Report to Mayor and City Council
Tuesday, July 07, 2020
Consent
SUBJECT:
Title
CONSIDER AWARD OF WORKERS COMPENSATION THIRD PARTY CLAIMS ADMINISTRATION SERVICES TO ADMINSURE, INC. FOR A THREE YEAR PERIOD FROM AUGUST 15, 2020 TO AUGUST 15, 2023 PLUS TWO OPTIONAL ONE YEAR EXTENSIONS THEREAFTER (CITY COUNCIL)
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I. SUMMARY
The City has been self-insured for its Workers Compensation Program since July 1, 1981. The City maintains a contract with a third party claims administrator (TPA) to administer the self-insured workers compensation program. AdminSure Inc. (Adminsure) has provided TPA services to the City since 2015. The initial 3-year period ended on August 15, 2018, at which time the City Council approved Amendment 1 to the contract, extending the term through August 14, 2020. In anticipation of that contract coming to an end, an RFP was issued and proposals were received from five (5) firms. Staff has evaluated the proposals and is recommending approval of a new three-year contract with Adminsure for TPA services.
II. RECOMMENDATION
Recommendation
1. APPROVE a three-year contract from August 15, 2020 to August 15, 2023 with two optional one-year extensions to Adminsure, Inc. to provide Workers Compensation Third Party Claims Administration (TPA) services to the City for a total contract sum of $317,664 for the initial three-year period.
2. AUTHORIZE the Mayor to execute the contract after approval as to form by City Attorney.
1.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The administration of a self-insured workers compensation program requires a TPA that is competent and performance oriented. Workers compensation claims must be handled in accordance with state law, have cost containment procedures including medical and litigation controls, a Medical Provider Network, audit controls and prompt communication with City employees, staff and service vendors. These areas are extremely impor...
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