Intercare Holdings Insurance Services, Inc 5/8/2026

City of Everett RFP #2026-001 for Third Party Claims Administrator (TPA) Services ADJUSTING SERVICES FEES Fixed Fee – We believe this is a workable solution for public agencies seeking budget certainty. Unfortunately, it has its challenges. First, every other significant component of a claim (settlement and legal fees) is not predictable and as such, making the adjusting costs fixed will ensure that 100 percent of the time the fee will be wrong. Secondly, the result could be that the client is receiving far more resources than they are paying for, or the client is paying for far more resources than they are receiving in serv ices on any one claim. Either outcome is wrong. In this environment, Intercare makes every effort to be resource-sensitive in applying our best practices to ensure we balance the economics. No matter what, we put forth the right effort to resolve the claim. We do, however, adjust our clients’ fees that can and should be adjusted to meet our clients’ budget goals. We have developed a hybrid Fixed Fee Proposal. Public Entities have seen dramatic increases in claims frequency in contrast to pandemic years. As such, we wanted to create a simple fee model that allows for fee adjustments down or up due to claims frequency, as hopefully frequency drops back down. Since claims activity is the main indicator for TPAs and the number of resources needed to perform quality services, it is important that adjustments can be made to resources provided and resulting costs for the benefit of the client and TPA. Our model provides for an assessment of claims frequency twice a year – after six (6) and twelve (12) months. We have established the change must be at least 10% to trigger an adjustment and no more than 25%, as greater than that warrants a contract modification. For the City’s proposal the model would result in an adjustment in the event claims frequency dropped below the current estimate of new claims per year. In the event claims dropped below or increased above this estimate, an adjustment would automatically occur during the 7th and/or 13th months. The claims base would be adjusted to this new level for future year calculations. For the City, the financial result would be calculated based on the percentage increase or decrease ranging from 10-25%. For example, if the decrease was 10%, the fee would decrease from $70,000 to $63,000. Conversely, if there was a 10% increase the fee would increase from $70,000 to $77,000. Fixed Fee Fixed Fee $70,000 9