:	Jana Still
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning a Change Order to Purchase Order 200673 to Florida Blue for Administrative Fees for the County’s Self-Funded Health Insurance Plan - Jana Still, Human Resources Department Director

That the Board approve and authorize the County Administrator to execute the following Change Order, in excess of $25,000, adding funds for Administrative Fees for the County’s Self-Funded Health Insurance Plan:

Department:	Human Resources
Division	Benefits
Type	Addition
Amount	$68,000
Vendor	Florida Blue
Purchase Order	200673
Change Order	1
Original Award Amount	$1,057,540
Cumulative Amount of Change Orders Through This Change Order:	$68,000
New Purchase Order Total	$1,125,540

Funding Source: 501, Internal Service Fund, Cost Center 150108, Object Code 54501

BACKGROUND:

In January 2020, the County signed an Agreement with Florida Blue to change the formulary costs on our Pharmacy. It increased the administrative cost by $6.44 per person. The administrative cost increased by approximately $12,678 per month. In return, the County’s rebate for Pharmacy will increase by approximately $1.1M per year. Rebates for first quarter claims experience should be disbursed by quarter four of this calendar year. Additional funds are needed to cover costs since this Purchase Order was completed before the County negotiated the new Agreement with Florida Blue.

BUDGETARY IMPACT:

Funding for the above Purchase Order is through Fund 501, Health Plan.

LEGAL CONSIDERATIONS/SIGN-OFF:

This is in accordance with Florida Statutes 112.09 and 112.0801.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

Board approval needed for purchase orders over $25,000.
County Ordinance, Chapter 46, Article II, Section 46-64 providing for Board approval of Contracts of $50,000 or greater.

IMPLEMENTATION/COORDINATION:

Upon Board approval, the Human Resources Department will generate a Change Order to increase the Purchase Order accordingly. The Human Resources Department will coordinate with the Office of Purchasing.

Attachments
No file(s) attached.