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County briefed on revised three-year claims administration agreement with Brentwood Services Administrators
Summary
Human Resources staff said a three-year agreement with Brentwood Services Administrators for third-party claims administration will be authorized in an amount not to exceed $441,455 after clarifying that claims-processing fees historically charged to claims will be broken out into the administrative agreement.
Human Resources Director Shannon Hutchins briefed the Forsyth County Board of Commissioners on a resolution authorizing a three-year agreement with Brentwood Services Administrators for third-party claims administration covering workers' compensation, auto, general and property liability claims.
Hutchins said the board approved a three-year contract in June but an agreement had not been completed and "inadvertently amended the claims administration fees." The resolution before the board would authorize a contract with Brentwood in an amount not to exceed $441,455 for the three-year term, which includes claims processing and administration fees. "This resolution authorizes an agreement with Brentwood in the amount not to exceed 441,455, for the 3 year term which includes claims processing administration fees," Hutchins said.
Commissioners asked for clarification about why the administrative fees differed from amounts discussed during the earlier bid and contract process. Hutchins explained that historically some claims-processing fees were billed directly against claims (for example, medical or provider billing tied to a workers' compensation claim) while the administrative services agreement did not always separately bill those processing fees. For this contract, staff told the board those claims-processing fees would be broken out inside the administrative agreement so they are billed through the contract rather than as part of individual claim chargebacks.
County staff said Brentwood was the lowest qualified bidder in the competitive RFP and that the per-item unit prices in Attachment B of the contract were used to estimate the total not-to-exceed amount. Commissioners asked what would happen if costs exceeded the not-to-exceed amount; staff said the county would return to the board for additional appropriations if necessary.
No final vote was recorded at the briefing; Hutchins said the resolution to authorize the agreement would be presented for action at the board's April 10 meeting.
