ADOPTED - MAY 26, 2009

Agenda Item No. 23

Introduced by the County Services and Finance Committees of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION TO AMEND RESOLUTION #09-008 EXTENDING AN AGREEMENT WITH THE ACCIDENT FUND FOR ADMINISTRATION OF SELF-FUNDED

WORKERS’ COMPENSATION CLAIMS

RESOLUTION #09-157

WHEREAS, Ingham County has self-funded its Workers’ Compensation obligation since April 1, 1979, and wishes to continue that status; and

WHEREAS, the Accident Fund has provided Third Party Administration Services and Excess Insurance Coverage since 1998; and

WHEREAS, the Accident Fund has provided exceptional service in administering our Workers’ Compensation claims since 1998; and

WHEREAS, the Accident Fund has proposed a two-year extension of this Agreement; and     

WHEREAS, in Resolution #09-008 the Ingham County Board of Commissioners authorized a two year extension of the Workers Compensation Administration Services Agreement with the Accident Fund; and

WHEREAS, the annual cap on administrative fees to be paid the Accident Fund per claim has decreased since the adoption of Resolution #09-008, and there shall be hourly fees in addition to the administrative fees for Loss Prevention Services and Investigative Services that were not authorized in Resolution #09-008.   

THEREFORE BE IT RESOLVED, the Board of Commissioners hereby amends Resolution #09-008 and authorizes a two-year extension to the Agreement with the Accident Fund Company, commencing on January 1, 2009, to administer workers’ compensation claims in 2009, at an annual rate of $2,500.00 per claim, and in 2010 at an annual rate of $3,000 per claim to be billed and paid quarterly at an annual aggregate cost not to exceed $45,000.00.

BE IT FURTHER RESOLVED, that Ingham County will reimburse the Accident Fund Company for the actual cost of:

                        1.         Loss Prevention Services at the rate of $125.00 per hour, and

                        2.         Investigative Services at the rate of $75.00 per hour, and

3.         Workers’ Compensation Excess Insurance with specific limits of $5,000,000.00, with a $300,000.00 retention per occurrence.

ADOPTED -MAY 26, 2009

Agenda Item No. 23

RESOLUTION #09-157

BE IT FURTHER RESOLVED, that Ingham County shall pay the Accident Fund 25% of the savings derived from its use of the Preferred Provider Network after application of the Michigan Health Care Services Rules and Michigan Workers’ Compensation Fee Schedule.

BE IT FURTHER RESOLVED, that for Ingham County’s use of the Pharmacy Program, Accident Fund shall apply a dispensing fee per prescription to each claim and Ingham County shall pay Accident Fund 25% of the savings derived from the ingredient costs of prescriptions filled.

BE IT FURTHER RESOLVED, that based on estimated payroll, the Medical Care Facility will continue to pay for claims costs for their employees and the appropriate share of the annual claims handling and engineering fees.

BE IT FURTHER RESOLVED, that the Board Chairperson and County Clerk are authorized to sign appropriate documents after review by the County Attorney.

COUNTY SERVICES:  Yeas:  Celentino, Koenig, Holman, Copedge, Grebner, Vickers

    Nays:  None         Absent:  None        Approved  5/19/09

FINANCE:  Yeas:  Grebner, Nolan, Bahar-Cook, Tennis, Davis, Dougan

    Nays:  None         Absent:  None        Approved  5/20/09