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Report regarding a resolution approving an agreement with Athens Administrators for worker's compensation claims administration services for a total amount of $620,977 for July 1, 2019 through June 30, 2022. (Leah Lockhart, Human Resources Director)
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RECOMMENDATION
Recommendation
It is recommended that Council adopt a resolution approving an agreement with Athens Administrators for worker's compensation claims administration services for a total amount of $620,977 for July 1, 2019 through June 30, 2022.
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BACKGROUND
The City of South San Francisco is a self-insured employer for worker's compensation claims, up to a self-insured retention (SIR) of $500,000. In order to maintain an effective and compliant claims administration program, the City contracts with a third-party administrator (TPA) for claims administration. For this service, the City has contracted with Tristar Risk Management since 1987, with service agreement renewal on a year-to-year basis. In 2018, the City experienced a significant rate increase, in part due to substantial increase in open worker's compensation claims. In order to ensure the City maintained a cost-effective program with a high service level, staff sought to review other options for third-party administrators prior to recommending renewal of the City's current agreement for 2019-2020.
DISCUSSION
A request for proposals (RFP) was issued in March 2019 for a three-year contract beginning July 1, 2019 with the option to renew for two additional one-year periods. A total of six proposals were received and reviewed by Human Resources staff (Human Resources Director, Human Resources Manager, and Human Resources Analyst). Proposals were evaluated based on the degree to which the proposals met the stated requirements of the City, resulting in a short list of four proposers for further consideration. The short list of proposers included:
Athens Administrators
Intercare Holdings Insurance Services
Tristar Risk M...
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