Post on 24-Aug-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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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
Agenda & Objectives
• Workers’ Compensation – Updates• Financial Status of the industry• OSHA updates (including COVID 19)• The Future of things
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Polling Question
Have you attended a previous Heffernan Webinar?• Yes• No
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Polling Question
• What type of business are you in?• Hospitality• Agriculture, Construction, or Manufacturing• Wholesale/Retail• Non-profit or Government• Manufacturing• Other
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Trends and Updates
• Current state of the WC System
• OSHA/CalOSHA Updates
• Future trending
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Premiums paid for WC
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Factors in written premium changes by component
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Profitability
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Climate Change - Cat
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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.
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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-
CbhOlFvgdkck6Iy9W0I
• 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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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Causes
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Workplace fatal incidents 2017
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Indemnity costs = lost wage replacement for lost time injuries
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
The total AVERAGE cost of a lost time incident = $45k (lost wages and medical costs) in CA = $63k
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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!
Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
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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Minimize Attorney Involvement
• Get care for injured workers first
– Do the paperwork later
• Notify claims team quickly after injury/notification
• Continue to practice “actively caring” steps
Minimize Attorney Involvement
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) …”
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
Agenda & Objectives
• Workers’ Compensation – Updates• Financial Status of the industry• OSHA updates• The Future of things
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Heffernan Consulting | 1350 Carlback Ave, Ste. 200 | Walnut Creek, CA 94596 | Ph: 800-234-6787 | www.heffins.com
Discussion and Questions
Thank You!Debra Parker, COSS
Risk and Safety ConsultantAspen Risk Management Group
dparker@aspenrmg.comwww.aspenrmg.com
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