R2021-209 2021-09-27 RESOLUTION NO. R2021-209
A Resolution of the City Council of the City of Pearland, Texas, renewing the
purchase of Workers Compensation Excess Insurance Coverage with Midwest
Employers, in the amount of $165,167.00, for the period of October 1, 2021
through September 30, 2022.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. Pursuant to Chapter 252 of the Local Government Code the City obtained
Workers Compensation Excess Insurance Coverage.
Section 2. That the City Council hereby renews a contract, for Workers Compensation
Excess Insurance Coverage, with Midwest Employers in the amount of$165,167.00.
Section 3. The City Manager or his designee is hereby authorized to execute a contract
for the purchase of Workers Compensation Excess Insurance Coverage.
PASSED, APPROVED and ADOPTED this the 27th day of September, A.D., 2021.
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EXCESS WORKERS COMPENSATION
Stop Loss Insurance — 2021 -22
Midwest Employers Midwest Employers
CARRIER/POOL (2020-21) (2021-22)
Expiring Renewal
Term One Year—Specific& One Year—Specific&
Aggregate Stop Aggregate Stop
Employers Liability Limits $ 1,000,000 $ 1,000,000
Specific Retention -SIR $ 550,000 S 550,000*
"($600,000-Fire&Police) SIR Per Occurrence SIR Per Occurrence
Aggregate Limit $ 1,000,000o) $ 1,000,000(1)
Estimated Aggregate Retention $ 1,906,993 $ 2,245,233
Minimum Aggregate Retention $ 1,868,853 $ 2,200,328
Estimated Premium $ 140,285 $ 165,167
Premium-Composite Rate $0.2673(per$100 of Payroll) $0.2673(per$100 of Payroll)
Aggregate Limit Rate 329.37% 301.88%
A.M. Best Rating A+ XV A+ XV
Premium based on Est. Payroll of: $ 52,482,130 $ 61,790,998
(1) Once Aggregate Limit is exhausted,the SIR resumes.
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Medical Cost Mitigation
Midwest Employers Casualty provides various resources to help mitigate the cost of workers'compensation claims.
These include medical bill analysis,negotiation,and other services.
Our in-house experts work with vendor partners to perform a strategic review of in-patient, iii."0,111;r:0111
out-patient,and ambulatory surgical center bills.Our approach has proven to be a more
effective means of negotiation than the traditional"prompt-pay"percentage
discount agreement.
Our providers can offer review of large hospital or surgical bills for audit,re-pricing,
and fraud detection solutions directly to you,as well as through your third-party
administrator.To meet evolving industry needs,our vendor uses f-
cutting-edge technological solutions to identify inappropriate charges
and abusive billing patterns.We've seen substantial reductions in errors,
abuse, and fraud in medical billing.
Other Medical Cost Mitigation Services411010
• Durable Medical Equipment • Orthotics& Prosthetics
• Home&Vehicle Modification • Transportation Services
• Home Health Services • Electrotherapy
Bill's Story
Age: 77 Accident Year:2012
Bill was a trailer parts salesman who tripped and fell on the sidewalk sustaining C2-C6 spinal VX, resulting in
quadriplegia.He now requires 24/7 attendant care at his home.
Life Expectancy:6 Years
Our vendor negotiated lower hourly rates for the HHA and LPN,generating savings of$33,842 annually.
$1,000,000 Retention
$203,052 in Savings over the life of the claim.
These services are offered to all Midwest Fmployers Casualty policyholders at a discounted rote.
Visit www,MECasualty,com to learn more.
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The MEC Claims Advantage
Midwest Employers Casualty's(MEC)value extends well beyond risk transfer.As a major excess insurer for self-insured
employers,we fully understand the challenges this business line presents.We have responded by developing innovative
approaches to deal with these challenges by combining predictive analytics and targeted claim and medical interventions on
complex claims.Our innovative processes save our clients substantial dollars within the insured's retention while enhancing
the outcome for the most seriously injured workers.Here's how:
The MEC Difference
We are more than a reimburser,we are complex claim experts.We believe these types of claims can be managed effectively
by bringing together the right expertise and resources with a collaborative and persistent team approach.
• Complex claims are not defined by the SIR;MEC is here for our clients when they need our help regardless of the SIR
• Our proactive approach allows us to involve our expertise both below and above the SIR
• Our goals are aligned with our client's,to lower their total cost of risk and extinguish the claim's liability
Catastrophic Claim Management
• Our collaborative approach brings our clients and their claim handlers together with MEC's claims,legal,and medical
expertise to jointly resolve challenging complex claim issues
• Specialized catastrophic and migratory claims teams
• Low caseloads that allow for meaningful interventions
• Building relationships with clients and their claim handlers
• Vetted vendors and resources that operate effectively in the complex claim handling space
XCEL Analytics
• Our models provide earlier identification of problematic claims and their loss drivers,allowing for meaningful
interventions before a claim gets out of control
• We can run our models against prior non-MEC policy years
• Complimentary approach with existing TPA analytics
• Helps clients and their claim handlers devote limited resources
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to the most problematic claims
Collaboration With MEC
Our resources are your resources.If you're looking for
innovative ways to help clients lower their total cost
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of risk,we can help.Contact us today to learn more! A 1) V A N "I' A (i 1•.
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