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Authorize the Purchasing Director to terminate the contract with Preferred Health Systems, a Coventry Health Care Plan for Sedgwick County Employee Health and Pharmacy Benefits, effective December 31, 2014, at 11:59 p.m.
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Recommended Action: Authorize Joe Thomas, Purchasing Director, to terminate the contract with Preferred Health Systems for employee health and pharmacy benefits effective December 31, 2014, at 11:59 P.M.
On July 9, 2014, the Board of County Commissioners approved a recommendation of the Board of Bids and Contracts to award a contract for employee health and pharmacy benefits to UnitedHealthcare, to take effect January 1, 2015. The county's current contract for these services is with Preferred Health Systems, which has been acquired by Coventry, which in turn has been acquired by Aetna Insurance. The current contract includes provisions allowing early termination at least 60 days after the provider has been given notice of the termination. This action will authorize the Purchasing Director to issue the required notice to the current provider after a contract has been executed with UnitedHealthcare. If for any reason a contract with UnitedHealthcare is not executed, the notice of termination will not be issued and the current provider will continue to provide services in 2015 pursuant to the contract.
Alternatives: The BOCC could decline to authorize the Purchasing Director to issue the termination notice and instead authorize some other county official to take the action.
Financial Considerations: The contract contains no financial penalties for early termination.
Legal Considerations: This action has been suggested by the County Counselor. Approval for the authorization of termination can be obtained by a simple majority vote.
Policy Considerations: N/A