TITLE
Title
CONTRACT WITH PMA MANAGEMENT CORPORATION AS THIRD PARTY ADMINISTRATOR OF GUILFORD COUNTY LIABILITY AND WORKERS' COMPENSATION CLAIMS
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SPONSOR
Sponsor
Yvonne Moebs
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BACKGROUND
Background
Guilford County utilizes third party administrator (TPA) services to manage Liability and Workers' Compensation claims on the County's behalf, until the claim is closed or transferred to another firm at the direction of the County. The County is self-insured for Workers Compensation and carries excess insurance with self-insured retention of $750,000 per claim, and is totally self-insured for auto and general liability. PMA Management Corporation has provided TPA services for Workers Compensation and Liability claims processing and Risk Consulting Services for the County over the past five (10) years.
Bid Event 515 was released March 8, 2016 for third party administrator services to manage Liability and Workers' Compensation claims processing. One (1) bid was received from PMA Management Corporation, 2815 Coliseum Center Drive, Charlotte, NC and maximum financial exposure to the County under this contract will not exceed $316,725.00, following the annual breakdown below:
Year 1: July 1, 2021 through June 30, 2022 = $63,345
Year 2: July 1, 2022 through June 30, 2023 = $63,345
Year 3: July 1, 2023 through June 30, 2024 = $63,345
Year 4: July 1, 2024 through June 30, 2025 = $63,345
Year 5: July 1, 2025 through June 30, 2026 = $63,345
Year 1, Year 2 and Year 3 willremain flat to current pricing. Years 4 and5are subject toa maximum potential 3%increaseper year. If the cost forYear 4 is increased, thiswouldmake thecost for that year $65,243.35. lf the cost forYear 5 is increased, thiswould bring thecostforYear 5 to67,202.71. In order tocover the potential increases inYear4andYear5,thisbringsthe maximumfinancial exposure to $322,483.06 for thefive (5)year period of thisAgreement.
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BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY FUNDS REQUIRE...
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