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File #: DC-3965    Version: 1
Type: Consent Action Status: Passed
File created: 11/8/2024 In control: Board of Commissioners
On agenda: 12/3/2024 Final action: 12/3/2024
Enactment date: 12/3/2024 Resolution #: 24-584
Title: Authorization To Execute Contract With SFM Risk Solutions, Inc. For Administration Of Workers' Compensation Claims
Sponsors: Office Of Risk Management
Attachments: 1. WC TPA Contract Cost Trending
DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action

TITLE
title
Authorization To Execute Contract With SFM Risk Solutions, Inc. For Administration Of Workers' Compensation Claims
end

PURPOSE/ACTION REQUESTED
Authorize the Enterprise Finance and Information Services Director to execute a contract with SFM Risk Solutions, Inc. for administration of workers' compensation claims.

SUMMARY
Since 1990, Dakota County has been self-insured for workers' compensation claims and has contracted for administration of claims through a third-party administrator (TPA). Dakota County has utilized the services of SFM Risk Solutions, Inc. (SFM), since October 2013 when our previous long term TPA- RTW, Inc. (RTW) abruptly exited the TPA market.

SFM is the leading workers' compensation insurer in the midwest, serving businesses of all sizes and types in 16 states. Since assuming our business in 2013, SFM has provided quality customer service and management of County employee's workers compensation claims. Staff has found SFM to be responsive to Dakota County's needs. At the County's request, SFM has provided a dedicated claims manager. A dedicated claims manager provides a single point of contact for conducting business and strong communication lines which is especially important in the management of lost time claims.

On September 3, 2024, staff issued a Request for Proposal for Third Party Administration of Workers' Compensation Claims. Two vendors responded to the solicitation and proposals were reviewed and rated by staff based on qualifications, experience of the proposer, services included references, intangibles, and service fees. Two TPA vendors responded to the requests for proposals: SFM and PMA, companies.

SFM provided the most competitive quote for TPA services, maintaining a cost-of-living increase in annual costs. SFM has a close working relationship with several other counties and municipalities in Minnesota and understands the complexities of handlin...

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