Broken Arrow City Council
Meeting of: 03-07-2017
To: Mayor and City Council
From: Office of the City Manager
Title:
title
Consideration, discussion, and possible approval of and authorization to execute a Service Agreement between Jerry Whorton, LLC (dba Consolidated Benefits Resources) and the City of Broken Arrow to provide services for Workers' Compensation claims administration
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Background:
The City provides Workers' Compensation benefits to employees through a self-insured program. With this concept, the City contracts with a third party administrator to administer the program and pay claims.
The City has utilized Claims and Risk Services, Inc. as the Workers' Compensation third party administrator since 1999. It has been a struggle gaining access to data and having the ability to actively mitigate costs with the current program. It is staff's desire to ensure the plan is being managed in alignment with industry best practices for cost-containment, while providing assistance to the employee. With this in mind, staff elected to solicit proposals from third party administrators.
Five proposals were received and the staff selected and interviewed four finalists. The priorities for the Workers' Compensation program administration include: cost of service, quality of service, cost containment and technology. Every effort was made to objectively evaluate the respondents based on their capabilities specific to the priorities listed above.
The respondents were given an overview of the approximate claims the City experienced in 2016 to establish their pricing. However, it was difficult to compare administrative fees due to differences in pricing models. For example, some companies charge a flat fee for all services rendered while others charge per claim type for services rendered.
Upon completion of assessing the proposals received and conducting the interviews, Consolidated Bene...
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