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ce4 O 99deaf c <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484-4538 <br />June 6, 1996 <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Kathy Glanzer, Administrative Assistant <br />RE: Workers Compensation Managed Care <br />MAYOR <br />Michael 1. Fahey <br />COUNCIL <br />Beverly Scaize <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />The League of Minnesota Cities is offering a 10% premium credit <br />to cities participating in a managed care plan. In our case, <br />this would be a savings of approximately $840 annually. The <br />League has found that participation in a managed care program can <br />reduce workers compensation medical costs and help injured <br />workers get back to work sooner. I have attached information from <br />the League which explains the benefits. <br />There are currently ten companies providing Workers' Compensation <br />Certified Managed Care Plans. The majority of cities with such <br />plans use Comprehensive Managed Care (CMC) or Corvel. Joel and I <br />met with representatives of each of these firms and have obtained <br />the following information. <br />CMC - Charges a one -time $100 account set -up fee, which is <br />credited against costs during the first year. If the City <br />has no Workers' Comp claims, there are no costs incurred. <br />Cost for claims is $9.00 per medical bill processed. If a <br />claim requires managed care, the cost is $77 per hour for <br />non - physician professional services and $90 per hour for all <br />staff physician services. Time less than one hour will be <br />billed in closest tenth of an hour. CMC has found that very <br />few claims go into case management. <br />CMC offers a state -wide provider network which includes all <br />hospitals and 98% of all physicians. <br />The City can cancel the services of CMC at any time. There <br />is no contract between the City and CMC. <br />Corvel - Charges $30 per filed worker's comp claim. If a <br />case goes to managed care, the cost is $345 per case for <br />cases involving lost time, and $75 per hour or a $150 flat <br />fee for cases involving medical care only. <br />Corvel offers a state -wide provider network which appears to <br />be somewhat more limited than that offered by CMC. <br />Page 39 <br />