Amendment

City of Chandler — Regular Meeting (2022-04-28)

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City Clerk Document No.  
 
 
 
 
City Council Meeting Date: April 28, 2022  
 
 
AMENDMENT TO CITY OF CHANDLER AGREEMENT 
THIRD PARTY CLAIMS ADMINISTRATION – WORKERS COMPENSATION 
CITY OF CHANDLER AGREEMENT NO. HR9-953-4004 
 
THIS AMENDMENT NO. 2 (Amendment No. 2) is made and entered into by and between the City of 
Chandler, an Arizona municipal corporation (City), and CorVel Enterprise Comp, Inc. (Contractor), (City 
and Contractor may individually be referred to as Party and collectively referred to as Parties) and made 
 
 
 , 2022 (Effective Date). 
 
RECITALS 
 
WHEREAS, the Parties entered into an agreement for third-party claims administration services 
(Agreement); and 
 
WHEREAS, the term of the Agreement was July 1, 2019, through June 30, 2022, with the option of up to 
two two-year extensions; and 
 
WHEREAS, the Parties wish to exercise the first option through this Amendment to extend the 
Agreement for two years. 
 
AGREEMENT 
 
NOW THEREFORE, the Parties agree as follows: 
 
1. 
The recitals are accurate and are incorporated and made a part of the Agreement by this 
reference.    
 
2. 
Section 4, Price is amended to read as follows: The City will pay the Contractor the per unit cost 
set forth in Revised Exhibit B of the original Agreement, attached to and made a part of this 
Amendment No. 1. Total payments made to the Contractor during the term of this Amendment 
No. 1 will not exceed $80,000. 
 
3.  
Section 5, Term is amended to read as follows: The Agreement is extended for a one-year period, 
July 1, 2022 through June 30, 2024. 
DocuSign Envelope ID: 947CFA34-B83D-466F-BCD5-500720782C72

4. 
All other terms and conditions of the Agreement remain unchanged and in full force and effect. 
If a conflict or ambiguity arises between this Amendment No. 1 and the Agreement, the terms 
and conditions in this Amendment No. 1 prevail and control. 
 
 
IN WITNESS WHEREOF, the Parties have entered into this Amendment on the Effective Date. 
 
 
FOR THE CITY 
FOR THE CONTRACTOR 
 
By: _________________________________________ 
 
By: _________________________________________ 
 
Its:                             Mayor 
 
Its: _________________________________________ 
 
 
 
 
APPROVED AS TO FORM: 
 
 
By: _________________________________________ 
 
City Attorney  
 
 
ATTEST: 
 
 
By: _________________________________________ 
 
City Clerk 
 
DocuSign Envelope ID: 947CFA34-B83D-466F-BCD5-500720782C72
CFO

REVISED EXHIBIT B 
FEE SCHEDULE 
 
Workers' Compensation Claims Administration 
Description 
Pricing 
Life of Contract Flat Annual Fee 
  
Up to 42 Indemnity & 112 Medical Only Claims Annually 
$42,890.00 
Per claim Fee after maximum number of claims: 
  
Medical-Only 
$135.00 
Indemnity 
$647.00 
Employer's Liability 
$647.00 
¹ Claim fee applies to AOS with the exception of premium states (CA, HI, AK, NY, TX and FL) 
² CorVel Healthcare Corporation’s managed care services must be used for all claims administered by 
CorVel. 
 
Program Management 
Description 
Pricing 
Data Conversion - Per Data Source 
Waived 
Administration Fee -  Per Annum ¹ 
Waived 
Implementation Fee - One Time Fee 
Waived 
CareMC Access - Per Annum ² 
  
First 5 Full Access Users 
Included 
Each User over 5 - Per User, Per Year 
$1,079.00 
State Fund Oversight (OH, WA) 
50% of standard fees, based on service 
level 
¹ Includes Assistance with Self-Insured Data for State Reports, State Statistical Reporting & All State Filing 
Requirements 
² Includes Executive Dashboard, Claim Details, Claims Summary Screen & Claims Reporting 
 
Account Management and Technical Support 
Description 
Pricing 
Account Management Staff 
Included  
Electronic Data Transmission - (Per Month, Based on 
Frequency) 
  
Monthly File 
$270.00  
Weekly File 
$647.00  
Daily File 
$2,158.00  
Training – Onsite and Online 
Included  
Technical Support 
Included  
State EDI Files 
Included  
Monthly Reporting 
Included  
Ad hoc Report Programming - Per Hour 
$216.00  
Communication Materials/Posters 
Pass through printing cost 
Annual Banking Fees  
One account included 
DocuSign Envelope ID: 947CFA34-B83D-466F-BCD5-500720782C72

Additional Account(s) - Per Account 
$1,079.00 
Carrier TPA Oversight Fees ¹ 
Bill from Carrier to Client 
¹ Fees charged by the carrier (Oversight fees, Tail Claim transfer / takeover fees, etc.) are the responsibility 
of the client and will be billed directly to the client by the carrier or by CorVel should CorVel be invoiced for 
such fees. 
 
Intake and Immediate Intervention Services 
Description 
Pricing 
Claim Intake (includes one FNOL distribution) - Per Intake 
Waived 
Incident Only Reporting - Per Incident 
$38.00 
Advocacy 24/7  - Per Call 
Waived 
Telehealth Services 
Fee Schedule or U&C value by CPT 
code 
 
Allocated Expense Fees 
 
Legal Services 
Description 
Pricing 
Subrogation 
25% of Recoveries 
Legal Bill Auditing ¹ 
2.5% of gross legal charges reviewed 
Indexing and OFAC Compliance - Per Index 
$15.00  
¹ Fees will never exceed the savings generated 
 
Bill Review Services 
Description 
Pricing 
Bill Review: Includes Standard Fee Schedule and UCR - Per 
Bill ¹˒² 
$6.47 
+ Network Solutions Includes: ² 
19% of Savings 
Clinical Review, Implant Analysis, Line Item Bill 
Review, 
  
Negotiations, PPO Network Access,  
  
Substantive Denials, Technical Evaluation 
  
  
  
Minimum Transaction Fee ² 
$0.00 
State EDI, Scanning/OCR, Initial 1099 Provider Notification 
Letter 
Included 
¹ Includes bill intake, document imaging, file upload, state EDI’s, and initial 1099 provider notification 
letters. 
² Minimum transaction fee (MTF) per bill transaction. Applied per transaction if all other applicable fees do 
not meet the minimum transaction fee. Applies to all transactions, including but not limited to, Specialty 
Bills, Duplicate Bills and bills sent for Re-consideration or Re-evaluation. There is a maximum bill review 
transaction fee of $15,000.00. 
DocuSign Envelope ID: 947CFA34-B83D-466F-BCD5-500720782C72

Patient Management 
Description 
Pricing 
Telephonic Case Management, Field Case Management 
and Return to Work Coordinator - Per Hour 
  
All Other States ¹˒² 
$92.00 
Vocational Rehabilitation  - Per Hour  
$178.00  
Specialty Services (Catastrophic, Life Care Plan, Medicare 
Conditional Payments, Medicare Set Asides, Bilingual) - Per 
Hour 
$235.00  
Nurse Utilization Review - Per Review 
$162.00  
Physician Utilization Review - Per Review  
$324.00 
Care Advocate - Per Claim 
$50.00  
PeerWell App Access - Per Claim (One-Time Fee) 
$500.00  
¹ Fee applies to all States with the exception of premium states (CA, HI, AK, and NY). 
¹Statutory rates supersede if applicable. 
Prevailing IRS Mileage Rate applies. 
Each invoice for Case Management Services shall have an additional professional service fee of $39.00 
billed to Customer. 
 
Pharmacy Solutions 
Description 
Pricing 
Retail Pharmacies 
   
Brand 
AWP -10% + $3.24 dispensing fee 
Generic 
AWP -30% + $3.24 dispensing fee 
Mail Order 
  
Brand  
AWP -14% + $1.62 dispensing fee 
Generic 
AWP -40% + $1.62 dispensing fee 
Clinical Modeling 
  
Integration of Pharmacy Data 
Included 
Dynamic Calculation/Display in CareMC 
Included 
Pharmacy Interventions 
  
Certified Pharmacy Technician 
Included 
Rx Nurse 
Included 
Nurse Management 
Case Management hourly rate 
Pharmacy Review - Per Review 
$405  
Cognitive Behavioral Therapy - Per Hour 
$270  
Medication Review - Per Hour 
$270  
 
Specialty Network Services 
Description 
Pricing 
Medical Imaging Services 
Varies by State and Diagnostic 
Independent Medical Exam 
See 2022 IME/Peer Fee Schedule 
Physical and Occupational Therapy 
Varies by State 
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Durable Medical Equipment 
Varies by State and Equipment 
IME Peer Review - Per Hour 
See 2022 IME/Peer Fee Schedule 
Transportation 
Varies by State and Service 
Translation 
Varies by State and Service Level 
 
Medicare Agent Reporting 
Description 
Pricing 
Set up and engagement 
Included 
Monthly Maintenance 
Included 
Quarterly Reporting 
Included 
 
▪ 
The above pricing per claim is based on handling of all claims that occur and are reported during the 
agreement period. If life of contract pricing is selected, claims will be handled until closed or until the end 
of the agreement period, whichever comes first. If life of claim pricing is selected, claims will be handled 
until closed.  
▪ 
Rates on claims that occur outside of the United States are subject to alternative pricing to be discussed 
prior to start of the contract.  
▪ 
Pricing is valid for first two years of this Renewal Term of the contract.  At the end of the first year and 
each year thereafter, all fees outlined on the claims and managed care pricing sheet will be subject to an 
automatic increase of the greater of CPI or three and a half percent (3.5%). 
▪ 
Any service not identified in this proposal will be provided at a later time. 
 
 
 
DocuSign Envelope ID: 947CFA34-B83D-466F-BCD5-500720782C72