The state has opted not to award a new contract to F.A. Richard and Associates, (FARA) which previously operated the claims administration for the state Office of Risk Management. A new private contractor is being hired to oversee claims processing and loss prevention services for Louisiana’s self-insurance program instead. ORM announced late last week that Sedgwick Claims Management Services Inc. was awarded a three-year contract that begins July 1st, with an option for a two-year renewal. The contract cost over five years will be $80 million. This news comes as surprise to some stakeholders, as FARA has saved over $10 million for the state since the privatization of the ORM began in 2010 and the firm was on target to meet additional savings goals in the long term. Baton Rouge Business Report states in their coverage that four companies submitted bids for the contract and that the Jindal administration said Sedgwick was not the lowest bidder. The ORM website has not yet been updated with the news or any additional information on the new contract.
Read the full story from Business Report here.