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  Harvey Taulton, former AASCIF officer, dies
AASCIF notes with sadness the passing of Harvey Taulton, chief investment officer of the Arizona State Compensation Fund, on Jan. 10 after a long and courageous battle with cancer. Harvey was a good friend to many in the AASCIF community and to AASCIF itself. He served as its secretary-treasurer in 1982-83 and again in 1992-96.

 

Alberta

The Workers’ Compensation Board saw success in 2003. Average duration of claims was down from 56 days to 49. This drop in claim duration is in part a result of more expedited medical referrals through the Visiting Specialists’ Clinic. Helping to control rising claims costs by eliminating wait times, the VSC allows claimants to see specialists sometimes as soon as two days following referral. If required, surgery can sometimes be arranged within two weeks.
Collaborative claim resolution is also a corporate focus. When claim issues arise, claims undergo a resolution review by the case manager and supervisor. If no resolution is reached, the claim proceeds for review by the new Decision Review Body. A review specialist contacts the claimant and identifies options for quick resolution. If not resolved, the claimant can appeal to the Appeals Commission, which is independent of the WCB-Alberta and reports directly to the minister of Alberta Human Resources and Employment.

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Arizona

Teaching job safety is a priority for SCF of Arizona and the Arizona Chapter of the American Society of Engineers, which teamed up March 3-4 to co-sponsor “Safety Works 2004.” The safety expo provided exhibits, two tracks of educational seminars designed for experienced safety professionals and untrained individuals responsible for their companies’ safety programs.

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Louisiana

Last spring, LWCC embarked on a brand development initiative. This four-phase process identifies the optimal brand position for the company by matching customer expectations with LWCC’s skills and services and then integrating the “brand experience” throughout our company. LWCC hired branding consultants Christensen & Associates, of Salt Lake City, Utah. The first phase began with research consisting of one-on-one and focus group meetings with employees, agents and policyholders. Out of the research, we developed an enhanced “brand strategy” for the company. The next step is implementation of the brand. Employees will spend the next year in customized training sessions to learn how each of their jobs affects the customer experience and ultimately the company brand.

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Maryland

IWIF proudly celebrates its 90th anniversary in 2004. To mark the occasion, IWIF created a celebratory logo, produced a video that chronicles IWIF and workers’ compensation insurance in Maryland, planned special events throughout the year, and partnered with local media to raise awareness among business owners.

Regarding IWIF’s third-party administration of benefits for injured workers of now-defunct Bethlehem Steel Corporation, Maryland secured an additional $6 million from the steel company’s bankruptcy proceeding in the Southern District of New York. In total, Maryland has secured $13.1 million to cover the claims of former employees of Bethlehem Steel.

The use of IWIF e-services has increased. In 2003, 7,500 First Reports of Injury were reported to IWIF online, more than $17 million of new and renewal premium was submitted electronically by agents, and $11 million of payment transactions were processed.

Lighthouse Risk Solutions, a TPA division of IWIF, recently launched its new website: www.lighthouserisk.com.

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Minnesota

State Fund Mutual Companies remains No. 1 among large Minnesota insurers for prompt action on lost-time claims, according to an annual report issued by the state. SFM’s prompt first action during the past fiscal year was 92.6 percent. That’s the percentage of reported claims that were paid or denied within 14 days of date of injury.

For the second year in a row, SFM reached an all-time high in 2003 in subrogation recoveries. SFM’s more aggressive approach is supported by a system through which claims representatives identify potential subro cases and use an automated email function to notify SFM’s in-house attorneys for quick follow-up.

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Missouri

Missouri Employers General Agency, a wholly owned subsidiary of Missouri Employers Mutual Insurance, is again writing coverage in other states. MEGA can offer coverage in all non-monopolistic states through a fronting partnership with A-rated Argonaut Insurance Company. The Argonaut contract is for a minimum of three years, offering stability in a generally unstable market. Policies written through MEGA enjoy the same benefits as MEM policies, including loss prevention services and outstanding customer service. Claims occurring on the Missouri policy will be handled by MEM’s Claims Department, while claims occurring in other states will be handled by Argonaut.

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Montana

Montana State Fund has entered into a strategic partnership with Health-e-Web that allows medical providers to submit their bills electronically. The advantage of working with HeW is that 80 percent of the medical providers in the state already use the system to transmit health insurance medical bills. The only change for providers will be less work, as they no longer will need to produce and mail paper bills to MSF. MSF staff will be able to get a better handle on costs and spend more time providing better service to provider partners by paying them faster.

MSF has contracted with National Medical Health Card Rx to serve as pharmacy benefits manager. The arrangement means savings for policyholders and a stronger guarantee that injured employees are receiving appropriate medical care. NMHC Rx will work directly with Montana pharmacies to provide verification of pre-authorized drugs and electronic billing.

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New Brunswick

The Workplace Health, Safety and Compensation Commission has adopted its own 5*22 model into the Health and Safety Plan of the organization. 5*22 is the model that guides workplaces in managing and maintaining their health and safety infrastructure. Since health and safety needs evolve over time, the 5*22 framework provides workplaces with a standard for continuous improvement. 5*22 was developed by the WHSCC and is based on the five fundamentals and 22 topics of health and safety. To date, more than 50 workplaces in New Brunswick have adopted the 5*22 model, and although the WHSCC has always adhered to the fundamentals of 5*22, it is now an official company directive.

A new WHSCC website reflecting the commission’s graphic identity was launched in October. The site offers users revitalized content and improved navigation. The overall site design provides improved access to information, with specialized content for workers, employers and healthcare providers. All pages provide a “quick link” to the Workers’ Rehabilitation Centre and the Helpdesk. The site also offers improved marketing opportunities for WHSCC and has the capacity to support scheduled website marketing initiatives. The new site is at www.whscc.nb.ca.

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New Mexico

For the second year in a row, the Board of Directors for New Mexico Mutual Group declared a dividend in the amount of $1 million to be divided among all New Mexico Mutual Casualty Company policyholders. Dividend checks will be sent directly to the agent for distribution to the policyholder. New Mexico Mutual Group feels this gives the agent an opportunity to speak to the insured on a positive note and let them know New Mexico Mutual Casualty Company is doing its best to reward them for continuing as a NMMCC policyholder.

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New York

The New York Claims Association presented NYSIF CEO and AASCIF Vice President Ken Ross its annual award for high ethical standards and professionalism. Ross was honored as a “leader and humanitarian,” specifically on behalf of claimants following 9/11/01.

A new online Quote and Application System—eQUOTE—automates obtaining a premium quote and applying for workers’ compensation insurance over the Internet. The system delivers a fast response to businesses submitting a request for a quote through NYSIF’s website, in many cases replying with a quote the same day. The new service coincides with implementation of an electronic Diary And Work Network. DAWN distributes assignments by zip code to NYSIF Policyholder Services staff automatically and provides a single, integrated diary and real-time record of quoted policies.

NYSIF’s anti-fraud unit produced $17.67 million in estimated savings and 109 arrests in 2003—one-seventh of all insurance fraud arrests in New York state.

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North Dakota

After months of work, the long-awaited Optical Character Recognition program is operating in North Dakota’s Workforce Safety and Insurance’s medical bill input unit. Each year WSI receives about 180,000 medical bills. Previously, those bills were inputted by hand. With OCR, the goal is to drastically reduce the number that are manually entered and instead have WSI computers electronically read the information into WSI’s systems. This will create tremendous efficiencies and make better use of staff. Medical bill input is not the only system that could make use of OCR. The next candidate is Policyholder Services and some of the payroll reports now manually inputted. OCR is just one of a number of online services and other computer programs, such as auto-adjudication of medical-only claims, that work in the background and have been integrated in WSI’s operations. In addition, more than one-third of all claim and payroll reports are now received through the Internet.

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Nova Scotia

David Stuewe, CEO of the Workers’ Compensation Board of Nova Scotia for 11 years, has accepted a secondment to the Faculty of Management’s Centre for Risk Management at Dalhousie University. In his new role, Stuewe will work with the Institute of Work and Health in Toronto conducting research to measure and identify options for enhancing Nova Scotia’s safety climate. His new responsibility melds nicely with the WCBNS’s new prevention education mandate. Until a permanent replacement is found, the CEO position is being filled by internal vice presidents whose terms run consecutively. Nancy MacCready-Williams was Acting CEO from Stuewe’s departure in the fall of 2003 to the end of January 2004. Williams is vice president, Client Services. On Feb. 1, Stuart MacLean began his term as Acting CEO. Until this term appointment, MacLean was vice president, Prevention and Assessment Services.

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Ohio

The Ohio Bureau of Workers’ Compensation is changing the way it does business. It’s moving toward a customer-focused business model that integrates employer and injury management services and programs. The New Business Model centers on the creation of customer care teams. Employer management team members coordinate workplace safety programs, injury prevention strategies, risk strategies and return-to-work plans. Responsibilities of injury management teams include claims processing to move claims efficiently from injury notification to successful claims resolution. By integrating these services into a customer care team, BWC will become even more accountable to employers and employees, providing them with more customized, timely and efficient services. Another benefit of these teams is they will serve the same employers and their injured workers. In the past, coordination of services between BWC, employers and injured workers wasn’t executed as the company felt it should be. The integrated team approach will streamline communication to BWC’s customers.

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Oklahoma

CompSource Oklahoma’s Underwriting Division recently went live with automated work distribution imaging software designed to increase efficiency, reduce paperwork, and improve productivity and customer service. The program, Automated Work Distributor, has proved to be a workhorse for the Claims Division for several years.

“AWD allows us to have immediate access to policyholder records while also allowing multiple users in all business areas to access underwriting records via electronic images simultaneously. This tool has empowered our employees to respond quickly to policyholder needs without the delay of pulling hard copy files,” Barbara McMullen, Underwriting Division administrator, said. Additionally, AWD has improved the division’s workflow productivity while eliminating redundancy between CSOs other departments.

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Puerto Rico

The State Insurance Fund Corporation announced that during the closing period for payment of workers’ compensation insurance on Jan. 22, it collected a total of $69.7 million. This represents an increase of $44.2 million compared to the same period during 2003. “This increase of collected premiums is a reflection of the economic recovery experienced in Puerto Rico as a result of public policy on infrastructure development and the strong impulse provided by the present government to the construction sector. Evidently this is closely related to employment creation and economic development,” stated Nicolás López Peña, administrator of the corporation. As evidence of this economic recovery, the SIFC informed that during fiscal 2002-03 the amount collected from eventual policies showed an increase of $9.5 million in comparison to fiscal 2001-02. “This activity is an example of an economy that is in marked recovery as a result of investment strategies focused on the well-being of the people of Puerto Rico,” the administrator said.

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Saskatchewan

The Saskatchewan Workers’ Compensation Board has appointed its first Fair Practices Officer. Murray Knoll, formerly a deputy ombudsman with the province, assumed the position in September. Knoll will receive complaints from employers and injured workers who believe WCB practices have been unfair and direct them to the appropriate authority. If a resolution is not possible, Knoll can investigate and recommend corrective action. Appointing a Fair Practices Officer was endorsed by the 2001 Committee of Review. The committee, representing Saskatchewan employers and workers, is struck every four years by the Minister of Labour to review WCB operations and recommend improvements.

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Texas

In December, Texas Mutual Insurance Company expanded its scholarship assistance program to pay up to $4,500 per semester to injured workers on lifetime income benefits and to surviving, unmarried spouses or surviving children of workers who died from compensable injuries.

Texas Mutual’s vice president of special investigations discussed workers’ compensation fraud at the Texas Committee on Insurance Fraud, a group of insurance carriers, agencies and organizations working toward a coordinated assault on all types of insurance fraud.

In February, Texas Mutual announced a new agreement with Argonaut Insurance to provide other-states coverage for policyholders with operations outside of Texas.

Texas Mutual also introduced new enhancements to its Internet Quoting system for agents.

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West Virginia

One of the first major projects of the new Workers’ Compensation Commission was marketing E-Comp, an Internet-based service allowing employers to file First Reports of Injury, quarterly wage reports, make online payments, review policy documents, and manage other aspects of their workers’ compensation relationship. Employers using E-Comp are projected to submit nearly 30,000 First Reports of Injury during 2004, saving the commission an estimated $5 million in processing costs.

West Virginia is marketing an enhanced E-Comp service to medical providers, providing secure access to claimant medical data including document images. They can also review medical billing and payment history, billing and diagnosis codes and other medical information.

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Wyoming

The Wyoming Workers’ Safety and Compensation Division implemented an Interactive Voice Response System for injured workers, medical providers and employers. This application is intended to improve customer service and give customers the ability to retrieve case and billing information during business and non-business hours. Injured workers are able to determine the status of their case, who is assigned to manage it, and disability and reimbursement payment information. Medical providers are able to determine medical bill payment information, an injured worker’s case status, and patient case numbers. Employers are able to determine the status of the employee’s case and who is assigned to manage it, report workers’ compensation fraud, and obtain general account information.

 

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