DATE: November 14, 2017
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Agreement for Third Party Administration & Associated Ancillary Services
RECOMMENDED ACTION(S):
Title
1. Hear and consider appeal from Risico Claims Management regarding recommended award of Third Party Administration and associated ancillary services to Acclamation Insurance Management Services.
2. Approve and authorize Chairman to execute an Agreement with Acclamation Insurance Management Services for workers' compensation third party claims administration and associated ancillary services, effective January 1, 2018, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $11,893,917.
Report
Pursuant to your Board's direction during the October 31, 2017 hearing, the Department has included additional information regarding the evaluation worksheet and review of cost proposals for the four proposals submitted.
Should your Board deny the appeal of Risico Claims Management (Risico), it is recommended that your Board approve and authorize the proposed agreement with Acclamation Insurance Management Services (AIMS) for Third Party Administration (TPA) and associated ancillary services for the County's self-insured Workers' Compensation Program. Both the County Administrative Officer (CAO) and Purchasing Manager have reviewed and considered the appeal pursuant to the County's appeal process and recommend that the appeal be denied.
As with the current TPA agreement, the cost of the recommended agreement with AIMS will be part of program costs recovered through the Risk Management workers' compensation rates, with no increase in Net County Cost.
ALTERNATIVE ACTION(S):
Your Board could require the services to be re-bid; however, the agreement with the existing vendor, Risico, will expire on December 31, 2017, and disruption of claims management and ancillary se...
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