Alternative Concepts Renewal Rates_Workers' CompensationMasterpiece on the Mississippi
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
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 11, 2013
Personnel Manager Randy Peck recommends 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. Alternative Services Concepts is proposing no
increase in their fees for the contract period effective October 1, 2013 through
September 30, 2014.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Randy Peck, Personnel Manager
Masterpiece on the Mississippi
Dubuque
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All•AmericaCitV
ils
2007
TO: Michael C. Van Milligen, City Manage
FROM: Randy Peck, -P- ersonnei Manager
tF
SUBJECT: Acceptance of the Renewal Rates for Worker's Compensation Claims
Administration
DATE: October 7, 2013
On October 4, 2013, 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,
2013 to September 30, 2014.
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, 2013 through
September 30, 2014. I will send you the Administrative Services Agreement as soon as it
is available.
RP:lmh
alternative service concepts, L.L.C.
City of Dubuque, Iowa
October 1, 2013 - October 1, 2014
Two -Year Claims Handling
Service
Estimated Number
Of Claimants
Workers' Compensation
Medical Only
Indemnity
Litigation fee
Run -In Claims
Indemnity
Medical Only
Incident Reports'
7
22
Catastrophic Claims2
Estimated Minimum Claims Fee
MMSEA- AnnualTransmission
Fees(includes query & submissions)
TBD
Per - Claimant
Fee
Estimated
Total Fee
$170
$780
$300 + base fee
$1,190
$'7,160
TBD
TBD
Account Administration Fee
Systems Fee
Minimum & Deposit Claims Fee
TBD
TBD
$450
$50
$ 40
Time & Expense
$18,350
$2,100
$3,000
$2,500
$25,950
Claims will be handled for two years from the date the loss 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
Notes
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.
1 Recorded in clahns system only. Must be specified as "Incident" at time of reporting.
2 Any event resulting in 10 or more claimants and /or property losses over $50,000 will be treated as a catastrophe.
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
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
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 Co
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 Management4
hee Scheduling 28% of Savings
PPO Usage 30% of Savings
Invoicing and Payment Terms
Fees will be invoiced annually. Fees are payable upon receipt of the invoice. asc
reserves the right to charge 1'%% 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 • Professional photographs
• Medical records • Experts' / rehabilitation services
• Index Bureau reporting • Accident reconstruction
3 As required or requested. Most services are optional
' Pricing for additional managed care services is available upon request.
• Architects, contractors
• Police, fire, coroner, weather reports
• Surveillance
• Extraordinary travel at client's request
• Independent medical examinations,
MRIs, etc.
• Engineers, chemists
• Expert witness statements
• Official documents and transcripts
• Court reporters
• Managed care
State Mandated l~DI Reporting
- $3.00 per report/bill
Workers' Compensation Definitions
Medical Only Claims - Work - related claims that require medical treatment only.
• Subrogation not requited
• 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.