City of Oak Creek

Common Council Report

Meeting Date:  12-05-06

Item No.:        

Recommendation:  To affirm the recommendation of the City’s insurance consultant and the City’s Insurance Committee to terminate the city’s relationship with CANUSA and Member Health for the purchase of prescription drugs from Canada and select SYSTEMED as the pharmacy benefit manager for prescription drugs for City employees effective January 1, 2007.

Background:  In 2003 the City of Oak Creek established a relationship with CANUSA to purchase prescription drugs from Canada to take advantage of lower prices.

In the past three years the CANUSA relationship has been less beneficial than expected.  The anticipated savings are a fraction of anticipated, and the actual savings is more than offset by the internal administrative costs.  Those issues, as well as local medical providers refusing to participate in the program, make CANUSA a burden on providing prescription medication at an affordable price to the City’s plan participants.

Fiscal Impact:  The impact is anticipated to be neutral or positive as it is impossible to predict the prescription medication industry or the associated costs. 

Prepared by: Patrick DeGrave City Administrator	Respectfully submitted, Patrick DeGrave City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk