workers’ compensation claims analysis and prevention independence school district
TRANSCRIPT
Workers’ CompensationClaims
Analysis and Prevention
Independence School District
Total Cost of Work Comp Claim
Direct Costs + Indirect Costs = True Cost
Direct Costs
Medical
Lost Time
Disability
Legal Costs
Hidden Cost of Risk
• Lost time of injured worker. • Time lost of other employees who stop work to help. • Executive time preparing reports and training a
replacement. • Damage to machines or other property. • Continued wages of employee who cannot work at full
potential after return. • Costs from excitement or weakened morale.
5
If I had done this, that would not have happened
Only one party is required to break the chain!!
Contributing Factors
ISD claims experience
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$731,524
$997,667
$796,225
Total Incurred
2009-20102010-20112011-2012
2011-2012 total in-curred claims figure is thru 9/30/2012.
Per Claim Average
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$2,880
$6,478 $7,305
Average $ per Claim
2009-20102010-20112011-2012
How insurance costs work
Premiums paid by members must contain two costs:
35 % 65 %
Fixed Costs
AdministrationClaims handling
Risk Control
Variable Costs
Claims
Experience Modification Factor
ISD Mod
2009-10 1.00
2010-11 1.00
2011-12 1.32
2012-13 1.40
Premium Projections for ISD
Year Premium Claims Break Point Profit/Loss 2010 798,013 731,539 1,125,444 (347,431) 2011 721,901 997,792 1,535,064 (813,163) 2012 1,034,523 1,061,657 1,633,318 (598,795) 2013 Projected
1,538,461 1,000,000 1,538,461 0
Recommendations
1) Establish a ZERO CLAIM philosophy that is clearly communicated.
2) Have Superintendent communicate at staff orientation that ISD emphasizes a Safety Culture. “We want you to come to work safe, work safe while here, and return home safe.”
3) All serious claims will be investigated by the top building administrator/or person in charge including visit to location of claim with claimant and safety officer, interview claimant asking them how their injury could have been prevented, and express concern over employee’s condition.
4) Communicate cumulative claims experience to all employees via and intranet website or other medium.
5) Ask employees to report all near misses and keep a log.
Metro Area School District
0
10
20
30
40
50
60
70
80
90
7078
29
# of Claims
2009-20122010-20112011-2012
Independence School District
0
50
100
150
200
250
300
254
153
109
# of Claims
2009-20102010-20112011-2012
Metro Area School District
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$289,234
$589,438
$100,998
Total Incurred
2009-20102010-20112011-2012
Independence School District
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$731,524
$997,667
$796,225
Total Incurred
2009-20102010-20112011-2012
Metro Area School District
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$4,131
$7,557
$3,483
Avg. $ per Claim
2009-20102010-20112011-2012
Independence School District
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$2,880
$6,478
$7,305
Avg. $ per Claim
2009-20102010-20112011-2012
GOALS & OBJECTIVES
1. Reduce the average cost per claim for 2013
2. Reduce the number of claims by 10% for 2013
3. Implement detailed analysis of every injury
4. Communicate the current data to all employees
5. Establish program to track near misses
6. Reduce the experience modification factor to by 20 points