Title
Human Resources Department, Risk Management Division, recommending the Board:
1) Make findings in accordance with County Ordinance 3.13.030 that it is appropriate to contract with Sedgwick (formerly known as York Risk Service Group) as the County’s third party administrator for Workers’ Compensation tail claims because (B) “Specialty skills and qualifications not expressly identified in classifications are involved in the performance of the work;”
2) Approve and authorize the Chair to sign Amendment III for the continuation of perpetual agreement 3360 with Sedgwick (formerly known as York Risk Service Group) as the County’s third party administrator for Workers’ Compensation tail claims, with a total not-to-exceed amount of $122,033.04 for the period of November 1, 2021 - October 31, 2022; and
3) Approve the new pricing proposal as submitted by Sedgwick.
FUNDING: Workers’ Compensation Fund.
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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 Sedgwick which does not have a stated contract term. In addition, as tail claims continue to close, Sedgwick has submitted a new pricing proposal with a price reduction for the Workers’ Compensation Administration Fee. The annual cost has been reduced from $140,264.04 to $122,033.04 for a savings of $18,231, 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 Sedgwick for claims management. However, a determination was made that it was necessary to obtain Sedgwick as the claims third-party ad...
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