Report 2016-111 Recommendation 10 Responses

Report 2016-111: City of Irwindale: It Must Exercise More Fiscal Responsibility Over Its Spending So That It Can Continue to Provide Core Services to Residents (Release Date: November 2016)

Recommendation #10 To: Irwindale, City of

To reduce the costs of its resident prescription drug benefit program, the city council should follow the recommendations of its consultant by approving the following: implement coordination of benefits provisions, where applicable, to designate the city as a secondary payer to residents' primary insurance coverage.

1-Year Agency Response

The City will continue to explore all options for reducing these costs. As stated in the City's November 8th2016 response letter: "...the Irwindale City Council remains committed to continuing its efforts to further reduce the costs of its resident benefit program. Irwindale staff remains vigilant in reviewing options for the program to be more cost effective, without compromising Irwindale's mission of repaying its residents for the years of exposure to the effects of mining."

California State Auditor's Assessment of 1-Year Status: Will Not Implement

Irwindale overstates its efforts to reduce costs. As we state in our report, the city has been reluctant to implement changes to its prescription drug benefit program. Specifically, the city council rescinded increases it had previously made to the copayment requirement and rejected its consultant's more significant recommendations to increase the copayment for all participants to $10 and to implement a coordination of benefits that would make Irwindale's program a secondary payer to residents' private health insurance.

6-Month Agency Response

The City will continue to explore all options for reducing these costs. As stated in the City's November 8th response letter: "...the Irwindale City Council remains committed to continuing its efforts to further reduce the costs of its resident benefit program. Irwindale staff remains vigilant in reviewing options for the program to be more cost effective, without compromising Irwindale's mission of repaying its residents for the years of exposure to the effects of mining."

California State Auditor's Assessment of 6-Month Status: Will Not Implement

Irwindale overstates its efforts to reduce costs. As we state in our report, the city has been reluctant to implement changes to its prescription drug benefit program. Specifically, the city council rescinded increases it had previously made to the copayment requirement and rejected its consultant's more significant recommendations to increase the copayment for all participants to $10 and to implement a coordination of benefits that would make Irwindale's program a secondary payer to residents' private health insurance.

60-Day Agency Response

The City will continue to explore all options for reducing these costs, as stated in the City's November 8th response letter: "...the Irwindale City Council remains committed to continuing its efforts to further reduce the costs of its resident benefit program. Irwindale staff remains vigilant in reviewing options for the program to be more cost effective, without compromising Irwindale's mission of repaying its residents for the years of exposure to the effects of mining."

California State Auditor's Assessment of 60-Day Status: Will Not Implement

Irwindale overstates its efforts to reduce costs. As we state in our report, the city has been reluctant to implement changes to its prescription drug benefit program. Specifically, the city council rescinded increases it had previously made to the copayment requirement and rejected its consultant's more significant recommendations to increase the copayment for all participants to $10 and to implement a coordination of benefits that would make Irwindale's program a secondary payer to residents' private health insurance.

All Recommendations in 2016-111

Agency responses received are posted verbatim.