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INSURANCE MATTERS
A Newsletter for Members of the CCAP Insurance Programs
Owned by Members, Governed by Members, Service to Members
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| May 2009 |
Volume 13, Issue 5 | |
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| Specialty Lines |
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Hello ,
We just finished the long process which results in the PCoRP renewal rates for June 1, and it was an interesting year. We are fortunate in that we have long standing relationships with our reinsurers, as the pricing we received was very good. The insurance market (commercial insurance and reinsurance) is poised on the precipice of rising prices (try saying that three times fast!). Companies are not earning much, if anything, on their investments, and need to raise prices to stay solvent.
We even had a bid from a reinsurer which uses an AIG company for some of its coverage, and decided it was not a good time to be signing up for insurance with AIG. Much too much uncertainty. We'll look at that company again once AIG has reorganized and we know more about the future of the company.
As you can imagine, PCoRP's investments have not done well either. We saw an erosion of our surplus, and have stopped putting any new cash into investments which have any risk, until we have a better feel for market stability. I am pleased to say the past several years of adding a Reserve Fund Charge (RFC) to our pricing has helped build our surplus, so even with the bad economy we are strong enough and continue to have a surplus position.
This means the PCoRP Board of Directors was able to remove the RFC from the PCoRP pricing. Since the Board is comprised of county officials, all were cognizant of the tight budgets being faced by many PCoRP members. In addition, the Board was looking at a sizeable increase in the Loss Fund, as claims experience continues to be expensive. Another factor is the low interest rate environment means PCoRP has to put aside more money to pay claims (we cannot discount claims funding as much because we are earning less interest).
The overall result for the year will be an average increase of about 6.8% in total costs. Many members with good experience and no change in exposures will see low increases, and some may have decreases. Members with worse claims experience, and who have added exposures, will see increased costs. Overall the 6.8% increase is less than the members' increase in exposures.
The Board also instituted a new Loss Control Credit for counties with risk managers. The credit mirrors the PComp credit, with a 2% credit for full time risk managers and a 1% credit for part time risk managers. More on that new credit next month.
As the insurance market gets a little more crazy in this odd economic environment, we are pleased to report that PCoRP is still available as a strong, viable, long-term option for your property, liability and crime insurances.
Make sure you call us when you need help with something,
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Constant Loss Control Resource |
Visit the CCAP Insurance Programs Web page any time of the day or night and you'll find a constant 24-7 resource available when the time suits you!
Surf to the right hand navigation bar of the main insurance page and just under Loss Control you'll find Web sites. Here you'll find nearly 200 Web sites under topics ranging from bloodborne pathogens, hazardous materials, and disaster management to fire safety, HIPAA and office ergonomics.
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| Personal Protective Equipment |
By Greg Cunningham, ARM, GSP, Loss Control Specialist
Whether your job has you cutting grass, welding material together or lifting boxes all day chances are there's an appropriate form of personal protection equipment for you to use.
DISCLAIMER
While the use of most personal protective equipment (referred to as PPE), is an accepted and sometimes overly used practice this should ideally be your last resort in dealing with a difficult or dangerous task. It should be the last resort as it does nothing to eliminate or reduce the hazards present.
CONSIDERATIONS
The four major areas to consider when discussing PPE are assessing the situation, selecting appropriate PPE, properly training employees on the use/care of PPE and verifying that what you're doing actually works. We will delve further into these areas.
ASSESSMENT
This could be the most important area of your entire PPE program due to the fact that decisions made here will affect every other aspect of the program or even determine if one should exist. What should be done here is commonly referred to as a workplace survey where you look at everything from work practices, job procedures and equipment to the building layout and individual factors to help recognize potential hazards. Your entire organization should collaborate here in order to successfully identify each and every workplace hazard present to better know how to appropriately handle them. An open mind is essential, as is being realistic. Ideally, those without operation or expense responsibilities should take part as this will reduce conflicts between what's currently being done, hazard potentials and associated costs of PPE.
SELECTION
Once you have assessed the workplace you should decide whether or not PPE alone will suffice. Are there any other methods we could use to protect the employee from the hazards? Ask yourself, can the hazard be removed by substitution or possible elimination of certain aspects? Can the hazard be mitigated by guards, a redesign of the equipment or can different work practices and procedures be put into place to eliminate the hazard? This step is quite simply matching the PPE to the hazards discovered in the assessment phase. Cost considerations should be addressed but not be the major deciding factor here.
TRAINING
Properly sizing and training employees on the new PPE is an essential step as well because if they don't know when or how to use the device it's of little use to them. The device has to fit and be comfortable enough for the employee to wear for extended periods of time and the PPE cannot restrict employee movement. Proper cleaning and inspection of the PPE should be done in accordance to the manufacturers guidelines. Training on the equipment must take place, must be documented and employees should be retrained as job duties or processes change. Those affected employees should attend refresher training as per the equipment manufacturer's suggestions or if their job duties change and has them doing different tasks throughout the day. It is the responsibility of the employer to provide the employee with proper PPE but it's up to the employee to use it correctly.
VERIFICATION
The final step must ensure that the employers have made the affected employees aware that hazards exist in the workplace and are being controlled by the appropriate PPE. Again, the employer must retrain the employee in the event of process or job changes and if improper use of the PPE is noticed. To keep track of your PPE program you may want to use a paper or physical audit to gauge where your program is compared to where you want it to be.
Please contact the CCAP Loss Control team should you have any questions regarding Personal Protective Equipment or other health & safety issues.
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| Counties Can Access New Commonwealth Rental Agreement With Enterprise |
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By John Sallade, CRM, Managing Director, CCAP Insurance Programs
The Commonwealth of Pennsylvania has entered into a new agreement with Enterprise for business rentals. The preferred rates and terms from two companies, Enterprise Rent A Car and National, were negotiated by the Commonwealth Office of Travel Operations (COTO) and the Department of General Services (DGS). Counties can "piggyback" on the rates and terms by entering into an agreement with Enterprise.
Employees renting vehicles for business use can reserve vehicles on-line. (The minimum age for renting a vehicle is 21 years.) The rates include full insurance on the vehicle through Enterprise, which is a nice risk transfer for the county.
Vehicles included in the agreement and valid at over 200+ locations in Pennsylvania are:
· Compact and Intermediate - $37.00 daily /$225 weekly
· Intermediate Hybrid* - $45.00 daily /$265 weekly
· Standard - $42.00 daily /$255 weekly
· Full size - $46.00 daily /$265 weekly
· Full size Hybrid* - $49.00 daily
· Minivan - $60.00 daily/ $330 weekly
· SUV - $65.00 daily/ $365 weekly
· Cargo van/Truck - $65.00 daily/ $365 weekly
· 15 Passenger Van - $99.00 daily/ $595 weekly
*Hybrids are subject to availability and can only be reserved by phone at this time.
Daily rates are based on a 24 hour period. Weekly rates are 6-7 24 hour periods.
Included in the base rates are:
· Unlimited mileage
· Full Collision Damage Waiver with no deductible
· Liability Protection
· Additional Driver fee
· Youthful Driver fee (age 21-25)
· One way rentals within the commonwealth
· Pick up or delivery service within the commonwealth with no mileage restriction (after making your reservation, call the location to arrange pickup or delivery)
· Pick up service, outside the commonwealth, within a 30-mile radius of rental location
· Membership in the Enterprise Plus program
For more information on this program, which CCAP uses for its business rentals, contact Jon Vrabel, Business Rental Sales Executive, 2625 Market Place, Harrisburg, PA 17110. Phone (717) 319-2781, e-mail: jonathan.l.vrabel@erac.com.
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| County Administration Conference - May 27 and 28 |
By Linda Rosito, Insurance Training Director
Join us for the Fifth Annual County Administration Conference May 27 and 28 at the Nittany Lion Inn in State College. This event is for all county personnel interested in county finances and budgets, personnel and human resource issues, and overall county administration. There will be general sessions for everyone on Day One along with a reception perfect for networking with your peers. On Day Two there will be a multitude of breakout sessions covering a broad range of topics. Both days will also offer extended breakout sessions.
PCoRP and UC Trust members may attend at a discounted rate; current Academy and Advanced Certification Program participants can attend for free; and vendors may attend as a sponsor of the event! (Overnight expenses are not included with registration).
For additional information please visit the CCAP website at www.pacounties.org and you will find the County Administration Conference under conferences.
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| COMCARE PRO Welcomes New & Returning Members |
| By Christie Ward, Captive Programs Manager
The COMCARE PRO membership will grow by seven new counties as of July 1, 2009 when these four entities join our membership:
- Behavioral Health Services of Bedford and Somerset Counties
- Blair County
- Lycoming Clinton Joinder Board
- Tuscarora Managed Care Alliance (Franklin/Fulton Counties)
PRO is also pleased to welcome back Northampton County.
With 11 new and one returning county, this brings the total membership in PRO to 29 counties!
COMCARE PRO is a reciprocal risk retention group offering stop loss insurance for high cost behavioral health inpatient and RTF claims. For more information on our program, contact Christie Ward, Captive Programs Manager, at (800) 895-9039 x 3308 or cward@pacounties.org.
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| Find Savings In A Spending Plan |
Savings are not easy to come by these days, so we have to get creative in where we look for them. Did you know there are valuable tax savings for both the county and its employees hiding in a spending plan? Section 125 flexible spending plans allow employees to set aside their own money in order to pay for qualified medical premiums, out-of-pocket expenses, and dependent day care expenses on a pretax basis. These incredible tax saving opportunities increase employees' take home pay without costing the county more money, and in most cases, the payroll tax savings for the county more than cover the cost of administering the plan.
Through its BEST Flex program, the County Commissioners Association of Pennsylvania has aligned with TASC, Total Administrative Services Corporation, to offer Section 125 flexible spending plans. TASC has developed a program called FlexSystem, a third party service for the administration of Section 125 flexible spending plans. The FlexSystem's competitive fee structure makes Section 125 plans very affordable, allowing even our smallest county members to offer this cost effective benefit to their employees. The FlexSystem Section 125 flexible spending plans will improve employee morale, reduce employee turnover and increase tax savings for both the county and its employees.
Counties receive the benefits of:
- Reducing payroll costs
- Controlling benefit/premium costs
- Addressing the needs of a diverse workforce
- Recruiting and retaining quality employees
County employees save valuable tax dollars on:
· Premiums for family health insurance benefits
- Qualified unreimbursed medical expenses for the employee and its family members
- Dependent day care expenses up to $5000 annually - includes adult day care!
- Transportation expenses to include: transit passes, commuter highway vehicles, and qualified parking
Counties do not have to wait until an open enrollment period to start saving on payroll taxes. This plan can be set up immediately for a short calendar year and renew on January 1. Join the other counties throughout the commonwealth that are already taking advantage of this programs benefits, and start saving today.
For more information email Julia Jackson, Employee Benefit Programs Manager, or call (800) 895-9039.
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| New CCAP Wellness Web Site |
By Julia Jackson, Employee Benefit Programs Manager
As part of the 2009 CCAP/BEST Flex Biggest Loser Contest, we have developed a new wellness website offering health and wellness resources and links to resources for all county and county-related entity employees, not just those participating in the Biggest Loser contest.
To visit the Web site, log on to: http://www.pacounties.org/Pages/CCAPWellness.aspx or www.pacounties.org and type "CCAP Wellness" in the search field at the top right corner of the Web page.
Whether you are looking to lose weight or simply live a healthier lifestyle, the Web site offers healthy recipe ideas, exercise tips and tricks, and links to renowned wellness resources such as wholeliving.com, cookinglight.com, mayoclinic.com, and more. You can also track the progress of your colleagues across the commonwealth as they work towards earning the title of "Biggest Loser".
This fall we will be following up the Biggest Loser contest with new contest called "Maintain, Don't Gain". The concept is the opposite of losing weight; your county or entity just can't gain weight. The county or entity with the least weight gained or most weight lost is the winner. The contest will be open to all counties, not just those participating in this year's Biggest Loser contest. Watch for more details this summer!
For more information on the Biggest Loser Contest, Maintain Don't Gain, or the BEST Flex program in general, email Julia Jackson, Employee Benefit Programs Manager, or call (800) 895-9039.
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| May Workshop Opportunities! |
By Linda Rosito, Insurance Training Director
May is the last month of the spring training season, but there are still many opportunities for you to take advantage of. Here is a listing of workshops that we will be holding yet this spring.
May 6 - KEYS: Leading and Performing in Peak Performing Teams, Scranton Hilton
May 7 - KEYS: Leading and Performing in Peak Performing Teams, CCAP North Office, Harrisburg
May 13 - KEYS: Leading and Performing in Peak Performing Teams, Regional Learning Alliance, Cranberry Twp.
May 20 - Getting Through the Economic Sausage Grinder, Best Western/Country Cupboard, Lewisburg
May 21 - Prison Risk Management Workshop, Hotel Hershey
May 27 & 28 - County Administration Conference, Nittany Lion Inn, State College
If your county is a member of the sponsoring insurance program, the workshop is FREE to attend. If you are not sure if your county is a member of the sponsoring workshop please refer to the CCAP Insurance Programs Member Listing on the CCAP Website. Your attendance at workshops also helps your county by gaining the educational credit for each insurance programs incentive program.
As always, if you have any questions, please feel free to contact Linda Rosito or Jenn Carey.
We look forward to seeing you in May!
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| MCare Abatement Program Ends |
The MCare abatement program has officially ended, as announced by Governor Rendell on Thursday, April 23.
MCare (Medical Availability and Reduction of Error Fund) is the state's medical professional catastrophic fund. With this decision, the state will no longer subsidize premium payments for the malpractice coverage.
A steady decrease in medical malpractice claims since since 2003 led to a statewide decline of 41% in medical malpractice claim filings and verdicts by 2008. Several legislative, judicial and administrative reforms are cited as the impetus.
Two such changes include the requirement that medical malpractice actions be brought only in the county where the cause of action took place, and the requirement that attorneys obtain a certificate of merit from a medical professional that establishes that the medical prodcedures in a case fall below the applicable standards of care.
Under state law, health care providers are required to carry $1 million in medical malpractice insurance - $500,000 from an insurer such as PELICAN Insurance RRG and $500,000 from MCare.
PELICAN Insurance provides primary and excess general and professional liability coverage to Pennsylvania County owned and non-profit nursing homes.
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| How To Cope With "Investment Statement Shock" |
Article provided by Nationwide Retirement Solutions
If you're like many people who looked at their retirement-account statement recently, you may have cried loudly: O U C H !
Yes, it's been a rough year for the equity markets. In addition, media reports about recent political and financial uncertainty are near-daily events.
You may be tempted to cut your losses and move into "safer" vehicles such as fixed accounts or bond funds. In general, both fixed accounts and bond funds are important parts of an overall portfolio, but they may not be your best choices for your entire retirement account.
What should I do?
Before you do anything, remember that times of uncertainty often allow emotions to push away the logic and strategy of long-term planning - which can lead to poor investment decisions.
That said, now may be a good time to review your investment strategy, especially in light of how your assets and ongoing contributions are allocated. Be sure to account for your risk tolerance and investment time horizon. Keep in mind that asset allocation and diversification strategies do not assure a profit and do not guarantee against loss in a declining market.
Investing for retirement is a long-term proposition. Even those in retirement may have needs for a certain portion of their assets to be invested for the long term, and usually that includes stock and stock funds.
So, your best response to "investment-statement shock" is:
· Research your investments,
· Remember your goals,
· Re-examine your risk,
· And don't let your emotions overpower your sense of reason.
The NACo 457 Deferred Compensation Program is administered by Nationwide Retirement Solutions and endorsed by the County Commissioners Association of Pennsylvania. For more information email Julia Jackson, Employee Benefit Programs Manager, or call 800-895-9039. To speak with a Nationwide Retirement Specialist call (877) 677-3678.
NRM-5222AO (07/2008)
Ó 2008, Nationwide Retirement Solutions, Inc.
Nationwide, the Nationwide Framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company.
Nationwide Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation, member FINRA. In Michigan only: Nationwide Investment Svcs. Corporation.
1 Concepts of this article are suggested by How to Cope with Financial Anxiety by Sue Stevens, CPA, CFP, MBA, and CFA Charterholder, Director of Financial Planning for Morningstar Associates, LLC. Ó 2002, Morningstar Associates, LLC. http://news.morningstar.com/articlenet/article.aspx?id=225169
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| Quote Of The Month |
"Sometimes the mind, for reasons we
don't necessarily understand,
just decides to go to the store for a quart of milk."
- Diane Frolov and Andrew Schneider
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CCAP Insurance Programs
PO Box 60769, Harrisburg, PA 17106-0769
Phone (800) 895-9039 - FAX (717) 526-1020
Claims Fax (888) 692-2368
Click here to go the Insurance Section of the CCAP Website.
email:jsallade@pacounties.org
Insurance Matters is published monthly by CCAP Insurance Programs for the use of members of CCAP's UC Trust, PCoRP, PComp, PIMCC, COMCARE, COMCARE PRO, BEST Flex, PELICAN and other insurance programs, and insurance producers of these members.
Advice contained in this publication is not legal advice and members are encouraged to seek the opinion of their solicitor.
The information provided in this publication is not intended to take the place of professional advice. Readers are encouraged to consult with competent legal, financial, or other appropriate professionals. Statements of facts and opinions expressed in this publication, by authors other than Association staff and officers, are the sole responsibility of the authors and do not necessarily represent an opinion or philosophy of the officers, members and staff of the County Commissioners Association of Pennsylvania (CCAP). No endorsement of advertised products or services is implied by CCAP unless those products or services are expressly endorsed, or are owned or managed by the Association programs, or our affiliates. This publication may not be reproduced, modified, distributed, or displayed in part or in whole, by any means, without advance written permission of CCAP. Please direct your requests to John Sallade, Managing Director, CCAP Insurance Programs, jsallade@pacounties.org.
Note: As part of its copyright agreement the CCAP grants the author the right to place the final version of his/her manuscript on the author's homepage, subject to CCAP's standards, or in a public digital repository, provided there is a link to the CCAP website.
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