HomeMy WebLinkAboutR-2010-140 Workers Compensation Claims Management - Amendment to Contract with Intermountain ClaimsA RESOLUTION
RESOLUTION NO R-2010-140
authorizing and directing the City Manager of the City of Yakima to
execute an amended Workers' Compensation Third Party Administrator's
Claim Services Agreement with Intermountain Claims, Inc , for
administration of the City's workers' compensation claims
WHEREAS, the City of Yakima requires professional services to investigate, settle, and
otherwise administer the City's workers' compensation claims, which services include on-line
data services to assist with the administration of the claims, and
WHEREAS, the City does not have the staffing levels necessary to investigate, settle
and otherwise administrate the claims arising from the City of Yakima's self-insured workers'
compensation programs, and
WHEREAS, the City is currently under contract with Intermountain Claims, Inc , for the
above professional services, and
WHEREAS, Intermountain Claims, Inc is willing to continue providing said services in
accordance with the terms and conditions of the attached agreement; and
WHEREAS, the flat monthly fee is subject to yearly negotiation, and
WHEREAS, the City Manager shall have the authorization to approve changes to the
yearly fee schedule, and
WHEREAS, Intermountain Claims, Inc., has the experience and expertise to provide
said professional services to the City, and is willing to continue to do so in accordance with the
terms and conditions of the attached agreement including exhibits A and B to the agreement;
and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to
authorize and ratify the executed attached agreement with Intermountain Claims, Inc., for
administration of the City's workers' compensation claims, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA.
The City Manager is hereby authorized and directed to execute the attached and
incorporated Claim Services Agreement with Intermountain Claims, Inc , for administration of
the City's workers' compensation
ADOPTED BY THE CITY COUNCIL this 7th day of December, 2010
Micah Cawley, Mayor
ATTEST
Exhibit B, Intermountain Claims Service Fees and Pricing
FEES FOR SERVICES
Fees include all claims handling fees and administrative services associated with
both the existing open take-over claims and all newly incurred losses beginning.
September 15, 2008:
• One time Implementation Fee $11,800 (this includes data conversion, a
finalization of the state audit, and transfer of the open and closed physical
files).
• A flat fee of $5250.00 per month
•If more than 90 claims are received in a contract year, the City of Yakima
shall also pay Intermountain $500.00 for each additional new claim
received.
Included:
Services as outlined in Exhibit A, Workers' Compensation Claims Service
Specifications are included in the fees above. Also included:
• Telephonic quarterly claim reviews, as well as an in-person claim review
to take place during the first year of the program
•8 hours per year of ERIC System training
The below services are not anticipated to be utilized by the City of Yakima.
However, they may be incurred on an as -needed basis at the City's request.
Such items not included in the service fees are:
• •Intermountain staff attendance at workers' compensation hearings, legal
proceedings, mediations, or on-site accident investigation or special.
circumstance travel requested by the City ($150.00/half day and
$300.00/full per person plus mileage and/or expenses)
•City requested computer programming or ad-hoc reporting
($150.00/hour paid to IT vendor)
•City requested ERIC System training exceeding 8 hours/year
($50.00/hour paid to Intermountain)
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No
13
For Meeting Of 12/07/10
ITEM TITLE Amending Legislation of a Contract with Intermountain Claims, Inc for
Workers Compensation Claims Management
SUBMITTED BY Sheryl M Smith, Human Resources Manager
CONTACT PERSON/TELEPHONE Sheryl M Smith, 575-6090
SUMMARY EXPLANATION
The City of Yakima is self insured for worker's compensation benefits Intermountain Claims,
Inc , has acted as the City's third party administrator for worker's compensation management
services since the implementation of resolution number 2008-143 in October, 2008
The contract, effective, September 15, 2008, automatically renews unless either party provides
the other with written notice of least ninety (90) days Compensation for these services is based
on a flat fee of $5,050 00 per month and a $500 fee per claim over 90 per year
The monthly fee is subject to annual negotiation — however, the fee has not increased since the
original contract implementation Intermountain Claims stresses active claims management to
achieve cost savings and control of workers' compensation costs In 2008 claims costs totaled
$987,819, claims costs in 2010 are estimated at $750,000, a considerable reduction in costs
over two years The new proposed monthly fee effective January 1, 2011, is $5,250 The
resolution also provides for City Manager approval of the yearly negotiated fees thus, the
following modification is proposed
Exhibit B, "Fees for Services" flat monthly fee, shall be revised to read "A flat fee of
$5,250 00 per month"
Intermountain Claims, Inc will continue to be responsible for account management, claims
administration, benefit eligibility, and representation at hearings as needed
Resolution X Ordinance_ Contract X Other (Specify)
Funding Source Worker's Compensation Program 514
APPROVED FOR SUBMITTAL.
City Manager
STAFF RECOMMENDATION Adopt resolution authorizing the execution of the contract
with Intermountain Claims, Inc
BOARD/COMMISSION RECOMMENDATION
COUNCIL ACTION