DATE: June 20, 2017
TO: Board of Supervisors
SUBMITTED BY: David Pomaville, Director, Department of Public Health
SUBJECT: Revenue Agreement with Financial Marketing Concepts, Inc., dba Coast2Coast Rx Discount Card Program
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a revenue Agreement with Financial Marketing Concepts, Inc. dba Coast2Coast Rx Discount Card Program, for a Prescription Drug Discount Program for Fresno County residents, effective July 1, 2017, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total estimated at approximately $60,000.
REPORT
Approval of the recommended action will allow the Department of Public Health to continue a Prescription Drug Discount Program for County residents, which provides a royalty of $1.25 to the County for each filled prescription that result in a paid claim. The royalty does not increase the final cost to residents and will offset the cost of overseeing the program. It is estimated that the program will generate approximately $12,000 annually, with no increase in Net County Cost.
ALTERNATIVE ACTION(S):
There is no viable alternative action. The Board could choose not to offer a prescription drug discount program and residents would still have the option of using one of the non-County plans available through other entities.
FISCAL IMPACT:
There is no Net County Cost increase associated with the recommended action. The County will receive royalties of $1.25 for each prescription filled, which results in a paid claim. The royalty does not increase the final cost to residents. The revenue will offset the program's oversight costs. The Department estimates the program will generate approximately $12,000 annually; $60,000 for the term, with no minimum or maximum compensation amount. Sufficient appropriations and estimated revenues will be included in the Department's Org 5620 FY 2017-18 Recommended Budget an...
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