Performance guarantees with real remedies

Envision included substantial performance guarantee monies for the performance and service of the plan. In addition to service guarantees, Envision is proposing a 9.5% spend reduction guarantee over the current pharmacy costs.

Recorded reference: Page 2

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Published rationale. The agenda request and the pharmacy memorandum both record service performance guarantee money and a 9.5 percent spend reduction guarantee, and page 11 adds rebate minimums per brand prescription, so guarantees clearly exist. The packet does not say how often they are measured, whether they are measured on Travis County data, whether shortfalls are paid in cash or as credits, or whether payouts are capped. Those mechanics would sit in a performance guarantee exhibit that is not part of this agenda backup.

Envision included substantial performance guarantee monies for the performance and service of the plan.

Recorded reference: Page 10

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Published rationale. The agenda backup mentions substantial performance guarantee monies and a spend reduction guarantee. It earns a partial score because the full contract is not provided, making it impossible to check if guarantees are reconciled in cash without caps.

Envision included substantial performance guarantee monies for the performance and service of the plan. In addition to service guarantees, Envision is proposing a 9.5% spend reduction guarantee over the current pharmacy costs.

Recorded reference: Page 10

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Published rationale. The proposal includes monetary performance guarantees and a specific spend reduction guarantee. The packet does not state quarterly plan-specific measurement, cash reconciliation, or dollar-for-dollar uncapped payment of shortfalls. The executed guarantee schedule is not included.

In addition to service guarantees, Envision is proposing a 9.5% spend reduction guarantee over the current pharmacy costs.

Recorded reference: Page 10

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Published rationale. Pages 2 and 10 state that Envision included substantial performance guarantee monies and is proposing a 9.5% spend reduction guarantee over current pharmacy costs. Page 11 adds retail and mail brand rebate minimums of $17.35 and $66.60 per Brand Rx. The backup does not say guarantees are measured quarterly on plan-specific data, paid in cash, or uncapped dollar for dollar, and the guarantee exhibit is not attached.

In addition to service guarantees, Envision is proposing a 9.5% spend reduction guarantee over the current pharmacy costs.

Recorded reference: Page 10

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Published rationale. The backup states Envision proposed substantial performance guarantee monies, a 9.5% spend reduction guarantee, and page 11 adds rebate minimums of $17.35 per retail brand claim and $66.60 per mail brand claim. What is missing is the machinery the model requires: measurement on plan-specific data, quarterly reconciliation and dollar-for-dollar cash payment of shortfalls. Whether the guarantees pay out in cash depends on guarantee language the backup does not contain.