TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Teresia Zadroga-Haase, Human Resources Director
SUBJECT:Title
Contract with AdminSure, Inc., for Third Party Administration Services in Support of the Self-Insured Workers' Compensation Program (Human Resources Director Zadroga-Haase).
APPROVE AND APPROPRIATE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve a three year contract effective July 1, 2016, with two option years with AdminSure, Inc. (AdminSure) for third party administration (TPA) and ancillary medical management services, and authorize City Manager to execute same (Attachment 1). The total estimated expenditure for the contemplated full five year contract period would be $1,571,709.
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FISCAL IMPLICATIONS:
The annual estimated value of the contract in years one and two is $307,511, with $186,000 being applied to claims administration services and $121,511 being applied to ancillary claims costs. Adequate funding for these services has been included in the proposed two-year budget for FY 2016-17 and FY 2017-18. The year three total would be $313,091, with $191,580 allocated to claims administration and $121,511 being applied to ancillary claims costs. Year four, the first option year, would have a total expenditure of $318,838, with $197,327 allocated to administration and $121,511 to ancillary claims costs. Year five, the final option year, would have a total expenditure of $324,758 with $203,247 allocated to administration and $121,511 to ancillary claims costs.
The combined costs for these services in FY 2014-15 was $337,164. The projected costs for current fiscal year for these combined services based on charges through April 23, 2016 is $347,205. The trend for the costs of these services has been upward. The costs for these combined services in FY 2011-12 was $203,826. ...
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