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File Number: 14-174 <br />Contracting with JT2 Integrated Resources for TPA services is anticipated to improve the <br />City’s Workers’ Compensation program in several key areas : technology, training, and <br />reduction of overall administrative costs. <br />JT2’s robust technology and paperless processes will help reduce delays , improve workflows <br />and provide faster, more accurate claims administration. Their integrated claims system <br />offers customized, online reporting which will allow the City to easily conduct data analysis, <br />monitor costs and trends, and manage the administrative processes efficiently . <br />JT2 offers various training options to educate employees on the Workers’ Compensation <br />claims process and how to navigate the process from filing a claim, receiving medical care <br />and disability benefits, to returning to work. JT2 also offers customized training that can be <br />geared towards a department’s specific needs , which is very useful in managing safety <br />injuries. <br />The proposed agreement will result in a cost reduction in TPA administrative fees and bill <br />review services. The City currently pays $118,800 annually under the existing TPA <br />agreement. The proposed agreement would be for the three-year period of June 1, 2014 <br />through May 31, 2017. The proposed annual fees are shown below and would result in a <br />savings of $11,255 over three years. <br />Fiscal Year Annual Fee <br />2014-15 $113,150 <br />2015-16 $114,850 <br />2016-17 $117,145 <br />TOTAL $345,145 <br />In addition to the annual fee savings, the City will see savings in charges for the review of <br />medical bills. Medical bill review is a separate administrative fee under the terms of a TPA <br />agreement. The proposed agreement charges a flat fee per each bill reviewed as opposed to <br />a variable percentage fee structure. The City has paid approximately $314,000 in bill review <br />charges over the past three years under the existing TPA agreement . Under the proposed <br />agreement and based on the City’s prior three year average of 1,690 bills per year, bill review <br />is estimated to cost $198,000 over the next three years which is a projected savings of <br />$116,000. <br />In addition, the City will greatly benefit from a fresh perspective on current claims. It is <br />anticipated that JT2 will present new ideas and strategies related to claims administration and <br />disability management. This will assist staff in continuing the quality of care for injured workers <br />while containing costs for the City. <br />Upon approval of the agreement, Human Resources staff will work closely with JT 2 to ensure <br />a smooth transition. JT2 will take over the City’s account and all open claims effective June 1, <br />2014. As of March 30, 2014, the City had 103 open claims. <br />Previous Actions <br />·On June 15, 1998, by Resolution No. 98-65, the City Council awarded an agreement to <br />Gregory B. Bragg and Associates for Worker’s Compensation Administration Services . <br />Page 2 City of San Leandro Printed on 5/13/2014