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CC - Approval of a Professional Services Agreement with California Claims Management Services (CCMS) in an Amount Not-to-Exceed $288,000 Annually for a Three-Year Term Ending on June 30, 2018 to Provide Workers Compensation Administration Services
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Contact Person/Dept: Serena Wright
Phone Number: (310) 253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/23/15)
Department Approval: Serena Wright, Human Resources Director (09/22/15)
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RECOMMENDATION
Staff recommends that the City Council approve a professional services agreement with California Claims Management Services (CCMS) in an amount not-to-exceed $288,000 annually for a three-year term ending on June 30, 2018 to provide workers compensation administration services.
BACKGROUND
The City is self-insured for its worker's compensation program up to $1 million per claim. The City participates in a Joint Powers Authority, Independent Cities Risk Management Authority (ICRMA), for the purposes of purchasing pooled insurance coverage for claims between $1 million and $5 million and for excess insurance above $5 million up to $25 million.
In July 2009, Risk Management staff sent out an informal proposal to four full service third-party administrator firms for professional services in the following three key areas: 1) claims administration, 2) medical bill review services, and 3) utilization review services. Based on the evaluation of the submitted proposals, CCMS was selected as the City's Third Party Administrator (TPA). The contract with CCMS was renewed on October 8, 2012 for three-years and is d...
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