SUBJECT/RECOMMENDATION:
Title
Approve a two-year renewal of CorVel Healthcare Corporation’s Agreement for the review of Workers Compensation Medical bills and Pharmacy Benefit Management services in the not-to-exceed amount of $170,000 for term January 1, 2020 through December 31, 2021, pursuant to Clearwater Code of Ordinances Section 2.564 (l) (i), services associated with Workers Compensation exempt from bidding; and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Council previously approved the current pricing agreement with CorVel, for the period January 1 through December 31, 2019, with a not-to-exceed amount of $120,000.
For the renewal of January 1, 2020, CorVel has proposed a two-year amendment to the original agreement which will increase the Bill Review Service Fee from $6.90/bill to $7.11/bill through December 31, 2020, and $7.32/bill through December 31, 2021. All other rates will remain the same. This is the final renewal allowed under the Council approved agreement that was initially effective January 1, 2017 thru December 31, 2017.
Staff is requesting a not-to-exceed amount of $170,000 for the two-year period of January 1, 2020 through December 31, 2021.
The new rate structure will result in an estimated 1% increase in total costs over the previous year.
APPROPRIATION CODE AND AMOUNT:
Account# 5907590-545800 $170,000