Number
150625
Version
Substitute 1
Reference
Sponsor
ALD. KOVAC
Title
Substitute resolution authorizing the Department of Employee Relations to explore engaging a third-party administrator for the City’s Workers’ Compensation program.
Analysis
This resolution authorizes the Department of Employee Relations to explore the business case for a self-funded workers’ compensation program with a third-party administrator.
Body
Whereas, Most Wisconsin counties and municipalities have workers’ compensation programs that are self-funded but not self-administered; and
Whereas, There are third-party administrators for public employers with a sole focus on workers’ compensation claims services; and
Whereas, Self-administration of a workers’ compensation program requires significant investment in infrastructure systems and interfaces with vendors for bill review, re-pricing and processing payments; and
Whereas, State law regarding workers’ compensation programs involves knowledge concerning compliance analysis and implementation issues; and
Whereas, Concerns about employee privacy and potential conflicts of interests may arise when an employer self-administers a workers’ compensation program; and
Whereas, The City wants to consider the value of a third-party administrator relative to administration and cost of a workers’ compensation program; and
Whereas, Willis of Wisconsin, as part of its current consulting services, is qualified to assist with this review, including a Request for Proposal process; and
Whereas, The City will have an opportunity after this review, when a recommendation is provided to the Finance and Personnel Committee, to determine the best options regarding costs and administration of the City’s Workers’ Compensation program; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Employee Relations is authorized to explore engaging a third-party administrator for the City’s Workers’ ...
Click here for full text