Hello ,

Often when we are working with a member of PCoRP or PComp on a claim, the member asks us what the impact of the ultimate cost of the claim will be on their insurance costs. While it is hard to give a specific dollar answer to this question, for reasons I will explain later in this article, the answer almost always is that any significant claim cost will impact the member's costs, if not in the next policy year, certainly in future ones.

This is because both PCoRP and PComp are very loss sensitive. Both use formulas to determine a loss ratio for the member. PComp's is the workers' compensation experience modification, and PCoRP's is an expression of how the member's experience compares to the other members of PCoRP.

 

The important distinctions for members to consider are: when does a claim become catastrophic, and what level of claims frequency has the member had over a policy year? Insurance companies have internal formulas used to rate a member, and also choose what level they consider catastrophic. Often their insureds have no idea how this works. For both PCoRP and PComp these determinations were set by the pool's boards of directors.

 

Let's look at PCoRP first. Currently the pool assumes the first $350,000 of cost on every liability claim and $250,000 on each property claim. But, for purposes of comparing claims experience, all claims are capped at $100,000. All costs above $100,000 per claim are considered catastrophic. So if a PCoRP member is facing a liability claim costing $150,000 this means the impact on their claims experience will be $100,000. Depending on the size of the member and their PCoRP Loss Fund Contribution, one claim at this level might not have a big impact on future costs. But if this is one of several large claims in a given policy year, the impact will be felt.

 

For PComp the catastrophic level for each claim is $44,500 even though PComp pays for the first $500,000 of every claim. The $44,500 cap is the same number used by the Pennsylvania Compensation Rating Bureau (PCRB) in their experience modification calculation, so PComp uses the same process.

 

Where does the catastrophic cost above the PCoRP $100,000 and the PComp $44,500 go? This is shared by all the members of the program and becomes part of the rate used. The rate is applied on the exposure side, multiplied by payroll, number of autos, number of officers, or property values. To this rate is added, in PCoRP's case, the Loss Fund number which is based on each member's relative claims experience. For PComp the member's experience is "added" through the experience modification.

 

Timing is important. Often the change in the member's costs does not show up right away, but a year or two later when the policy year is ended and becomes part of the claims experience used to calculate renewal pricing for that member.

 

This is my attempt to explain why it is hard for us to quantify the exact impact of a claims settlement upon a member's insurance costs. Often the answer is "it depends." But in general, it is not possible to run away from your claims - the costs will catch up with you and will most likely result in higher insurance costs in the next year or two. The positive message is that the reverse is also true - good experience and low claims costs will benefit you not only at the time it happens, but for several years.

 

Make sure you call us when you need help with something,

                              John Sallade

As many of you know, CCAP's Insurance Programs have made the decision to move from our current claim system, STARS, and go to RISKMASTER. We all feel that the  RISKMASTER system will provide the flexibility we need going forward to continue our current claims handling standards and bring you, our Members, a better product for reporting and more accurate information.

For the past two months, we have been very busy "cleaning up" our data to send to RISKMASTER for them to begin the process of mapping all our data to the appropriate locations within the RISKMASTER system. This has included the review of over approximately 40,000 claims, 300,000 claim notes, 41,000 attachments, 65,000 diaries and 300,000 payments.

I am very happy to inform you we were able to have our claims data submitted to RISKMASTER on time and in a manner that should help speed up the whole process. RISKMASTER is currently in the process of mapping all our data and hopefully we will be able to start confirming that the data was mapped correctly by late May, early June.

In the meantime, we continue to stay busy preparing for our system switch. One of the bigger tasks that we are working on now is developing our new system to report on-line claims to us. It is our goal that the forms look very much like what you are currently used to. However, you will be able to access them directly from the CCAP website.

As of now, we are still on schedule to "go live" in July. When the time comes for us to go live, the claims system will be completely shut down for three to five days. While you will still be able to submit claims to us during the shutdown, they will have to be faxed in. However, the easiest option would be to simply not have any claims!!!

We will also be notifying everyone of dates and times for webinar trainings on how to submit claims to CCAP via the new system. I will be providing updates on the status of this major project every month. In the meantime, if you have any questions, please do not hesitate to contact me.

 

  

May has many excellent educational opportunities for you!

 

Please keep in mind that most of our training sessions are FREE (if sponsored by an insurance program in which your employer is a member) AND for PCoRP, PComp and UC Trust members you can SAVE MONEY off your insurance costs by attending training sessions.

 

May 11 - KEYS: "BEE": Be Excellent Employees, Scranton Hilton - Scranton

May 12 - KEYS: Health Care Reform, CCAP North Office - Harrisburg

May 19 - 2011: The New Face of Substance Abuse at Work, Best Western/Country Cupboard - Lewisburg

May 19 - KEYS: "BEE": Be Excellent Employees, Regional Learning Alliance (RLA) - Cranberry Township

May 20 - County Risk Managers Council, CCAP North Office - Harrisburg

May 24 - KEYS: "BEE": Be Excellent Employees, CCAP North Office - Harrisburg

May 26 - Prison Risk Management, The Hotel Hershey - Hershey

 

For additional information on the rest of the workshop season, please refer to Glimpse Online. As always, if you have any questions, please feel free to contact Linda Rosito at (800) 895-9039.

 

Fall workshop planning will be underway shortly. If you have any suggestions for topics to be covered this fall, please e-mail them to glimpse@pacounties.org.

 

Thank you for your continued support of the CCAP Insurance Programs trainings. We hope to see you soon!

  

We hope to see you at this year's County Administration Conference. This two day event is designed specifically for county employees interested in budget and finance, administration, and personnel and human resource issues. The conference is being held on Wednesday, June 1 and Thursday, June 2 at The Atherton Hotel, State College.

 

Registration information and agenda are available on the CCAP website at www.pacounties.org, click on Education and Communications and then County Administration Conference.

 

Please contact Karen Sweigard with conference questions and Jeannette Hunter with registration questions at (717) 526-1010.

 

 

Spring cleaning isn't just for home anymore. County maintenance personnel should be making use of springtime weather to make certain that buildings and grounds are ready for next season.

 

ROOF INSPECTIONS

Now that you don't have to worry about snow and ice, it's a perfect time to conduct a roof inspection. Fall and winter weather can be tough on roofs and an inspection will assure that there are no leaks, standing water, debris or other problems that can lead to more serious issues for county buildings.

 

SIDEWALK AND PARKING LOT INSPECTIONS

Reduce the likelihood of slips and falls by closely examining the condition of the sidewalks and parking lots. Repair uneven and irregular surfaces, holes, and other abnormalities that might lead to accidents.

 

LANDSCAPING INSPECTIONS

Are retaining walls and stones secure? Have fences withstood the trials and tribulations of winter storms? Are walking paths clear of debris? Often, it's the little things that can cause big problems.

 

PLAYGROUND INSPECTIONS

Before the kids hit the playground equipment in the parks, facility managers should hit it hard to make certain everything is in safe working order. For a 10-point playground safety checklist, visit http://www.cpsc.gov/CPSCPUB/PUBS/327.html.

 

Take advantage of the springtime weather to make certain county buildings and grounds are ready for action all spring and summer long.

 

For more information e-mail Gary Nicholson, Senior Loss Control Specialist or call (800) 895-9039.

 

  

More than 60 people attended the Annual Delegates Dinner on March 27, held during the CCAP Spring Conference in Harrisburg. Eighteen of the 34 PComp members were represented. PComp Board Chairman Bill Soberick informed the delegates of several transitions on the PComp Board and staff. Former board members Teresa Jones (Bradford County), Sue Vogler (Tioga County) and Bonnie Meckley (SEDA-COG) were thanked for their service to the membership. New board members Derek Williams (Tioga County), Otis Riden (Mifflin County) and Ryan Unger (SEDA-COG) were welcomed to the board. He also announced two pending retirements of CCAP staff members who work with PComp: Nancy Witaconis (claims) and Bruce Mitchell (loss control).

 

Chairman Soberick informed the Delegates this would be his last annual meeting as Chairman, as he was not running for reelection. He spoke of his pride at all that PComp had accomplished, and noted his 16 years on the board had been very rewarding. He thanked the members for their friendship and support, and for allowing him to participate on the board. He concluded his remarks by noting the pool was in very good financial shape, a testament to the hard work and support of the members.

 

John Sallade, CCAP's Managing Director, Insurance Programs, reviewed the 2009 PComp audit, and reported work was underway on the 2010 audit. It will be sent to the members in July. He reviewed the December 31, 2010 financial statements (unaudited) and informed the Delegates the Fund Balance (surplus) increased by more than $2.1 million from last year, to a total of $12.7 million. This is about 72 percent of the way to funding the surplus goal the board set two years ago.

 

He reviewed PComp's rates for the prior 5 years, noting the board increased rates by only 2 percent for 2011. He also reviewed the various credits members could obtain through loss control and other activities, which help to reduce premium costs. Data on the members, including experience modifications, payroll and costs per employee were provided.

 

In addition to a review of PComp operations and finances, the following awards were presented:

 

SPECIAL RECOGNITION

 

Bill Soberick, Columbia County Commissioner, PComp Chairman, for his 16 years of service on the board, 12 as Chairman. Bill has served more consecutive years on the board than any other member.

 

Donna Hartle, Clarion County Commissioner, PComp Board Vice Chairman, for her 11 years of service on the board.

 

PCOMP LOSS CONTROL AWARD

 

Mifflin Juniata AAA for their safety committee's work which resulted in a significant reduction of their experience modification.

 

PCOMP LOSS CONTROL TRAINING AWARD

 

Wayne County, for sending the most employees to 2010 PComp loss control training events.

 

Columbia County, for sending attendees to the most 2010 PComp loss control training events.

 

PCOMP RISK MANAGEMENT AWARD

 

Fulton County for renewing their safety committee and achieving a drastic reduction in their experience modification.

 

PCOMP CLAIMS REPORTING AWARD

 

Susquehanna County for outstanding claims reporting timeliness and assistance to the PComp claims staff.

 

PCOMP TERRY BARHAM CLAIMS EXPERIENCE AWARD

 

Elk County for the lowest experience modification of all PComp members, a mod of .647 (1.00 is average). This is the third year in a row Elk County has won this award!

 

  

Cassandra Westhafer joined the CCAP staff on April 11. She is our new Claims Representative II, replacing Amanda Weibley. Cassandra handles PCoRP claims and can be reached at (800) 895-9039, extension 3365. Her e-mail address is cwesthafer@pacounties.org.

 

Cassandra comes to CCAP from Custard Insurance Adjusters, where she performed claims investigation work for various insurance companies and third party administrators. She has an Associate Degree from Central Penn College in Paralegal Studies and is working on her Bachelors in Criminal Justice, also at Central Penn.

 

For those of you wondering about Julia Jackson, Employee Benefit Programs Manager, I am pleased to report she had her baby on March 15. Henry Louis Jackson is doing well, as is Julia. She returns to work on May 11.

 

  

RIDDLE OF THE MONTH

 

The person who makes it doesn't want it. The person who buys it doesn't use it. The person who uses it doesn't see it. What is it? (Answer at the very end of this article)

 

SAFETY SLOGAN

• Safety is our goal...What's yours?
• County business stalls if you slip, trip and fall.
• Keep your kids safe. They'll choose your nursing home.
• The earth spins at 1,000 mph. Wear your seat belts.
• The safest RISK is the one you didn't take.
• C-U-L-T-U-R-E: Communications, Unified, Leadership, Teamwork, Understanding, Recognition and Empowerment.

 

NATIONAL SAFETY - AWARENESS - MAY WELLNESS OBSERVANCES CALENDAR

 

• National Electrical Safety
• National Safe Boating
• Motorcycle Safety
• National Dog Bite Prevention
• Click It or Ticket Campaign
• Mother's Day (May 8th)
• Better Sleep
• Clean Air
• National Mental Health
• Older Americans
• Buckle Up America
• Memorial Day (May 30th)

 

ANSWER TO RIDDLE OF THE MONTH

The person who makes it doesn't want it. The person who buys it doesn't use it. The person who uses it doesn't see it. What is it? It is a coffin.