Luzerne County administration eyes workers’ compensation vendor change

Luzerne County’s administration is recommending council switch to a new vendor to oversee workers’ compensation claims, saying the change should reduce costs and will provide accessibility to an online claims management platform, according to tonight’s council work session agenda.

Excalibur Insurance Management Services has handled the work as a third-party administrator for many years, and the administration is proposing a new contract with Inservco Insurance Services Inc.

Due to expiration of the Excalibur contract, the county issued a request for proposals for claims administration and received four responses, the agenda said.

The administration interviewed the top three and chose Inservco because it submitted the most competitive proposal and received strong positive feedback when references were contacted, it said.

“This recommended change of third-party administration for workers’ compensation is also due to the online platform accessibility for reporting,” it said.

Based on a chart attached to the agenda, the estimated savings from changing companies would be $4,977 in 2023, $4,286 in 2024 and $3,575 in 2025.

The specifics, according to the chart:

Inservco proposes charging $23,000 for third-party administration this year, compared to $36,000 for Excalibur.

This is a reduction for Excalibur, which charged the county $51,000 for third-party administration in 2022, according to the county administrative services division.

Both companies also submitted a separate fee to provide managed care and rehabilitation, which involves work associated with reviewing bills and making sure claimants are taking necessary steps in an attempt to return to work, the division said.

Although its proposal was higher overall, Excalibur would charge less for managed care and rehabilitation — a flat $12,000. In comparison, Inservco charges on a case-by-case basis and submitted an estimated fee of $18,000 based on a review of claimant history, the division said.

Factoring in both services and the difference in fee structures, this year’s total expense would be $48,000 for Excalibur and an estimated $43,023 for Inservco.

Excalibur’s proposal would remain at $48,000 annually for all three years, while Inservco is proposing an increase to $43,714 in in 2024 and $44,425 in 2025, the agenda said.

The administration is recommending a three-year contract with Inservco through 2025.

Council must decide on the contract at a subsequent meeting under the county’s home rule charter because it involves an expense exceeding $25,000 in a future calendar year for which no budget has been adopted.

Tonight’s work session follows a 6 p.m. voting meeting at the county courthouse on River Street in Wilkes-Barre, with instructions for remote attendance posted under council’s online meetings link at luzernecounty.org.