COMMISSION STATISTICSNew Claims Remain Flat• 2014 – 11,003• 2013 – 10,772• 2012 – 11,246• 1994 – 20,557

COMMISSION STATISTICS (cont’d)

Appeals To Supreme Court• 2012 – 42• 2013 – 21• 2014 – 31

• 2015 YTD - 14

COMMISSION STATISTICS (cont’d)

FC Hearings• 2012 – 72• 2013 – 71• 2014 – 75

• 2015 YTD – 38

SUPREME COURT DECISIONS

Decisions By Supreme Court 2012, 2013, 2014, 2015 YTD

Total Number of Rulings WC Cases 68

Cases that Affirmed the Commission 56

Cases Reversing and Remanding 8

Cases Affirmed in Part, Reversed in Part 4

MWCC Technology Update

• Website Redesign – new modern look and feel coming in the next few months

• ATOS Expansion– Implemented new interface in January ’15• Automatic email notices to parties on ATOS filings• Many document types accepted automatically

– Accepting 71 document types– Over 300 attorneys

National Insurance Market

• Combined ratio continues to improve – 2014 – 98First underwriting gain since 2006

• Net written premium 2014$38.5 billion – +4.6% over 2013

• 2013 showed 4.5% increase over 2012

Opt-Out ActivitiesTexas

• Until 2013 Texas was only state giving employers choice of whether to subscribe to W.C. system

• Nonsubscribers lose the exclusive remedy provision• Some nonsubscribers have developed their own occupational

benefit plans, while others have no benefit program for injured workers

• TX Dept. of Insurance estimates about 1/3 of TX employers (119,000) are nonsubscribers

• Twenty percent (20%) of employees (1.9 million) work for nonsubscribersOf those 470,000 workers have no occupational benefit plan

• TX W.C. system scheduled to sunset in 2017 The legislature will undertake comprehensive review

Opt-Out ActivitiesOklahoma

• Signed into law by Governor Mary Fallin May 2013 and became effective Feb 1, 2014

• Employers must meet certain financial and other requirements to qualify including a written benefit plan that provides coverage and benefits that meet or exceed the minimum requirements set forth in the law

• Private employer plans must also comply with ERISA• The plans provide the exclusive remedy for qualified employers• New law withstood a State Supreme Court challenge in 2013• Many stakeholders expect additional legal challenges

Opt-Out ActivitiesTennessee

• Feb. 2014 Senator Mark Green and Representative Jeffrey Durham proposed legislation to allow opt-out

• Their aim to make W.C. system more efficient and cut costs• Proposed law would change way permanent partial disability is

calculated• Create Medical Advisory Committee in effort to reduce medical

cost• The bill would cap benefits at 156 weeks or 3 years unless

medical expense exceeds $300,000• Employers would have to prove its financially able to establish its

own program

Association for Responsible Alternatives to W.C. (ARAWC)

• When W.C. laws began in early 1900’s, it was a very different workforce – more focused on industrial jobs and there were a lot more hazardous conditions

• The W.C. statutes created in early 1900’s, to a large degree, are the same today but with a really different workforce

• The leaders in nonsubscribers are generally from industries with fewer catastrophic injuries, such as retailers, restaurants, hair salons, etc.

• ARAWC believes the alternative system is centered on particular geographic areas – central – southern area

• Virtually no talk in northeast• Most likely states – Florida, Georgia, Mississippi, Alabama, Arkansas

and some midwestern states and possibly Arizona and Utah

Athletes & Workers’ Compensation

• Chicago based NLRB regional director found that a group of Northwestern University football players were employees of the university and have right to form a union and bargain collectively

• They are seeking:• Increased scholarships• Coverage for sports related

medical expenses• Improve graduation rates

with help from educational trust fund• Secure due process

Athletes & Workers’ Compensation (cont’d)

• Workers’ Comp Implications• Would comp carriers be interested in this new market?• College athletes would be entitled to same benefits as

other employees• Indemnity – would this be the end

of scholarships in favor of Pay for Play?• Would they be subject to wage

& hour laws?

• District Court in California ruled to force NCAA to allow colleges to pay athletes $5,000 per year• 9th U.S. Circuit Court of Appeals placed a stay

SIG STATISTICS

Number of Groups• 1994 – 19• 2005 – 15• Current - 10

2015 BENCHMARK STUDY

CURRENT ACTIVE GROUPS

9 GROUPS – STATE AGENCIES EXCLUDED

CLAIMS PD SIG vs INS CO PD