Sue KeenerDirector of Virginia

Office of Workers’ Compensation

GOVERNOR'S HEALTH POLICY ADVISORS ANNUAL CONFERENCE

Comprehensive Cost Containment Program

• Public private partnership• $43 million 5 year savings• 37% reduction in lost time

claims

Helping People,

Saving Money• Controlling medical costs

• Improving service delivery

• Reducing lost-time injuries

• Increasing communication

• Strengthening loss control

A Different Kind of Partnership

• Single-point contractor

• 10 subcontractors• Shared office space• Nurses and medical

director• Integration of medical

management with claims process

• Discount prescription drug program

• Vocational placement specialists

• Improved technology• Occupational PPO Network• Web site www.covwc.com• Increased loss control staff

Results That Make A Difference

• Integrated teams• Reduced caseloads• Better service• Technical support• Web access to claims

data by agencies

• Emphasis on safety• Improved accident

investigation• 24-hour reporting of

claims• Enhanced program

management

Workplace Safety • 12-credit college certification

program

• OSHA training

• Accident prevention seminars

• Annual “Safety Day”

• Hazard inspections

• Ergonomic assessments

• Agency benchmark reviews

• Training integrated into Human

Resource Institute

• Governor’s Executive Order• Experienced-based premiums

to agencies• Mandatory 10-day reporting of

injuries• Evaluate everyone for return to

work• Analyze agency trends and

develop loss control goals annually

A New Strategy

Changing Attitudes

Then Now

Claims adjusters Benefit coordinators

Claimant Injured employee

Unproductive Valuable

Unmanaged process Managed process

Stay at home Work as therapy

Expensive Cost effective

Getting Hurt Doesn’t

Mean Losing Your Job

• Hundreds of state employees have returned to work under the “Work As Therapy” model

• Agencies required to develop return-to-work policies

• Every injured employee evaluated for return to work

• Experienced workers retained

Taking Care of the Employee

• Employees were expendable.

• Workers’ Compensation costs were out of control.

• 100% fitness required.

• “Work as therapy” model reduces lost-time claims.

• Public-private partnership has saved $32-plus million.

• Nobody is 100%.

Then Now

Disability Management

IS: IS NOT:• A proactive process,

where early intervention is the key

• Claims management or a process coordinated through workers’ compensation

• Traditional vocational rehabilitation process

• It enables both the employee and management to have mutual responsibility

Disability Management

IS: IS NOT:• Promotes prevention

of learned disability

• Controls the personal and economic costs of workplace injury and disability

• A passive response to injury, illness, or disability

• An expensive approach to controlling injury and disability costs

Returning To Work Requires Constant

Communication

Injured

Worker

Agency Safety

Supervisor WC Benefit Coordinator

WC Loss Control

Treating Physician

WC Nurse Consultant

Agency HR

Agency HR

Continuing To Care

Injured Worker Conference

Featuring seminars on:

• Skills for returning to work• Assistive technology • Benefits • Traveling with a disability• Managing chronic pain• Peer success stories

Leading With The Heart

• Cultural shift imperative for program’s success

• Leading with the heart rather than the checkbook

• No one is 100 percent

• Injured workers remain valuable members of the Commonwealth’s work force

Cashflow Saving

WC PROGRAM SAVINGS

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

FY 1999 FY 2000 FY 2001 FY 2002

Actual Paid Savings

22.7%22.2% 23.4% 25.2%

ProjectedExpenditures

Reducing Lost Time Claims by 37%

in lost time claims

0

500

1,000

1,500

2,000

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003

Claims where disability exceeds 7 days

Planting the Seeds of Change

• Close public-private partnership crucial

• Vendor and state committed to innovation

• Experience-based premiums• Cultural shift• Caring about the recovery of

our employees• Early return-to-work