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File Number: 17-181 <br />Tristar Insurance Group <br />York Risk Services Group, Inc. <br />A comprehensive review and evaluation process was conducted, including the screening of all <br />proposals by each agency individually, oral presentations, an external interview panel, and an <br />internal interview panel. The top ranking vendors were invited to participate in the internal <br />panel interviews. The City of San Leandro’s internal panel, which consisted of representatives <br />from the Police, Public Works and Finance Departments, unanimously selected Intercare as <br />the most qualified TPA to provide claims administration services for the City. Reference <br />checks were completed and all those contacted were highly satisfied with the overall services <br />provided by Intercare. <br />DISCUSSION <br />Intercare Holdings Insurance Services, Inc. is a licensed provider of third party claims <br />administration and has been providing Workers’ Compensation TPA services for over 20 <br />years. Intercare works with a wide range of public entities across the state of California <br />including City of San Jose, City and County of San Francisco, Berkeley Unified School <br />District, and the City of Napa. Intercare provides effective claims management administration <br />with a focus on delivering a superior level of service with a cost effective service model. <br />Intercare brings several innovative, value-added services to the City’s Workers’ Compensation <br />program that will provide enhanced customer service to employees. This includes Intercare’s <br />InterConnect program, in which adjusters will visit injured workers at City facilities to discuss <br />benefits, documents, and/or other questions or concerns they may have about their claims. <br />The InterAct Program brings stakeholders together to discuss claims status, medical <br />management, return-to-work possibilities, settlement, disposition strategies and other matters <br />than can move claims to resolution. This high touch service from claims professionals is <br />proven to reduce litigation rates, shorten claim duration rates and lower claims costs. <br />The proposed agreement will result in a cost reduction in TPA administrative and bill review <br />fees. Currently, the City pays $117,145 in annual administration fees and $39 per bill for bill <br />review. The agreement with Intercare will cost $97,400 in annual administration fees and $16 <br />per bill for bill review, with an increase of three percent to the administration fee each year. <br />This represents an annual savings of $19,745 in administrative fees and an approximate <br />$30,705 savings in bill review costs based on an average of 1,335 bills per year. <br />Fiscal Year Annual Fee Bill Review <br />2017-18 $97,400 $21,360 <br />2018-19 $100,322 $21,360 <br />2019-20 $103,332 $21,360 <br />TOTAL $301,054 $64,080 <br />If the resolution is approved, Human Resources staff will work closely with Intercare to ensure <br />a smooth transition, and to meet the training and support needs of each department. Upon <br />execution of the agreement, Intercare will work with JT2 to receive data and will take over the <br />account and all associated claims services effective June 1, 2017. <br />Page 2 City of San Leandro Printed on 4/10/2017 <br />57