Title
Recommendation to Authorize the City Attorney to Execute a Five-Year Agreement with LWP Claims Solutions, Inc. for Professional Services as the Third-Party Administrator of the City of Alameda's Self-Insured Workers' Compensation Program in an Amount Not-to-Exceed $1,306,453 for Five Years, Plus Related Medical Containment Costs and Program Charges. (City Attorney 61023040)
Body
To: Honorable Mayor and Members of the City Council
From: Yibin Shen, City Attorney
EXECUTIVE SUMMARY
The City of Alameda (City) has contracted with LWP Claims Solutions, Inc. (LWP) for Professional Services for services to administer the City's self-insured workers' compensation program since July 2021. The current agreement with LWP ends June 30, 2026. The staff is recommending that the City Council authorize the City Attorney to execute a renewal agreement with LWP for professional services as the Third-Party Administrator (TPA) of the City's self-insured workers' compensation program for the period from July 1, 2026 through June 30, 2031. The proposed annual claims administration fees and administration fees are as follows:
FY 2026-27 $245,631
FY 2027-28 $252,850
FY 2028-29 $260,285
FY 2029-30 $269,220
FY 2030-31 $278,467
Additional fees for medical containment costs, including bill review, case management, utilization review, and access to LWP's proprietary provider network, as well as other program services will be billed on an as-incurred basis.
BACKGROUND
Workers' compensation, which is mandated by the State Labor Code, provides medical treatment coverage, temporary and permanent disability payments, survivor's death benefits, and total disability pension benefits for employees, officers and elected officials suffering from an industrial injury or illness. The City self-insures for workers' compensation and contracts with a TPA to administer claims. The TPA model allows the City to benefit from professional, experienced claims handlers who are able to draw ...
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