Common use of Pharmacy Carve-Out Clause in Contracts

Pharmacy Carve-Out. The parties agree that Management may “carve-out” the pharmacy benefits under this article for the health care plan year beginning January 1, 2020. If Management believes that the pharmacy “carve-out” represents a savings to the City’s insurance plan in 2019, then the City will solicit bids from pharmacy benefit managers (PBM) in the marketplace for the City’s business in 2020. The City will then present the PBM bids to the City’s joint health insurance committee for a recommendation of which PBM to select. The City agrees to follow the recommendation of the joint health care insurance committee on which PBM to select; if, the selection of a PBM and the pharmacy benefit “carve-out” saves the City’s health insurance plan monies in the 2020 healthcare plan year.

Pharmacy Carve-Out. The parties agree that Management may “carve-out” the pharmacy benefits under this article for the health care plan year beginning January 1, 2020. If Management believes that the pharmacy “carve-out” represents a savings to the City’s insurance plan in 2019, then the City will solicit bids from pharmacy benefit managers (PBM) in the marketplace for the City’s business in 2020. The City will then present the PBM bids to the City’s joint health insurance committee for a recommendation of which PBM to select. The City agrees to follow the recommendation of the joint health care insurance committee on which PBM to select; if, the selection of a PBM and the pharmacy benefit “carve-out” saves the City’s health insurance plan monies in the 2020 healthcare plan year.

Pharmacy Carve-Out. The parties agree that Management may “carve-out” the pharmacy benefits under this article for the health care plan play year beginning January 1, 2020. If Management believes that the pharmacy “carve-out” represents a savings to the City’s insurance plan in 2019, then the City will solicit bids from pharmacy benefit managers (PBM) in the marketplace for the City’s business in 2020. The City will then present the PBM bids to the City’s joint health insurance committee for a recommendation of which PBM to select. The City agrees to follow the recommendation of the joint health care insurance committee on which PBM to select; if, the selection of a PBM and the pharmacy benefit “carve-out” saves the City’s health insurance plan monies in the 2020 healthcare plan year.