Lucerne County considers changing provider of workers’ compensation

Lucerne County is recommending the council move to a new supplier to oversee workers’ compensation claims, saying the change should reduce costs and provide access to an online claims management platform, as per the agenda for today’s council work meeting.

Excalibur Insurance Management Services has been doing the job as a third party administrator for many years, and the administration is offering a new contract with Inservco Insurance Services Inc.

As per the agenda, due to the expiration of the contract with Excalibur, the District submitted a Request for Proposals for Claims Administration and received four responses.

The administration interviewed the top three and selected Inservco because it presented the most competitive offer and received strong positive feedback when contacted with referees, the report said.

“This recommended third-party administration change to workers’ compensation is also due to the availability of an online reporting platform,” the post reads.

According to the chart attached to the agenda, the estimated savings from switching companies are $4,977 in 2023, $4,286 in 2024, and $3,575 in 2025.

Features, judging by the schedule:

This year, Inservco is offering to charge $23,000 for third-party administration, compared to $36,000 for Excalibur.

That’s a cut for Excalibur, which charged the county $51,000 for third-party administration in 2022, according to the county’s Office of Administrative Services.

Both companies also paid a separate fee for the provision of managed care and rehabilitation, which includes work related to reviewing bills and ensuring that applicants take the necessary steps in an attempt to return to work, the unit said.

While its offer was higher overall, Excalibur will charge less for managed care and rehab at a flat $12,000. By comparison, Inservco charges on a case-by-case basis and provided an estimated $18,000 based on an analysis of applicants’ history, the division said.

Taking into account both services and the difference in the fee structure, this year’s total spending would be $48,000 for Excalibur and approximately $43,023 for Inservco.

Excalibur’s offer will remain at $48,000 per year for all three years, while Inservco proposes to increase to $43,714 in 2024 and $44,425 in 2025, the agenda says.

The administration recommends a three-year contract with Inservco until 2025.

The Board must decide on the contract at a subsequent meeting in accordance with the county’s self-government charter because it involves spending in excess of $25,000 in a future calendar year for which no budget has been passed.

Today’s work session follows the 6:00 pm voting meeting at the River Street County Courthouse in Wilkes-Barre, with instructions for remote participation posted at the link to online council meetings at luzernecounty.org.

Contact Jennifer Learn-Andes at 570-991-6388 or tweet @TLJenLearnAndes.