Loading...
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