EMPLOYEE OWNERSHIP CONFERENCE April 16, 2004 Christine Williams BWC Business Consultant Safety: MISSION IMPOSSIBLE?

Claim frequency (number of claims you experience) and claim severity (cost of a claim) directly impacts premium rates. Claims costs = rates

The estimated value representing the insurer’s future financial liability on a particular claim at a specific point in time. Reserves

Premium Discount Program+ (PDP+) Premium Discount Program+ (PDP+) Drug-Free Workplace Program (DFWP) Drug-Free Workplace Program (DFWP) Drug-Free EZ Program (DF-EZ) Drug-Free EZ Program (DF-EZ) Discount programs

Employer goalRebate 15% claim severity reduction 10% premium rebate 15% claim frequency reduction 5% premium rebate Bonus for meeting both requirements 5% premium Total rebate: 20% premium Total rebate: 20% premium PDP+

PDP+PDP+ Employer implements BWC’s 10- Step Business Plan with assistance from a BWC employer services specialist. Employer implements BWC’s 10- Step Business Plan with assistance from a BWC employer services specialist. 10% premium discount in years one and two 10% premium discount in years one and two 5% premium discount in year three 5% premium discount in year three For accepted employers who submit a satisfactory action plan For accepted employers who submit a satisfactory action plan

DFWP DFWP DF-EZ (employers with 25 or fewer employees) DF-EZ (employers with 25 or fewer employees) Two drug-free programs

Three levels of participation Level 1 = 10% discount Level 1 = 10% discount Level 2 = 15% discount Level 2 = 15% discount Level 3 = 20% discount Level 3 = 20% discount DFWP and DF-EZ

15% claim severity reduction-10% premium rebate 15% claim frequency reduction- 5% premium rebate Bonus for both requirements- 5% premium rebate Total 20% premium rebate Bigger discounts for DF-EZ employers

Written policy Written policy Employee education Employee education Supervisor training Supervisor training Drug/alcohol testing Drug/alcohol testing Employee assistance Employee assistance Five components of a drug-free program

Can stack discount with group rating (up to maximum of 95% discount Can stack discount with PDP+ for the July 1, 2003, and Jan. 1, 2004, program years DFWP and DF-EZ

SafetyGRANT$ and DFWP/DF-EZ SafetyGRANT$ and DFWP/DF-EZ Private state-fund employer spends $5,000 and BWC matches up to $10,000. Public state-fund employer spends $5,000 and BWC matches up to $15,000.

BWC will pay employers 80% of the development costs (up to a limit) to set up transitional work programs. The employer contracts with an accredited transitional work developer to qualify for Transitional WorkGRANT$. Transitional WorkGRANT$

Handicap reimbursement Handicap reimbursement Salary continuation Salary continuation $1,000 medical-only program $1,000 medical-only program Additional cost-control strategies

A settlement is an agreement between the employer, injured worker and BWC. A settlement is an agreement between the employer, injured worker and BWC. The injured worker is paid an agreed upon amount as a single payment. The injured worker is paid an agreed upon amount as a single payment. The claim is closed and injured worker is unable to receive any further compensation (medical or indemnity) from the claim. The claim is closed and injured worker is unable to receive any further compensation (medical or indemnity) from the claim. The reserve on a lost-time claim is reduced to zero, since no further costs can accrue. The reserve on a lost-time claim is reduced to zero, since no further costs can accrue. Settlement

This plan allows an employer with low claims experience to earn an attractive discount. Groups combine payroll and experience of the members to earn a significant discount. Discounts up to 95% Group rating

Is a semi-self-insured program; Is a semi-self-insured program; Employer selects: Employer selects: an individual claim limit; a maximum premium (ceiling of claim costs); Employer receives up-front discount; Employer receives up-front discount; Employer is responsible for 10 years of claim costs up to a claim limit; Employer is responsible for 10 years of claim costs up to a claim limit; Employer must have minimum $25,000 annual premium to qualify; Employer must have minimum $25,000 annual premium to qualify; Retrospective rating:

l Large employers: 500+ employees l Pay assessments to BWC l Pay all of claim costs l BWC grants employers this privilege based on: l Profit margin; l Debt structure; l Self-insurance readiness. Self-insurance

Safety consulting services Safety consulting services Safety program advice Safety program advice Hazard assessment and control assistance Hazard assessment and control assistance Safety culture/behavior change processes Safety culture/behavior change processes Safety team/committee evaluation and design Safety team/committee evaluation and design Ergonomic consulting services Ergonomic consulting services Industrial hygiene consulting services Industrial hygiene consulting services Division of Safety & Hygiene

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