Title
Staff Report for a Resolution Approving a Consulting Services Agreement with JT2 Integrated Resources for Workers' Compensation Third Party Claims Administration Services
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends the approval of a Consulting Services Agreement for three years in the amount of $345,145 for Workers' Compensation third party claims administration services with JT2 Integrated Resources plus a flat fee structure for bill review charges estimated at $198,000.
BACKGROUND
The City of San Leandro is self-insured for its Workers' Compensation program and uses a Third Party Administrator (TPA) for claims administration. The TPA's responsibility is to manage, track, and process payments for all claims reported. In the past, York Risk Services, formerly Bragg and Associates, has provided these services to the City.
During the past 18 months, Human Resources staff has implemented a number of initiatives to improve the program and decrease costs. These initiatives have focused on returning employees back to work in a timely manner, closing claims through settlements, and providing ongoing preventative training. As part of this effort, a Request for Proposals (RFP) for TPA services was issued in February 2014. Thirteen proposals were received, which were reviewed and rated. Five TPAs were invited to interview before an evaluation panel. The interview process included oral presentations, interview questions, and reference checks. JT2 Integrated Resources was identified as the most qualified TPA to provide claims administration services for the City of San Leandro.
Analysis
Contracting with JT2 Integrated Resources for TPA services is anticipated to improve the City's Workers' Compensation program in several key areas: technology, training, and reduction of overall administrative costs.
JT2's robust technology and paperless processes will help reduce delays, improve workflows and provide faster, more accura...
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