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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />May 1, 2006 <br />TITLE: <br />AMENDED AGREEMENT FOR MEDICAL <br />CLAIMS COMPENSATION COST <br />CONTAINMENT PROGRAM <br />Edyptlon ~4 <br />CLERK OF COUNCIL USE ONLY: <br />_~ <br />CI Y MANAGER <br />RECOMMENDED ACTION <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on ts` Reading <br />^ Ordinance on 2ntl Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Direct the City Attorney to prepare and authorize the City Manager and the <br />Clerk of the Council to execute an amendment to the agreement with Lien on <br />Me, Inc. to provide a workers' compensation medical cost containment <br />program in an annual amount not to exceed $200,000. <br />DISCUSSION <br />The City has utilized the services of Lien on Me, Inc. (LOM) since August <br />2000 for medical cost containment. LOM reviews all of the medical bills <br />submitted to the City for workers' compensation treatment. These <br />numerically coded bills are then reviewed to the current fee schedule <br />established by the Administrative Director of the Division of Workers' <br />Compensation and reduced accordingly. This complex process results in a <br />monthly savings between 30 and SOo of that originally billed by medical <br />providers. <br />Since the original agreement, the State of California has implemented a <br />new fee structure for hospital billings. The proposed amendment <br />establishes a rate structure for services to review bills under the new <br />rates. The Department of Insurance has established a training and <br />certification program for medical bill reviewers. This agreement requires <br />that the provider comply with the regulations. The amended agreement will <br />not significantly affect the existing costs of the program. <br />25K-1 <br />