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Addendum that is continuing in form and substance of the Third-Party Administrator ("TPA") Contract with Hammerman and Gainer, Inc. ("HGI")
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DESCRIPTION: Addendum that is continuing in form and substance of the Third-Party Administrator ("TPA") Contract with Hammerman and Gainer, Inc. ("HGI")
AGENDA NO: Click or tap here to enter text.
ACTION REQUEST:
? Approval ? Review Comment ? Information Only ? Other
RECOMMENDATION:
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Authorize Chief Executive Officer to execute a contract addendum that is continuing in form and substance with HGI for Third-Party Administration ["TPA"] of Automobile, General Liability and Workers' Compensation claims for RTA in the amount of $487,875.00, which will be explained in the discussion below. The proposed RTA/HGI addendum that is continuing in form and substance will expire December 31, 2024.
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ISSUE/BACKGROUND:
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Hammerman and Gainer, Inc. ["HGI"] has been the Third-Party Administrator ["TPA"] of RTA Automobile and General Liability ["AL and GL"] claims since 2006. The most recent contract by and between RTA and HGI for these services was issued and signed on February 28, 2018. This contract specified a term of three (3) years with an option to renew for an additional two (2) years. This option to renew was exercised accordingly. Therefore, the current contract expired on February 28, 2023. HGI has continued to provide TPA services to RTA on a month-to-month basis to the present date. The February 2018 contractually negotiated agreed-upon rate for handling these AL/GL claims is $16,500/month. Presently, HGI manages 529 matters in litigation with an estimated reserve value of $36,282,115.02 and 231 claims with an estimated reserve value of $313,981.14. In addition, HGI began handling workers' compensation claims for RTA on December 1, 2020, pursuant to verbal agreement, at a set cost of $1,875.00 per month. This workers' compensation claim work was not contemplated in the 2018 con...
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