Transcript of Arizona Workers’ Compensation At A Glance. Worker’s Compensation Premium Rankings.
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- Arizona Workers Compensation At A Glance
- Slide 2
- Workers Compensation Premium Rankings
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- Arizonas Ranking 2012 Ranking: 36 (15 th lowest in country)
Premium Rate Index per $100 of Payroll: $1.61 Percent of National
Median ($1.88): 86% Source: Oregon Workers Compensation Premium
Rate Ranking Summary Reports, Oregon Department of Consumer &
Business
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- Workers Compensation Rates
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- Rate Changes in Arizona
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- WC Premiums
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- Taxable Premium In Millions
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- 2012 Taxable Premium Allocation by Payer In Millions
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- Claims Frequency
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- Arizona WC Claims Frequency
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- Claim Frequency of Lost Time Claims Per 100,000 Workers Source:
2012 NCCI Arizona State Advisory Forum
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- Direct Losses & Costs
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- Total Direct Losses In Millions
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- 1999 to 2011 Allocation of Losses by Payer In Millions
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- 2012 Loss Allocation by Payer In Millions
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- CY Snapshot of Losses and Frequency
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- AZ Average Indemnity Cost Per Case Adjusted to Current Wage
Level Actual Source: 2012 NCCI Arizona State Advisory Forum
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- Comparison to CW Average Indemnity Cost Per Case Actual Source:
2012 NCCI Arizona State Advisory Forum
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- Average Medical Cost Per Case Adjusted to Current Wage Level
Actual Source: 2012 NCCI Arizona State Advisory Forum
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- Comparison to CW Average Medical Cost Per Case Actual Source:
2012 NCCI Arizona State Advisory Forum
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- Distribution of Benefit Costs Carrier Claims Ten Years Ago
Today Source: 2012 NCCI Arizona State Advisory Forum
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- Distribution of Benefit Costs Self-Insured Claims Ten Years Ago
Today
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- Newsworthy Notes!
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- Revenue Is On The Rise!
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- Calendar Year Admin Fund Rate Admin Fund Revenue in Millions %
Change from Prior Year 2012 3.0%$27.7+14.7% 2011 3.0%$24.2+18% 2010
2.65%$20.5-21.% 2009 3.0%$26-14.8% 2008 3.0%$30.5-4.1% Admin Fund
Revenue
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- Special Fund Revenue Calendar Year Special Fund Rate Total
Special Fund Revenue in Millions % Change from Prior Year 2012
2.5%$23.1+14.9% 2011 2.5%$20.1+4.1% 2010 2.5%$19.3+48.5% 2009
1.5%$13-14.5% 2008 1.5%$15.2-42.6%
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- Actuarial deficit estimated as of 6-30-12: $46.9 million
Special Fund Actuarial Picture
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- CalendarAdminSF GeneralSF Insolvents SF Apportionment Total
19853%1.5%004.5% 19863%1.5%004.5% 19873%1.5%004.5% 19883%1.5%004.5%
19893.%1.25%004.25% 19903%1%004.% 19913%1%004.% 19923%.75%003.75%
19933%0003.% 19941.25%000 19951.45%000 19961.25%000 19972.15%000
19983%0003.% 19993%0003.% 20003%0003.% 20013% 0 003.% 20022.75%000
20033%000 20043%1.5%004.5% 20053%1.5%.5% 5.5% 20063%1.5%.5% 5.5%
20073%1.5%.5% 5.5% 20083%1.5%004.5% 20093%1.5%004.5%
20102.65%1.5%.5% 5.15% 20113%1.5%.5% 5.5% 20123%1.5%.5% 5.5%
20132.75%1.25%.5% 5% Tax/Assessment History
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- SB 1310 Special Fund Report
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- 1.The Commission shall publish a report showing the amount of
cash and assets held by the Special Fund that are attributable or
allocated to the payment of claims of insolvent insurers as of June
30, 2013. 2.The report shall include all insurance carriers that
have had claims assigned to the Special Fund. Legislation
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- 3.The report shall be accompanied by an actuarial opinion
confirming the adequacy of the reserves reported and shall also
include an opinion from an independent CPA that the methodology
used fairly presents the attributable cash and assets. 4.The amount
of attributed cash and assets shall include the total amount of
monies that are held by the Special Fund from any assessments,
recoveries, and released deposits. Legislation
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- 5.The Commission must publish the report by the last Commission
meeting in 2013. Legislation
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- SB 1148 Workers Compensation Reciprocity
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- The old A.R.S. 23-904 is repealed and replaced with a new
A.R.S. 23-904. Subsection (A) is the same as it was and preserves
the entitlement to AZ benefits for the worker who is hired or
regularly employed in AZ but injured in another state Everything
else is new effective September 13, 2013! A.R.S. 23-904. Effect of
injury without the state; right to compensation of out-of- state
employee injured within state
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- Insurance coverage from State A follows ERs workers performing
temporary work in State B. Benefits are provided as if the worker
were injured in State A. Extraterritorial Provisions
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- A state will honor the extraterritorial provisions of another
state as long as the other state honors its extraterritorial
provisions. Reciprocity
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- What Claims are Subject to Reciprocity? Any claim made after
September 13, 2013, regardless of the date of injury. Any claim
that has not been accepted as compensable or adjudicated as
compensable as of September 13, 2013.
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- If Reciprocity Criteria Apply, Then: An employer and worker
from another reciprocity state are exempt from the Arizona Workers
Compensation Act while the worker is temporarily in Arizona doing
work for the employer. An Arizona employer and worker are exempt
from the application of the workers' compensation insurance laws of
another reciprocity state while the Arizona worker is temporarily
working in the other state doing work for the employer.
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- An Arizona worker who is injured in another reciprocity state
while temporarily working in that state is entitled to receive
Arizona benefits as their exclusive remedy. A worker from another
reciprocity state who is injured while temporarily working in
Arizona may not file a claim in Arizona. Their exclusive remedy is
under the WC laws of the other reciprocity state. If Reciprocity
Criteria Apply, Then:
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- An employer is exempt from requirement to obtain WC insurance
in reciprocity state where worker is temporarily working because
employers insurance policy in home state covers out-of-state
temporary employment (extraterritorial coverage). If Reciprocity
Criteria Apply, Then:
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- Employer has WC coverage in home state that covers a worker's
temporary employment while in Arizona (e.g. policy with
extraterritorial coverage) Employers home state recognizes
extraterritorial provisions of Arizona and exempts employers and
workers from application of the home states workers compensation
laws. The workers compensation benefits of the home state are the
exclusive remedy against the employer for injuries sustained by a
worker who is injured while temporarily working in Arizona Employee
has worked less than 90 continuous days in Arizona during the 365
days immediately before the date of injury Reciprocity
Criteria
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- Talk to your Legal Counsel!! But Wait, There is More
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- If the Claims Division receives a claim for a worker injured
while temporarily in this state, and no Arizona coverage is found,
the Special Fund No Insurance Section will be notified. If it
appears extraterritorial reciprocity coverage exists, the Special
Fund will deny the claim and check box 11 with this explanation.
The injured worker can then file in his/her state of usual
employment or can protest the denial. Commission Process
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- Evidence Based Medical Treatment Guidelines
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- Legislation A.R.S. 23-1062.03, requires the Industrial
Commission of Arizona to develop and implement a process for the
use of evidence-based treatment guidelines, where appropriate, to
treat injured workers no later than December 31, 2014.
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- Advisory Committee Established to Represent Stakeholders Dir.
Laura McGrory, Chair Donald Dearth, D.C. Marjorie Eskay-Auerbach,
M.D., J.D. Dennis Kurth, Attorney Chris Labban, D.O. Bill Lewis,
M.D Todd Lundmark, Attorney Melinda Poppe, ICA Staff Sydney
Standifird, State of Arizona Risk Management Patricia Treharne,
M.D. Cathy Vines, SCF Arizona Steve Weiss, Attorney Joe Tracey,
York Risk Services Group
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- Recommendations for the Development and Implementation of
Treatment Guidelines Advisory Committee has agreed to the
following: It is appropriate to use treatment guidelines in the
management of chronic pain. Existing guidelines will be considered
for adoption (as opposed to drafting Arizona specific guidelines).
A multidisciplinary panel of respected specialists will be
established to evaluate case scenarios under the following
guidelines: ACOEM, Colorado State, ODG, and Washington State.
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- 2014 Statutory Maximum AMW Beginning January 1, 2014, for
injuries that occur during calendar year 2014, the maximum average
monthly wage is $4,256.94.
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- Change of Physician Requests Under A.R.S. 23-1062.02 Off-Label
prescription of controlled substances; Prescription of schedule II
controlled substances; Reports; Treatment Plans; Definition
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- Change of Physician Requests Under A.R.S. 23-1062.02 An
employer, carrier, or the Commission may request a change of
physicians if the treating physician does not comply with the
provisions of the statute File Request to Change Physician with the
Claims Division specifically stating that it is made pursuant to
A.R.S. 23-1062.02(C)(2) The Claims Division will refer the request
to the Administrative Law Judge Division for investigation and
resolution. If necessary, the matter will be set for hearing on an
expedited basis
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- Deductible Policies Is it time to level the paying field? You
decide.
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