heffernan ppt mar 2020 wc update [read-only]€¦ · microsoft powerpoint - heffernan ppt_mar 2020...

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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.comHeffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com

Workers’ Compensation Update:2019 in review and what’s on the horizon?

March 17, 2020

Debra Parker, COSSRisk and Safety Consultant

Aspen Risk Management Group

Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com

Content DisclaimerThe information presented is general in nature and is intended to present an overview of workers’ compensation. The written and verbal contents of the presentation are not intended to constitute consulting and/or advice and no client relationship is established between the presenter and attendees.

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Agenda & Objectives

• Workers’ Compensation – Updates• Financial Status of the industry• OSHA updates (including COVID 19)• The Future of things


Polling Question

Have you attended a previous Heffernan Webinar?• Yes• No

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Polling Question

• What type of business are you in?• Hospitality• Agriculture, Construction, or Manufacturing• Wholesale/Retail• Non-profit or Government• Manufacturing• Other


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Trends and Updates

• Current state of the WC System

• OSHA/CalOSHA Updates

• Future trending


Premiums paid for WC

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Factors in written premium changes by component


Profitability

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Climate Change - Cat


COVID-19*Compensability• Is coronavirus compensable under WC? The answer to that

question is “maybe.” While WC laws provide compensation for “occupational diseases” that arise out of and in the course of employment, many state statutes exclude “ordinary diseases of life” (e.g., the common cold or flu). There are occupational groups that arguably would have a higher probability for exposure such as healthcare workers. However, even in those cases, there may be uncertainty as to whether the disease is compensable.

*source: NCCI

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One state –Washington affirms• On March 5, the state of Washington’s Department of Labor

and Industries announced that it changed its policy related to workers compensation coverage for healthcare workers and first responders. Under the clarified policy, Washington state will provide benefits to these workers during the time that they are quarantined after being exposed to coronavirus on the job. The coverage will pay for medical testing, treatment expenses if a worker becomes ill or injured, and provide indemnity payments for those who cannot work if they are sick or quarantined.

• It remains to be seen if other states will take the same measures relative to WC.


OSHA Guidelines on COVID-19• OSHA - Not a standard or regulation• General Duty Clause: requires employers to provide their

employees with a workplace free from recognized hazards likely to cause death or serious physical harm.

• Follow CDC guidelines and any directives from local, state and federal organizations

• CDC expects that widespread transmission of COVID-19 in the United States will occur. In the coming months, most of the U.S. population will be exposed to this virus.

• https://www.osha.gov/SLTC/covid-19/• https://www.osha.gov/Publications/OSHA3990.pdf?fbclid=IwAR3KAdjfZQk29ekw0elxZPqYPdwdvy00471wJc3-

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• https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/summary.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fsummary.html

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Polling Question

What do you think the most frequent type of injury in the work place is?• Upper extremities (Fingers, Hands, Arms, Shoulders)• Lower extremities (Toes, Feet, Legs, Hips/Pelvis)• Back and Neck• Other• Not sure


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Causes


Workplace fatal incidents 2017

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Indemnity costs = lost wage replacement for lost time injuries


The total AVERAGE cost of a lost time incident = $45k (lost wages and medical costs) in CA = $63k

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New at CAL OSHAhttps://www.dir.ca.gov/dosh/PubOrder.asp

• Wildfire response and air quality• Cal/OSHA Safety Guidance on Coronavirus• Safety and Health in Agricultural Field Operations• Sample Hazard Communication Program (in Word format)• Guide to developing an IIPP for Restaurants (in Word format)• Aerosol Transmissible Diseases Model Exposure Control Plan(standard for employers – including COVID-19)https://www.dir.ca.gov/Title8/5199.html

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New at OSHA :

March 2020:

• Temporary Enforcement Guidance for Respirator Fit-Testing in Healthcare during COVID-19 Outbreak

• US Dept of Labor guidance for preparing workplaces for Coronavirus

• Dollar Tree Stores – citations for exposing employees to exit, storage and fire hazards (various stores in different states)

• REMINDER: report 2019 OSHA 300A by March 2nd


https://www.osha.gov/injuryreporting/index.html

Reporting 2019 Injury and Illness DataMarch 2, 2020, is the deadline for employers to electronically submit 2019 data- OSHA Form 300A*

WHO?Establishments with 250 or more employees that are currently required to keep OSHA injury and illness records, and establishments with 20-249 employees that are classified in certain industries with historically high rates of occupational injuries and illnesses.

Industries that must file (with 20+ employees): https://www.osha.gov/recordkeeping/NAICScodesforelectronicsubmission.html

*OSHA removed the requirement of filing 300 and 301 reports. File ONLY 300A (summary form)

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What to do?• Conduct regular self-inspection safety audits to identify and

eliminate hazardous conditions.

• Good housekeeping-keep the floor clear of any materials that could cause a worker to slip or trip.

• Provide employees with adequate personal protective equipment – and enforce it’s use!

• Properly train all employees and train often; newer employees are the most vulnerable to an accident, and seasoned employees can always use a refresher course.

• Recycle, Rinse, Repeat!


What’s the future holding?

Technology Driven• Speeding delivery of proof of coverage,

payments to injured workers• Apps for injured workers to know where they

are in the process of their claim“Alexa, where’s my check…, when is my doctor apt….”• Data formatting (blockchain/riskblock) – think of loss data that is

not standardized now.• Pharmacists matching DNA to prescriptions (no errors)• Predictive Modeling (risk direction on claims allows people to

focus on people)• Robotics (unmanned cars, etc.)

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Common safety and health “predictors”

Gas detection devices

Health risk survey

Safety culture, and other safety and ergo surveys

Severity index (predictive analytics in workers’ comp)

Underwriters use predictive modeling to price risk

Peer behavior, and environmental observations

Pre and new hire orientation

Casualty prediction

• Recovery opportunities (subrogation)• Fraud and red flags (injured worker)• Loss Control• Minimizing the cost of injuries

–After an injury–Reporting and investigation–Return to work–Medical providers–Claims team relationship–Broker/agent

Successful strategies and best practices (general)

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Eliminate the Mystery of Workers’ Compensation

• Provide fundamental information to supervisors and employees

• Reassure employees that their job is safe

• Tell injured employees about the reimbursement of mileage

Minimize Attorney Involvement

Where do you want your employees to learn about workers’ compensation?

Where do you want your employees to learn about workers’ compensation?

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• Get care for injured workers first

– Do the paperwork later

• Notify claims team quickly after injury/notification

• Continue to practice “actively caring” steps


The longer the reporting

period – the higher the

probability of litigation

Percentage of claims litigated, relative to report lag (in days: 10, 20, 30 and over 30)

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Reporting costs

Injuries reported within 2 weeks of injury were 18%

more expensive than those reported within one week.

…reported within 3 weeks were 29% more expensive than those reported within

one week.

…reported at 4 weeks were 31% higher and at five weeks

they were 45% higher.

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Understand Employee Perception of Workers’ Compensation

• Communication counts• Show you care• Treat people the way you would want to be treated• Get help/medical care for injured• Get well cards (signed by staff)• Flower or other means of recognition• Visits/calls• Demonstrate understanding, caring behavior• Discuss job security

Intracorp Studies

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Understand Employee Perception of Workers’ Compensation

Intracorp Studies

“… the preferred source for information should be provided by

employers (supervisors) …”


Agenda & Objectives

• Workers’ Compensation – Updates• Financial Status of the industry• OSHA updates• The Future of things

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Discussion and Questions

Thank You!Debra Parker, COSS

Risk and Safety ConsultantAspen Risk Management Group

[email protected]

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heffernan ppt mar 2020 wc update [read-only]€¦ · microsoft powerpoint - heffernan ppt_mar 2020...

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