American Electric Power Loyd A. Hudson, Integrated Disability Manager

Case Mgt. Bill Re-pricing Vendor Mgt.Safety Prescription Mgt. Field Nurse Case Mgt. Litigation Mgt. Staff Mgt. Payment Coordination Return To Work Program Surveillance Reserving Excess Insurance / Bonding Company Politics Benefit Coordination Vocational Rehab On Site Services Workers’ Compensation Programs

* Workers’ Compensation * Federal * State * Sick Leave Benefits * Short Term Disability * Long Term Disability Benefits * ADAAA * Social Security Disability * Accidental Death and Dismemberment * Company Life Insurance * HIPPA * Medicare SCHIP reporting * Cobra Benefits * State Leave Programs * FMLA * Union Agreements * Company Drug and Alcohol Testing * Medical Insurance * Safety Program * Return To Work Program * Vocational Rehabilitation Program * Fitness For Duty (On Boarding) * Employee Assistance Program (EAP) * Medicare Set Asides

* Designated Vocational Rehab Specialist * Predictive Model - RTW Program * Return to work Progression Plans * Integrating ADAAA into the RTW Process

Occupational Non-Occupational

 Culture shift to promote RTW at all levels  Pro-active progression plans to Increase Restricted Duty  Tracking of employees ability to work restricted  Incorporating ADA into the RTW process  Bringing employees back to work from LTD

* Injured employees off work longer than six months have only a fifty percent chance of ever returning to their job; if time lost exceeds one year, their chances decrease to less than ten percent. * Compensable injuries can take up to four times longer for recovery; they may cost five times more than non-compensable injuries. * Early return to work enables the employee to continue a productive life. * Early return to work reduces costs of replacing the employee, overtime costs, retraining costs, loss of production and related costs, and improves workplace morale. * Early return to work reduces Temporary Total Disability payments. Employees are on the job, earning wages. * Early return to work reduces medical costs. The injured employee heals more rapidly, shortening the time medical treatment is needed. * Early return to work reduces award costs. The potential for an employee to become totally and permanently disabled is greatly decreased. * Early return to work reduces legal costs. Employees are less likely to feel their rights have been violated causing them to engage a lawyer. * Early return to work cost reductions will have a direct impact on Workers’ Compensation premium rates *The American Occupational Medical Association, AEP Occupation =65days Non-Occupational = 33days

Top Quartile 80% Restricted Duty 1.9 Days Per Case Second Quartile 62% Restricted Duty 7.2 Days Per Case Third Quartile 58% Restricted Duty 9.4 Days Per Case Fourth Quartile 49% Restricted Duty Days Per Case  For every 2.57% more Restricted Duty Cases, save 1 lost work day  Moving from 30% restricted duty to 80% restricted duty would save an average of 20 days per case

Opportunity

* Employee * Physician * FCE / IME

Light = 85.5 Medium = 98 Heavy = weeks more productivity and 3.5 weeks less of sick pay

This is a work progression plan approved by AEP supervision, Mr. Employee’s treating physician and the employee to ensure a successful and safe return to work. This plan is designed to progress Mr. Employee through 7 weeks of increased duties to reach his full duty job requirements. The evaluation of the process will be a joint agreement between the supervisor and employee, with the approval of the employee’s doctor, and the employee’s ability to complete the hours and tasks worked, per the agreement. If, at any time, the employee has a concern with the plan, he must immediately report the concern to his immediate supervisor. Jennifer Bash, Claims Specialist, will monitor the progress of the plan and be available to address any concerns that develop throughout the program. Mr. Employee will work in his assigned job, increasing amounts lifted and duties as outlined below: Week ( Through ) Week ( Through ) Week ( Through ) Week 18 ( Through ) Work Progression Plan Approval Signatures Claims Specialist:__________________________Date:______ Physician:__________________________Date______ Employee:__________________________Date______ Supervisor:___________________________Date______

Work 8 hours a day, complete necessary safety and training, then able lift and carry up to 25 pounds continuously, 50 pounds occasionally. * Job Task #1: Perform duties in accordance with the company safety rules, regulations and practices and report unsafe conditions and practices. * Job Task #2: Loading and unloading of materials, not in excess of 25 lbs. * Job Task #3: Ride with line crew as groundman worker. * Job Task #4: Re-familiarization of climbing – not to exceed 6-8 feet using Bucksqueeze fall restraint safety belt. * **Employee will not be on call-out until climbing recertification has been completed. He may perform overtime if he is on a job and needs to stay until the job is completed.

Trial period working and performing all functions of a Line Mechanic – A. * Following the end of week 18, a fit for duty exam will be scheduled. Upon receipt of successful results of this exam, Mr. Employee will then recertify for climbing and pole top rescue. He can then resume working his normal schedule, including callouts.

* Documents Trends * Benchmark Against Other * Provides data * Documenting Value

* AEP Management Expenses are 7.4% 22 HR Function On average since 2006 for every dollar cut from the AEP Recovery Center $2 were paid in increased vendor services. Outsourced Functions

Expenses as a Percentage of Benefits Paid OutSick Pay Benefits as a Percentage of Payroll  Benefits Increased, Expenses Decrease  Benefits Decreased, Expenses Increases  Benefits Increased, Expenses Decrease  Benefits Decreased, Expenses Increases  Over All ROI for staff is = 14:1