TO: Finance Committee
FROM: Kevin Sing, Director of Finance
SUBJECT:
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Approval of a Contract with MMA Rx Solutions (Prescription Drug Rebate Management)
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BACKGROUND:
As a self-funded health insurance employer, the City of Joliet receives rebates from pharmaceutical companies for the prescriptions paid by the health plan. Blue Cross Blue Shield administers the rebates estimated to be approximately $4,000,000 for 2026.
This item is to engage Marsh McLennan Agency (MMA) to perform an audit of our rebates to ensure we are receiving the maximum amount allowed. The cost of this service is $57,500 and contingent on MMA securing additional rebates greater than $57,500.
Based on MMA’s prior experience, it is estimated that they will identify an additional $500,000 - $850,000 in revenue due to increased rebates.
CONCLUSION:
Engaging Marsh McLennan Agency (MMA) to perform an audit will ensure the City is receiving the maximum prescription drug rebate allowed. The cost of this service, $57,500, is contingent on MMA securing additional rebates greater than this amount.
RECOMMENDATION:
recommendation
Approval of this item is recommended
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