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SIVER INSURANCE CONSULTANTS <br />Ms. Beth Martin <br />July 13, 2016 <br />Page 2 <br />In addition, we also recommended significant changes to the terms and conditions of the <br />County's service agreement with JECO, including the following: <br />• Amending fees to be annual, flat fees; <br />• Include detailed scope of services; and <br />• Include detailed performance standards. <br />On an annual basis, the County is currently paying JECO about $192,000 in fees, <br />including variable fees such as cost containment. It is our understanding that JECO has <br />been the claims administrator for the County since approximately 2005. <br />RECOMMENDATION <br />We recommend that the County continue their relationship with JECO, assuming JECO <br />will agree to reasonable terms and conditions. We recommend that a new Agreement be <br />negotiated incorporating our recommendations from the claims audit. <br />Our recommendation to negotiate, and not do a Request for Proposals (RFP) for these <br />services, is based upon the following factors: <br />• Based upon the claims volume, in our opinion, the JECO fees (annual approx. <br />$192,000) are reasonable. <br />• Based upon our recent claims review process, in our opinion, JECO is currently <br />providing good quality claims administration services. <br />• Members of the JECO staff (adjusters, supervisors and management) who handle <br />the County's claims, have been working with the County for many years. This <br />knowledge of past events is valuable and is lost with a new administrator. <br />• If a new administrator were selected, when data is transferred from the current <br />JECO system to a new administrator's system, some data is lost and or corrupted. <br />If JECO does not agree to reasonable terms and conditions during negotiations, we <br />recommend that the County request an extension of the current Agreement with JECO <br />and begin an RFP process. <br />