Broward County Commission Regular Meeting


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AI-29331 70.       
Meeting Date: 06/11/2019  
Director's Name: Andrew J. Meyers
Department: County Attorney  

Information
Requested Action
MOTION TO AUTHORIZE Office of the County Attorney to commence litigation and take all necessary and appropriate actions to pursue collection of all amounts owing and any other available damages against OptumRx PBM of Wisconsin, LLC (f/k/a Catamaran PBM Services, LLC, as assignee of Catamaran PBM of Illinois II, Inc.), and any affiliated entities relating to the Agreement Between Broward County and Catamaran PBM of Illinois II, Inc. for Pharmacy Benefit Management Services for Broward County Benefit Eligibles (Covered Insureds), dated October 15, 2012.

(Transferred to the Consent Agenda.)

ACTION:  (T-10:51 AM)  Approved.

VOTE: 9-0.  Vice-Mayor Holness voted in the affirmative telephonically.

 
Why Action is Necessary
Board authority is required to file an original action of this nature pursuant to Section 1-51.3(c), Broward County Code of Ordinances.
What Action Accomplishes
Authorizes the County Attorney’s Office to file an original action against OptumRx PBM of Wisconsin, LLC, and any affiliated entities.
Is this Action Goal Related
Previous Action Taken
Summary Explanation/Background
Broward County contracted with OptumRx PBM of Wisconsin, LLC (f/k/a Catamaran PBM Services, LLC, as assignee of Catamaran PBM of Illinois II, Inc.) (“OptumRx”), to provide certain pharmacy benefit management services for the County for plan years 2013 through 2015. The County Auditor engaged an independent auditor to conduct a review of the rebates paid to the County by OptumRx for plan years 2013 through 2015, which audit report was last formally discussed by the Board at its January 9, 2018, meeting (Item 20). At that meeting, the Board directed County staff to continue pursuing the matter and report back to the Board periodically.

The County and OptumRx signed a tolling agreement, dated January 4, 2018, that preserved any and all claims the County may have had against OptumRx as of December 8, 2017. The County and OptumRx also executed an interim agreement to permit an independent third-party auditor, RSM US LLP (formerly known as McGladrey, LLP), to verify whether all rebates received by OptumRx or its subsidiaries had been properly paid to the County as required under the County’s contract with OptumRx. That independent review was completed in May 2019, and RSM submitted a summary report of its findings indicating that more than $500,000 in rebate amounts had been received by OptumRx but not paid to the County. OptumRx has since advised that the rebate amounts withheld constituted “reasonable administrative fees” permitted under the contract for its services. Subsequent to RSM’s summary report, OptumRx notified the County that certain information was not disclosed to RSM relating to additional rebate amounts received by OptumRx but not paid to the County, and that RSM will be updating its report to include more than $150,000 in additional rebate amounts received by OptumRx but not paid to the County for the applicable plan years.

The County Attorney’s Office has been working closely with FASD and the County Auditor’s Office on this matter since January 2018. The pending updated RSM summary report may facilitate a resolution with OptumRx regarding the outstanding amounts due for the 2013-2015 plan years, and County staff and this Office will continue to pursue a negotiated resolution, if possible. Any such resolution would require Board approval.

This item, if approved by the Board, would authorize the County Attorney’s Office to file any appropriate claims against OptumRx and its affiliates if a negotiated resolution cannot be timely achieved.
Source of Additional Information
Danielle W. French, Deputy County Attorney, 954-357-7600

Fiscal Impact
Fiscal Impact/Cost Summary:
This matter would be handled in-house by the County Attorney’s Office. Litigation costs are currently estimated to be in the range of $25,000 - $50,000.
Attachments
No file(s) attached.


    

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