REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Brittany Mello, Deputy Director of Administrative Services
Subject:
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Approve and authorize execution of three-year Professional Services Contracts for Workers' Compensation managed care services with Lien on Me, Inc., for Bill Review, and Arissa Cost Strategies, LLC, for Utilization Review; and authorize a two-year contract extension with Acclamation Insurance Management Services (AIMS) to serve as the Third-Party Administrator of the City's Workers' Compensation Program
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Statement of Issue:
The City of Huntington Beach issued a Request for Proposals (RFP) for Managed Care Services in support of the administration of its self-insured Workers' Compensation program. Staff recommends awarding three-year, fixed-fee contracts to the most responsive bidders for each program: Lien on Me for Medical Bill Review services, and Arissa Cost Strategies for Utilization Review services. Additionally, staff recommends a two-year contract extension with the City's current third-party administrator of Workers' Compensation program, Acclamation Insurance Management Services (AIMS).
Financial Impact:
These services will be funded out of the Workers' Compensation Internal Services Fund (551). The proposed contract with Lien On Me is for an amount not to exceed $525,000 for a three-year period. The proposed contract with Arissa Cost Strategies is for an amount not to exceed $300,000 for a three-year period. For the prior contract period from 2018 - 2021, AIMS provided a three-year flat rate of $446,691 per year. The proposed two-year contract extension for 2021 - 2023 is for $460,091 per year, a modest 3% increase. The Funds for Fiscal Year (FY) 2021/22 have been included in the approved budget. No additional appropriation is required.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and City Cle...
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