• Home
    • Workers Comp Audit Stress Reducer – Use It For Your Next Premium Audit
  • About Us
    • Cutting Workers Comp Costs – About Our Company
    • President – Expert James J Moore AIC MBA ChFC ARM
    • OSHA Risk Manager – Glen DuLac – Added To Fulfill Customer Service
  • Work Comp Consultants
  • Free Info
    • Definitions
    • Free Speech
  • Testimonials
  • FAQ
  • Free Manuals
  • Six Secrets
  • Blog
  • Contact Us

J&L Risk Management Consultants

Work Comp expert witness reserve reviews premium audits for employers

icons
Call us today! 1-800-813-1386
WORKERS' COMPENSATION PREMIUM REFUNDS POSSIBLE.
Home » Archives for September 2015

Archives for September 2015

Indiana Workers Comp Fee Schedule Partially Enacted = Rate Increase

September 29, 2015 By JL Risk Management Consultants

Indiana Workers Comp Fee Schedule Partially Enacted

The Indiana Workers Comp Fee Schedule was partially enacted 7/1/2014.   That was a great move except a point was missed as to the real reason for their true cost figures.   Check out the chart below.   Click on the chart to bring it in focus.

The chart is from the ICRB (Indiana Compensation Rating Bureau) generated by WCRI (Workers Compensation Research Institute).

I have harped on states without fee schedules causing employers to pay much more in Workers Compensation benefits or premiums.  One may notice that Wisconsin is even higher.   Yes,  they have no fee schedule for medical benefits either.

The chart was produced before the 7/1/2014.   The Indiana Workers Comp fee schedule that was enacted in 2014 exempted physicians which are a large part of the non-hospital charges.    One has to wonder why there was not a complete fee schedule enacted in 7/2014.

As a side note, kudos to Indiana for doing something to cut medical costs.   Sitting on the sidelines would have been a very expensive option.

According to Stephanie Goldberg – Business Insurance– (she writes very concise articles)

Nearly 75% of Indiana’s total benefit costs are medical, which is higher than most other states, NCCI said in the filing dated Sept. 21.

The state’s average medical costs have increased steadily since 2006, when the average medical cost per claim was $22,883, according to the filing. The average cost in 2013, the most recently available full policy year, was $35,953.

NCCI has now recommended an increase in rates of 3.2% for 2016.   Would an all-encompassing fee schedule have been the better choice?   I have confidence that Indiana will produce a full fee schedule in the near future.

Statistics Indiana Workers Comp Fee Schedule service

Wikimedia Commons – The Indus Hospital

 

 

©J&L Risk Management Inc Copyright Notice

Filed Under: Indiana Tagged With: chart, cost figure, non-hospital charges, partially enacted

Social Fresh Conference – Nothing On Workers Comp (Almost)

September 24, 2015 By JL Risk Management Consultants

Social Fresh Conference – Worth Attending

The Social Fresh Conference in Tampa is very interesting.   I had attended the last Social Fresh Conference last year in San Diego.   This is one conference that has nothing to do with Workers Comp – but then again as Workers Comp is so far behind technologically, a conference on social media should be great.

Graphic of Social Fresh Conference Concept

123RF

Why did I come back if it does not apply to WC?   Google provides almost 90% of the traffic on the Internet.  If one types in Workers Compensation as a search term in Google, you will have 20,600,00 results.    Most people do not read the searches past the first page- also known as the Golden Triangle of Google search results.

This is the agenda of the Social Fresh conference.  It will be worth your time for the 2016 conference if you brush up against social media in your job.

I have to do Fresh Wars now.   That was interesting. I met someone that markets for Coors Light.   Buffer is now presenting,    They are putting up all their financials. That is crazy, but at least they will be a memorable company.  The young lady presenting is prepared to the hilt.

I actually met someone here from a Workers Comp carrier.   I tried to catch her and the company’s name.   Most of the people here are local to Tampa and Florida.

I will post more on the conference later in the day.

©J&L Risk Management Inc Copyright Notice

Filed Under: Social Fresh Conference Tagged With: Agenda, Coors Light, Tampa, technologically

E-Mods LDFs Are Like Credit Scores From Hell NCPRIMA

September 22, 2015 By JL Risk Management Consultants

E-Mods LDFs Are Like Credit Scores

Are E-Mods LDFs  like credit scores from hell?  Over the past few months, I have presented this material at various conferences.   I thought I would attach the PowerPoint that I used at the NCPrima Conference last week.

E-Mods and LDFs_NCPRIMA_presentation 2015

Man Climbing on Credit Score Number E-Mods LDFs Concept

123RF

I have received a few requests for the PowerPoint slides.   Ironically, the projector would not work when I presented the slides.  Luckily, I had large-sized printed them on paper as a backup.

The interesting fact is all of the slides are taken from articles that were written in this blog over the last eight years.   I had combined them for presentations.  Actually, this blog was originally conceived as a way to have material on hand for presentations and to possibly write a book.

Credit scores have been used as an easy comparison to E-Mods and LDFs by me for a few years.   The differences between credit scores vs. E-Mods LDFs are just as important.

The presentation slides may not seem to make sense.   The links in the preceding  paragraph will explain much of the information on the slides.

The main theme of the PowerPoint slides is that credit scores can be much more easily changed than E-Mods.  The results of a credit file correction can show results in 30 days.    E-Mods have many limitations on how they can be changed once the Total Incurred is reported to the Rating Bureaus.

©J&L Risk Management Inc Copyright Notice

Filed Under: E-Mod X-Mod, Loss Development Factor Tagged With: ironically, material on hand, paragraph, PowerPoint

Five Things You Must Do To Have Very Good Safety Program

September 2, 2015 By JL Risk Management Consultants

Safety Program Five Things You Must Do

There are five things you must do to have a very good safety program according to our safety consultant, Glen DuLac.

Picture of Man Holding a Globe safety program Concept

123RF

A ) Have  the best bulletproof  ( IIPP)  Injury and  Illness Prevention plan that you can create or modify.  This need not be expensive.   You can take a template,  but you must modify it to reflect the hazards that are inherent in your company’s operation.

In my business, three years ago,  I stopped charging clients for writing an IIPP.   The key is to  identify the foreseeable hazards, and then put your IIPP into  action.  Without execution the best plan is of no value.

B ) Do have regular safety training for all employees.  Low hazard or moderate hazard industries may need between 6 to 24 safety meetings per year.   High hazards may need more, for example, OSHA’s mandate for the construction industry is a weekly tailgate Do not delude yourself into thinking that one meeting a year will be enough, OSHA states regular safety training.

C ) Do get your employees involved.  This can be done in 100 different ways, here are a few that work:  Safety committees, incentive plans, a blue card system, recognition lunches or dinners, a Safety Newsletter.f  you do have a safety recognition lunch, the President or a high level V.P. should hand out the a

Hand Presenting Safety Program Icon

StockUnlimited

D ) Senior Management must get involved and lead by example.   For example, if eye protection is required on the shop floor, no manager should be seen without his eye protection.   Iwards along with an enthusiastic “ Way to go.”

E )  Make losing painful.  There needs to consequences for the bad apples who violate your safety rules.   Companies that issue Safety Citations to rule breakers will get compliance.

In my personal experience, companies that do not enforce the safety rules, are usually the ones with high Ex Mods.  Speaking of high Ex Mods, did you know that the State of NC mandates a Safety Committee for companies that have high Ex Mods?

©J&L Risk Management Inc Copyright Notice

Filed Under: Safety Tagged With: Glen DuLac, hazards, IIPP, weekly tailgate

California Claims Adjustment Costs Are Massive – WCAN

September 1, 2015 By JL Risk Management Consultants

California Claims Adjustment Costs Very Expensive

The California claims adjustment costs are massive when compared to other states.  The Workers Compensation Action Network (WCAN) published the above chart last week.

Picture of California Claims Adjustment Costs Files and Documents in Cabinet in Office

123RF

A similar study was published in an article on this blog last week which covered the newest WCIRB Study (rating bureau for CA).

Most of the claims and premium data that I have analyzed pegs the ALAE (Allocated Adjustment Expense) at 15% – 17% for most claims.  Even the national median in this chart seems high.

Having 28.2 cents of each dollar paid out for non-benefits shorts the injured employee and especially the employers that are paying the premiums.

Why does California have such high claims management expenses?  According to WCAN:

The reasons for these high costs include:

  • Greater-than-average proportion of permanent disability claims (which are more complex to manage)
  • High litigation rates (particularly in the Los Angeles area)
  • Large number of active liens and
  • High frequency of independent medical reviews

According to Willis ALAE usually consists of:

  • Preferred Provider Organization
  • State Specific Networks
  • Physical Therapy Specialty Networks
  • Diagnostic Testing Specialty Network
  • Pharmacy Benefit Management
  • Prescription First Fill
  • Independent/Defense Medical Exam
  • Utilization Review
  • Telephonic Case Management
  • Field Case Management
  • Peer Review
  • Drug Testing
  • Vocational Rehabilitation
  • Medicare Set Aside Agreements (MSAs)
  • Mandatory Insurer Reporting (MIR)
  • 24/7 Triage
  • Attorney Fees
  • Translation Services
  • Surveillance Fees
  • Transportation Services

How can these fees be reduced?   This is one of the more difficult answers in WC today.   The California claims adjustment costs may possibly only be reduced as a result of an overhaul (not Senate Bill 863) of the system.

©J&L Risk Management Inc Copyright Notice

Filed Under: California Tagged With: frequency, Mandatory Insurer Reporting, national median, Surveillance Fees

Email Subscription

Search this website:

Work Comp Premium Audit Work Comp Mod Expert work comp expert witnessWork Comp Expert ReservesWork Comp Claim File Audit ExpertWork Comp Expert Witness

About Me

My Photo

James J Moore
Raleigh, NC, United States

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:
• Risk and Insurance Management Society (RIMS)
• Entrepreneur Magazine
• Bloomberg Business News
• WorkCompCentral.com
• Claims Magazine
• Risk & Insurance Magazine
• Insurance Journal
• Workers Compensation.com
• LinkedIn, Twitter, Facebook and other social media sites
• Various trade publications

 

Archives

  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008
  • January 2008
  • December 2007
  • November 2007
  • October 2007
  • September 2007
  • August 2007
  • March 2007
  • February 2007

Recent Posts

  • Workers Comp COVID-19 Vaccinations – Part of Return To Work
  • Workers Comp Test Audits – Pain or Preventative Measure
  • WCIRB 8871 Webinar – What California Insureds Need To Know
  • Workers Comp Website – 10 Things To Know When Switching Providers
  • Workers Comp Zoom Presentation – Top Four Hard Lessons Learned
  • Experience Mod Increases While Loss Runs Show No Changes – WTR?
  • Workers Comp Allocated Expenses – Who Pays For Which Bills?
  • Workers Compensation Presentations Kawasaki Technique
  • 8871 Standard Exception Classification Code Question
  • J&L Founder James J Moore to Teach Insurance Academy Course Feb 4th
J&L Risk Management Consultants Inc
14460 Falls of Neuse Road,
Suite 149305
Raleigh, NC 27614
(800) 813-1386
▲Return to top of page
Copyright © 2021 J&L Risk Management Consultants, Inc.

Website Design by Redwood [ Design - Print - Web ]