Sharing insights and achievements in workers’ comp

By Kendra DePaul, BWC Other States Coverage Manager

In workers’ comp, we sure do love our acronyms. One of my favorites is the IAIABC which states for the International Association of Industrial Accident Board and Commission.

The IAIABC is an association that brings together workers’ compensation administrators, regulators and leaders to discuss policy and regulatory issues affecting workers’ compensation systems around the world.

Workers’ compensation is a state-based system and although rules and laws vary between states, we also have a lot in common. IAIABC’s annual convention provided an opportunity for the various states (and countries) to discuss common challenges, solutions and ways to impact the system.

The conference was held in Portland, Oregon this year and it was my first year attending. The topics discussed were familiar to those in the industry, including disability management and return to work, employee vs. independent contractor classification, promotion of health and safety, and the like.

A common topic that often comes up at these meetings is employee recruiting and how we are going to replace the knowledge and experience of many talented workers’ comp staff who may be retiring soon. The focus is often on how jobs in the workers’ compensation field have many good things to offer: stability, career advancement, opportunities for growth, the ability to help people, and the need to recruit millennials.

Since I am a millennial, I will say that all those things ring true and I very much enjoy spending my days in the workers’ comp world. I was honored this year to be recognized by IAIABC as a NextGen recipient.

The award recognizes professionals under the age of 40 who are making an impact on workers’ compensation.

As part of the award, I participated in a session titled A Conversation with the NextGen where we shared our thoughts and insights on the industry.

I had a great time meeting the other NextGen recipients and discussing the future of workers’ comp.

Although we are from different states and work in many different roles, there are common themes of needing to improve communication, leverage data and move towards a customer-focused system. There was agreement that for a lot of people, having a workers’ compensation claim is a very personal and potentially life-altering situation and it is important to not lose the people in the process.

If you’re looking for a career path in an industry on the verge of making important improvements, look no further!

Striving for world class

By Bill Teets, BWC Communications Director

It is no secret that successful organizations have a strong sense of direction and purpose. At the Ohio Bureau of Workers’ Compensation, we want to be a world class insurer.

We have a clear mission to “protect Ohio’s workers and employers through the prevention, care and management of workplace injuries and illnesses at fair rates.” Keep people safe. Make them better when they’re hurt. Do it effectively to not over-burden business. We also have a core set of values—service, simplicity and savings—that guide us.

While these are essential to being world class, they’re not enough. As communications director for BWC, I spend much of my time discovering all the great things happening here and sharing them with the outside world. There are so many stories to tell. Great investing has helped us return $3 billion in rebates over the last several years. Ohio’s injury rates are below the national average and our claims are at record lows. We’re finding ways to speed care to the injured and our nationally recognized pharmacy management program has drastically reduced opioid usage among injured workers.

What I’ve learned from telling these stories is that world class organizations have world class people. Our mission and values may guide us, but ultimately, it is the people that deliver on those promises. Several recent accolades prove my point.

Recently, our Chief of Enterprise Services, Shadya Yazback was named a C-Suite Award Winner by Columbus Business First. In their own words, “the C-Suite Awards recognizes Central Ohio’s top executives for their contribution and commitment to the community and their outstanding professional performance.”

This year’s 19 winners were selected by a panel of business school professors in Ohio. Among her achievements at BWC is the implementation of a multi-year, multi-million dollar replacement of our core claims and policy management systems—systems used by more than half our 1,800 employees to serve Ohio’s injured workers and employers. It was not always a smooth transition, but as the driver of the process she proved world-class people are able to adapt and keep an organization driving toward a common goal.

Kendra DePaul is another example of our world-class staff. Kendra has been named as one of 11 NexGen award winners by the International Association of Industrial Accident Boards and Commissions (IAIABC). She achieved this accolade for leading Ohio’s effort to build our Other States Coverage and managing the program. Because of this program, Ohio employers who do business in other states have options that make life easier when it comes to covering their employees.

That same organization awarded our pharmacy department the second annual IAIABC Innovation Award. That entry, “Saving Lives — Building a Model Pharmacy Program Amid a Deadly Epidemic” reflects Ohio’s efforts to reduce opioid abuse and excessive prescribing of the painkillers while building a pharmacy program that’s recognized as a leader in the industry today. Because of the pharmacy department efforts, led by John Hanna, who just retired, we have reduced the number of injured workers dependent on opioids from 8,000 in 2011 to 4,100 today. You can point to policies, but it was John and his people who took the initiative to make this reality.

Three world-class accomplishments. Three world-class people. And that’s just the tip of these iceberg. At BWC, we have 1,800 other dedicated individuals who work every day to help keep workplaces safe, get the injured back to their lives, and help reduce bureaucratic obstacles to their success. Not a bad place to work.

Collaboration among states improves program

By Kendra DePaul, BWC Other States Coverage Manager

In late August, underwriting consultant Julie Phillips and I traveled to the User’s Conference for Other States Coverage. The conference was hosted by United States Insurance Services (USIS) who is the vendor we work with, along with Zurich American Insurance to offer workers’ comp coverage outside the state of Ohio.

As I have mentioned in previous blog posts, workers’ compensation can be complicated for employers working in multiple states as each state has different rules and laws that must be followed. The Other States Coverage program allows BWC and several other state’s funds to assist their policyholders with securing proper coverage nationwide.

The purpose of the annual conference is to get together with the other states to discuss program results, best practices and troubleshoot common questions.

There are six other state funds in the program and in 2016 about 3,000 policies were issued collectively. The majority of the policies are small, with 68% being under $5,000 in premium. Although there are some large accounts, the collective group has primarily embraced this program to offer coverage options for smaller employers.

Around the meeting table it was clear that the reason each of the state funds offered this option is because they cared deeply about their policyholders and wanted to assist them with being successful. The issue with coverage and claims in a multitude of different states is not unique to Ohio. Each of these state’s funds have dealt with similar issues of employees hired in one state and injured in another, or with employers being fined for not having coverage in a specific state. It is also clear that some states are harder to work with than others and require multiple forms to be filed when policies are issued there.

A big push at this User’s Conference is for each state to share lessons learned or tools created to make the program more efficient for each user. One example of this has to do with schedule rating forms. Schedule rating is an available premium adjustment on private workers’ comp policies. An insurer can offer debits or credits for unique conditions of an employer.

For every policy we issue we are required to complete a form stating whether a schedule rating was used and the specific reasons why. Most states have a separate form for this purpose and if you issue a policy in multiple states, multiple forms are often required.

In an effort to reduce the time spent completing these forms, Julie Phillips took the initiative to create an Excel tool where policy information only has to be entered once and then is populated to multiple forms and saved as a PDF document. This new format has allowed our underwriters to spend much less time completing individual forms. Julie presented the Excel tool at the User’s Conference so they could begin taking advantage of it as well.

I am thankful for Julie’s hard work in completing this and I am continuously impressed by the collaborative spirit of all the state funds involved in the program. Each of them has offered assistance as we continue to improve our Other States Coverage program in Ohio. We all have the same goal of providing excellent customer service to our policyholders. Working together, I am confident we will do just that.

Make your business a falls-free zone!

September is Falls Prevention Awareness Month

Submitted by STEADY U Ohio, an initiative of the Ohio Department of Aging

Older adults probably play an important role in the success of your business, both as consumers and employees. That is, until they fall down.

One in three older adults will fall this year. Every five minutes, an older Ohioan is injured in a fall. When staff or customers fall in your business, it doesn’t just hurt them; it also hurts your reputation and your bottom line. A single fall can affect an older adult’s ability to remain independent and contribute to your continuing success.

Most falls in businesses can be prevented, and prevention can be achieved largely through staff and customer education and motivation. The STEADY U Ohio initiative is ready to help businesses create a safer environment for older adults and Ohioans of all ages who do business with them. Here are a few steps every business should take to prevent falls:

  • Create a falls prevention policy for your business and make sure your employees know and understand it.
  • Routinely identify issues with flooring, stairs, lighting and housekeeping that could cause accidents.
  • Post signs at your entrance and around the business advising customers to notify staff of slipping or tripping hazards.
  • Ensure that walkways are clean and clear of cords and obstructions. If you must use rugs or mats, ensure that they remain flat and that they do not move under foot.
  • Ensure that people can move freely around displays in the aisles without adjusting their gait. Avoid displays at the end of aisles that obscure a customer’s view of other customers and obstacles.
  • Have staff regularly monitor aisles for items that have fallen off shelves and are blocking.
  • Quickly clean up all spills (dry and wet). Provide supplies (i.e., towels, “wet floor” signs, trash cans) in convenient locations around your business.
  • Provide seating around your business, particularly in areas where customers may have to wait during busy times (e.g., near checkout lines, the service desk, the pharmacy, restrooms and exits).
  • When it’s snowy or icy, extend sales or offer shopping options for older customers (e.g., delivery or rain checks by phone) so they don’t have to risk falling to get a good deal.
  • Educate staff on proper lifting and carrying techniques and equipment, and instruct them to help customers carry large or bulky objects and bags.
  • If someone falls, document the incident and examine the cause so that you can prevent future accidents. Use our incident report template to get started.
  • Empower staff to offer assistance to customers who appear to be having trouble getting around.

Find tools to help your business prevent falls at our website, www.steadyu.ohio.gov. Resources include a sample falls prevention policy, a hazard checklist, an incident report template, tip sheets and a falls risk self-assessment. Educate yourself, your staff and your consumers, and make your business a falls-free zone!

Investing in safety is good business

By Sarah D. Morrison, BWC Administrator/CEO

Recent research published in the Journal of Accounting and Economics finds that managers of U.S. companies struggling to meet earnings expectations may risk the health and safety of workers to save on costs and please investors.

We at the Ohio Bureau of Workers’ Compensation believe skimping on safety to help the company’s bottom line is a bad business plan. It is short-sighted and contradicts what experts in occupational health and safety have been telling us for years — investing in safety is good business.

As safety experts, we make this case every day, and I’m pleased to say many Ohio businesses agree. Businesses that invest in workplace safety and health reduce fatalities, injuries and illnesses. This means lower medical and legal expenses and lower costs to train replacement employees — all of which minimizes workers’ compensation costs and premiums. Moreover, employers often find improvements to workplace safety and health boost employee morale and productivity. And when that happens, the company’s financial performance usually gets a boost, too.

Various studies report that for every $1 invested in workplace safety, employers receive between $2 and $6 in return. Ohio BWC is investing in safety as well. We offer numerous opportunities for companies to get financial assistance when they invest in safety.

We offer $15 million in safety intervention grants each year. These grants provide three dollars for every one dollar the employer invests in new safety equipment, up to $40,000. More than 2,000 businesses have benefited from the grants over the past four years. In one study, published in the American Journal of Industrial Medicine in 2014, we found employers who received BWC safety grants decreased the frequency of injuries in the area of the new equipment by 66 percent and the cost of injuries by 81 percent.

We employ safety consultants, industrial hygienists and ergonomists who will help businesses develop and maintain effective safety-management programs – all at no charge to the employer. We’ve helped 59 small companies in high-hazard industries achieve SHARP status, a prestigious safety designation from the Occupational Safety and Health Administration. In addition, Ohio employers have access to free informational services through our library, and they get free entry into two annual events we hold concurrently, the Ohio Safety Congress & Expo (the second largest occupational safety and health event in the nation) and the Workers’ Compensation Medical & Health Symposium.

As many Ohio businesses have found, our programs work. The number of businesses using our safety services and programs grew by 70 percent between 2010 and 2015 to more than 21,000. The number of injuries in our system, meanwhile, fell by 13.2 percent, even as Ohio was experiencing job growth of 7.5 percent.

Preventing workplace injuries is part of our mission, and we’re ramping up these efforts starting early next year when we introduce a new program to provide health and wellness services to workers employed by small businesses in high hazard industries. Additionally, we plan to launch a safety campaign to educate the public about safety awareness at work and in the home. The campaign will focus on preventing injuries associated with slips, trips and falls, overexertion and motor vehicle accidents.

We want to create a culture of safety across Ohio. Safety should be a way of life for all of us. Those who think it’s not worth the investment are doomed to discover otherwise. Our workers deserve better than that.

Have you ever wondered how BWC calculates your workers’ compensation insurance premium rate?

By Christopher S. Carlson, FCAS, MAAA, BWC Chief Actuarial Officer

It all comes down to an equation:

     Modified premium rate
+   Administrative cost rate
+   Disabled Workers’ Relief Funds assessments
=   Blended insurance rate per $100 of payroll

With the definitions in the sidebar as reference, let’s break down the formula:

All employers have a base rate determined by their manual classifications.

Larger businesses also have an experience modifier, a projection of expected future claims costs (based on past claims experience).

Multiplying the base rate and experience modifier (if you have one) results in the modified premium rate (MPR).

BWC factors in an administrative cost rate, used to run BWC and the Industrial Commission, and then adds assessments for two Disabled Workers’ Relief Funds that provide cost of living increases for disabled workers.

The result is your blended premium rate, the amount you pay per $100 of payroll

So there you have it, a quick lesson in BWC Premium Rate Development 101. This YouTube video provides even more detail on how BWC calculates your Ohio workers’ compensation premiums.

Remember, the best way to keep premiums low is to provide a safe workplace. Safer workplaces reduce accidents, reduce costs, and in the end, reduce your premiums.

Continuing the workers’ comp conversation

By Kendra DePaul, BWC Other States Coverage Manager

Oklahoma: home to Will Rogers, Route 66 and CompSource Mutual Insurance Company – host of the 2017 Annual Conference of the American Association of State Compensation Insurance Funds (AASCIF). AASCIF is an association of workers’ compensation state funds from 26 different states, plus 8 workers’ compensation boards in Canada.

The conference was held in Oklahoma City in late June and hundreds of attendees gathered from around the country to discuss hot topics in the workers’ comp industry.

As was mentioned in a previous post, three BWC employees are members of AASCIF’s committees tasked with planning session topic and finding speakers for the annual conference. Michael Rienerth, Ergonomics Technical Advisor is on the Safety and Health Committee. Bill Teets, Communications Director is on the Communications Committee and I am on the Enterprise Risk Management and Underwriting Committee.

Along with planning sessions, committee members were also asked to share their knowledge and experience at track sessions at this year’s conference. Mike presented on violence in the workplace. Bill presented on crisis communication and the strategy of thought leadership. And I presented on state to state coverage conundrums.

Shadya Yazback, our Chief of Enterprise Services, also presented a session on preparing the business for large scale IT changes.

Additional sessions were held on the use of predictive analytics, the state of the economic, emerging technologies, telemedicine, and other topics affecting the industry as a whole.

Two of the main session speakers, Richard A. Clarke, Former National Security Advisor and Frank Abagnale, American Security Advisor (you may know him from the movie Catch Me If You Can), discussed the importance of safeguarding our personal information and the constant threat of cyber security.

We also heard the inspiring story of an Oklahoma City Bombing survivor and the friendship that developed with her rescuer. The story reinforced the amazing capacity of people to heal from wounds (both physical and metal) and the important role of the people who support them through their recovery.

In addition to the speakers, AASCIF holds an annual Communication Awards competition. I am happy to report that BWC won two awards this year. We received 2nd place in the Excellence in the Writing category for the “Trek through Nepal” article. And we won 1st place in the Print Marketing Piece category for a marketing piece we created for Other States Coverage. Working with the communications department, we targeted our marketing to a specific group of employers based on their size and the type of work they do. The marketing piece generated several inquires and we ended up issuing three policies, meaning we received a return on our investment.

As always, the conference was a whirlwind of activities. In addition to educational sessions, we spent time getting to know members of the other states workers’ comp funds, discussing ways to improve our operations and even having a little fun. Since we were in Oklahoma, we couldn’t close the trip without experiencing a rodeo and visiting the National Cowboy and Western Heritage Museum. Yee Haw!