AgdaPkt 2005-06-13 - Laserfiche WebLink

Browse Search

..s I .6'- / REPORT . .., . To the Honorable MayoralJd City Council . From the City Manager June 13, 2005 Subject Contract with Third Party Administrator (TPA) for worker's compensation administration services, Claims Management Inc. (CMI) for the period of July 1, 2005 through June 30, 2006. Recommendation Authorize staff to enter into an agreement with Claims Management Inc. (CMI) to continue to act as third-party administrator for the City's self-insured worker's compensation program for the period of July 1, 2005 through June 30, 2006. Background The City of Redwood City is a self-insured employer under the Workers' Compensation laws of the State of California. In order to fulfill our obligations as a self-insured employer, the City retains the services of a third-party administrator (TPA) to ensure the City is in compliance with the various laws and procedures that govern the Worker's Compensation Program. In January 2002, A8AG, the City's long time TPA, terminated their TPA services rather suddenly. At that time staff came to you with a recommendation to enter into an interim contract with Claims Management Inc. to ensure claims management continued without disruption. During this time the City participated in an RFP process administered by Bay Cities Joint Powers Insurance Authority, at which time Claims Management Inc. ranked number one for services, cost and case management. A recommendation was made to enter into an agreement for TPA services with CMI effective July 1, 2002. Over the past several years CMI has been the claims administrator for the City's workers' compensation program. The Human Resources Department, management and employees have expressed their satisfaction with CMI's performance. Although recent legislative reform has begun to show some signs of relief, costs for the workers' compensation program have been at a historical high due to costly claims, increased medical costs and increased premiums in the excess insurance market. The City has also initiated program enhancements in order to more effectively manage the workers' compensation program. The City requested that CMI dedicate a full-time examiner to the City's account. This has proven to be effective as the claims examiner has been able to dedicate time to closing old cases and managing more effectively new and existing cases. The City also introduced a performance-based incentive program in October 2004 contract with CMI in which CMI is eligible to earn up to $20,000 dollars in additional compensation for meeting or exceeding the identified performance categories (attachment "8"). ....... .--..... ...,-" -