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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.