Report Prepared by: Rosa M. Kindred-Winzer, Risk Analyst
Title
SUBJECT: Approval of Professional Services Agreement with Tristar Risk Management for Workers' Compensation Third Party Claims Administration and Ancillary Services through June 30, 2023 in an Annual Base Amount of $95,000 Plus Additional Fees Required for Bill Review
REPORT IN BRIEF
Approves Tristar Risk Management as the Workers' Compensation Third Party Administrator
RECOMMENDATION
City Council - Adopt a motion approving the contract for workers' compensation third party administrator for claims administration and ancillary services with Tristar Risk Management and authorizing the City Manager or Assistant City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Refer to staff for further study; or,
2. Take no action.
DISCUSSION
The City's workers' compensation program is permissibly self-insured up to $350,000 per claim with excess coverage provided by the Local Area Workers' Compensation Excess Joint Powers Authority (LAWCX).
The City utilizes Tristar as its workers' compensation third party claims administrator and ancillary services provider.
Background
The Local Agency Workers' Compensation Excess (LAWCX) Joint Powers Authority contracts with Farley Consulting Services, LLC (FCS) to audit the claims administration of its excess workers' compensation program to determine the efficiency, effectiveness, and consistency of claims administration services and the accuracy of loss experience reports. Pursuant to LAWCX's Joint Exercise of Powers Agreement, each LAWCX member must have its claims audited at least every two years. The most recent audit of City of Merced claims was conducted February 27-28, 2020. FCS was directed to review claims with incurred costs of $150,000 or more. There was a total of 21 claims meeting this threshold and each were reviewed. This audit seeks to assure the City and LAWCX that Tristar is providing effective claims administration service i...
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