DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Contract Amendment 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 second contract amendment with SFM Risk Solutions, Inc. (SFM) 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, since October 2013.
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 exceptional customer service and management of County employee's workers compensation claims. Staff has found SFM to be extremely responsive to Dakota County's needs.
In 2015, Risk Management completed a survey of similarly sized, self-insured entities and worked with the County's insurance broker to identify vendors to solicit proposals for TPA services. Three TPA vendors were sent requests for proposals: SFM, Corvel, Inc. and Gallagher Basset. At that time, SFM provided the most competitive quote for TPA services, and has maintained a modest 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 handling workers' compensation for government entities. Dakota County has been pleased with the services provided by SFM and the claims handling of our larger and more complex workers' compensation claims.
SFM has offered to amend the contract (a second one-year extension of the five-year contract executed in 2017). SFM's proposal reflects an annual premium increase of three percent which is consistent with the...
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