Title
Human Resources Department, Risk Management Division, recommending the Board:
1) Approve and authorize the continuation of perpetual agreement 3360 with York Risk Services Group, Inc. as the County’s third party administrator for Workers’ Compensation tail claims; and
2) Approve and authorize the Chair to sign the First Amendment to Agreement 3360 extending the expiration date for one year and agreeing to the new, lower pricing proposal as submitted by York Risk Services, Inc. with a total not-to-exceed amount of $165,017 retroactive to November 1, 2019 through October 31, 2020.
FUNDING: Workers’ Compensation Fund.
Body
DISCUSSION / BACKGROUND
In accordance with Board Policy Number C-17, departments are required to obtain authorization from the Board of Supervisors to utilize any contract that does not have a stated contract term on an annual basis. The Human Resources Department, Risk Management Division, has a Board approved contract with York Risk Services Group, Inc. which does not have a stated contract term. In addition, York has submitted a new pricing proposal with pricing reductions, the most significant of which is the Workers’ Compensation Administration Fee. The annual cost has been reduced from $208,233 to $165,017, for a savings of $43,216, with no impact to services provided to the County. The Human Resources, Risk Management Division is recommending the Board authorize the continued use of this agreement.
In September 2018, the County entered into a Primary Workers’ Compensation (PWC) program wherein no new claims would be submitted to York Risk Services for claims management. However, a determination was made that it was necessary to obtain York as the claims third-party administrator (TPA) for the administration, investigation, adjustment, utilization review, bill review and case management for tail claims (claims incurred prior to September 2018).
ALTERNATIVES
The Board could choose not to approve the agreement and Risk Management could find and use a different third party administrator for tail claims.
PRIOR BOARD ACTION
10/30/2018 Legistar Item 18-1418 - Board approval of Agreement 3360
OTHER DEPARTMENT / AGENCY INVOLVEMENT
CAO, Procurement and Contracts
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
Funding for the agreement is included in the Risk Management Workers’ Compensation Program budget for Fiscal Year 2019-2020. Costs are recouped from County departments through cost applied internal charges.
CLERK OF THE BOARD FOLLOW UP ACTIONS
None.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Tameka Usher