1

Rehabilitation Case Managers Conference May 2012

Recovery and Support Services

General Manager Update

2

Comcare Update – What is new?

• Legislative changes December 2011• Comcare organisational re-shaping in December 2011 • Mid-year premium valuation • e-CPM releases • Significant federal court matters • Claim trends

3

Our Work Together

• Improving return to work outcomes

• Getting the Basics Right

• Improved front end processes

4

High level financial outlook

> Early in 2012 Taylor Fry revised their estimate of outstanding claims liabilities to $2.032B

> Change in estimated claim costs from Feb 2011 for injury years 2008, 2009 and 2010 by 15% to $513.8M

> Forecast premium pool 25% higher in 2012/13 > Average premium rate 1.8

Year of injury

% of acepted

claims on incap

Avg Wks Incap

% change

Avg. incap costs

% change

2010-11 63% 11.4 16% $15,054 18%

2009-10 62% 9.8 12% $12,758 18%

2008-09 63% 8.7 14% $10,817 20%

2007-08 59% 7.6 $8,997

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Claims incidence rate by injury / disease (premium payers)

6

Cost of incapacity for work

Number of claims versus cost of incapacity (premium payers)

2007-08 2008-09 2009-10 2010-112950

3000

3050

3100

3150

3200

3250

3300

0

5

10

15

20

25

30

35

No of Claims Incapacity

Financial year of injury

Nu

mb

er o

f ac

cep

ted

cla

ims

at m

on

th 2

2

Pro

gre

ssiv

e in

cpap

city

co

sts

atm

on

th 2

2 ($

M)

7

Claims Lodgement Data Two key timeliness KPI’s:

> Days from received by employer to Comcare

> Days from received by Comcare to initial decision

2008-09 2010-1112M to Mar-12

4,179 3,856 3,942

1,989 1,794 1,952

47.6% 46.5% 49.5%

23 25 27

KPI 47.2%

Median days - DOI to Employer Received Date

24

# Claims 3,974

# Claims lodged within timeframe

1,876

Measure 2009-10

2008-09 2010-1112M to Mar-12

4,024 4,028 3,984

2,318 2,580 3,268

57.6% 64.1% 82.0%

Measure 2009-10

# Claims Determined 3,887

# Det. within timeframe 2,060

KPI 53.0%

8

Ex-employees: separations by year and injury type

0

20

40

60

80

100

120

140

19

501

955

19

561

957

19

591

960

19

611

962

19

631

964

19

651

966

19

671

968

19

691

970

19

711

972

19

731

974

19

751

976

19

771

978

19

791

980

19

811

982

19

831

984

19

851

986

19

871

988

19

891

990

19

911

992

19

931

994

19

951

996

19

971

998

19

992

000

20

012

002

20

032

004

20

052

006

20

072

008

20

092

010

20

11

Disease excl. Psych Injury Psychological

Count of Claim No

Year separated

Inj/Dis/Psych

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Key Issues for Ex-Employees

• Following a redundancy employers still have RA responsibilities and powers – s36 and s37

• S40 – take all reasonable steps to provide suitable employment• Comcare’s role to provide advice about suitable employment • Seek advice prior to offering a VR, Invalidity Retirement or

cessation of an employee with an active claim - rights and responsibilities of the employee and employer and suitable employment, expectation setting

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Contemporary findings potentially impacting on adverse claim trends

> Long delays between date of injury and claim lodgment with employer (disease, particularly psychological claims)

> Increasing acceptance rates and claim durations for psychological claims at the EL1+ level

> An increase in continuance rates for medical payments

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Next Steps

• Next steps - our focussed activity to reduce the number and cost of claims

• Questions ?