SUBJECT/RECOMMENDATION:
Title
Approve an agreement with Commercial Risk Management, Inc., of Tampa, Florida, for the management and administration of workers compensation claims, for a one-year term and three annual renewal terms, pursuant to City Code Section 2.564 (l) (i), services associated with Workers Compensation exempt from bidding; and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The Risk Management Division of the Finance Department has a short-term agreement as of June 2017 with Commercial Risk Management (CRM), a third-party administrator, for administration of workers compensation claims including lost time claims, claims involving litigation, complex medical claims, and medical only claims (when warranted). This agreement was implemented to supplement claims handling by our current workers compensation Risk Management Specialist.
In June 2017, when the Senior Risk Management Specialist resigned, it was determined that pending claims and new claims did not justify filling this vacancy. CRM was retained on a trial basis to handle designated complex claims that were received after June 2017. CRM was chosen based on their experienced staff which has low turnover and longevity with their clients.
The annual contract retains the same fee structure as the current short-term agreement, effective June 2017 through January 2018. For Indemnity/Lost Time claims the fee is $1,000, and for Medical only claims, $250. Complicated Medical Only claims, and/or Claims needing investigation have a fee of $500.
The initial annual term of the Agreement will commence February 1, 2018. Subsequent annual renewals will be documented in writing by both parties, for up to three renewals of one-year each. Each annual renewal will be brought back to Council for approval.
The retention of Commercial Risk Management to administer and manage our more complex and litigative claims will provide Risk Management and the City greater effectiveness in the investigative and fiscal management of our Workers Compensation claims program. Staff projects that a maximum of 20 - 25 claims annually will be referred for their services.
APPROPRIATION CODE AND AMOUNT:
Account # 590-07590-545800-519-000-0000 $25,000