Archives for December 2016

Top Ten Work Comp New Years Resolutions 2017 Version with Bonus

December 22, 2016 By JL Risk Management Consultants

Top Ten Work Comp New Years Resolutions 2017

The Top Ten Work Comp New Years Resolutions 2017 started a few years ago . I have updated them each year. You can find those resolutions here using this search inside the J&L Risk Management articles. There are many resolution articles from the prior years. 2017 requires a new list. I will do a self insured list very soon.

Follow the links in the articles for more information.

Understanding the mechanics of the WC process – from the start of the policy renewal until final premium audit – read everything that has to do with the policy. Most of the process is laid out in the policy. A highlighter is your best tool.
Following the Six Keys to Workers Comp Savings – the prior link has all of them.
Knowing where every dollar is going when you write a premium check – Old Motto – Stop Just Writing Checks
Having your Workers Comp Rating Bureau Experience Mod Worksheets at your fingertips – can change often in one year.
Retaining your WC info permanently – electronic media is the easy way to go – scans are best
Knowing the adjusters that work on your files beyond just a name
Letting the Adjuster know that you follow the Six Keys in #2 above.
Relating to #1 – Understanding your Unit Statistical Date to not waste time at the end of the year.
Not renewing policies on January 1st or July 1st.
Reading the newsletter that J&L provides almost every week. You may sign up at the top right of this page.
Bonus – having a working relationship with your agent, not just at renewal.
Another Bonus – take any class or attend any meeting or seminar that your insurance carrier offers to you.
Last Bonus – Safety is the key to staying out of the Work Comp system.

Graphic Top Ten Work Comp New Years Resolutions 2017 Electronic Media

Wikimedia Commons – NCurse

If you notice the main theme is having working relationships in Workers Comp. Communication has always been the bedrock for reducing costs and preventing injuries.

Please feel free to use this blog as a reference source. That is why I have written over 1,620 articles. The Top Ten Work Comp New Years Resolutions 2017 is just the tip of the iceberg.

©J&L Risk Management Inc Copyright Notice

Insurance Trends vs. Paper Clips – Lets Get Ready To Analyze

December 21, 2016 By JL Risk Management Consultants

Insurance Trends vs. Paper Clips Analytics

The analysis of most insurance trends involves many innocuous spreadsheets that only gives the reader headaches. I was looking over an old article today concerning a NCPRIMA presentation from 2014.

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BTW, we are upgrading every article on this website to make it Google searchable and rankable. That task has taken over 6 months as we have over 1,620 articles to upgrade. It is ongoing. Whew!

I digress – one of my old bosses always said do not analyze paper clips. You have people to do that for you. Analyze the big trends to see the direction your organization is heading (to and fro). Many of the groups to which he was presenting consisted of a large number of financial types (CFO, Financial Officer, etc.).

The financial types – I guess I am one – would squirm in their seats when he would say – Analyze trends not paper clips. Insurance trends are very similar.

I have pointed out many times in presentations and in the articles that Excel(R) is your best friend when analyzing trends. In fact Microsoft has provided Statistical Analysis packs for Excel. This is one of the best bargains in the analysis world.

Apache Open Office Insurance Trends Computer Screen

Wikipedia – Apache Foundation

If you are looking for a more economical (free) data analyses pack, you can try the OpenOffice by Apache installation that is a good analysis pack. The work you do must be personal and not business for the OpenOffice packs. You may want to throw a few dollars their way as the software is a treasure for non-business analysis.

Correction – According to Apache

“You may use it on home machines, in the office, with your small business, school, church, gardening club, etc.”

The ones I use are Regression, Stepwise Regression, Coefficient of Correlation, Z-test, T-test, F-test, Chi-Square, and Regression Graphs. I use regression often as I like to use more historical data than most insurance actuaries. Business cycles and insurance trends are 20 year – not 10 or less.

Google has long recognized long-tailed data for their keywords. Regression is a long-tailed analysis.

Analyzing insurance trends can be tedious at first. Once you set up a framework for analysis – depending on what you are analyzing – the task can become simple to a point.

©J&L Risk Management Inc Copyright Notice

Google Play Store And My Annual Search for Work Comp Apps – Not Good

December 14, 2016 By JL Risk Management Consultants

Google Play Store Has No New WC Apps for 2016 – 2017

The Google Play Store (where Android Apps live) was my last hope for a humongous leap in my continuous search for technology in WC. One again, as expected, I was more than disappointed.

Semi-rant alert!!!

Wikimedia Commons – Google

I decided to have my 3rd cup of coffee (do not tell my doctor) for the day and to jump down the rabbit hole again into the wonderland better known as app land not Lapland – the home of reindeer.

My two searches for Workers Comp Android Apps and yes, even in the Apple ITunes Store left me wanting or repulsed – glass half full or half empty. The links actually have the search built in just in case you did not want to type anything in the search boxes.

Follow the two links if you dare. Read the headline on this one if you do not wish to follow the path of my trek to disappointment. Yes, there are no new Workers Comp apps in either of the largest repositories for apps on earth.

Surprisingly at the NWCDC Conference a few weeks ago, I did find two advances in WC technology. They were both medical device companies.

Wikipedia – Perhelion at de.wikipedia

BTW, a big shout out to IWalkFree. The lady was breaking down her display at the NWCDC and took my name and email address down on a post-it and actually got back with me within a week. Wow, now that is great marketing. I have now mentioned the company three times in this very popular WC blog and all she did was take my email address down and get back with me.

Speaking of marketing, when I mentioned my conundrum to some of the NWCDC vendors (the ones with the signs hanging from the ceiling) about apps, I was told that the apps can be found on their respective websites. For great marketing, see the above IWalkFree note. If you have an app and want to market your business why not put the app on the Google Play Store and ITunes as a way to market to millions of people a day? Excuse, me I was on the edge of a rant – warned you.

The two good apps from the previous searches were the NCCI Coverage Verification and Sedgwick James‘s app. Other than that, I am still waiting on a good Workers Comp app that is available to the public. Employers Mutual Casualty and CorVel had apps that performed fairly well in 2015.

If I missed an app on either one of the app stores, please point them out. If you are a marketer for a Workers Comp related company, please send me a link to your app. I would love to see it. You may possibly want to upload it to ITunes or the Google Play Store.

©J&L Risk Management Inc Copyright Notice

James J Moore E-Mod LDF Presentation – Mid State Safety Council

December 13, 2016 By JL Risk Management Consultants

James J Moore E-Mod LDF Presentation With Slides Available

E-Mods and LDF’s_NC Midstate_12_13_16 <<<Slides – File is 7mb

Our founder, James J Moore E-Mod LDF presentation went well at the NC Mid State Safety Council’s Winter Lunch and Learn training session.

Raleigh North Carolina James J Moore E-Mod LDF Map

Wikipedia – Alexrk2

The slides from the presentation are available for download at this link. The session was a smaller group in intimate surroundings at Coty Inc in Sanford NC.

The main takeaways from the presentation were:

A Safety Officer or Safety Department along with Risk Management can be summed up in one score (the LDF or E-Mod)
Companies and governmental organizations are examining these two departments much more closely in the coming “age of the reduction”
Any safety person should know their Experience Mod number. The staff may be judged by that number alone.
Workers Compensation is a delayed system, what you do in safety today may not show up in your WC program for years.
The old adage of ” I am involved with Safety – the E-Mods are covered in another department” does not fly any longer.
We are out of the Workers Comp system does not apply to large deductible programs or self insureds.
Safety and Risk Management personnel and complete departments have been eliminated before the results of their efforts were even calculated
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The Schedule Rating Factor can more accurately reflect Safety and Risk Management’s current efforts.
The Schedule Rating Factor has many elements in it from Safety and Risk Management
Your E-Mod or LDF is like a personal credit score from hell.

An attempt will be made to attach the slides to the presentation if it is not too data intensive. The attached file will be in PowerPoint 2013. Today’s James J Moore E-Mod Ldf presentation was a standard presentation that he gives a few times a year.

©J&L Risk Management Inc Copyright Notice

North Carolina Rate Bureau Reform – New Insurance Commissioner

December 8, 2016 By JL Risk Management Consultants

The North Carolina Rate Bureau With A New Insurance Commissioner

The North Carolina Rate Bureau (NCRB) is one of the last standing independent rating bureaus for Workers Compensation. The times are changing as the new Insurance Commissioner –Mike Causey has mentioned that one of his post-election goals was to reform the NCRB. Mr. Causey does have the background of a former insurance agent. That may be an interesting twist on his upcoming role.

Insurance Commissioner North Carolina Rate Bureau Mike Causey Picture

The former (as of Jan 1st) Insurance Commissioner since 2009 Wayne Goodwin was defeated in the last general election by approximately 40,000 votes. Commissioner Goodwin has been a stalwart on the recent 24.9% recommended property insurance increase recommended by the insurance company consortium. He is a critic of the Affordable Care Act.

For more information about the NC Insurance Commissioner election, please follow the link.

The personnel at the NCRB have always been very nice and helpful to me with Classification Codes, Experience Rating Sheets, and other rating information with North Carolina insureds. I have disagreed and agreed with some of their decisions on how a certain employer is rated for their WC coverage.

This is one of the platforms that Commissioner-elect Causey ran for election upon:

Hand Thumbs Up North Carolina Rate Bureau With Rating Bar

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“Reform outdated System North Carolina is the only state in the country that still has a Rate Bureau – a vestige of days gone by when government control stifled summed up in the insurance industry. Mike Causey knows the consumer suffers in this system as they pay more for bad drivers and prop up an outdated process and will work to bring insurance reform.”

This seems to be pointed more at the auto insurance ratings. I have seen no comments from that Commissioner-elect has made on Workers Compensation at the North Carolina Rate Bureau.

©J&L Risk Management Inc Copyright Notice

ACA Repeal Could Lead To More Workers Comp Case Shifting

December 7, 2016 By JL Risk Management Consultants

Will ACA Repeal (Affordable Care Act) Cause Case Shifting to WC?

The drumbeat for ACA repeal has grown much louder with the new administration just around the corner. This article on the new demands to keep Obamacare alive was an interesting angle from the health insurance sector.

Wikimedia Commons – Obama

Please read the article for all the information. The two main conditions were to:

Allow the subsidies for low-income insureds
A three-year unwinding – not an immediate cessation

In 2015, Dr. Richard Victor – then CEO of WCRI, presented the concept of case shifting from health to workers comp due to the lack of sufficient health insurance markets and other conditions.

After reading the above-linked article, one would have to say that if there is a sudden shift in the health insurance marketplace from the government abolishing the ACA?

One of the stark recommendations in the article was the penalty was too small to cause the younger employees to seek out and buy ACA policies. This scenario seems ripe for case shifting to WC.

Would Workers Comp actually become a bastion for the failing health care market?

Please follow the links to the prior article on Dr. Victor’s predictions. I had thought the concept was professorial and not real-world when I had first written about it. Possibly, I was the one that was eccentric to think this would never happen.

This would not be difficult to study unless more variables are in place that will affect WC over the next decade or two. We shall see.

2016 NWCDC Innovations IWalkFree Medical Equipment

December 2, 2016 By JL Risk Management Consultants

2016 NWCDC Innovations – Two Companies – iWalkFree

My 2016 NWCDC Innovations search ended up where I had thought it would from the beginning. I spent a large amount of time in the vendor area. The medical equipment innovators are usually at the cutting edge in WC. The NWCDC is the National Workers Comp and Disability Conference held in New Orleans this year.

Medical Equipment 2016 NWCDC Innovations Vector

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I had almost given up my search for innovators until the very end of the exhibiting session by the vendors. I found two companies which did provide a level of innovation. I did not find any service-type vendors that really had any inovation. This is the norm for most of the conferences.

The two companies are a robotics company and a unique lower leg crutch manufacturer. The two companies are ReWalk and Iwalk. As you can guess from the name, they both have to do with enabling an injured workers to return to work or at least lead a more productive life. If you can find the time, a visit to each of their websites is very well worth your time.

From the ReWalk website:

Man Broke Leg 2016 NWCDC Innovations Vector

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The ReWalker controls movement using subtle changes in his/her center of gravity. A forward tilt of the upper body is sensed by the system, which initiates the first step. Repeated body shifting generates a sequence of steps which mimics a functional natural gait of the legs.

From the I Walk website:

The iWALK2.0 is the best solution for non-weight bearing lower leg injuries. iWALK2.0 is easy to learn, economical to own, is pain free and provides unsurpassed mobility.

I watched a film of people using the iWALK2.0. The video showed an amazing alternative to crutches. From what I saw, the iWalk 2.0 would allow a much more rapid return to work for some jobs.

Workers Comp Innovation – NWCDC – National Work Comp Conference

December 1, 2016 By JL Risk Management Consultants

Workers Comp Innovation Search – Wish Me Luck

My Workers Comp innovation search has involved many conferences and apps. I am once again spelunking to see if there exists any new processes or products at the NWCDC in New Orleans. The conference in 2014 and especially 2015 provided fertile ground for a few new products.

different color of workers comp innovation question mark and bulb

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The sessions are more of a review of the concepts that have been in place since the 1980’s with a few twists. Product innovation seems to be where my search usually ends up in the vendor area. I will walk the floor tomorrow morning to see if there are any great innovations.

Thermazone and Proove were the innovators that caught my eye over the last two years. Some of the service providers, which usually do not show that much innovation, may have a few cutting-edge apps. I am open for any new Android apps.

Telemedicine was one area that struck me as a forefront for Workers Comp. The industry is a very slow adopter. Health insurance seems to be a progress leader which really does a disservice to WC.

Chinese Lucky Workers Comp Innovation Cat Vector

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I only have time for one full day and 1/2 day on Friday. The conference brochure is here. If you see any vendors or sessions you would think may have a Workers Comp innovation theme, let me know by adding a comment or emailing me.

There was one type of innovation today. I did a walk-up registration at the conference. The whole process took less than three minutes to complete. Safety National is the sponsor – tip of the hat to what can be an arduous task at some conferences. One WC conference took 25 minutes to register even though I had attended the conference the prior year.

The medical products area may end up being the main focus for innovation this year. Check back in tomorrow evening.