Number
260261
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the Department of Employee Relations to issue a request for proposal for the administration of the City’s Workers’ Compensation Benefits Plan.
Body
This resolution authorizes the Department of Employee Relations to issue a request for proposal for third-party administration of the City’s self-insured workers’ compensation program. Following the request for proposal process, the Department of Employee Relations, together with Gallagher Benefit Services, Inc., the City’s benefits consultant, will evaluate the proposals received and return to the Common Council for approval of any resulting contract.
Whereas, The City of Milwaukee currently self-insures its workers’ compensation benefits and outsources claims administration functions to a third-party administrator; and
Whereas, The Common Council previously authorized the Department of Employee Relations to enter into a contract for workers’ compensation third-party administrator services, and thereafter authorized an extension of the current contract for workers’ compensation claims administration services; and
Whereas, The current agreement with CorVel for third-party administration services was originally effective April 1, 2018, and has since been amended, including pricing and service updates for the period of April 1, 2024 through March 30, 2026; and
Whereas, The current agreement includes claims administration, managed care services, care advocacy services, reporting, and performance guarantees related to the administration of the City’s workers’ compensation program; and
Whereas, As the City approaches the expiration of the three-year contract extension ending March 31, 2027, it would be fiscally prudent and in the City’s best interest to conduct a request for proposal process to solicit competitive proposals and evaluate available third-party administrator options, service models, performance expectations, technology capabilities, and pricing for workers’ compensation services; and
Whereas, Issuing a request for proposal will allow the Department of Employee Relations to assess the marketplace and determine the most efficient and effective approach for future administration of the City’s workers’ compensation program; and
Whereas, The Department of Employee Relations will retain the services of Gallagher Benefit Services, Inc., the City’s benefits consultant, to lead the request for proposal process on the City’s behalf; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Employee Relations is authorized to issue a request for proposal for third-party administration of workers’ compensation services; and, be it
Further Resolved, That the Department of Employee Relations is directed to evaluate proposals received through the request for proposal process, including service capabilities, implementation approach, performance standards, cost, and other factors deemed relevant to the City’s interests; and, be it
Further Resolved, That the Department of Employee Relations shall return to the Common Council for approval of any proposed contract resulting from the request for proposal process, as required.
Drafter
Department of Employee Relations
Molly King
7/3/2026