Workers Compensation Program Review FY09-13

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1 Charleston Achieving Excellence: Vision 2016 Workers Compensation Program Review FY09-13 Risk Safety and Environmental Management Dana S. Enck, Director December 9, 2013

2 Objectives of this presentation Provide a 5-year snapshot of claim trends: financial, occupational and causal Identify cost drivers, risk gaps and subsequent mitigations Outline future strategies for targeting identified risk gaps, reducing the total cost of risk for the District

3 Total reports of injury have decreased in 5 years Total Claims Entire District Claims

4 Total Workers Comp Program Expenditures $3,600, $3,400, $3,392,956 $3,200, $3,000, $2,800, $3,099,447 $2,919,530 $3,043,735 $2,600, $2,400, $2,360,811 $2,200, $2,000, FY09 FY10 FY11 FY12 FY13

5 What would we rather have in FY15? FY09 FY10 FY11 FY12 FY13 $3,099,447 $3,392,956 $2,919,530 $2,360,811 $3,043,735 One step for every employee $3.5 million 1% COLA $2.4 million With last year s expenditures, we could have instead employed 46 teachers

6 Expense Costs for FY09-13 $600, $500, $548, Legal expenses, filing fees, surveillance, case management $400, $300, $308, $284, $200, $270, $266, $100, $

7 Medical Expenditures FY09-13 $2,500, $2,362, $2,000, $1,500, $1,392, $1,233, $1,000, $1,196, $1,035, $500, $

8 Settlement Costs FY09-13 $1,600, $1,400, $1,200, $1,351, $1,396, $1,000, $800, $600, $716, $720, $400, $390, $200, $

9 The same knee injury to different people Position Age Comp Rate % disability Settlement Maintenance 63 $ % $6,263 Teacher 59 $ % $14,502

10 Cost of Lost Time FY09-13 $800, $700, $737, $600, $500, $400, $300, $328, $306, $200, $144, $100, $153, $

11 Reports of injury have decreased by both severity and total Medical Only Indemnity

12 Total Number and Type of Days Lost From Work 5,000 4,500 4,000 3,500 Full Days 3,000 2,500 2,000 1,500 1,000 Partial Days

13 Actions Resulting in Reduced Lost Time Aggressive Return to Work Program based on best practices Temporary placements to enhance student achievement and facilities Permanent placements in a new career, if available and qualified Relationship development with the injured worker Close contact with medical providers via district representatives and nurse case manager

14 Number of Claims By Occupation Who has claims? All numbers are representative of FY09-13 % of Occupation With a Claim % 25% 20% 15% 10% 5% 0%

15 Total Incurred Cost of Claims for FY09-13 by Job Class $6,000, $5,000, $4,000, $3,000, $2,000, $1,000, $0.00

16 Maintenance FY09-13 Claimants Range in Age From Average is 54 years old Total cost incurred is $943,335 Average cost per claim is $11,504

17 Maintenance Injury Types FY Falls Strains / Lifting Motor Vehicle Other 8

18 Financial Impact of Injury Types FY Maintenance $48, $160, $461, $272, Falls Strains / Lifting Motor Vehicle Other

19 Food Service Claimants range in age from Average is 54 years old Total Cost Incurred $1,329,867 Average cost per claim is $7,388

20 Food Service Injury Types FY Burns Falls Strains / Overexertion 40

21 Financial Impact of Injury Types FY09-13 Food Service $46, $486, Burns $840, Falls Strains / Overexertion

22 Teacher Assistants FY09-13 Claimants range in age from Average is 50 years old Total cost incurred $1,374,503 Average cost per claim is $6,545

23 Teacher Assistant Injury Types FY Falls Strains / Overexertion Assault Struck By 51

24 Financial Impact of Injury Types FY09-13 Teacher Assistant $403, Falls $536, Strains / Overexertion Assault Struck By $19, $395,884.00

25 Rolled up.. FY09-13 MAINTENANCE Most Injured Body Part Backs and Necks (17) Most Expensive Body Part Backs and Necks ($279,224) Most Types (specific) Strains (24) Most Expensive Type Strains ($461,703) FOOD SERVICE Most Injured Body Part Hands (36) Most Expensive Body Part Backs and Necks ($577,142) Most Types (specific) Strains (58) Most Expensive Type Falls ($840,766)

26 Rolled up. FY09-13 TEACHER ASSISTANTS Most Injured Body Part Backs and Necks (32) Hands (32) Most Expensive Body Part Backs and Necks ($287,311) Most Types (specific) Falls (69) Most Expensive Type Falls ($536,987)

27 Rolled up FY09-13 Entire District Most Injured Body Part Backs and Necks Most Expensive Body Part Backs and Necks ($2,155,597) Most Types Falls (511) Strains (329) Most Expensive Type Falls ($5,539,939) Strains ($2,328,322)

28 Mitigation Programs in Place Training Annually, all employees are required to complete lifting / back safety OR slip and fall awareness online courses Presentations semi-annually to food service and maintenance on various safety topics 1-1 consultations post-injury to investigate for possible subrogation and educate the school staff Capital Program Involved in the selection of walking surfaces and placements of fixtures, features and furniture

29 Mitigation Programs in Place Interviews Post-accident, a staff member interviews the injured worker to check for quick fixes and ideas for prevention Aggressive return to work programs The less time the injured worker is out of work, the less costly the claim is and the more likely the worker is to return Building relationships with the Injured Worker

30 Total Cost of Workers Compensation Risk FY13 only Expense Staff salary and benefits 1.0 Technician, 0.5 Director, 0.5 Secretary, 0.25 Manager Amount $150,105 Self-Insurance tax $87,995 Second Injury Fund assessment $205,675 Excess retention insurance premium (for claims exceeding $700,000) $124,587 Third party administration $115,000 Medical, expenses, lost time and permanency awards $3,043,735 Total Cost of Risk $3,727,097

31 Challenges in the workers compensation program Limitations in returning to work result in an automatic award of 500 week of wages with lifetime medical treatment Injured workers do not qualify for a new career in the District due to: Educational requirements Physical requirements (Age, weight, lessened mobility)

32 Challenges in the workers compensation program Medical practitioners and the Workers Compensation Commission generally favor the Injured Worker to the expense of the Employer Affects medical costs, extent of treatment and time lost from work A high percentage of our injured workers seek legal representation 134 injured workers were represented from FY09-13 District has spent $810,583 in legal fees from FY09-13

33 Challenges in the workers compensation program Program resources are disproportionally focused on post-injury Training, inspections and development of a safety culture are best practices Managing the program is one Technician and portions of a Secretary and Director, in addition to a Third Party Manager Requires a lot of coordination among departments, document gathering for attorneys (both sides), and follow up. Many administrative tasks required with data entry.

34 Goals for an optimized workers compensation program Pre-employment, post-offer and ongoing physical testing Wellness programs specifically targeting obesity and high risk health conditions in individuals Post-accident, mandated drug testing Advised that this would be challenged in court Exit strategy for employees who would like to retire, but can t / don t Continuing education for laborers - to be able to transition into lower risk careers

35 Goals for an optimized workers compensation program More district-wide camera surveillance to document the incident and determine fault Outsourcing where it makes sense through careful analysis Day porter workers compensation costs $119,611 FY09 $17,619 FY10 $22,285 FY11

36 What can this buy in FY14? FY09 FY10 FY11 FY12 FY13 $3,099,447 $3,392,956 $2,919,530 $2,360,811 $3,043,735 One step for every employee $3.5 million 1% COLA $2.4 million With last year s expenditures, we could have instead employed 46 teachers

37 Questions?