Alternative Services Concepts (ASC) Renewal Rates for Worker's Compensation Claims AdministrationCopyrighted
October 16, 2017
City of Dubuque Consent Items # 18.
ITEM TITLE: Alternative Services Concepts (ASC) Renewal Rates for
Worker's Compensation Claims Administration
SUMMARY: City Manager recommending City Council approval of the
renewal rates from Alternative Services Concepts for
services related to the administration of the City's Worker's
Compensation Program effective October 1, 2017 through
September 30, 2018.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Worker's Compensation Claims Administration Renewal City Manager Memo
Rates -MVM Memo
Staff Memo
Alternative Service Concepts Document
Staff Memo
Supporting Documentation
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
bell
All -America City
'1Il1'
2007 • 2012 • 2013 • 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Acceptance of the Renewal Rates for Worker's Compensation Claims
Administration
DATE: October 10, 2017
Personnel Manager Randy Peck is recommending City Council approval of the renewal
rates from Alternative Services Concepts for services related to the administration of the
City's Worker's Compensation Program effective October 1, 2017 through
September 30, 2018. There is no increase in Alternative Services Concepts' fees.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Randy Peck, Personnel Manager
Masterpiece on the Mississippi
Dubuque
2007 • 2012 • 2013 • 2017
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Acceptance of the Renewal Rates for Worker's Compensation Claims
Administration
DATE: October 6, 2017
I received the renewal rates from Alternative Services Concepts (ASC) for services
related to the administration of the City's Worker's Compensation Program. ASC is
proposing no increase in their fees for the contract period of October 1, 2017 to
September 30, 2018.
The requested action is for the City Council to pass a motion approving the renewal
rates for our workers compensation claims administration effective October 1, 2017
through September 30, 2018. I will send you the Administrative Services Agreement as
soon as it is available.
RP:alk
New Claims
Service
Alternative Service Concepts, LLC
City of Dubuque, Iowa
October 1, 2017 - October 1, 2018
Two -Year Claims Handling
Workers' Compensation
Medical Only
Indemnity
Litigation fee
Run -In Claims
Indemnity
Medical Only
Incident Reports1
Catastrophic Claims2
Estimated Minimum Claims Fee
MMSEA- Annual Transmission
Fees(includes query & submissions)
Account Administration Fee
Systems Fee
Minimum & Deposit Claims Fee
Estimated Number
Of Claimants
4
20
TBD
TBD
TBD
TBD
TBD
Per -Claimant Estimated
Fee Total Fee
$170
$780
$300 + base fee
$450
$50
$40
$ 680
$15,600
$16,280
$2,100
$3,000
$2,500
$23,880
Claims will be handled for two years from the date the Toss is reported to ASC with
no additional per claim fee. Any claim remaining open after 24 months will be subject
to an annual maintenance fee of $450.00
1 Recorded in claims system only. Must be specified as "Incident" at time of reporting.
1Catastrophic claims — Any event resulting in 10 or more claimants/suffixes will be treated as a catastrophe
and billed the quoted per claim rate for the first 10 claimants/suffixes and any claim/suffix over 10 will be
billed at a per claim rate of $350 per claim.
ASC will handle the number of claims indicated for the minimum claims fee. If the fee for
the actual number of claims is more than the minimum claims fee, ASC will invoice the
client for the difference.
The account administration fee will be 7.5% of the claims fee or $3,000, whichever is
greater. The administration fee includes:
• Account Setup
• New Claim Setup
• Client Meetings (Frequency to be Determined)
• Excess Reporting
• State Reporting
• Storage Fees
At the conclusion of the contract, the following options are available for continued
handling of open claims:
• Negotiated annual fee per claim
• Claims returned to client
Subrogation Pursuit and Recovery
All parties will automatically be placed on notice if the potential for subrogation exists.
Pursuit of subrogation will be performed at the client's request. Pursuit of recovery fee
is 15% of recovery.
Additional Services and Fees3
Client Data Transmission $2500 Per Release
Carrier Data Transmission $400 Per Release
State -Mandated EDI $3 Per Report/Bill
Computer'Compatible Checks & Electronic Transfers At Cost
Data Conversion From Prior Administrator At Cost
On -Line Access (One User) No Charge
Additional Users $60 Per User Per
Month
Reports Produced by Client No Charge
Reports Produced by ASC $50 Per Copy
Systems Training T&E ($85 Per Hour)
Customized Programming T&E ($/Hour)
Actuarial Data Requests ,$50 Per Hour
Travel Over 100 Miles T&E ($85 Per Hour)
Outside Investigation T&E ($85 Per Hour)
Medical Cost Management'
Fee Scheduling 28% of Savings
PPO Usage 30% of Savings
3 As required or requested. Most services are optional.
4 Pricing for additional managed care services is available upon request.
Invoicing and Payment Terms
Fees will be invoiced annually. Fees are payable upon receipt of the invoice. asc
reserves the right to charge VA% per month or the maximum legal rate on unpaid
balances after 30 days.
Allocated Expenses
Allocated expenses will be charged to the claim file and include fees for:
• Legal services
• Medical records
• Index Bureau reporting
• Architects, contractors
• Police, fire, coroner, weather reports
• Surveillance
• Extraordinary travel at client's request
• Independent medical examinations,
MRIs, etc.
• Professional photographs
• Experts' / rehabilitation services
• Accident reconstruction
• Engineers, chemists
• Expert witness statements
• Official documents and transcripts
• Court reporters
• Managed care
Workers' Compensation Definitions (for billing purposes on per claim fee contracts)
Medical Only Claims - Work-related claims that require medical treatment only.
• Subrogation not required
• Investigation sufficient to determine claim type and compensability
• Lost days do not exceed statutory waiting period
• No loss notices, captioned reports, client meetings, or settlement authority required
• Payments do not exceed $2,500
• Two-point contact made
Indemnity Claims - Work-related claims that involve disability or payment of medical and
other expenses in excess of $2,500. Claims that require investigation for subrogation
and settlement negotiations.
All claims, regardless of type, will be investigated, evaluated, and adjudicated in
accordance with state statutory requirements and corporate guidelines.