Sponsor: Human Resources
Title
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Sole Source Agreement with CorVel Healthcare Corporation
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Recommendation
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1. Approve the selection of and sole source agreement with CorVel Healthcare Corporation, 111 SW 5th Avenue, Suite 200, Portland, OR 97201, for workers compensation managed care services, for the period of October 21, 2025 through May 31, 2027 in accordance with the rates established in the agreement.
2. Authorize the Chair and the Chief Clerk to execute the agreement.
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Background and Rationale
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CorVel Healthcare Corporation provides workers compensation claim intake, intervention, bill review and repricing, patient management, pharmacy solutions, durable medical equipment, specialty network services, Medicare reporting and a managed care network. The managed care network and bill review and repricing services reduce the county’s cost of medical care for employees injured while working.
Administration of the county’s current workers compensation program includes two contracts, one with CorVel Healthcare Corporation and the other with Insurity Claims Software LLC. CorVel and Insurity services are administered in separate systems that are integrated. The CorVel contract expires 10/20/2025 and the Insurity contract expires 5/31/2027. In 2026 a competitive solicitation will be issued for one contract for both services to achieve efficiencies with one system and contract instead of two. The single contract will be effective June 1, 2027. Issuing a solicitation now for the CorVel services that expire 10/20/2025 is not an efficient use of time when another solicitation will be issued in 2026 and a new vendor could be selected that would be extremely disruptive to current operations for the short period of time between 10/21/2025 and June 1, 2027 when a new contract will be in place.
Human Resources is requesting an extension to the existing CorVel contract to align with the expiration date of the Insurity contract so that Human Resources can issue a solicitation for a single contract for both services.
The county’s contract with CorVel Healthcare Corporation is a rate setting contract based on the county’s statutory obligation to provide Workers Compensation benefits. CorVel has provided Workers Compensation medical case management services to Ramsey County since 2010. The annual value of the contract depends on the number of employee claims for benefits. CorVel bill review and case management fees for the last five years average $250,000/year. The estimated value of extending the contract by 19 months is $400,000.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
Services provided support employees of all cultures and ethnicities with medical care and treatment alternatives that are appropriate for the medical condition and also accommodate requests for culturally specific providers.
Community Participation Level and Impact
This action is strictly operational and internal facing. The residents of Ramsey County do not participate in the evaluation of or decisions regarding the county’s employee benefits program.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
County Departments budget an annual workers’ compensation premium expense based on prior loss experience and payroll which are allocated to a workers’ compensation fund for program expenses. Sufficient funds are available in the county's workers' compensation fund to cover the costs of this agreement.
Last Previous Action
On October 20, 2020, the Ramsey County Board approved a five-year agreement with CorVel Healthcare Corporation for workers compensation managed care services (Resolution B2020-204).
Attachments
1. Contract Amendment #4 with CorVel Healthcare Corporation