Loading...
2005-035 Health Insurance Claims Audit - Siver Insurance Consultants RESOLUTION 35-2005 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, ACCEPTING THE PROPOSAL OF SIVER INSURANCE CONSULTANTS, ATTACHED AS EXHIBIT "A", TO AUDIT VILLAGE MEDICAL CLAIM PAYMENTS FOR A TWELVE-MONTH PERIOD ENDING JANUARY 31, 2005; AUTHORIZING AND DIRECTING THE VILLAGE MANAGER TO NEGOTIATE A CLAIMS AUDIT AGREEMENT WITH SIVER INSURANCE CONSULTANTS FOR PRESENTATION TO AND APPROVAL BY THE VILLAGE COUNCIL; AND, PROVIDING FOR AN EFFECTIVE DATE. BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA: Section 1. The Village Council of the Village of North Palm Beach, Florida, does hereby accept the proposal of Siver Insurance Consultants attached as Exhibit "A" to audit Village medical claim payments for atwelve-month period ending January 31, 2005; authorizing and directing the Village Manager to negotiate a claims audit agreement with Siver Insurance Consultants for presentation to and approval by the Village Council. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED THIS 14th DAY OF APRIL, 2005. '1 ;,,,,. (Village Seal) ' , ~ ' ~)~31~i ~. '~ '~, '~, ATTEST:' .,",,.~,` VILLAGE CLERK 0 • ~x~ ~d ~~ Inrurm~ce Consultants IVER 9400 Fourth Street North, Suite 119 St. Petersburg, Florida 33702-2525 Post Office Boz 21343 St. Petersburg, Florida 33742-1343 Telephone: (727) 577-2780 Fax: (727)579-8692 E-mail: river@siver.com Website: httpJ/www,siver.com March 09, 2005 Mr. Mark Bates Village Manager sol v.s. Highway #1 North Palm Beach, FL 33408 Re: Request for Proposal: Health Claims Audit of Third Party Plan Administrator Dear Mr. Bates: We are in receipt of the Email notice issued on March 8, 2005, indicating a revised bid opening date of March 29, 2005, for proposals to conduct an audit of the claims administration services provided by Employers Mutual, Inc. Siver previously issued a proposal in response to the earlier Request for Proposals (original stated bid opening date of February 22, 2005). It is our understanding that the original proposals have not been reviewed, and in fact are still sealed. Please accept this letter as confirmation that Siver's original proposal response, including pricing, remains valid for the new bid opening, scheduled for March 29, 2005. For your convenience and to insure our place in the March 29, 2005 bid opening process, we have enclosed one additional copy of our original proposal. Thank you for the opportunity to participate in this proposal process. Sincexely, SIVER INSURANCE CONSULTANTS ~'L° _~. Brenda M. Sadler Vice President EIlC10SlU'e J:1EWB120051Client l)evelopmentlVNPB new RFP date.doc VILLAGE OF NORTH PALM BEACH PROPOSAL: CLAIIYIS AUDIT' OF THIRD PARTY ADMINISTRATOR ~`~_ 4 ~p f t~fA., .~~r~ ~~ - 1 ~ ~ •~ Provided by: Siver Insurance Consultants 9400 Fourth Street North, Suite l ~9 St. Petersburg, FL 33702 Toll Free (866) 967-4837 Contact: Brenda Sadler, Vice President • February 22, 2005 B: TABLE OF CONTENTS TAB Title Page .......................................................... ..........................................A Table of Contents .......................................................................................... B Letter of Transmittal .................................. ................................... C ProfJe of the Proposer ....................... ._. D ........................................................ Summary of the Proposer's Qualifications ................................................ E References ........................................................................................ ......... F Fee 5chedule ..................................................................................................G C': LETTER OF TRANSMITTAL The following characterizes our understanding of the scope of services to be performed and outlines our typical audit process. Proposed Services Siver proposes to conduct a Claim Audit for the Village of North Palm Beach to include the items reflected in Section III (Scope of Services) of the Request for Proposal (RFP}issued on January 28, 2005. Upon completion of our review, a detailed written report will be provided, outlining the audit findings, including Siver's recommendations to cure any discrepancies indicated during the course of the audit and our assessment of any financial penalties applicable, consistent v~~ith any contracts or agreements in place during the stipulated audit period. DJhile the RFP indicates a 100% review of all claims processed for medical, dental, hospitalization, and prescription drugs, it is recommended that an initial audit of approximately 400 claims (for the audit period of July 1, 2003, through June 20, 2004) be conducted, with the Village ofNorth Palm Beach having the option to increase the size of the audit sample, should the initial audit reveal significant discrepancies. The suggested audit sample of 400 claims represents approximately 5% of the medical, dental and prescription claims processed during the audit period, based on figures obtained from the Third Party Administrator. A 5% audit is consistent with industry standards. The on site audit schedule will be determined by mutual agreement with the Village of North Palm Beach, Siver, and Employers Mutual, Inc. It is anticipated that four to fve days will be required to perform the on site portion of the audit process. Explanation of Typical Audit Parameters 1. Overall Accuracy -The percentage of claims processed correctly in every aspect, including; coding, procedures, financial accuracy, eligibility, and turnaround tune. If a claim payment has any error on it, financial, procedural, or otherwise, it is counted as one inaccurate claim. Multiple errors on the same claim will count as one inaccurate claim. 2. financial Accurate -The total sum of absolute dollars of al! underpayments and all overpayments divided by the total dollars of claims paid. 3. Turnaround Time - Number of working days elapsed between the date the claim is received by the claims paying vendor and the date the claim is either processed for payment, processed for denial, or pended for further information/documentation. O tional Audit Services (not included in basic quote) 1. Eligibility Updates- Number of working days elapsed between the date the record is received b;~ the claims paying vendor and the date the eligibility is updated. 2. S~~stem_ Change Requests- Number of working days elapsed between the date the client • requests an update (i.e., fee schedule revision) and the date the revision is updated in the claims system. Siver's Typical Audit Process Phase 1 The audit will be conducted primarily at the TPA office, on a date to be determined. A letter authorizing Siver to obtain data on behalf of the client should be issued as soon as possible. Prior to the dates of the on site audit, Siver will confirm the audit schedule and request the required materials from the TPA. A detailed paid claim report for the period to be audited is required, along with copies of any system codes and copies of plan documents. From the detailed claim report, we randomly select the claims to be audited and request the TPA have those claims and all related documentation available for review at the time of ow on site visit. In this case, random claim selections will be made from the medical, dental, and prescription plans. We recommend an initial audit of 400 claims, with the client having the ability to expand the audit, should significant discrepancies be found in the initial review. Phase 2 This phase includes the examination and recalculation of the claims that were selected for audit. As each claim is audited, results are recorded. Spreadsheets, showing data collected for each claim, will be included as a portion of the final audit report, with identifying data redacted in compliance with HIPAA privacy guidelines. Phase 3 This phase includes a brief exit interview with Siver and the TPA to share preliminary audit findings and discuss the procedure Siver wiU foIlow in communicating audit results to the Client. The TPA will be provided a preliminary draft spreadsheet of ow findings, prior to submission of the final report to the Client. The TPA is typically given up to two (2) weeks to challenge any of the initial audit findings. A written response is required from the TPA if there aze any challenges to our report. Siver will review any challenges and make report revisions, if appropriate. Phase 4 A report will be provided to the Client to include any suggested penalties or monies due as a result of our audit findings, in accordance with any existing performance standazds. In the absence of a performance agreement, recommendations for improving services (if indicated) will be presented. These recommendations would include a suggested date far completion of any necessary training, system changes, etc. It would be our hope that the TPA would sign an agreement to complete required enhancements within 34 days or less of the final report. Firm/Staff Details Brenda Sadler, the assigned auditor, has more than 20 years of auditing experience. Ms. Sadler has conducted audits of numerous third parry administrators and insurance cazriers. A listing of those firms and a copy of her curriculum vitae is provided under Tab E. Brenda Sadler, Vice President, and George Erickson, Executive Vice President, are authorized to make representations for Siver and • may be reached, toll free, at (866) 467-483 7. Ow office is located at 9400 Fourth Street North, Suite 119, SL Petersburg, Florida, 3?702. Additional details pertaining to Siver are located in Tab D. D: PROFILE OF THE PROPOSER Siver Insurance Consultants (Siver) is an independent employee benefits, risk management, and insurance consulting firm located in St. Petersburg, Florida, in business since 1970. Siver is entirely owned by its officers and employees. We are independently owned and not related to, or affiliated with any other organization. We do not sell insurance. We do not receive, directly or indirectly, any commissions, contingent commissions, or overrides. All of our income is directly derived from the fees we charge our clients. All income we receive as the result of, or in connection with, our services to a client will appear on our invoice to that client. We adhere to a strict code of ethics. We do not accept gifrs, trips, prizes, or anything else of any value from vendors. ]n short, we serve only our clients. Siver's staff is highly qualified, including individuals with advanced degrees (including law and insurance), and has the skills and knowledge necessary to provide the services requested. Siver staff members have had substantial firsthand experience in providing a broad range of consulting services to numerous, and widely divergent clients. Following is an organizational chart reflecting our permanent staff. Siver also engages the specialized services of a number of adjunct consultants who work with us on an as needed basis. Those individuals are not reflected in this exhibit. We offer ezpertise in the following areas: Litigation Support/Expert Witness Employee Benefits Risk Management. Auditing Services Life, Health, & Disability Insurance Property & Casualty Insurance Managed Care Title Insurance • SIVER GOVERN'.-ZENTAL CLIENTS {Current and Previously Served): CITIES Altamonte Springs, FL Apopka, FL $artow,FL Charlotte, NC Clearu-ater, FL Coconut Creek, FL Coral Gables, FL Dania Beach, FL Da}KOna Beach, FL Deerfield Beach, FL Delray Beach, FL Fort Myers, FL Fort Pierce, FL Gainesville, FL Gulfport, FL Holly Hill, Fl:, Hollywood, FL Homestead, FL Jacksonville, FL Key West, FL Lakeland, FL Largo, Fi. Maitland, FL Melbourne, FL Miami Beach, FL New Smyrna Beach, FL Orlando, FL Palm Bay, FL Palmetto, FL Pensacola, FL Pinellas Park, FL Richmond, VA Rockledge, FL Safety I•larbor, FL St. Augustine, FL St. Petersburg, FL St. Pete Beach, FL Sanford, FL Sanibel, FL Sarasota, FL Sebastian, FL Tarpon Springs, FL West Palm Beach, FL Winter Haven, FL COtiNTIE5 & STATES Alachua County, FL Brevard County, FL 8roward County, FL Charlotte County, FL Collier County, FL Desoto County, FL Henrico County, VA Hernando County, FL Highlands County, FL Hillsborough County, FL Imperial Polls County, FL Indian River County, FL Lake Gounty, FL Lake County, Clerk of the Circuit Court Lee County, FL Manatee County, FL Martin County, FL Mecklenburg County, NC Orange County, FL Putnam County, FL St. Johns County, FL St. Lucie County, FL Sarasota County, FL Seminole County, FL State of Florida pISTRICTS & AUTHORITIES Alachua County Library District Housing Authority of Avon Park Broward County Airport Authority Broward County Sheriffs Office Clearwater Housing Authority Council of Governments Florida Department of Labor and Employment Security Florida Department of Transportation Fort Pierce Utilities Authority Gainesville Housing Authority Hillsborough County Aviation Authority Jacksonville Electric Authority Jacksonville Port Authority Jacksonville Transportation Authority City of Key West Utility Board Manatee County Housing Authority Naples Airport Authority New Smyrna Beach Utilities Commission North Naples Fire Control and Rescue District Orlando Utilities Commission Greater Orlando Aviation Authority Palm Beach County Sheriffs Office Palm Hazbor Special Fire Control District St. John's River Power Park Project Sarasota-Manatee Airport Authority South Florida Conservancy District South Flotilla Water Management District South Trail Fire Protection and Rescue Service District Space Coast Labor Management Health Coalition Sumter County Sheriff's Office Tampa Housing Authority Tampa Port Authority EDUCATION Broward County School Board Charlotte County School Board, FL Charlotte County Board of Public Education, NC Duval Couaty School Board Eckerd College Florida Community College Florida Community College of Jacksonville Hetuico County School Boazd, VA Hillsborough County School Board Lake County School Board Manatee Couary School Board Mecklenburg County School Board, NC Miami-Dade Community College Miami-Dade County Public Schools Scbool Board of Palm Beach County Pinellas County School Board Polk County School Board Putnam County School Board School Board of Sarasota County School Board of Seminole County Shorecrest Preparatory School St. John's Junior College St. Petersburg Junior College The Vanguard School SIVER NON-GOVERNMENTAL CLIENT'S (Current and Previously Served): AGRICULTI.'RE 4merican Agronomics corporation Golden Gem Growers. tnc. 3rassland Development :,orporation Hollins Corporation .CN of Delaware, Inc. Che Powell Group Purley, Inc. ~ua[iry Grassing & >ervices, Inc. COMMUNITY 1SSOCIATIONS .000 Island Blvd. Condominium Assoc. ':600 Island Blvd. condominium Assoc. 1800 Island Blvd. Condominium Assoc. 000 Island Blvd. condominium Assoc. 4000 Island Blvd. condominium Assoc. '000Island Blvd. Condominium Assoc. Roca Graade Club 'he Charter Club .;lub Longboaz Beach & Mediterranean Village Master .4ssociation ocean Reef Club Pirates Cove ^ondomiaium Assoc. ort Royal Club un Top of The World Owners Property danagemcnt .eef Resort ;,ondominium association owers of Quayside No. 2 Condominium Assoc. Williams Island Property ?wners Association, Inc. ,~~ispering Waters Condominium Assoc, is elican Cove CONTRACTOR/DEVELOPER All State Homes Lee Arnold & Associates, Inc. Barron Collier Corporation Bay Plaza Cos. Baymont Engineering Company Burnup & Sims, Inc. Coastal Steel Construction Co. DDI, Inc. Eastern Environmental Services, Inc. F & S Frame & Trim, Inc. Florida Progress Corporation Hallmark Development Corp. Krauss Company North Florida Concrete Paragon Group, Inc. Parsons Brinckerhoff Construction Services, Inc. Arthur Rutenburg Homes Shimberg Enterprises,lnc. Southeast Capital Corporation Wadsworth Development Company P. Wallenberg Development Co., Inc. Wellington Real Estate J. H. Williams Oil Company FL'VAtiCIAL 1TiSTi(TUTIONS Bay Financial Savings Bank Centerbanc Savings Chrysler Capital Corporation Community Bank First National Bank of Okaloosa FMI Financial Corporation Hendry County Baalc Heritage Federal Savings & Loan Association Home Builders Insurance Services, Inc. Landmark Union Trust Bank of St. Petersburg McNulty Banking Company Mutual Fire Policyholders Committee National Bank of Lee County New Hampshire Insurance Group {AlNetwork) Park Banks of Florida, Inc. Pioneer Savings Bank RJ. Financial Corporation Rockwood Programs, Inc. Southeast Capital Consulting SouthTrust Bank Suncoast Schools Federal Credit Union T.R Jones & Company HEALTH CARE All Children's Health System Allegany Health Systems AMI/F'lorida Region Anesthesia Professional Association Bay Area Renal Stone Center Bay Medical Clinic, Inc. Bayfront Medical Center Cedars Medics] Center Dun & Bradstreet Play Services, Inc. Duval County Beaches Public Hospital Board FirstHealth of the Carolinas Heritage Hospital (formerly Centro Asturiano Hospital} Highlands County Hospital District HEALTH CARE (Cont'd) Indian River County Hospital Authority Indian River Memorial Hospital Manatee Memorial Hospital Measc Health Care Mcase Hospital Mease Manor, Inc. Memorial Regions! Rehabilitation Center Memorial Medical Center of Jacksonville Memorial Hospital of Jacksonville Metropolitan Genera] Hospital H. Lee Moffitt Cancer Center & Research Institute Morton F. Plant Hospital Mount Sinai Medical Center Pathology Associates S.A. Insurance, Ltd St. Anthony's Health Care Center, Inc. St. Anthony's Hospita! St. Francis Hospital St. Joseph's Hospital St. Luke's Hospital Association St. Mary's Hospital Shaads Teaching Hospital & Clinic South Broward Hospital District South Florida Baptist Hospital STRAIGHT, Inc. Suncoast Hospital Suncoast Osteopathic Hospital SunHealth Care Plans -Gulf Coast, Inc. Tallahassee Memorial Regional Medical Center Unipsych University Community Hospital, Inc. University Medical Center Venice Hospital Vision Care Network Winchester Gardcas Winter Haven Hospital SIVER'~ON-GOVERN".VIENTAI. CLIE~iTS (Carrent and Previously Served, Continued): MANUFACTURING 4dvance Plasma iystems, Inc. American District Telegraph Company diamond Products company Hughes Manufacturing, nc. 'recisionatre, Inc. Saddle Creek corporation 3tant Corporation ~'hompson & Co., Inc. Tiffany Furniture ndustries, Inc. "ri-Chem, Inc. Tropical Garment QOT-FOR-PROFIT Clearwater PACT', Inc. Florida United Methodist :hildren's Nome Joodw~ill Industries Suncaast, Inc. 'ohn Knox Village OTHER ENTERPRISES Alf Eiated of Florida, Inc. Allied International Holdings American Rental DeaEers Insurance The Beacon Group, LLC Sam P. Broady, Inc. Communications Chtuc6 & Tower, Inc. Russ Cline & Associates Equity Associates FCA Fruit & Vegetable (FFVA) Insurance Florida First Service Insurance FFVA Mutual Insurance Florida Lawyers Legal Insurance Corp. Florida Power & Light J.D. Gamer & Associates, Inc. Jim Garrison, Inc. Hardrives Company Hollins Corporation Insurance Catastrophe Consultants, Inc. Laney & Duke Warehouse Company Lucas Ford Associates, inc. Morefar Marketing, Inc. Michael Mullery, M.D. PDG Environmental Performance Feeders, Inc. The Pierre Association, Inc, Pce & Associates, Inc. Universal Studios of Florida Valjean Corporation RECREATIONISPORTS Biscayne Kennel Club Boca Grande Club Carlouel Yacht Club, Inc. The Center Foundation, Inc. Feather Sound Country Club The Florida Aquarium Florida Suncoast Dome International Speedway Corp. Major Bowl Association NASCAR, Daytona Beach Orange $ow1 Committu Pon Royal Club St. Petersburg Grand Prix St. Petersburg Yacht Club Tampa Yacht & Country Club Venice Yacht Club RETAIL/WHOLESALE B & R Foods Holding, Inc. Badcock Economy Furniture Stores, Inc. W. S. Badcock Corporation Baymont Technologies, Inc Beico Electric, Inc. Bishop's Welding Supply BuyingBrain Coral Cadillac Cox Lumber Company Davgar Restaurants, Inc. Dew Cadillac, Inc. Diamond Motor Sports Dick DeVoc Buick-Cadillac, Inc. Dimmitt Cadillac, Inc. Gate Petroleum Gerhardt's, Inc. Great Bay Distributors, Inc. Grevgold Enterprises Hav-a-Tampa Corporation Hospitality Resources, Inc. Kane Furniture Company Leroer Corporation Logan Lumber Company Jim Lynch Enterprises, Inc. Manufactured Housing Products Marlow-Weroer Pontaac- Buick-GMC McNichols Co. Mid-America Industries, Inc. National Merchandise Co., Inc. Oyster Bar of Clearwater Parkway Food Service, Inc. Pic'N Save Drug Co., Inc. Sacino & Sons,Inc. Save On Seafood Company Scotry's, Inc. Thomas Restaurant Management United Auto Parts United Seafood Imports, inc. Wal-Mart Stores, Inc. Witte-Dixie Stores, Inc. Yesterday's Restaurant 7_ier, Inc. dba Discount tlniform TRANSPORTATION Emery Air Freight Corporation Joule Yacht Transport, Inc. People Express Airline, Inc. Purolator Courier Corporation Shaw Trucking Company Sun State Marine, Inc. TRUSTS & ASSOCIATIONS American Association of Airpor Executives American Dental Association Automotive Warehouse Distributors Broward County Consolidated Consortium Federal Realty Investment Trust Florida Associated General Contractors Benefit Trost Florida Association of Counties Florida Association of Insurance Agents Florida Bar Association Florida Comprehensive Health Association Florida Health Caze Association3 Florida Peroleuun Marketers Health Florida Pest Control Association Greater Tampa Association of Realtor Group Health Benefits Purchasing Consortiwn Hillsborough County Purchasing Department Idaho Cattleman's Association National Association of Building Service Contractors Pinellas Classroom Teachers Association Prestressed Concrete institute E~ SU:VIMARY OF THE PROPOSER'S QUALIFICATION, Brenda Sadler, Vice President and Siver's practice leader for the Employee Benefits Diva primary individual assigned to this audit project. Ms. Sadler has over 20 year of auditing expe, having audited multiple carriers and third party administrators. Ms. Sadler's background incIu~ several years experience in claims adjudication and claims auditing and also served as the manager of a third party administrator in Atlanta, Georgia. Her knowledge of various claims adjudication systems as well as her experience with both self-funded and fully insured programs provides Ms. Sadler with the expertise to perform the requested services. Additionally, Ms. Sadler is frequently called upon to interpret policy language as well as normal :idustry protocol. She personally conducted each of the audits listed in our proposal response to the request for references, located under Tab F. Ms. Sadler's curriculum vita is attached for your review, following this page. Insurers and Third Party Administrators Audited bV Ms. Sadler Insurers Third Pa Administrators Aetna Administrative Services, Inc. Blue Cross Blue Shield Anchoz CIGNA Anthem Confederation Life Benefit Services, Inc. Florida Healthcare Coo erative Florida First Prudential Hunt Trustmark Jenkins & Associaxes Em io ers Mutual, Inc. Robe Barber Talma e BRENDA M.SADLER Vice President & Senior Consultant EDUCATION State of Florida Life Health and Variable Annuity License -Certified Employee Benefits Specialist (CEBS) Recognition of Academic Achievement in Group Benefits through the University of Pennsylvania -Completed full course of study through Health Insurance Association of America (HL4A} BUSINESS EXPERIENCE Over 32 years' experience in the Health and Welfare Industry with a focus on managed care, client development, underwriting, product analysis and rate negotiation -Heavy claims background, including management ofa Third Party Administrator (TPA) organization and over 20 years' claims auditing experience AREAS OF EXPERTISE Underwriting skills and renewal evaluations -Plan design -Enrollment material development - Policy & Procedure development -Claims audits -Network negotiations -Contract negotiations - SPD design -Product analysis -COBRA & HIPAA Compliance-RFP Development- Proposal Analysis Prior Senior Management position with a major group insurance company -Committee member for Member Education, Quality Improvement, NCQA, Risk Management, and Disease Management Programs PROFESSIONAL ACTIVITIES Florida West Coast Employee Benefits Council (1996 & 1997} - 1997 FAHMO Event Conunittee - Inroads Mentor (1996 & 1997) -National Association for Female Executives (NAPE) (1999-2001) Current member of Leadership Tampa Alumni (Class of `97), - Intemataonal Foundation of Employee Benefit Plans {IFEBP) -Member, Society of Risk Management Consultants, -Business Member of FERMA Brenda ht. Sadler - (Continued) PARTIAL LIST OF CLIENTS PREVIOUSLY SERVED • Charlotte Mecklenburg School System • City of Dania Beach • City of Fort Pierce • City of Charlotte {NC) • City of Holly~vvood • City of Miami Beach • City of St. Petersburg City of Tampa • City of Winter Haven • Coca Cola Corporation • DANKA • Fiserv • Flagler (The Breaker's) • Florida Power Corporation & Florida Power & Light • Fort Pierce titilities Authority • Fort Worth School District • Hillsborough County Goven~unent • Hillsborough County Indigent Health Care Plan • Hillsborough County School District • Lee County Sheriff's Office • Logan Lumber Company • Martin County School Board • McNichols Company • North Naples File Control & Rescue Unit • Northern Telecom {Nortel) • Palm Harbor Special Fire District • Perkins Restaurants • Pic `N Pay Shoes • Pinellas County School Board • Polk County Schools • Raymond James Financial • Shriner's Hospital • Staffing Concepts • Tampa General Hospital • Tech Data • TECO • Thompson & Company • Times Publishing • Tucson Electric Power • University of Arkansas F: REFERENCES !client audits conducted ~~ithin the last three nears) FORT PIERCE UTILITIES AUTHORITY 206 South Sixth Street Fort Pierce, FL 34950 Mr. Doug Giel Director of Human Resources Tel.: (772) 466-1600 ext. 3265 Fax.: (772) 429-2035 Email: d iel(a~fyua.com S fiver has conducted numerous audits for this client. Our most recent audit was performed the week of February 7, 2005. This audit included review of medical, dental, and prescription drug claims for the plan yeas 2004. The final results of this review of services provided by the Third Parry Administrator, Employers Mutual, Inc. are pending client review. HILLSBOROUGH COUNTY GOVERNMENT 601 E. Kennedy Blvd. Tampa, FL 33602 Mr. Jack Kroil Ms. Lillie H. Joe Finance Services Manager Contracts Manager Tel.: {813) 272-5040 Tel: {813) 301-7341 Fax: (813) 276-2865 Fax: (813) 276-2865 Email: krollj(a~hillsborou hg_countv.org Email: ioelnu,hillsboroughcounty.org Siver has conducted three separate audits for this client. Siver was engaged by Hillsborough County to conduct an independent review of the Claims Settlement Process developed and managed by the County. The audit included an overview of the process utilized by the County to resolve payment of unprocessed health claims incurred prior to February 15, 2002. The settlement process was generated in response to network providers who complained that numerous claims had not been processed by the administrator for the County's indigent health plan from October 1, 2000, through February 1 ~, 2002. Siver Insurance Consultants (Siver) was subsequently engaged by Hillsborough County to conduct an independent review of the new claims administration services provided by Administrative Services, Inc. (AS)) in conjunction with the County's Indigent Health Care Plan. This audit included an overview ofthe process utilized by ASI to adjudicate claims during the first half ofcalendar year 2003. This audit was concluded in September of 2003 and a similar audit was conducted in September of 2004, covering the period subsequent to the 2003 audit. CITY OF WINTER HASTEN 451 Third Street, NW P. O. Box 2277 Vv inter Haven, FL 33883-2277 Ms. Michele Stayner Community and Workforce Services Department Director Tel.: (863) 291-5667 Fax: (863) 291-5623 Email: mstaynerra?~nvwinterhaven.com At the request of the City of Winter Haven, Siver Insurance Consultants conducted an audit of the Claims Administrative Services provided to the City by Blue Cross Blue Shield of Florida. The scope of the audit project included a random review to confirm if claims from the first eight months of 2003 were processed according to the City's benefit schedule. Additionally Siver's audit included a targeted review of claims denied, to determine if covered services might have been excluded in en-or or if claims were appropriately rejected for additional information. This audit was completed in October of 2003. CITY OF FORT PIERCE 100 North U.S. Highway One P. O. Box 1480 Fort Pierce, FL 34954 Mr. George Bengalis Director of Finance Tel.: {772) 460.2200, ext. 332 Fax: (772) 489-2594 Does not utilize Email Our most recent audit for this client was performed the week of February 7, 2005. This audit included a review of medical, dental, and prescription drug claims for the plan year 2004. The final results of this review of services provided by the Third Party Administrator, Employers Mutual, Inc. are pending client review. Siver has conducted aumerous audits for this client, including an audit of the City's prior TPA, conducted in 2002. LEE COUNTY SHERIFF'S OFFICE 14750 Six Mile Cypress Parkway Fort Meyers, FL 33912-4406 ?~~ir. George Mitar Legal Director Tel.: (941) 980-9994 Fax: {941) 477-1040 Siver Insurance Consultants (Siver) were engaged by the County of Lee Sheriff s Office to conduct an independent audit of the Employee Benefit Plan administered by Hunt Insurance Croup, Inc. The audit, conducted in May of 2002, covered claims adjudicated by Hunt and incurred from June 2000 through the end of October 2001. MARTIN COUNTY SCHOOL BOARD 500 East Ocean Blvd. Stuart, FL 34994 Ms. Julie Sessa Employee Benefits Risk Manager Tel.: (772) 219-1200 x.3020b Fax: (772) 219-1226 Martin County School Boazd engaged Siver Insurance Consultants (Siver) in May of 2002, to conduct an independent audit of the employer sponsored Employee Benefit PIan, administered by CIGNA. The audit period included claims adjudicated by CIGNA for claims incurred from :November of 2000 through the end of October of 2001. This audit was completed in August of 2002. COLLIER COUNTY SHERIFF'S OFFICE 3301 Tamiami Trail East, Building J Naples, FL 3411 Z Ms. Carol GoIightly Assistant Finance Director Tel.: (239) 793-9230 Fax: (239) 793-9405 At the request of Collier County Sheriff s Office, Siver Insurance Consultants conducted athree- phase review of the Group Health Plan and the Claims Administration Services provided to the Sheriff's Office by Hunt Insurance Group, Inc. (Hunt), a division of Hilb, Rogal & Hobbs (HRH). Thethree-phase scope of the project included a series of Focus Group Interviews with employees; a comparison of the Group Health Plan offered by the Sheriffs Office to other Florida Group Health Plans; and an nn-site claims audit at Hunt's offices to confirm if 2003 health claims werc processed according to the Sheriff's Office Plan pazameters. The project was completed in July of 2004. G: FEES IMPORTA~~1T NOTE While the Scope of Services indicates the audit was intended to include a review of 100% of tt~e processed claims for medical, dental, hospitalization, and prescription drug claims, it is our experience that the typical audit consists of a sampling of paid claims, rather than a 100% review, The sample is randomly selected from a listing of all processed claims to determine if any significant discrepancies exist. In the absence of significant discrepancies, a full claims audit is usually unnecessary and would prove to be cost prohibitive. Based on the population indicated for this group, Siver recommends an initial sampling of ~% or approximately 400 claims. Our selection process would cover claims throughout the 12 month claim period requested and would include samples from each of the categories indicated (medical, dental, hospitalization and prescriptions). Should the initial sampling reveal an error ratio in excess of industry standards, Siver would contact the Village of North Palm Beach to detcrmine if an extended audit is desired. With these comments in mind, Siver has offered a project estimate, based on review of an initial sample consisting of 400 claims. Based on information obtained from Employer's Mutual lnc., 400 claims represents an audit sample of approximately 5% of the claims adjudicated during the audit period indicated. A 5% audit is consistent with industry standazds. To the extent that a larger audit is desired, we have provided our fee for each additional 100 claims to be reviewed. We are available to discuss our fee structure and will provide adjusted estimates based on other parameters, if desired. - Auditor Rate: - Technical & Administrative Support Rate: - Travel & Business Expenses: Estimated Cost $150.00/Hour $ 40.OO/Hour Pass Through Basis to Client First 400 Claims - Each Additional 100 Claims Reviewed > Travel & Business Expenses: $ 7,500.00 $ 1,200.00 Pass Through Basis to CIient