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Natural ups and downs in claims cost are anticipated over a course of several years, but in some instances, unique situations can explain a spike or drop. FY 2011-12 was atypical in that the top five claims were from the Police department and totaled approximately $900,000, which represented 56% of the total claims cost for that year. Among those five claims, three claims were related to a knee injury and one was related to a shoulder injury. Analyses show that knee, shoulder, and back injuries are often the most expensive claims. Due to the nature of its services, the Police Department accounts for the highest number of claims in the City. Employees in this department often file multiple claims, are more likely to file for disability retirements, have higher litigation rates, and have higher claims costs. In the past seven years, the Police Department generated 64% of the total number of claims and 77% of the total incurred costs. Public Works generated the second -most number of claims at 16% and incurred at 16%. Generally, a reduction in the number of claims reduces program costs and demonstrates the effectiveness of claims management, prompt settlement and closure, and return to work and safety and prevention programs. In FY 2011-12, there were 18 new claims filed, 10 in FY 2012-13, and 9 claims to date in FY 2013-14. Although the number of new claims has been relatively stable, there is opportunity to encourage a downtrend in new claims. The City currently has 106 total active claims, which are continuously monitored and closed or settled when possible. In FY 2011-12, 17 claims were closed, 22 in FY 2012-13, and 8 claims to date in FY 2013-14. DISCUSSION Controlling workers compensation costs is extremely challenging due to a number of factors, some of which are outside of the City's control. For example, a large portion of expenses charged to the program are directly related to medical services and costs, which continue to rise. But there are a number of measures the City can take to reduce costs. The Human Resources department has implemented the following: • Initiating a Request for Proposal for a new Third -Party Administrator • Implementing a Return to Work program • Closing claims through legal settlements 2 Claims By Fiscal Year $1,SO0, DOp 60 $1,600,DO0 50 $1,400,000 $1,200,000 40 $1,000, Doo 30 $80o,D0o $604,DO0 20 $400,DO0 to $200,000 $D 0 2006- 2007- 2008- 2D09- 2010- 2011- 2012- 2007 2DO8 2009 2010 2011 2012 2013 iiiiiiiiiiiiii$ Incurred $217,242 $139,276 $407,224 $1,096,54 $423,683 $1,613,10 $570,692 -8 Claims 31 35 29 49 24 34 32 Natural ups and downs in claims cost are anticipated over a course of several years, but in some instances, unique situations can explain a spike or drop. FY 2011-12 was atypical in that the top five claims were from the Police department and totaled approximately $900,000, which represented 56% of the total claims cost for that year. Among those five claims, three claims were related to a knee injury and one was related to a shoulder injury. Analyses show that knee, shoulder, and back injuries are often the most expensive claims. Due to the nature of its services, the Police Department accounts for the highest number of claims in the City. Employees in this department often file multiple claims, are more likely to file for disability retirements, have higher litigation rates, and have higher claims costs. In the past seven years, the Police Department generated 64% of the total number of claims and 77% of the total incurred costs. Public Works generated the second -most number of claims at 16% and incurred at 16%. Generally, a reduction in the number of claims reduces program costs and demonstrates the effectiveness of claims management, prompt settlement and closure, and return to work and safety and prevention programs. In FY 2011-12, there were 18 new claims filed, 10 in FY 2012-13, and 9 claims to date in FY 2013-14. Although the number of new claims has been relatively stable, there is opportunity to encourage a downtrend in new claims. The City currently has 106 total active claims, which are continuously monitored and closed or settled when possible. In FY 2011-12, 17 claims were closed, 22 in FY 2012-13, and 8 claims to date in FY 2013-14. DISCUSSION Controlling workers compensation costs is extremely challenging due to a number of factors, some of which are outside of the City's control. For example, a large portion of expenses charged to the program are directly related to medical services and costs, which continue to rise. But there are a number of measures the City can take to reduce costs. The Human Resources department has implemented the following: • Initiating a Request for Proposal for a new Third -Party Administrator • Implementing a Return to Work program • Closing claims through legal settlements 2