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City of San Leandro Report on the Workers' Compensation Program March 17, 2014 OVERVIEW The Workers' Compensation Program provides City employees with the provisions for medical care, indemnity costs, and other benefits in the event of being injured while performing their job duties. Workers' compensation represents a substantial cost for the City of San Leandro. For fiscal year 2013- 14, the program has been budgeted for $1,046,437. Program costs include all related expenses such as program administration, contract and bill review agreements, salary continuation, temporary and permanent disability payments, attorney and investigator fees, and all medical services. The City is self-insured up to a maximum of $250,000 per claim. The City purchases excess insurance to cover claims over that amount through the Local Agency Workers' Compensation Excess Joint Power Authority (LAWCX). Program Metrics The Human Resources Department has been evaluating the program over the past year to identify strengths and weaknesses, track trends and metrics, and implement changes to ensure quality care for injured workers and associated costs are contained and reduced. During this program review, staff has monitored and managed three fundamental program metrics: 1. Total annual program costs: This measures the success of operational efficiency initiatives. 2. Number of new claims filed per year: This measures the success of preventative initiatives. 3. Number of claims resolved and closed per year: This measures the effectiveness of claims management. These metrics are impacted by a number of factors including a healthy partnership with all stakeholders, effective claims management, quality medical services, an aggressive return to work program, and a comprehensive Safety and Illness and Injury Prevention Program. Program Costs The City's claims history for the last seven fiscal years is shown in the chart below. These totals represent the actual costs incurred as a result of the number of claims in that fiscal year. Incurred costs include the amount already paid against those claims and the amount still held in reserve. Results indicate a significant decrease in FY 2012-13 in the amount of $1,042,416.