CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of RFP 22-034, Third Party Administrative Services for Workers Compensation Claims to, Insurance Program Managers Group for an amount not to exceed $104,650 and for a three-year term
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DEPARTMENT: Legal Department
SUBMITTED BY: Michael DiSanto, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City has been self-insured for workers' compensation since August 1, 1979. Due to the specialized nature of the work and regulations associated, the City determined it is appropriate to outsource administration of the program to a third-party administrator (TPA). The TPA approves medical treatments, monitors employee progress, provides referrals to medical experts for IME's, AMA ratings and utilization review and serves as a point of contact for employees to answer questions as to their treatments and claims. The TPA also reprices all medical bills to conform with Illinois Fee Schedule and any PPO network reductions. Finally, the TPA issues any required TTD checks, sets reserve amounts for liability purposes and runs a variety of loss run reports for the City using specialized software. The City currently uses PMA as it's TPA.
In January 2022, the Legal Department issued RFP 22-034, Third party Administrative Services for Workers Compensation Claims (TPA) to contract with a firm capable of administering the City's self-insured workers' compensation program.
The initial term of the contract will be three years, from date of award and with an anticipated start date of May 1, 2022. The contract may also be extended for up to three additional one-year terms.
DISCUSSION:
Advertisement Date: 1/10/2022 Notices Sent: 119
Proposal Due Date: 2/02/2022 Planholders: 16
Proposals Received: 2
Proposals were received from the following vendors:
Insurance Program Managers Group (IPMG)
PMA Management Corporation
A selection team comprised of staff from the Legal, Finance and Fire departmen...
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