Approve Award of Bid Invitation #1380 (Sonet Telecom Equipment – $61,245.50):

Staff recommends that the Board approve the award of Bid Invitation #1380 (Sonet Telecom Equipment) to the low bidder meeting specifications, Sprint North Supply, in the amount of $61,245.50. This equipment will be utilized to provide high capacity internet access to large business users, as well as, provide replacement hardware in the Country Lane hub that was damaged during a lightning storm.

Staff recommends that the Board approve the award of Bid Invitation #1381 (1/0 & 4/0 Underground Cable) to the low bidder meeting specifications, Electrical Sales & Engineering, in the amount of $116,000. This cable is to replenish depleting inventory levels and will be used for current and upcoming subdivision developments.

Staff recommends utilizing Ameriscript as the prescription benefit management (PBM) services vendor for the FPB employee health plan effective July 1, 2006. This change is recommended by our agent, Mark Morgan, and endorsed by our TPA, Commonwealth Administrators.

Ameriscript offers a “transparent” program. Their fees are based on the number of employees enrolled per month. Our current vendor charges a per prescription fee and derives revenue from drug manufacturers through discounts and rebates. With Ameriscript, the plan receives the full discount and the rebates are forwarded when received from the manufacturers. Ameriscript would charge FPB $6.95 per employee per month in service fees.

A comparison of expenses for 2005 indicates potential savings of approximately $19,000 annually in combined ingredient cost and service fees.

Ameriscript has a national network of providers and we anticipate very little, if any, disruption to employees and their families in pharmacy choice. The major pharmacy chains and other retailers like K-mart, Kroger, and Walmart are included in their network.

Ameriscript’s National Preferred Formulary is comparable to the Partner’s Rx formulary we currently use. However, some drugs that are now in the non-formulary brand category ($35 copay) will be in Ameriscript’s formulary brand category ($20 copay) and vice-versa. Some members will experience an increase in copay for a particular drug and others will experience a decrease. Ameriscript’s formulary was provided to the Board.

New health insurance cards will need to be issued to reflect the change in PBM vendor. There is sufficient time between now and the effective date of July 1st, 2006 to get the cards replaced. The cost for replacement cards is approximately $400.

The comparison below is based on annual total pharmacy claims in 2005. Manufacturer discounts are reflected in the difference in ingredient costs.