Canadian Association of Movers November 2004 Annual Conference
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Transcript of 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