Title
Workers' Compensation Administration Services
Action
Action:
A. Approve a contract with Sedgwick Claims Management Services, Inc. for workers' compensation claims administration services for an initial term of three years, and
B. Authorize the City Manager to renew the contract for up to two, one year terms with possible price adjustments and to amend the contract consistent with the City's business needs and the purpose for which the contract was approved.
Body
Staff Resource(s):
Randy Harrington, Management and Financial Services
Dan Pliszka, Management and Financial Services
Explanation
* The Risk Management Division of Management and Financial Services currently processes Workers' Compensation claims for the City of Charlotte, Mecklenburg County, Charlotte-Mecklenburg Board of Education, Charlotte Regional Visitors Authority, and MEDIC. Business, technology, resourcing, and regulatory needs have necessitated a review of the current Workers' Compensation service approach.
* Following year-long review by staff and the Privatization and Competition Advisory Committee (PCAC), it is recommended that the processing of City Workers' Compensation claims be transferred to a third-party administrator for the following reasons:
* Avoids the cost of risk management computer system upgrades;
* Enhances regulatory compliance with Medicare and Medicaid;
* Enhances regulatory compliance with the North Carolina Industrial Commission;
* Streamlines service delivery; and
* Moves the workers' compensation system to a nearly paperless model.
* On February 9, 2017, the PCAC unanimously recommended this service model change. Sedgwick Claims Management Services, Inc. will supervise, administer, manage, and provide Workers' Compensation claims handling and claims management services to the City of Charlotte.
* Charlotte is currently one of only two local governments in North Carolina that administers workers' compensation claims in-house.
* As the third par...
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