canadian association of movers november 2004 annual conference

Canadian Association of MoversNovember 2004 Annual Conference

Topic overview

Workplace statistics trends affecting the Moving & Storage Industry

Understanding the Workers’ Compensation Maze

4 Steps to control your W/C costs

Billions in Losses

Annually-5 billion in W/C costs– Average $82,500 / working minute

3 workers die every day– Yr 2000-882 workers were killed– Yr 2000-800,000 workers were injured on the job

On average-injury occurs every 9 sec– Each yr 400,000 workers-serious-can’t work

Workplace Statistics

Moving & Storage Industry 1999-2003

National-Moving & Storage IndustryLost Time claims

OVERVIEW

Nature-Type of injury Part of body injured Event-type of accident

resulting in the injury

Lost Time M&S-Nature

0

2,000

4,000

6,000

8,000

10,000

12,000

Lost Time Claims

1999 2000 2001 2002 2003

Years

Sprain 38%

Bruises/Cont 11%

Fractures 7%

Data from the Association of Workers’ Compensation Board (AWCBC) National Work Injury Statistics Program)

Lost Time M&S-Event

0

2000

4000

6000

8000

10000

1999 2000 2001 2002 2003

Years

Lo

st T

ime

Cla

ims

Lifting 30%

Falls 10%

Struck by 15%

Data from the Association of Workers’ Compensation Board (AWCBC) National Work Injury Statistics Program)

Pushing/ pulling

Bending/ twisting

Overexertion

Pushing/ pulling

Bending/ twisting

Overexertion

010002000300040005000600070008000

1999 2000 2001 2002 2003

Years

Lo

st T

ime

Cla

ims

Back 30%

Legs 21%

Arms 16%

Neck/ Shoulder11%

Lost Time M&S-Part

Data from the Association of Workers’ Compensation Board (AWCBC) National Work Injury Statistics Program)

Sub Category-Legs

1400

1450

1500

1550

1600

1650

1700

1750

1800

1999 2000 2001 2002 2003

Ankle(s) 32%

Knee(s) 31%

Data from the Association of Workers’ Compensation Board (AWCBC) National Work Injury Statistics Program)

What does the data show us?

Trend-stable to slight decrease in lost time frequency

Increase in severity– Duration of claims– Length in recovery Time– Permanent Impairment 0

20

40

60

80

100

120

140

160

Years

Lo

st

Tim

e

Fx Rate

Severity

What areas do we need to focus on?

Hazard Analysis Hazard Assessment

Workers’ Compensation– In house claims management

Pre-injury

Controls

Post-injury

Controls

Tomorrow

Workers’ Compensation

FundingPremiumsRate GroupsBenefits for Employers, WorkersAssessing the need for Claims Management

Workers’ Compensation

The most expensive Insurance

Recent survey in 2001 asked employers if Workers’ Compensation is affecting the financial viability-profit margin

70% indicated that they were somewhat to vary

concerned

Workers’ Compensation

Cost ofinjuries

Overheadcosts

UnfundedLiabilityFund

0

1

2

3

4

5

6

7

R/$100

Premiums

Workers’ Compensation

Benefits for Employer Protection from lawsuits

– What about sub-contractors?

Non-fault Insurance– What about third party?

Workers Compensation

Incentives– Experience Rating Surcharges & Rebates

Audits (target areas)

Workers Compensation

Provides coverage for workers– Who is covered?

FULL TIME PART TIME SEASONAL CASUAL PAID STUDENTS LEARNERS SUB-CONTRACTORS? OWNERS?

Benefits for Workers

Benefits for wage loss and health care– 75-90% Gross

Permanent Impairment Benefits

Re-training cost

Survivor Benefits

Retirement Benefits– 12 months loss of earnings -

5%(retirement fund)-paid at age 65

Preventing premium increases

Hazard Analysis Hazard Assessment

Workers’ Compensation– In house claims management

Pre-injury

Controls

Post-injury

Controls

Assessing whether you need a Claims Management program

Is your W/C costs higher than they should be?

What is your average claim cost? What is your average lost-time duration

days?

4 Steps to Claims Management

1. Determining your situation-industry standards

2. Set Objectives

3. Reporting Procedures

4. In-House Claims Management Training written procedures post-injury

Claims management checklist…

Controls

W/C

Costs

Controls

W/C

Costs

Step 1. Determining your situation

Most employers sense their W/C cost may be higher than they should be

measures to evaluate – Traditional small or large employee base– Prescriptive

Step 2. Set W/C Objectives

Where you are vs. Where you want to go Consider:

– Evaluate W/C total net costs / yr. ≥ $500-$1000/yr /full-time worker its to high

– Number of lost-time cases (1 to 2 yrs) closed within 10 days (from date of accident). If %≤ 90% W/C costs are too high

Educate staff and supervisors on claims management practices

10-20% Reduction. Key staff members should be familiar with injury

management goals and procedures (Reporting Procedures)

Step 3. Reporting Procedures

What is the number one cause of lost-time injuries?

Communication

Between the worker to the lead hand or supervisor to office to the Workers’ Compensation office

Accident Reporting Procedures

True or False

One of the biggest challenges facing employers on gathering claim related information is the lack of knowledge about the Workers’ Compensation process

Accident Reporting Procedures-Checklist

Written procedures-Why? Absentee program

– Why is it needed-nature of industry-cyclic– What is it-proactive-notification of injury from Board– How does it work-checklist

Roll calls First-aid, medical attention…

Accident Reporting Procedures-Checklist

When is modified work offered?(medical note one week off)

How and what is offered?

Accident Reporting Procedures-considerations

Does the Board have a copy of modified-work program

Completing the Employer’s Report of Accidental Injury (F7) how are your concerns reported…Benefit of doubt…accident investigation

Lost-time vs non-lost-time filing Reporting procedures for workers included in hiring

process

Step 4. In-House Claims Management

What is it?

Systematic response post-injury that guides employers through the maze of Workers’ Compensation policies– A management tool-control claim costs

– Provides a system of Checks and Balances

– Holding the Board Accountable for decisions and duration of claim entitlements.

Most EffectiveTool

Most EffectiveTool

In house Claims Management

Why is it important?

Over 360,000 claims adjudicated per year

Well-defined C/M program can mean the difference between a claim costing $10,000 vs. $100,000

Claims Management

Who should be trained?

Your Workers’ Compensation liaison person, staff…

Challenges– Payroll– Operations…

Claims Management

What should they be trained on?

The Fundamentals of the Claims Adjudication Process

Specific to Moving

& Storage

Fundamentals

Types of claim entitlement issue…M&S– Specific & Gradual onsets

Immediates / compatibility

Fundamentals

Reporting Injuries to the Board-form 7– reoccurrence , aggravation…

Loss of earnings Pre-existing-financial relief Re-employment obligations

Modified Work– When and how to offer modified duties– Normal healing time– Independent Medical Evaluation, Physical

Demand Analysis & Functional Capacity Analysis– Permanent Impairments-Maximum Medical

Recovery, Non-Economic Loss Award– Re-training

Return-to-work Process

Claims Management-Checklists

Warning signs of Workers’ Compensation Fraud-initial contact with worker

Initial Entitlement-Is the claim allowable/ Reoccurrence…

Return-to-work monitoring checklist-benchmarks-recovery-graduate to regular duties…

How does Claims Management Save you Money

For every $1 spent-company can save $5 in Workers’ Compensation costs– How does this happen?

Control the outcome of disability by controlling the process

Case Study-Claims Management

Facts:– 39 years old– Hired May 1 2004-Driver– Gross $40,000 / yr (with OT) $750/week– DOA May 17, 2004– Low back strain– Standard back precautions– Medical treatment-Cat Scan, MRI…– Ongoing modified work-helper – MMR October 1, 2004-P.I. – W/C calls- A/E Accommodation?

Control the outcome of disability by controlling the process

What Next?

Case Study-Claims Management

2 options

1. Accommodate

2. Vocational Rehab-training

Case Study-Claims Management

1. Accommodate

Tools available to you Functional capacity evaluation-measures

what worker can / can’t do… Therefore-making the job fit restrictions….

Total cost $5000

Case Study-Claims Management

Case Study-Claims Management

2. Vocational Rehab-training costsVR assessment $2,250.00Re-training (1 yrs)Wage loss 1yr x$637.50/wk $33,150.00Tuition / books $1,500.00Mileage .34/ km $270.00Wage diff $2.50/hr x35yr $130,000.00

TOTAL $167,170.00

Questions?

Thank you