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INSURANCE MATTERS
 
A Newsletter for Members of the CCAP Insurance Programs
Owned by Members, Governed by Members, Service to Members
 
June 2009 Volume 13, Issue 6
Specialty Lines
 
Hello ,
 
There was a very interesting article in Newsweek in late April about a small family owned bank in Illinois. Started in the early 70's, the founder and his sons created a business that served the community and prospered. After dad retired the two sons managed the bank well, until they began to argue about the bank's philosophy. One son wanted to stay the course, the other was intrigued by the riskier but potentially rewarding investments which promised quick profits. Eventually the family decided to sell the bank to a larger banking conglomerate, and to this day the decision has split the family and the two brothers have not spoken since.

The Newsweek story was told with the banking crisis in mind, and ends with the brother who was "right all along" starting a new bank with his daughter, based on the stable banking principles he and his father espoused all along. Reminds me of a Disney movie.
 
After I read the article my first thought was the parallels with our insurance programs. It is really about a long term, steady as she goes, stable operations philosophy versus a short term quick savings and higher risk gamble. Counties that change insurers just to save a few dollars one year are taking a risk they will be able to find coverage at that price the next year, or when the insurance cycle changes. While it is hard to walk away from saving some money one year, the long term view will make it clear the insurance pools we operate are the best value for counties when all costs, limits and services are compared.
 
Our goals are pretty straightforward - make sure coverage is available, price it right (so we can pay claims and break even), provide broad coverage which means paying claims, give our members great service, and over the long term save our members money.

My email signature, and that of all of the insurance staff, ends with the words "Owned by Members - Governed by Members - Service to Members". These are not just a cute sign-off. We believe we are here to provide you with service, to answer your questions promptly and professionally, to go the extra mile to find coverage to protect your county and its employees. And we take our direction from the members, who participate on the boards which govern the programs. You own the insurance pools, and you or your colleagues decide how they are operated.
 
Make sure you call us when you need help with something,
 
                              John Sallade
 
In This Issue
Specialty Lines
Long Term Care: Are you Prepared?
PComp Recognizes Member Achievements
Watch Out...Kids On The Loose!
PRO Welcomes New Members
PELICAN Election & Awards
NACo Program Serves Public Employees
COMCARE Awards Scholarships
Quote Of The Month

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Long Term Care: Are You Prepared? 
By Julia Jackson, CCAP Employee Benefit Programs Manager 
 

Preparing for retirement is an essential aspect of our employment.  We work hard now so we can earn enough money to pay for our expenses both today and long after we are employed. By the time retirement rolls around, we hope to enjoy our newfound free time and maintain our standard of living. But one aspect of retirement we are often unprepared for is the disheartening fact that nearly 70 percent of individuals over the age of 65 will require at least some type of long term care services, and over 40 percent will need care in a nursing home (U.S. Department of Health and Human Services, 2008). 

 

According to a 2006 study by the MetLife Mature Market Institute, the average per person cost of long term care is over $75,000 annually, and although it is difficult to predict how long someone will need to receive care, the average is three years.  So how do we plan for and ultimately pay for this unpredictable cost when the government has tightened the financial requirements to qualify for Medicaid (the federally and state-funded program for those who live at or below the poverty level), and Medicare is designed to cover only acute illnesses like hospital stays?

 

We are left with only three options: ignore the risk, self-fund the risk or insure the risk. Fortunately, many insurance carriers are offering insurance plans designed to cover the costs associated long term care. So how do you find a policy that is right for you?

 

Long term care insurance pays benefits at the time you require the services covered under the policy. These services typically include nursing home/skilled care and non-skilled personal care assistance such as helping to perform everyday Activities of Daily Living (ADLs) including: bathing, dressing, using the toilet, transferring to or from bed or a chair, caring for incontinence and eating. However, most plans have an elimination, or waiting period (think of this as a policy deductible) that must be satisfied before the carrier will begin to pay. You choose the elimination period based on how much out-of-pocket expense you can afford. The shorter the elimination period you select, the higher the premium, and the smaller your out-of-pocket expenses will be when you actually need care. Many policies offer choices from zero to 180-day elimination periods.

 

The next factor to determine is how much benefit you will need to receive each day for care. Today, the average cost of care in Pennsylvania ranges from $177 to $308 dollars per day. With long term care expenses rising continuously, look for an option that allows you to automatically increase your daily benefit by a certain percentage each year and accounts for inflation.

 

It is also important to consider where you want to receive care. Most policies pay for care whether it is received at home, in a nursing home or in an assisted living facility. While you might need to go to a facility eventually, most of us want to stay home as long as we can. This is a key benefit of long term care insurance.

 

With all of the choices out there, it helps to consult a long term care specialist before making any decisions. Your long term care specialist has the training and experience necessary to help you determine if long term care insurance is right for you and make sure you get the benefits that you need.

 

One of the best places to purchase long term care insurance is through your employer. A group-based plan can typically offer relaxed underwriting and the ability to pay via payroll deduction. The CCAP BEST Flex program has partnered with Prudential Financial to offer Long Term Care Insurance to Pennsylvania counties.  The insurance is offered on a completely voluntary basis at no cost to the county. Employees and their spouses receive a 10% discount and employees' family members (parents, siblings, children, etc.) receive a 5% discount.  Employees also receive modified underwriting.

 

Long Term Care Insurance allows you to better plan for your retirement today, and maintains your independence and quality of care into the future. For more information on the BEST Flex Long Term Care program, email Julia Jackson, Employee Benefit Programs Manager, or call (800) 895-9039.

PComp Recognizes Member Achievements 
By John Sallade, Managing Director, CCAP Insurance Programs
 
At the March 29 Annual Meeting of the PComp Delegates, held during the CCAP Spring Conference, several PComp members were recognized for their 2008 risk management accomplishments. PComp is CCAP's workers' compensation insurance pool.
 
Clinton County received the Loss Control Training Award, for sending more people to PComp training than any other member. The county sent 28 people to 8 different workshops.
 
Huntingdon-Bedford-Fulton AAA was recognized with a PComp Loss Control Award for their active safety committee and strong commitment to safety. The award includes one free registration to attend the PA Governor's Safety Conference.
 
Wayne County was also recognized with a PComp Loss Control Award. The county also has a very active safety committee, and has conducted on-site staff training, and also sent 25 people to PComp workshops. The award includes one free registration to attend the PA Governor's Safety Conference.
 
Carol Kearns of Mifflin Juniata AAA was honored with the PComp Risk Management Award for outstanding assistance to PComp staff for the effective administration of claims.
 
Bedford-Somerset MH/MR received the PComp Claims Reporting Award for outstanding claims reporting. The award includes one free registration to attend the Bureau of Workers' Compensation Conference.
 
Elk County won the Terry Barham PComp Claims Experience Award for the member with the lowest experience modification for 2009. The county's experience modification is .660 (and 1.00 is average).
 
The other PComp members with low experience modifications (the rest of the top five) are:
 

Clinton County

.713

Juniata County

.714

Columbia County

.755

Wyoming County

.755


Congratulations to all the PComp award winners!
 
For more information about PComp, please contact Karen Cohen at CCAP, (800) 895-9039.
 
Watch Out...Kids On The Loose!
By Greg Cunningham, ARM, GSP, Loss Control Specialist

 

With summer finally here the number of kids out and about enjoying their break from school will greatly increase. Please do your part to make sure these kids make it back to school in the fall.

 

IN YOUR NEIGHBORHOOD

It's been said that it takes the whole community to raise a child. This was certainly true in days past but we still need to watch out for our neighbors' kids as well as our own whenever possible, especially when the warm weather hits and they seem to be everywhere! The following should help:

  • Join a neighborhood watch - this should exist for helping out whenever possible as well as preventing crimes. If you see a small child riding his/her bike in the street with no helmet, gently instruct them of a better way, especially if no other adults are around.
  • Please slow down in residential areas, around swimming pools and playgrounds. Remember, Pennsylvania law states that pedestrians have the right of way when inside a crosswalk. Also, we've all seen kids run into the street to chase one thing or another, please drive carefully.

AT THE POOL

We've all read the horrible stories about what can and usually does happen at swimming pools every year. Please follow these tips to ensure your child is safe in/around water:

  • The most important thing you can do is teach your child how to swim.
  • Instruct them to follow all posted rules.
  • Teach them to never dive into shallow water.
  • Children under 5 have the highest risk of drowning - use floatation devices at all times and never be further than an arm's length away from them.
  • Always rinse off before and after swimming.

AT THE BEACH

What kid doesn't love the sand, sun and water at the beach? That along with amusement parks, go-carts and numerous other activities makes the beach a great vacation. Follow these tips to ensure the trip is pain-free:

  • Sun block - use an appropriate SPF for your children. The sun can be particularly damaging at the shore so please take precautions.
  • Always make sure you know where rip tides may be occurring. Ask the life guard on duty and follow their directions as how to avoid being caught in one.
  • In case of emergencies, ensure you know where the nearest aid station is when you're on the beach.
  • Pay the couple dollars and rent an umbrella for the time you'll be at the beach. We all go to the shore for the sun but there are times when it's necessary to have some shade around.
  • Limit time in the sun during the 'burning hours', between 10 and 3 the sun can be particularly damaging.

IN GENERAL

While summer is all about having fun for kids, please keep the following information by Safe Kids USA in mind and read more by clicking the following link: http://www.usa.safekids.org/water/beach.html

 

'While you and your kids enjoy the seemingly carefree elements of summer, emergency room doctors know it as "trauma season." This summer children ages 14 and under will be rushed to emergency rooms nearly 3 million times for serious injuries resulting from motor vehicle crashes, drowning, bike crashes, pedestrian incidents, falls and other hazards. Sadly, more than 2,500 of these children will die.

 

Tragedies peak during the summer months (May to August) because children are supervised less, have more free time and engage in more outdoor activities.'

 

Please contact the CCAP Loss Control team should you have any questions regarding Health & Safety issues.

 
 
COMCARE PRO Welcomes New Members 
By Christie Ward, Captive Programs Manager
 
With the addition of Carbon-Monroe-Pike and Erie County, COMCARE PRO welcomes all eight eligible counties and entities into the membership as of July 1, 2009. This takes our county membership total from 17 to 33!
 
COMCARE PRO is a reciprocal risk retention group (RRG) offering stop loss insurance for high-cost behavioral health inpatient and residential facility treatment claims. 
 
For more information on COMCARE PRO, contact Christie Ward, Captive Programs Manager at (800) 895-9039.
 
 
 
PELICAN Election Results, 2009 Awards 
By John Sallade, Managing Director, CCAP Insurance Programs 
 

The members of PELICAN Insurance met on April 22, during the PACAH Spring Conference. PELICAN is a program created by the Pennsylvania Association of County Affiliated Homes (PACAH) and administered by CCAP. It provides professional and general liability insurance for county owned and non-profit nursing homes.

 

The PELICAN members, called subscribers, met to receive an operation and finance update, to elect members of the subscribers' advisory committee (SAC) which is the board responsible for the operation of PELICAN, and to present annual awards.

 

There were three positions up for election on the PELICAN SAC, and the three incumbent members were reelected to three year terms:

 

          Joe Giles, Council Member, Erie County

          Marvin Granda, Administrator, Gracedale Nursing Home

          Molly Hess, Administrator, Philadelphia Nursing Home

 

Nancy Dragan, administrator of the Armstrong County Health Center, was presented with the PELICAN Claims Award for her outstanding assistance to PELICAN staff.

 

Brian Balliet, risk manager for Gracedale Nursing Home (Northampton County), received the PELICAN Loss Control Award for his active role in loss control and prevention at the facility.

 

Congratulations to those elected to the SAC, and to the award winners! For more information on PELICAN, contact Christie Ward at CCAP, (800) 895-9039.

 
 
How The NACo Program Serves Public Employers 
By Bob Beasley, CRC, CIC, Communications Consultant, Nationwide Retirement Solutions

 

County officials wanting to help their employees recognize the need to prepare financially for retirement can look to the National Association of Counties (NACo) for quality retirement planning products and services.

 

The NACo Deferred Compensation Program is a supplemental retirement plan governed under Section 457(b) of the Internal Revenue Code. Since its inception in 1980, the NACo Program has grown to become the largest supplemental retirement income program available to county employees. As of June 30, 2008, more than 360,000 county employees from over 1,900 counties currently participate in the Program, with accumulated assets of more than $8.0 billion.

 

NACo contracts with Nationwide Retirement Solutions to provide and administer its deferred compensation program. Under a relationship that's nearly three decades strong, Nationwide delivers to counties the tools and resources for dealing with regulatory and fiduciary issues, selecting and monitoring investment options, educating employees about participation and easing the administrative burden of plan sponsorship. The NACo program is:

  • Technology-enabled, so your employees have easier access to their account and to the tools and resources they need to manage it effectively.
  • People-focused, giving your employees ongoing access to knowledgeable retirement specialists to help them prepare and manage their plans for retirement.
  • Success-driven, geared to be the best value for your county and its employees.

For more information email Julia Jackson, Employee Benefit Programs Manager, or call (800) 895-9039.

 
 
COMCARE Awards Scholarships 
By Christie Ward, Captive Programs Manager
 
As part of our training program, COMCARE holds scholarship lotteries throughout the year for the opportunity to attend state and national conferences on the topic of managed behavioral healthcare. The winning county employee has all expenses paid
to attend the event.
 
Our current winners are:
 
Sara Gumola, Mental Health Program Specialist 1
Westmoreland County MH/MR
Attending the National Association for Rural Mental Health's 35th annual conference in Albuquerque New Mexico
 
Rosemary Marchitell, Quality Improvement Coordinator
Delaware County Office of Behavioral Health
Attending the 17th Annual Medicaid Managed Care Congress in Baltimore MD
 
Congratulations to both!
 
COMCARE is the County Managed Care Resource, providing the counties of Pennsylvania with a resource to assist in the administration of managed behavioral healthcare.

For more information on COMCARE, contact Christie Ward, Captive Programs Manager at (800) 895-9039.
 
 
 
Quote Of The Month
 
 "The end result of kindness
is that it draws people to you."
 
- Anita Roddick
 
 

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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