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HomeMy Public PortalAbout111-2020 - Finance - True Rx - Pharmacy AgreementPROFESSIONAL CONSULTING SERVICES AGREEMENT THIS AGREEMENT made and entered into this 24th day of September, 2020, and referred to�as Contract No.111-2020, by and between the City of Richmond, Indiana, a municipal corporation acting by and through its Board of Public Works and Safety (hereinafter referred to as the "City") and True Rx Management Services, Inc., 7 Williams Bros. Drive, Washington, Indiana, 47501 (hereinafter referred to as the "Contractor"). SECTION I. STATEMENT AND SUBJECT OF WORK City hereby retains Contractor to provide professional pharmacy and prescription management and claim services for the City of Richmond, Indiana, Finance Department. The proposal of Contractor is attached hereto as Exhibit "A", which Exhibit consists of eleven (11) pages, and is hereby incorporated by reference and made a part of this Agreement. Contractor shall perform all work and provide all services described on Exhibit "A." Should any provisions, terms, or conditions contained in any of the documents attached hereto as Exhibits, or in any of the documents incorporated by reference herein, conflict with any of the provisions, terms, or conditions of this Agreement, this Agreement shall be controlling. Contractor shall perform all work herein in a timely manner, conforming to all applicable professional standards. The Contractor shall furnish all labor, material, equipment, and services necessary for the proper completion of all work specified. No performance of services shall commence until the following has been met: 1. The City is in receipt of any required certificates of insurance; 2. The City is in receipt of any required affidavit signed by Contractor in accordance with Indiana Code 22-5-1.7-11(a)(2); and 3. A purchase order has been issued by the Purchasing Department. SECTION II. STATUS OF CONTRACTOR Contractor shall be deemed to be an independent contractor and is not an employee or agent of the City of Richmond. The Contractor shall provide, at its own expense, competent supervision of the work. Contract No.111-2020 Page 1 of 6 � , r SECTION III. COMPENSATION City shall pay Contractor at the rates described on Exhibit A for satisfactory performance of this Agreement. The Parties agree any penalties as outlined in Contractor's proposal are non - applicable and capped in accordance with Indiana Code (IC) 5-17-5-1 et seq. SECTION IV. TERM OF AGREEMENT This Agreement shall be effective when signed by all parties and shall continue in effect as outlined in paragraph number 3 of Contractor's proposal. Notwithstanding the term of this Agreement, City may terminate this Agreement in whole or in part, for cause, at any time by giving at least sixty (60) working days written notice specifying the effective date and the reasons for termination which shall include but not be limited to the following: a. failure, for any reason of the Contractor to fulfill in a timely manner its obligations under this Agreement; b. submission of a report, other work product, or advice, whether oral or written, by the Contractor to the City that is incorrect, incomplete, or does not meet reasonable professional standards in any material respect; c. ineffective or improper use of funds provided under this Agreement; d. suspension or termination of the grant funding to the City under which this Agreement is made; or e. unavailability of sufficient funds to make payment on this Agreement. In the event of such termination, the City shall be required to make payment for all work performed prior to the date this Agreement is terminated, but shall be relieved of any other responsibility herein. This Agreement may also be terminated, in whole or in part, by mutual Agreement of the parties by setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. This Agreement may also be terminated by the City if a force-majeure event occurs and the results or aftereffects of said event causes the performance of this Agreement to become impossible or highly impracticable. Said event or results or aftereffects of said event would include events or effects which the parties to this Agreement could not have anticipated or controlled. Examples of a force-majeure event, or its results, would include, but would not be limited to, events such as an Page 2 of 6 Act of God, an Act of Nature, an Act of Law, or an Emergency Act of Executive Enforcement of the Federal government, the State of Indiana, or local government. SECTION V. INDEMNIFICATION AND INSURANCE Contractor agrees to obtain insurance and to indemnify the City for any damage or injury to person or property or any other claims which may arise from the Contractor's conduct or performance of this Agreement, either intentionally or negligently; provided, however, that nothing contained in this Agreement shall be construed as rendering the Contractor liable for acts of the City, its officers, agents, or employees. Contractor shall as a prerequisite to this Agreement, purchase and thereafter maintain such insurance as will protect it from the claims set forth below which may arise out of or result from the Contractor's operations under this Agreement, whether such operations by the Contractor or by any sub -contractors or by anyone directly or indirectly employed by any of them, or by anyone for whose acts the Contractor may be held responsible. Coverage Limits A. Worker's Compensation & Disability Requirements Statutory B. Employer's Liability $100,000 C. Malpractice/Errors & Omissions Insurance $1,000,000 each occurrence $2,000,000 each aggregate SECTION VI. COMPLIANCE WITH WORKER'S COMPENSATION LAW Contractor shall comply with all provisions of the Indiana Worker's Compensation law, and shall, before commencing work under this Agreement, provide the City a certificate of insurance, or a certificate from the industrial board showing that the Contractor has complied with Indiana Code Sections 22-3-2-5, 22-3-5-1 and 22-3-5-2. If Contractor is an out of state employer and therefore subject. to another state's worker's compensation law, Contractor may choose to comply with all provisions of its home state's worker's compensation law and provide the City proof of such compliance in lieu of complying with the provisions of the Indiana Worker's Compensation Law. SECTION VH. COMPLIANCE WITH INDIANA E-VERIFY PROGRAM REQUIREMENTS Pursuant to Indiana Code 22-5-1.7, Contractor is required to enroll in and verify the work eligibility status. of all newly hired employees of the contractor through the Indiana E-Verify program. Contractor is not required to verify the work eligibility status of all newly hired employees of the contractor through the Indiana E-Verify program if the Indiana E-Verify program no longer exists. Prior to the performance of this Agreement, Contractor shall provide to the City its signed Affidavit affirming that Contractor does not knowingly employ an unauthorized alien in accordance with IC 22-5-1.7-11 (a) (2). In the event Contractor violates IC 22-5-1.7 the Contractor shall be required to remedy the violation not later than thirty (30) days after the City notifies the Page 3 of 6 Contractor of the violation. If Contractor fails to remedy the violation within the thirty (30) day period provided above, the City shall consider the Contractor to be in breach of this Agreement and this Agreement will be terminated. If the City determines that terminating this Agreement would be detrimental to the public interest or public property, the City may allow this Agreement to remain in effect until the City procures a new contractor. If this Agreement. is terminated under this section, then pursuant to IC 22-5-1.7-13 (c) the Contractor will remain liable to the City for actual damages. SECTION VIII. IRAN INVESTMENT ACTIVITIES Pursuant to Indiana Code (IC) 5-22-16.5, Contractor certifies that Contractor is not engaged in investment activities in Iran. In the event City determines during the course of this Agreement that this certification is no longer valid, City shall notify Contractor in writing of said determination and shall give contractor ninety (90) days within which to respond to the written notice. In the event Contractor fails to demonstrate to the City that the Contractor has ceased investment activities in Iran within ninety (90) days after the written notice is given to the Contractor, the City may proceed with any remedies it may have pursuant to IC 5-22-16.5. In the event the City determines during the course of this Agreement that this certification is no longer valid and said determination is not refuted by Contractor in the manner set forth in IC 5-22-16.5, the City reserves the right to consider the Contractor to be in breach of this Agreement and terminate the agreement upon the expiration of the ninety (90) day period set forth above. SECTION IX. PROHIBITION AGAINST DISCRIMINATION A. Pursuant to Indiana Code 22-9-1-10, Contractor, any sub -contractor, or any person acting on behalf of Contractor or any sub -contractor shall not discriminate against any employee or applicant for employment to be employed in the performance of this Agreement, with respect to hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of race, religion, color, sex, disability, national origin, or ancestry. B. Pursuant to Indiana Code 5-16-6-1, the Contractor agrees: That in the hiring of employees for the performance of work under this Agreement of any subcontract hereunder, Contractor, any subcontractor, or any person acting on behalf of Contractor or any sub -contractor, shall not discriminate by reason of race, religion, color, sex, national origin or ancestry against any citizen of the State of Indiana who is qualified and available to. perform the work to which the employment relates; 2. That Contractor, any sub -contractor, or any person action on behalf of Contractor or any sub -contractor shall in, no manner discriminate against or intimidate any employee hired for the performance of work under this Agreement on account of race, religion, color, sex, national origin or ancestry; Page 4 of 6 3. That there may be deducted from the amount payable to Contractor by the City under this Agreement, a penalty of five dollars ($5.00) for each person for each calendar day during which such person was discriminated against or intimidated in violation of the provisions of the Agreement; and 4. That this Agreement may be canceled or terminated by the City and all money due or to become due hereunder may be forfeited, for a second or any subsequent violation of the terms or conditions of this section of the Agreement. C. Violation of the terms or conditions of this Agreement relating to discrimination or intimidation shall be considered a material breach of this Agreement. SECTION X. RELEASE OF LIABILITY Contractor hereby agrees to release and hold harmless the City and all officers, employees, or agents of the same from all liability for negligence which may arise in the course of Contractor's performance of its obligations pursuant to this Agreement. SECTION XI. MISCELLANEOUS This Agreement is personal to the parties hereto and neither party may assign or delegate any of its rights or obligations hereunder without the prior written consent of the other party. Any such delegation or assignment, without the prior written consent of the other party, shall be null and void. This Agreement shall be controlled by and interpreted according to Indiana law and shall be binding upon the parties, their successors and assigns. This document constitutes the entire Agreement between the parties, although it may be altered or amended in whole or in part at any time by filing with the Agreement a written instrument setting forth such changes signed by both parties. By executing this Agreement the parties agree that this document supersedes any previous discussion, negotiation, or conversation relating to the subject matter contained herein. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The parties hereto submit to jurisdiction of the courts of Wayne County, Indiana, and any suit arising out of this Contract must be filed in said courts. The parties specifically agree that no arbitration or mediation shall be required prior to the commencement of legal proceedings in said Courts. By executing this Agreement, Contractor is estopped from bringing suit or any other action in any alternative forum, venue, or in front of any other tribunal, court, or administrative body other than the Circuit or Superior Courts of Wayne County, Indiana, regardless of any right Contractor may have to bring such suit in front of other tribunals or in other venues. Any person executing this Contract in a representative capacity hereby warrants that he/she has been duly authorized by his or her principal to execute this Contract. Page 5 of 6 In the event of any breach of this Agreement by Contractor, and in addition to any other damages or remedies, Contractor shall be liable for all costs incurred by City in its efforts to enforce this Agreement, including but not limited to, City's reasonable attorney's fees. In the event that an ambiguity, question of intent, or a need for interpretation of this Agreement arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement at Richmond, Indiana, as of the day and year first written above, although signatures may be affixed on different dates. "CITY" THE CITY OF RICHMOND, INDIANA by and through its Board of Public Works and Safety By: 0,1�' Vicki Robinson, President By: Emily Palmer, Member By: Matt Evans, Member "CONTRACTOR" TRUE RX MANAGEMENT SERVICES, INC. 7 Williams Bros. Drive Washington, IN 47501 By: Printed: J eJs t /r[ A A a /a! r ive— ✓5 Title PAJ,�� o .x J, f r APPROVED. \~ Date: avi M. , , ayor Date:. D q 71' Page 6 of 6 TRUE Rx Pharmacy Services Agreement City of Richmond THIS PHARMACY SERVICES AGREEMENT ("Agreement") is made and entered into this 1st day of January, 2019 (hereinafter referred to as the "Effective Date"), by and between True Rx Management Services, Inc., with primary offices. located at 7 Williams Bros. Drive, Washington, Indiana 47501 (hereinafter referred to as "True Rx"), and City of Richmond, with primary offices located at 50 .N50' Street, Richmond, IN 47374 (hereinafter referred to as "Client") (each a "Party" and collectively the "Parties"). In consideration of the mutual covenants contained in this Agreement, the sufficiency of consideration being hereby acknowledged, Client and True Rx agree as follows: 1. SERVICES. True Rx shall, on behalf of Client for those Covered Persons under Client's Group Health Plan covered by Client, provide certain pharmacy services, including the adjudication of Prescription Claims, management of Prescription costs, negotiation of payments to pharmacies and other related pharmacy fulfillment services as are more specifically set forth on the attached Services Schedule 1. (Hereinafter the services listed in this Section 1 and on Services Schedule 1 are referred to as the "True Rx Services"). 2. CUENT RESPONSIBILITIES. Client agrees to cooperate with True Rx to allow True Rx to perform its True Rx Services for Client. Client agrees to review and execute documents prepared by True Rx for Client with respect to the performance of. the True Rx Services. Client agrees to timely provide True Rx with a copy of all reports, correspondence, plan documents, service agreements and any information it creates, possesses, controls, or obtains relating to the True Rx Services. Client agrees that it is solely responsible for determining the Covered Persons under the Group Health Plan and that it may add or delete Covered Persons from eligibility files pursuant to the terms and conditions of this Agreement, and that True Rx may rely upon all of the plan documents and instruments and the eligibility files for purposes of its performance under this Agreement. Client further agrees to provide to True Rx necessary Protected Health Information and certain required personal information of Covered Persons in order to permit True Rx to process claims under Client's Group Health Plan. All information shall be delivered to True Rx in a format and with the content consistent with the applicable statutes and regulations. Client also agrees to cooperate in the performance of the True Rx Services, and acknowledges and agrees to the Additional Services and Services Limitations stated in Services Schedule 1.. 3. TERM. This Agreement is for a one (1) year term following the Effective Date. This Agreement will automatically renew thereafter with either Client or True Rx being able to terminate this Agreement by providing sixty (60) days prior written notice of termination to the other Party by certified mail, return receipt requested, to the person identified in the Notice provision in Section 16. 4. TERMINAnoN. Without limiting the foregoing, either Party may immediately terminate this Agreement and any related agreements if a particular Party to this Agreement, who believes it is in compliance with the terms of the Agreement (the "Non -Breaching Party") makes the determination that the other Party has materially breached a term of this Agreement, or the Business Associate Agreement referred to in Section 9 of this Agreement (the "Breaching Party"). Non -Breaching Party may, in its sole discretion, choose to provide Breaching Party with written notice of its assertion of a material breach. If so, the Breaching Party has thirty (30) calendar days to cure said breach upon mutually agreeable terms, or otherwise to respond to the Non -Breaching Party. In the event that a mutually agreeable resolution is not reached within this thirty (30) day period, the Non -Breaching Party will provide to the Breaching Party a final demand for cure to occur within an additional fifteen (15) calendar days. Failure by Breaching 'Party to cure said asserted material breach within this additional fifteen (15) calendar day period, permits the Non -Breaching party to immediately terminate of this Agreement. 4.1 Transition of Files. Upon termination of this Agreement, True Rx shall promptly transition Claims files and/or history to Client's new Prescription benefit manager or any other party, as directed by Client, at no additional cost. It I E_,t ,)I I PAGE - — u I True Rx Pharmacy Services Agreement . Page 1 of 11 4.2 Destruction or Return of PHI. Upon termination of this Agreement, True Rx agrees to return to the Client a copy of all protected health information ("PHI") received from Client or created or received by True Rx on behalf of Client, that True RX and/or its subcontractors or agents still maintain in any form. True Rx further agrees not to retain. any copies of such information, beyond the required period. of time for the statute of limitations regarding any claims related to such information. Following the period of the statute of limitations on any such claims related to the information gathered, True Rx shall destroy all PHI. pursuant to 45 C.F.R. § 164.504(e)(2)(J) and in accordance with the approved technologies and methodologies set out by HHS in its guidance (74 Fed Reg. 42740, 42742-42743 (Aug. 24, 2009)), as amended from time to time. If such return or destruction is not feasible, True Rx will notify Client of such event in writing, and will thereupon extend the protections of this Agreement and its associated Business Associate Agreement to such Client PHI and limit further uses and disclosures, until the destruction can be accomplished. In the event that destruction of PHI is not feasible or permitted, True Rx will notify Client. Such notice to Client will include: (i) a statement that True Rx has determined that it is infeasible to return or destroy the PHI in. its possession; and (ii) the specific reasons for such determination. True Rx further agrees to extend any and all protections, limitations and restrictions contained in this Agreement to True Rx's use and/or disclosure of any PHI retained after the termination of this Agreement, and to limit any further uses and/or disclosures. S. FEES. The Service Schedule 1, states the Fees that apply under this Agreement. True Rx shall bill UMR for Client's weekly invoice for: (i) the amount. of the reimbursement for pharmaceuticals dispensed by the pharmacies to the persons covered by Client's Prescription Drug Plan (less applicable co=payments made by Covered Persons); and (ii) for all other applicable administrative fees, services and expenses pursuant to the attached Services Schedule 1. As a condition for the continued services provided by True Rx hereunder, Client shall pay UMR for the True Rx Services it performs for Client, and Client shall direct and instruct UMR, and it shall pay all invoices of fees and expenses for True Rx services within four (4)calendar days of UMR's receipt of each True Rx invoice. The entire invoice billed according to the terms of this agreement will be reimbursed to True Rx at one time via EFT payment with True Rx pulling the funds from the TPA on the due date. The payment of True Rx invoices for Prescription Drugs and the True Rx Service Schedule 1 fees is an express condition to True Rx's performance of its obligations under this Agreement. True Rx does not, and has no obligation to, fund Client's Group Health Plan benefits, and as such, Client agrees to pay all True Rx invoices. True Rx also agrees that the amount of the reimbursement for Prescription Drugs paid to the recipient pharmacies will.be the same amount billed to Client, plus applicable Service Schedule 1 Fees. Upon termination of this Agreement for any reason,'Clientshall pay all invoices, including all Service Schedule 1 fees, to and through the date of termination of this Agreement. 5.1 Penalties. Should the Fees described within this agreement not be paid to True Rx as stated within the payment terms of this agreement, Client shall be subject to an additional fee equal to the interest of the amount left unpaid at a rate of eighteen percent (18%) compounded annually. Client agrees to ensure timely payment to True Rx. 6. CONFIDENTIALITY. In addition to the restrictions on uses and disclosures of Protected Health Information under HIPAA, Client and True Rx, and each of them, shall not use or disclose to others, except as permitted by this Agreement or required by law, any Confidential Information that True Rx provides to Client or that Client provides to True Rx, without the prior written consent of the non -disclosing Party. In the. event .a Party wishes to ensure that an item that is not subject to HIPAA is deemed Confidential Information under this Agreement, such Party will conspicuously identify such .information as being Confidential Information and shall receive written acknowledgement of such from the non -disclosing Party. 7. INDEMNIFICATION. Client hereby agrees to indemnify, defend, and hold harmless True Rx, its agents, employees, officers, and directors from and against any and all liability, expense (including court costs and attorney's fees) and any claims for damages of any nature whatsoever, whether direct or indirect, which True Rx may incur, suffer or become liable for or which may be asserted or claimed against True Rx including without limitation: a) any breach of this Agreement or the Business Associate Agreement by Client, including without limitation any improper use or disclosure of PHI by Client, or any Client employee, officer, agent, successor or assign; and b) any Claim under or funding of Client's Group Health Plan which Client hereby agrees is the sole obligation of Client; and c) any error or omission of Client, including but not limited to, negligent acts or statutory violations by Client, or its officers, directors, employees, or agents. In addition, Client specifically agrees to pay actual costs for any associated Mitigation incurred by True RX as a result of a Breach of Unsecured PHI by Client. True Rx hereby agrees, to indemnify, defend and hold harmless Client, its agents, employees, officers, and directors from and against any and True Rx Pharmacy Services Agreement F _ - __ 9-- _ _ " --•-- Page 2 of 11 all liability, expense (including court costs and attorney's fees) and any claims for damages of any nature whatsoever, whether direct or indirect, which Client may incur, suffer or become liable for or which may be asserted against True Rx, including without limitation: a) any breach of this Agreement or the Business Associate Agreement by True Rx, including without limitation any improper use or disclosure of PHI by True Rx, or any True Rx employee, officer, agent, successor or assign; and b) any error or omission of True Rx, including but not limited to, negligent acts or statutory violations by True Rx, or its officers, directors, employees, or agents 8. COMPLIANCE AND CHANGES IN LAW. True Rx and Client. and each of them, agree to comply with all applicable federal, state and local laws, ordinances, regulations, rules and codes, including, without limitation, HIPAA, and ERISA (if applicable), as well as any other laws, ordinances, regulations, rules and codes relating to the handling and/or processing of pharmaceutical Claims and the information contained in such Claims as necessary with respect to their respective obligations under this Agreement, including the terms of Service Schedule 1, and including all amendments and changes to any applicable law. At any time, upon either Parry's request, the other Party shall agree to promptly enter into good faith negotiations concerning the terms of an amendment to this Agreement embodying written assurances that may be required to comply with any amendment or change in any applicable law. Either Party may terminate this Agreement upon sixty (60) days written notice in the event the other Party does not promptly enter into negotiations to amend this Agreement when requested by the other Party pursuant to this Section 8. 9. BUSINESS ASSOCIATE AGREEMENT. The Parties specifically agree to take such action as necessary to implement the standards and requirements of the HIPAA Regulations, the HITECH Act, and other applicable laws and regulations relating to the privacy and security of PHI. At any time, upon either Party's request, the other Party shall agree to promptly enter into good faith negotiations concerning the terms of an amendment to this Agreement embodying written assurances.consistent with the standards and requirements of the HIPAA Regulations, the HITECH Act, and other applicable state laws and regulations relating to the privacy and security of PHI. Consistent with the foregoing, True Rx and Client acknowledge that True Rx is a Business Associate of Client's Group Health Plan, which is a Covered Entity, each as defined under HIPAA and the accompanying regulations promulgated thereunder at 45 C.F.R. Parts 160 and 164 (referred to as the "Privacy Rule") and 45 C.F.R. Parts 160, 162, 164 (referred to as the "Security Rule") (collectively referred to as the "HIPAA Regulations"), as amended and the Health Information Technology for Economic and Clinical Health Act (referred to as the "HITECH Act"), enacted as part of the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5. True Rx and Client agree to undertake and execute the Business Associate Agreement that is provided as part of this Agreement to fulfill these regulations. 10. RECORDS RETENTION. Consistent with the terms of Section 4.2, True Rx shall retain copies of its records and appropriate documents generated, retained, and/or acquired in its performance of True Rx Services in accordance with all applicable state and federal regulations, generally for the duration of the statute of limitations on any Claim processed by True Rx during the Term of this Agreement. Duplicates of such records, for use in disaster recovery situations, shall also be maintained by True Rx in accordance with all applicable state and federal regulations, the manner and form determined by True Rx at a secure, off -site location. 11. BINDING AGREEMENT SURVIVAL AND AMENDMENT. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of the Parties hereto. All representations, covenants and agreements within Sections 4, 5, 6, 7, 8 and 9, and in the Service Schedule 1, made by Client and/or True Rx and each of them, under this Agreement and all attachments and schedules, shall survive the expiration or earlier termination of this Agreement.- This Agreement and its attached Services Schedule 1, and the Business Associate Agreement, as well as the Client Implementation Form, as each may be amended from time to time, constitute the complete agreement between the parties hereto and shall supersede all prior contracts, agreements, arrangements, correspondence and understandings between True Rx and Client. This Agreement may not be amended, .modified, or supplemented, except in writing signed by both True Rx and Client, and any oral modifications hereto shall be null and void. 12. GOVERNING LAW AND JURISDICTION. This Agreement shall be governed by the laws of the State of Indiana, to the extent not determined or interpreted under federal law. Client and True Rx agree to submit to the jurisdiction of the state courts located in Daviess County, Indiana, or the United States District Courts of the Southern District of Indiana. True Rx Pharmacy Services Agreement Page 3 of 11 13. INTERPRETATION AND WAIVER. The terms of this Agreement shall be interpreted so that they are effective under applicable law, to the extent possible. This Agreement is negotiated and as such, is not to be construed against True Rx, but rather to be interpreted as if both Parties were involved in its drafting. This Agreement may not be modified, nor shall any provision hereof be waived or amended, except in a writing duly signed by authorized representatives of the Parties. The failure of either Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or the right of either Party thereafter to enforce each and every such provision. 14. IMPOSSIBILITY OF PERFORMANCE. In the event of any act or explosion, action of the elements of deity, strike or labor relations problem, restriction or restraint imposed by law, rule or regulation of any public authority, whether federal, state or local, and any civil or military action, interruption of transportation or availability or accessibility to the internet, criminal activity of electronic espionage or security breach, or any similar event that is beyond the reasonable control of a Party to this Agreement, such Party or Parties shall not be liable for any delay or non-performance of any terms, covenant or agreed term hereunder. is. No THIRD -PARTY BENEFICIARIES. Nothing express or implied in this Agreement is intended to confer, nor shall anything herein confer, upon any person other than the Parties and the respective successors or assigns of the Parties, any rights, remedies, obligations, or liabilities whatsoever. 16. NoTices. Any notice required or permitted under this Agreement shall be given in writing and delivered by'hand, via a nationally recognized overnight delivery service (e.g., Federal Express), or via registered mail or certified mail, postage pre -paid and return receipt requested, to the following: True RX: True Rx Management Services 7 Williams Bros Dr. Washington, IN 47501 ATTN: Chief Operating Officer Client: City of Richmond 50 N5 Street Richmond, IN 47374 ATTN: Stephanie Sherwood Notice of a change in address of one of the Parties shall be given in writing to the other Party as provided above. .17. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which . shall be deemed, an original. Facsimile copies and electronically made and delivered copies shall be deemed to be originals. 18. DISPUTES. If any controversy, dispute or claim arises between Client and True Rx (except for disputes regarding a Claim of a Covered Person) with respect to this Agreement, or any of the schedules, attachments or agreements between them, Client and Tfue Rx, and each of them, will first make good faith efforts to resolve such matters informally. In the event such a dispute cannot -be resolved through good faith efforts, the aggrieved party may proceed in accord with the applicable law and jurisdiction as stated in Section 12 to file a claim in the appropriate court. With respect to any threatened or actual litigation commenced by any third party, including without limitation, any Covered Person that relates to any Claim (the `Third -Party Claim"), Client and True Rx agree to provide prompt written notice of such matter within ten (10) calendar days. Client acknowledges its obligation to fund its Group Health Plan and as such, Client and True Rx agree that True Rx will tender the defense of the Third -Party Claim to Client and Client will accept such tender; and will be responsible for handling all matters related to the Third -Party Claim, including all.attorney's fees, and any attorney's fees of True Rx. Client will control all aspects of the Third -Parry Claim. If any dispute arises between Client and True Rx regarding such Third -Party Claim, it will be dealt with separately from the Third -Party Claim under the terms of this Section 18. Client and True Rx, and each of them, agree that if a dispute arises between Client and True Rx with respect to any such Third -Party Claim, Client and True Rx agree that their dispute will be handled separately from the dispute regarding the Third - True Rx Pharmacy Services Agreement Page 4 of 11 Party Claim. In such an instance, any fact or law determination in the instance of a Third -Party Claim is not binding on and is not to be used in regard to the resolution of the matter between Client and True Rx. With respect to any Third -Party Claim, Client and True Rx shall cooperate and work together in that defense consistent with this Agreement and a joint defense, regardless of any dispute that may also arise between Client and True Rx. 19. DEFINITIONS. The following are defined terms used in this Agreement: "Affordable Care Act" or "ACA" means the Patient Protection and Affordable Care Act, Pub. L. No. 111-148 and the Health Care and Education Reconciliation Act, Pub. L. No. 111-152 and all other related laws, rules .and .requirements. "Average Wholesale Price" or "AWP" means the average wholesale price for a given prescription legend drug or other pharmaceutical product indicated on the most current pricing file provided to PBM by Medi- Span for the actual drug dispensed using the 11 digit National Drug Code (NDC) number provided by the dispensing pharmacy. The Medi-Span AWP file will be updated no less than once daily. "Brand Drug" means the following: The multisource code field in Medi-Span contains an M (co -branded roduct , "0" (originator brand), or an N(single source brand The Parties agree that when a drug Is P ) g ) �• g g• identified as a brand, it shall be considered.a brand drug for all purposes under this Agreement "Claim" means a claim for benefits under Client's Group Health Plan that involves a claim for coverage of a Prescription Drug Program. "Confidential Information" means any and all oral or written, graphic, electronic, or electromagnetic information relating to Client's or True Rx's products or services, including techniques; relationships, business methods, policies, procedures, programs, data, strategies and plans, financial information and any intellectual or proprietary processes, whether or not marked by a party as "confidential." Confidential Information shall not include information which: (1) was already known by True Rx or. Client on a non - confidential. basis or is otherwise in the public domain; (ii) becomes public knowledge through a source other than Client or True Rx through no fault of Client or True Rx; or(M) becomes lawfully available to Client or True Rx through a source other than Client or True Rx. "Co -payment" means the amounta Covered Person is required to pay for a Prescription in accordance with the Prescription Drug Program, which may be a percentage of the Prescription price, a fixed amount, or other charge, with the balance (if any) paid by the Prescription Drug Program. The Co -payment is not covered under the medical portion of the Health Care Plan of Client and does not apply to any medical deductibles, co -payment amounts, or out-of-pocket maximums. "Covered Person" means an individual who is participating in or is eligible to access benefits under the Prescription Drug Program and/or under Client's Group Health Plan, as determined by Client. "ERISA" means the -Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder. "Generic Drug" means the following The multisource code field in Medi-Span contains a Y (generic). The parties agree that when a drug is identified as a generic drug, it shall be considered a generic drug for all purposes under this Agreement. "Group Health Plan" means the employee welfare benefit plan, or arrangement sponsored by Client, by which Client provides pharmacy benefits to Covered Persons "HIPAA" means the Health Insurance Portability and Accountability Act of 1996, 42 U.S.C. §1320d, and the rules and regulations promulgated thereunder and as they are amended from time to time. "Illness" means sickness, disease, or pregnancy. iPi-r A rr?,k-VGE r,4 �I �t True Rx Pharmacy Services Agreement �� - _ ____.. -5 _-__._ -_ Page 5 of 11 "Ingredient Cost" means the cost of the covered drug calculated as final drug cost, a MAC price or Usual & Customary that is calculated by True Rx in accordance with this Agreement. The final drug cost shall be less any product selection penalties applied upon decision of member, pharmacy, Physician, Rebates, or discounts provided by manufacturers. "Injury" means bodily damage or loss sustained by a Covered Person which requires treatment by a Physician, and is incurred by a Covered Person on or after the date of coverage under the Prescription Drug Program. "Medicine" or "Medication" means a substance or preparation that alleviates or treats an Illness or Injury and may be available by Prescription only or over -the counter ("OTC"). Medicine and Medications include only substances and preparations that qualify as medical care under Section 213 of the Internal Revenue Code. In general, medical care means care for the diagnosis, cure, mitigation, treatment, or prevention of disease or for the purpose of affecting any structure of function of the body. "Non -Prescription Medicine" means an OTC Medication or supply, normally purchased without a Prescription and that is pre -packaged for use by the consumer and labeled in accordance with the requirement, statutes, and regulations of federal and applicable state governmental authorities. "Orphan Disease" means a condition that affects fewer than 200,000 people nationwide. This includes diseases as familiar as cystic fibrosis, Lou Gehrig's disease, and Tourette's syndrome, and as unfamiliar as Hamburger disease, Job syndrome, and acromegaly, or "gigantism." "Orphan Drug." means a pharmaceutical agent that has been developed specifically to treat a rare medical condition, the condition itself being referred to as an orphan disease. "Physician" means a Doctor of Medicine (M.D.), Doctor of Osteopathy (D.O.), Doctor of Dental Surgery (DD.SJ; Doctor of Podiatry (D.P.M.), Doctor of Chiropractic (D.C.), Physician's Assistant (P.A.), Acupuncturist, Audiologist, Certified Nurse_ Anesthetist, Licensed Professional Counselor, Licensed Professional Physical Therapist, Master of Social Work (M.S.W.), Midwife, Occupational Therapist, Optometrist (0.C.), Physiotherapist, Psychiatrist, Psychologist (Ph.D.), Speech Language Pathologist, Nutritionist/Dietician and any other practitioner of the healing arts who is licensed and regulated by a state or federal agency and is acting within the scope of his or her license. "Preferred Drug List" or "Formulary" means the True Rx Preferred Drug List, as amended by True Rx from time to time. A current copy of the Preferred Drug List may be obtained at: http://www.truerx.com/preferred-drug-list.htmi, or by calling the Customer Service Team at (866) 921- 4047. "Prescription Drug Plan" means the plan or program for the dispensing of Medicine, Non -Prescription Medicine and Prescription Medicine. "Prescriber" means a Physician or other health care practitioner licensed or authorized by law to issue an order for a Prescription Medicine. "Prescription" means any order authorized by a Prescriber for a Prescription Medicine or a Non -Prescription Medicine that could be a Medication or supply for the Covered Person for whom prescribed. The Prescription must be compliant with applicable laws and regulations and identify the name of the Prescriber prescribing and the name of the Covered Person for whom prescribed. It must also identify the name, strength, quantity, and directions for use of the Medication or supply prescribed. "Prescription Drug or Prescription Medicine" means licensed Medicine that is regulated by legislation to require a Prescription before it can be obtained by a Covered Person. "Prior Authorization" means the requirement that the healthcare provider obtain approval from the Group . Health Plan before the Group Health Plan will approve payment for that medication. Without this prior approval, the Group Health Plan may not provide coverage, or pay for, the medication. True Rx Pharmacy Services Agreement —�'- `—� --`��� Page 6 of 11 "Protected Health Information" or "PHI" means Protected Health Information, as defined in 45 C.F.R. §160.103, and is limited to the Protected Health Information received or created in connection with the performance of the True Rx Services under this Agreement. "Rebate" means all remuneration that True Rx receives from pharmaceutical manufacturers and/or intermediaries in return for Formulary placement of products and/or access. Drugs that will not receive Rebates include (i) cosmetic drugs, (ii) appliances, devices, bandages, heat lamps, braces, splints, vaccines and artificial. appliances, (iii) health and beauty aids, cosmetics; and dietary supplements, (iv) over the counter products, (v) biosimilar.drugs, (vi) member submitted Claims, (vii) Medicaid subrogation Claims, (viii) secondary Claims, (ix) Claims older than 180 days, (x) Claims through Client -owned, university, long term care, or 340b pharmacies, (xi) Medicaid fee -for -service Claims, (xii) Claims that are reversed, (xiii) Claims with invalid identifiers (e.g., pharmacy identifiers), (xiv) Claims pursuant to a 100% member copayment plan, (xv) multi -source brands and generic claims, (xvi) claims that are reversed, (xvii) claims for re -packaged NDCs, (xviii) claims where, after meeting deductible, the Member's cost -sharing amount under the applicable Program requires the Member to pay more than 50 percent of the claim, (xix) claims from entities eligible for federal supply schedule prices (e.g., Department of Veterans Affairs, U.S. Public Health Service, Department of Defense (collectively, the "Exclusion"). "Specialty Drug" means certain pharmaceuticals and/or biotech or biological drugs that are used in the management of chronic or genetic disease, including but not limited to injectable, infused, or oral Medications, or that otherwise require special handling. "True Rx Management Programs" means the Step Therapy, True Rx Assist, and Orphan Drug Assistance programs provided by True Rx. This Pharmacy Services/Business. Associates Agreement has been executed by the respective duly authorized and empowered officer, director, shareholder, owner, partner or agent. of True Rx Management Services and City of Richmond, effective on the day and year first above written. "Client" City of Richmond By: (Signature) (Printed) (Title) Contact Name: Contact Address: Contact City/State/Zip: Phone: Fax: "True Rx" True Rx Management Services, Inc. By: / (Signature) Jesse McDonald, PharmD (Printed) Chief Operating; Officer (Title) Contact Name: Jesse McDonald, PhamnD Contact Address: 7 Williams Bros. Drive Washington, IN 47501 Phone: (812) 254-7425 Fax: (812) 254-7426 True Rx Pharmacy Services Agreement j�".s-i1 i ;-LE ` Page 7 of 11 TRUE RX SERVICES. SCHEDULE 1 City of Richmond 1. True Rx Services Listing and Corresponding Fees True Rz.Services Fee 1) Electronic Claims processing $3.50 per paid claim 2) Toll -free call center support 3) Access to True Rx's national network of pharmacies 4) Generate reports as requested by Client 5) Open enrollment participation and support 6), Implementation support 7) Plan setup and design changes 8) Electronic & Manual eligibility submissions 9) Medical data integration 10) Secure data transfer via FTP of VPN connection 11) Network management and communication 12) Formulary communication on-line 13) Concurrent Drug Utilization Reviews ("DUR") 14) Fraud, Waste and Abuse online edits 15) 1 on -site Lunch &.Learn per year 16) Any other mutually agreed upon services True Rx Assist 15% of shared savings Prior Authorizations Clinical Prior Authorization -$50 For purposes of these True Rx Services, the following terms apply: "True Rx Assist" True Rx maximizes the co -pay structure for Specialty Drugs. True Rx will set the co -pay tier at the maximum level for that assistance program. True Rx keeps 15% of the savings that Client would have paid. 2. Optional True Rx Services and Fees True Rx Services may, at the option of Client, include the following Optional Services. Service Fee Specialty/Orphan Exclusion Assistance 15% of the saving with a $2000 per Claim maximum fee Step Therapy Program $0.00 Mail Order Invoicing $0.00 Identification Card $.75/2 paper cards $1.50/plastic card No charge for initial cards Mailings $1.75 per Client requested mailing Welcome Packet $2.00 per mailing for Welcome Packets sent directly to members Adherence Letters $1.75 per letter Narrow Formulary $1.00 per paid Prescription True Rx Pharmacy Services Agreement Page 8 of 11 For purposes of the Optional Services, the following terms apply: "Step Therapy" means a process whereby True Rx.encourages members to use medications that are generally recognized as safe and effective, but are also lower -cost. Under this program, in order to receive coverage, member may need to first try a proven, cost effective medication before progressing to a more costly treatment. "Specialty/Orphan Exclusion Assistance" means a process whereby True Rx assists Clients whose Group Health Plans exclude certain medications. In such cases, True Rx will help the members find assistance for those drugs. True Rx will charge 15% of the plan savings up to a maximum of $2,000 per month per claim. 3. Additional Services and Service Limitations True Rx provides a .number of different services and takes on certain additional responsibilities under the Agreement as stated in this Part 3. Also, and importantly, there are certain limits to the True: Rx Services, agreements and responsibilities as also stated in this Part. Pharmacy Help Desk. True Rx offers Client its Pharmacy Help Desk. Administered by a True Rx-approved vendor and available 24 hours per day, 7 days per week, the Pharmacy Help Desk provides assistance to network. pharmacies with Prescription Claim inquiries. This, in turn, helps Client's Covered Persons with their Claims processing. True Rx Customer Service. Customer service representative available 8:OOAM-6:OOPM EST, Monday -Friday, closed on Holidays (New Year's, Easter, Memorial Day, 4a' of July, Labor Day, Thanksgiving, Christmas). CSR available to provide assistance for any questions Client's Covered Persons may have regarding the Prescription drug plan during normal business hours. Rebates. All rebates received by True Rx, less processing fees, for Brand Drug pharmaceuticals, as well as rebates for specialty drugs filled in the -open network, dispensed to Client's Covered Persons will be passed on to Client during the life of this Agreement. Upon sufficient notice of termination as described in Section 3 of this Agreement, all rebates on Claims filled by Client under this Agreement will be paid to Client. Should Client at any time fail to ensure payment to True Rx as described in Section 5, or fail to provide sufficient notice of termination or terminate the Agreement prior to the end of the Agreement term as described in Section 3, rebates may be withheld from Client at True Rx's discretion. Eligibility Files, Data and Updates: True Rx will maintain, administer and update Client's employee eligibility upon request by email, profile update or Client download, with names and information of those employees of Client and their spouses and dependents who are eligible for True Rx Services, including COBRA -eligible members, which updates shall be filed electronically by email or other means agreed to by Client and True Rx based on information provided by Client. Formulary. True Rx will provide to Client its standard Formulary for its use and evaluation. Client has ultimate authority over its Formulary, and the determination of that Formulary is subject to the Client Responsibilities stated below in this Part. The final Formulary as agreed upon between True Rx and Client will be evidenced by a separate agreement, the Client Implementation Form, that is completed with the Client Account set-up, and such Form is incorporated as part of this Agreement. Scope of Relationship. True Rx and Client specifically agree to these important terms regarding the Scope of the Relationship between them, as determined by this Agreement. True Rx is retained by Client only for the purposes and to the extent stated in this Agreement and the relationship of True Rx to Client is that of an independent contractor. True Rx defers to Client with respect to the administration and'operation of its plan. True Rx performs only ministerial functions and not discretionary functions with respect to Client's Group Health Plan, and Client is solely responsible for the implementation, administration and interpretation of its Plan and for all final Claim determinations, including all final Claim Appeal determinations. As such, it is understood and agreed that Client is the Named Fiduciary and the Plan Administrator of its Group Health Plan under ERISA and the Internal Revenue Code, and True Rx is not a fiduciary with respect to the Plan and is not a Plan Administrator for purposes of ERISA. — ------ i_..,,Ir.ri � v31� True Rx Pharmacy Services Agreement Page 9 of 11 Assistance and Guidance Samples. Consistent with the terms of the Scope of Relationship and Client Responsibilities stated in this Part, to which Client expressly acknowledges and agrees, True Rx may provide sample language, sample formularies, plan. document and summary plan description sample language and sample forms for Client to use as it establishes and maintains its Group Health Plan and the delivery of Pharmacy benefits under that Plan. Client acknowledges and agrees that True Rx is not engaged in the business of plan design consulting services and that it defers to any insurance broker and/or consultant involved. Congruently, Client agrees that it is solely responsible for .the establishment and development of its Group Health Plan, and Client is the final decision -maker as to the establishment of the terms of its Plan. i Client Responsibilities. Client is responsible for its Group Health Plan Assets. Once a fee is paid to True Rx, such amounts are no longer assets of Client's Group Health Plan. Similarly, Client agrees that once payment has been arranged for and/or made for a Prescription Drug under Client's Plan, such amounts are also no longer assets of Client's Group Health Plan. Client also acknowledges and agrees that True Rx is not engaged in the practice of delivering legal, accounting or actuarial. advice, and Client agrees to consult with such professionals regarding its Group Health Plan, and in particular with legal counsel regarding any documentation, forms or other legal compliance matters related to its Group Health Plan, including the scope of covered services, the requirements of ACA, including without limitation the delivery of a plan that provides minimum value, and all related compliance with laws. Government Matters. In the event that Client is audited by any agenry or department of the state or local government in connection with its Group Health Plan, True Rx agrees to cooperate with Client in connection with such investigation if True Rx is requested to provide assistance. If Client is audited or investigated or receives correspondence from Medicare relative to a Claim processed by True Rx, of any kind or type, Client agrees to immediately send a copy of such, matter to True Rx under the Notice provisions in the Agreement. True Rx agrees to provide assistance and to respond to the Medicare inquiry, or demand. Client is responsible for paying applicable interest charges from Medicare and for reimbursing Medicare for benefits amounts if it is determined that the .Plan should have paid the Claim primary to Medicare. True Rx will be entitled to obtain service fees and reimbursement for its out-of-pocket costs and attorneys' fees in rendering the assistance stated in this Part. -.. 5i Di _ True Rx Pharmacy Services Agreement Page 10 of 11 4. Pharmacy Pricing Matrix: AWP Discount Brands 17% Generics 80% Brands 19% Generics 81% Brands 22% Generics 82% Brands 16% Lfteid--�e-"a 0•- • Retail =1-83 day supply $90 Retail/Mail-8.4+day supply $200 Specialty $650 Retail-1-83-day supply $120 Retail/ Mail —84+day supply $250 Specialty $750 Pricing Matrix: The representative rates and fees quoted above are effective rates and average fees based ony the current performance of True Rx Management Services book of business. Due to limited distribution agreements conducted by manufacturers, a small number of specialty products are not available at the exclusive pricing schedule. True Rx Pharmacy Services Agreement Page 11 of 11