Agenda Item # 1
Columbus Consolidated Government
Council Meeting
05/28/2013
Agenda Report # 80
TO: Mayor and Council
SUBJECT: Workers Compensation Services
INITIATED BY: Human Resources-Risk Management Division
Recommendation: Approval is requested for a change in provider of Workers
Compensation medical management, adjusting and loss control services, effective
September 1, 2013. Approval is requested to utilize the State of Georgia
contract to obtain these services through AmeriSys/USIS and Public Risk
Underwriters. Estimated first year administrative cost for medical management
and adjusting services is $385,000, compared to our current provider?s
administrative cost of $451,000. Loss control services, which would include
some services not currently available, would be an additional $24,000 the first
year, decreasing thereafter.
Background: The 51% increase in workers compensation claims expense over the
last five years, combined with the changing face of healthcare nationally, has
made it necessary for the City to look at switching its program from a panel
system of doctors to a Managed Care Organization (MCO) system. The additional
considerations of providing better service to our employees while managing
claims in a more directed manner to reduce overall costs support this change to
our program.
Analysis: The best interests of CCG, its taxpayers and its employees will be
served by making this change.
Financial Considerations: Our current provider?s administrative charges for
FY13 are greater than $451,000. Some services that will be available to us
through the change are not offered by our current provider.
Projected Annual Fiscal Impact Statement: It is anticipated that workers
compensation claims costs for FY13 will approach $3.5 million. Dramatic
reductions in costs cannot be achieved overnight, but without this change in
the City?s direction the dramatic rise in claims costs will continue.
Legal Considerations: Council must approve this action by resolution.
Recommendations/Actions: Approve the Resolution authorizing the City Manager
to negotiate and execute an agreement for the provision of workers compensation
services AmeriSys/USIS/Public Risk Underwriters.
A RESOLUTION
NO. _____
A RESOLUTION TO AUTHORIZE AND DIRECT THE EXECUTION OF AN AGREEMENT
WITH AMERISYS/USIS FOR THE PROVISION OF WORKERS COMPENSATION MEDICAL
MANAGEMENT AND ADJUSTING SERVICES.
WHEREAS, the provision of high quality medical services to employees of
the Columbus Consolidated Government injured while on the job is a priority to
Council and management; and,
WHEREAS, efficient and effective management of the claims submitted by
said employees is also a priority to Council and management; and,
WHEREAS, it has been determined that both priorities may be met by
utilizing the State of Georgia contract to obtain the services of a Managed
Care Organization.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS
FOLLOWS:
The City Manager is hereby authorized to negotiate and execute an
agreement for the provision of workers compensation medical management,
adjusting and loss control services with AmeriSys/USIS/Public Risk
Underwriters, such agreement to take effect September 1, 2013.
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________ day of _____________ 2013, and adopted at said meeting by the
affirmative vote of
_____________ members of said Council.
Councilor Allen voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_____________________________
_________________________
Tiny B. Washington, Clerk of Council , Mayor
Attachments
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