8B Consent 2014 0407 - Laserfiche WebLink

Home

• Providing relevant training to prevent injuries Third Party Administrator The City currently contracts with a Third Party Administrator (TPA), York Risk Services Group, to administer the workers' compensation program at a cost of $118,800 per year. The TPA's responsibility is to manage, track, and process payments for all claims reported. Effective claims management consists of employing industry best practices to develop and implement policies and procedures to ensure timely review, response, and the facilitation of quality care to injured workers in a cost-effective manner. The role of the TPA is essential because the TPA provides business solutions to help the City implement programs to prevent injuries, control and manage costs of injuries and to monitor the effectiveness of program related services and procedures. The City has used York Risk Services Group, formerly Bragg and Associates, since 1998. In an effort to ensure that the City is receiving the most effective claims management and cost, and injured employees are receiving quality service, staff is conducting a competitive bid process for services. The Request for Proposal was released on February 10, 2014 and staff anticipates presenting a recommendation to the City Council in May 2014. Return to Work Program The California State Department of Industrial Relations states that helping an injured worker to return to work is one of the most important things an employer can do to help the employee recover and to minimize the worker's compensation costs. Studies have also shown that injured employees recover faster when they are returned to work. The longer the employee is off work after an injury, the harder it may be for them to return to work. By staying engaged at work, employees maintain the social, physical, and emotional connections to the workplace. An early return to work program can significantly reduce costs for temporary disability, lower medical expenses, and shorten the claim duration. In FY 2011-12, the number of lost days was approximately 702. In FY 2012-13, the number of lost days was 2,019 and in FY 2013-14 this number is 1,144 to date. The following table depicts the time lost and the equivalent cost paid to employees for the past seven years: Fiscal Year # of Claims Incurred Costs for Time Lost 2006-2007 19 $ 210,868 2007-2008 18 $ 131,533 2008-2009 14 $ 397,503 2009-2010 38 $ 1,090,004 2010-2011 19 $ 420,832 2011-2012 26 $ 1,608,267 2012-2013 21 $ 562,514 Grand Total 155 $ 4,421,520