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Approve contract amendment number 1 with Athens Administrators, Inc. for $881,516, for a total contract amount of $2,110,891 for third-party administration of workers' compensation claims services through June 30, 2020; and Authorize the County Administrator to execute the amendment
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Director of Human Resources recommends approval of contract amendment number 1 with Athens Administrators, Inc. for $881,516, for a total contract amount of $2,110,891 for third-party administration of workers' compensation claims services through June 30, 2020; and Authorize the County Administrator to execute the amendment.
SUMMARY:
On March 24, 2015, the Board approved the contract with Athens Administrators, Inc. to provide third party claims services for workers' compensation for the period July 1, 2015 through June 30, 2018, with an option to extend the contract for two additional one-year terms, through June 30, 2020. This contract amendment allows for the services to continue uninterrupted.
FINANCIAL IMPACT:
The proposed amendment includes fees totaling $434,318 (July 1, 2018 to June 30, 2019) and $447,198 (July 1, 2019 to June 30, 2020). These costs will be included in the Department of Human Resources' annual budgets. Workers' compensation costs are recovered through charges back to the departments, including the allocated loss adjustment expenses (ALAE) that are charged through the claim.
DISCUSSION:
Solano County is permissibly Self-Insured for workers' compensation insurance. Third-party administrators are companies that Self-Insured employers contract with to administer the claims administration process. The process of properly and effectively administering claims is very complex as there are numerous mandated deadlines in which actions must be taken, the process of claims reserves is governed by a wide body of ...
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