Volume 1
No.06
07-15-2003
http://siennastaffing.com

 
Presented exclusively by Sienna Staffing
inside:
   
 
   

Editor's Two Cents

 

Andrea Collins
President
Sienna Staffing
andrea@siennastaffing.com

When we hear of kidnapping cases in the news, or a woman letting a man die on her windshield; it’s easy to shout “where is the humanity” when the offense is surreal. We scream our indignation at rapists, abusers, even murderers because we are rational people who know injustice when we see it and will rightly take a stand against these actions. But how many of our voices will even rise above a whimper at the small inhumanities we see each day in our working life.

I was talking to a medical manager who described the callousness of an adjuster toward a claimant and I began to think of how many stories of people in our industry who have displayed a poisonous attitude, even to legendary proportions, towards others just because they could. Dumping is destructive, and like persistence droplets against a rock, it erodes confidence in our abilities until there is nothing but anger and resentment and in extreme cases retaliation against the oppressor.

We don’t have to control to be respected, and there must be something better than the big dog theory? I admit that someone has to be in charge, to ensure that benefits are administered, companies are run, even justice is decided, but power, is a tool, not a stick to beat anyone in reach. When small inhumanities begin to rise, let’s remember our actions have consequences to others as well as ourselves.

 

Letters to Sounding Board

Readers are encouraged to submit letters to our editors on any topic or issue covered in Adjusting World. Email them to soundingboard@adjustingworld.com.
Adjusting World reserves the right to edit letters for publication.

 
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By Anthony L. Alford
Marsh Risk Consultant
Anthony@adjustingworld.com

The National Council on Compensation Insurance (NCCI) is a not-for-profit rating, statistical and data management services organization. They are funded by a variety of insurance organizations and companies to act as a central source of data on workers compensation. Part of their responsibility is the calculation of experience modification data. However in the State of California, the Workers’ Compensation Insurance Rating Bureau (WCIRB) produces experience mods for California employers

What is the experience mod

The mod is a formula involving an actuarially based method of determining if a specific risk’s loss experience is better than expected or worse than expected. The formula compares the losses that actually occurred to the losses that were expected. The period used for comparison is referred to as the experience rating period – it generally consists of three policy periods excluding the most recently completed period. A unity mod (1.00) indicates an average risk. A mod greater than 1.00 indicates a risk with greater than expected loss experience. A mod less than 1.00 indicates a risk with better than expected loss experience

Understanding the Formula

While the actual formula for computing the experience mod is more than most insurance and risk management professionals want to know, understanding the basics of what the mod consists of, and how claims affect the mod are very important. There are two elements to the mod formula, one the primary losses which are the first $5,000 of any loss and the second is the excess losses which are all loss amounts, average loss rate, and the amount of payroll by payroll class code. The total amount of primary losses is a measure of frequency. Excess losses are a measure of loss severity. Because frequency represents greater risk than severity, the primary losses are not weighted and impact the mod much more significantly than excess losses. The formula attempts to accommodate for the size of the risk by utilizing a weighted value in the formula. The weight is increased with the expected losses of the risk. However, it increases at a rate slower than the expected losses. Therefore, there is a dampening effect of the weighted value, which decreases for larger risks. Simply put, the larger the risk, the more weight is placed on the actual excess loss experience. It is interesting to note that no weighting value is applied to the primary losses.

What components drive the mod formula

Understanding the components that drive the workers comp mod is critical in many industries, particularly the construction industry where certain targeted experience mods may prevent contractors from bidding or received jobs. Here are a few examples: ?In some cases, a $500 small loss may result in higher premium dollars due to a higher mod. Ten $1,000 losses may increase a mod much more than one $10,000 loss. And lastly a $200,000 loss and a $1,000,000 have the same impact on a mod. Another component of the mod formula involves payroll classifications These classification are based on an allocation of payroll and the proper classification of jobs.

Methods for controlling the mod

There may be a number of creative ideas to reduce the experience mod for California employers however two main areas are critical: Pre-loss and Post-loss control measures. For pre-loss, employers have and do focus attention and resources to eliminating the losses from incurring. Pre-loss or as more commonly referred to as loss control may involve several measures to identify potential areas of risk and loss and developing measures to keep the losses from occurring. These can range from ergonomic training and proper workstations to driver safety. Employers who analyze exposures to loss and pro-actively address these areas in a continuous manner can play a significant role in mitigating or maintaining a solid experience rating.

For post-loss, the communication between the employer and claims department which may involve an insurance carrier or third party administrator is vital to proper investigation and acceptance of claims, careful valuation of the reserves, consistent claim management, and aggressive claim handling directed towards administration of the benefits and closure of cases.

Summary

While avoiding all claim losses may not be possible in an attempt to keep or maintain an acceptable experience mod, understanding the process as to how the mod is calculated and what areas can affect an increase or decrease in the mod can provide California employers additional tools in keeping their insurance premiums at the lowest possible levels. Developing and maintaining sound pre-loss and post-loss programs as an effective measure to help control the experience mod is a vital and important first step in keeping the pace of increasing premiums in check.

Sources

Sigma Circle Solutions-Understanding the Workers Compensation Modification Factor. www.companynurse.com
California Workers’ Compensation Insurance Rating Bureau. www.wcirbonline.org

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Legislation and the law
 

By William Nathans
Senior Claims Examiner
Athens Administrators

An open letter to all claims professionals.

As you are all aware of by now the legislature and the insurance commissioner are trying to “fix” the workers’ compensation system that is on the brink of collapse.

The 60 proposals currently working their way through the legislature is like trying to patch an aorta with a band aid, it won’t fix anything, just make our jobs more difficult.

We have all heard the horror stories coming from injured workers and their attorneys about the egregious acts of the insurance companies and adjusters. It is time we answered back. We need to let the legislature know about the reality of claims handling. We need to tell them about the over treatment of injuries. We need to show them how workers’ compensation medicine bears no resemblance to real world medicine. We need to advise the mentality of the injured worker is that the system is not a benefit but viewed as an entitlement.

We can no longer stand by quietly while the legislature enacts legislation about a subject they know nothing about. They have no any idea of the impact their proposals will have in the long term.

It is time for claims professionals to speak up to defend our job and profession. We need to be actively involved in the repair of this system. I for one take pride in my career and want to be a part of the solution.

Attached to this article is letter/petition I wrote to be forwarded to members of both the Assembly and Senate insurance committees as well as the Insurance Commissioner. I am sending it to demand that we have input in the reshaping of the workers’ compensation system via a task force of claims professionals to advise the legislators on the reality of the system.

We need to go to Sacramento to make our feelings known. We need to explain in person the reality of the system that they have created.

Cut and past the letter, then hit the link to send it to:
Contact:

 

William Nathans
bill@adjustingworld.com

 

Letter to the Insurance Commissioner
and the Legislature:

As a workers’ compensation claims professional I would like to voice my concerns about the present workers’ compensation system in California. I am writing because we are the one group left out of any meaningful discussions regarding the reform of this system, yet we are the best informed because we implement it everyday.

There are currently 60 bills before the Legislature attempting to reform the workers’ compensation system. Unfortunately, these bills only treat the symptoms; they do nothing for the real problems. With all due respect, none of you have the working knowledge of how the system operates because you do not talk to the people who are responsible for its administration. Not attorneys or doctors but claims professionals who understand first hand the impact your laws make on the lives of our claimants and the system we try to implement.

One example, where the system needs to be changed, is the workers’ compensation school of medicine. Workers’ compensation was originally designed to pay for medical treatment that is reasonably necessary to cure or relieve the effects of the industrial injury, but this is no longer the case. Payments are made for “compensable consequences” that only occur in workers’ compensation. This is a system where a 64% permanent disability rating is awarded by a judge even in the absence of any objective findings because the employee told the doctor he had this incredible amount of pain. The current form of permanent disability rating needs to be abolished. California is among a minority of states that do not use the AMA guidelines for rating permanent disability which the based on the whole person.

Meaningful reform will only come about when the very basic nature of the system changes. Doctors have to be rewarded for curing patients, not for making them more disabled. Employees need to understand that workers’ compensation is a benefit not an entitlement.

I would like to invite you to come to a third party administrator or workers’ compensation claims office and see how the system really operates or sit in at an appeals board hearing to see the losing battle that employers are fighting.

Better yet, create a task force or an advisory committee from claims personnel, with current hands on knowledge of workers’ compensation law. Leverage the knowledge of a group that has the clearest picture of where reform needs to be applied in the workers’
compensation system.

Name:
Title:
Company:
Phone:

 

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POLL: What do you think?

Under the current law, how many indemnity files do you think a workers' compensation examiner can handle without an assistant?

VOTE NOW

        
  
 

Joan Lloyd is a management consultant, executive coach, workshop trainer and professional speaker. www.JoanLloyd.com, (800) 348-1944.

You hate your job. No, not just occasionally, but all the time. See if any of the following behaviors fit you:

  • You have The Sunday Blues.
  • You can’t sleep Sunday night.
  • You find faults in people around you... Read the entire article

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Deidre Rogers, RN, CAE
President of Ergovera Ergonomic Consulting
www.ergovera.com
drogers@ergovera.com

How does computer based training compare to a live instructor? How one can improve training and improve learning as much as possible? I have a long-standing interest in training and am currently exploring the latest research on these questions for my thesis. In addition, I'm developing some computer-based training tools to supplement the instructor-based training I do.

Little did I know, before I began to research this topic, that there are more learning theories than pointing devices! Some of them are very complicated and I don't know how pertinent they are to the real world. The two most interesting and relevant studies to you as managers are long and very detailed. I will attempt to decipher only the most salient parts for you.

Computer-based training can be cost effective for companies. Research suggests that computer-based training generally reduces learning time by one third. Since time is money, this can be a substantial benefit. It also eliminates or decreases the costs associated with trainers. Intranet, Internet, email-based programs, and computer CD ROMs are all used in place of a live instructor.

In addition, computer-based training increases learner control. This sounds good in theory, since it makes it makes it easier to schedule time to do the training. Unfortunately, the research shows that employees working on their own without an instructor may choose to not finish computer-based training and may not spend adequate amounts of time with it. Age is also sometimes a factor in the efficacy of computer-based learning. Research has shown that older employees generally have less interests in and worse attitudes towards computers.

The first study I looked at used computer-based training without any instructor to teach a standardized problem-solving process. It looked extensively at individual differences, with the purpose of determining which employees are able to learn from computer- based training that allows for a high level of learner control. The other study compared "Adaptive Guidance" (which has an instructor give immediate feedback, as well as recommend sequencing and specific tasks for the individual to focus on); to feedback only ("Advisement") to evaluate which one will enhance computer-based learning. This study used a complex radar tracking simulation that required subjects to track targets. Overall, they found that adaptive guidance had a substantial effect on the nature of the trainees' study and practice, self-regulation, and performance and increased learning more than feedback ("advisement") alone. Both studies emphasized that the two most important principles associated with learning are 1) practice and 2) time on task. Both looked at the effects of self-efficacy (the confidence learners have that they can learn the content of the course), as well as the learning choices people make (e.g., length of time on task). The researchers found that:

  • Learners increased their knowledge with computer-based training.
  • People with low self-efficacy practiced less then those with high levels of self-efficacy.
  • Age, education and computer experience were not strongly associated with learners' choices.
  • Adaptive guidance increased time spent on study by 25% and lead to greater learning than feedback ("advisement") alone.

As you develop trainings, look for ways to get learners to practice and study more. Having follow-up meetings to assess progress may be helpful. Consider the principles of adaptive guidance and use trainers in conjunction with computer-based training to guide employees towards the areas they are weakest on. You may want to evaluate your employees for individual differences, but based on these studies results, that appears to be a difficult thing to do.

Have a safe day,
Deidre Rogers, RN, CAE

Research: Computer Based Training

A large American study (Bell & Kozlowski) compared adaptive guidance, which utilizes feedback and recommends sequencing and specific tasks for individuals, to feedback alone (advisement). This study used 277 college students and utilized a radar-tracking simulation. The researchers used multiple choice questions and only tested the students at the end of the training (i.e., there was not retention testing done later). They looked at the effects of adaptive guidance on self-efficacy and were surprised to find that adaptive guidance only increased self-efficacy early on; it decreased later during the training trials. They hypothesized that by providing evaluative information about performance, adaptive guidance kept trainees from becoming overconfident in their skills and abilities later in training. Individuals who received adaptive guidance displayed higher levels of basic and strategic knowledge and were better able to transfer their skills to a more complex generalization trial.

Another American study (Brown) evaluated how individual differences affect learning when computer-based training is utilized. The study was performed at a Fortune 500 manufacturing firm and consisted of 78 technical employees. The training was strictly computer based (i.e., no live instructor) and the course material included quizzes with multiple choice and short answer questions. Extensive individual characteristics were measured to determine the employees' level of goal orientation. Goal orientation is a theory that describes differences among learners regarding: 1) Task difficulty 2) Reasons for engaging in learning and 3) Beliefs regarding causes of success. It positions people into two main categories - ""high mastery-oriented" individuals and "high performance-oriented" individuals. People who fall into the first group believe they can improve their abilities and show increased persistence in the face of difficulty. High performance-oriented individuals believe their abilities are fixed and focus on demonstrating competence. The researcher found an unexpected negative relationship with practice level and post-test knowledge in the high mastery group.

The researcher looked at high and low self-efficacy traits in individuals and found that (as expected) individuals with low efficacy had shorter practice time than individuals with high levels of self-efficacy. They were surprised to find that age, education, and computer experience were not strongly associated with learner choices. They concluded that individual differences did not predict practice and time on task effectively.

References

Bell, B., & Kozlowski, S. (2002). Adaptive guidance: enhancing self-regulation, knowledge, and performance in technology-based training. Personnel Psychology, 55, (2), 267- 307.
Brown, K. (2001). Using computers to deliver training: which employees learn and why? Personnel Psychology, 54, (2), 271-297.

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Committed to excellence in patient care, education and research

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Events Calendar
July
DATE/TIME EVENT/CONTACT LOCATION SPEAKER/TOPIC
Thursday, July 17
DVICA Luncheon
Contact:
DVICA
1-800-927-3815
Scott’s Seafood Restaurant
1333 N. California Blvd.
Walnut Creek, CA
Speaker:
Stewart Reubens, Esq.Ted Richards, Esq. Grancell, Lebovitz, Stander, Barnes & Reubens
Topic:
Legal Update New Law per Labor Code & New Regulations
Thursday, July 17
WIWC
Monthly Meeting
Contact:
Mary Lundeen
916-929-9411
Luau Gardens
Zinfandel & Sunrise
Sacramento, CA
Speaker:
Judge Robinson
Topic:
WCAB Procedures
Friday, July 18
Deadline for registration is
June 30, 2003
DVICA 16th Annual Golf Classic
Contact:
Carl Starns
916-548-3633
Boundary Oaks Golf Course
3800 Valley Vista Rd.
Walnut Creek, CA 94598
Tel 925-946-0607
For information regarding sponsorships, donations and general tournament information, contact Carl Starns @ 916-548-3633
Wednesday, July 23
Registration 10:15am
10:30 am - 1:00 pm
We will provide a complimentary on-site lunch break from 11:30am – 12pm
Alliance Occupational Medicine 9th Educational Seminar/Open House
RSVP: Rena Flovin
Tel. 408-790-2906
by July 16, 2003
2737 Walsh Ave
Santa Clara, CA
Tel 408-228-8400
Topic:
Workers’ Compensation – Before the Accident
Speaker:
Dan Azar MD Alliance Occupational Medicine & Meliessa Ogrodowski TPO
Friday, July 25
11:15 am - 11:30 am Registration
11:30 am - 1:00 pm Speaker and Lunch
SBICA Luncheon
Contact:
Cindy Delgado

408-828-2000
Eight Forty North First Restaurant
840 N. 1st Street (near Hedding St.)
San Jose, CA 95110
Speaker:
Jennifer Callan, Esq
Topic:
Third Party Actions
Wednesday July 30
11:30 am
RSVP no later than Monday before the event
SFICA Luncheon
Contact:
Eric Schmit

510 893-4111 ext. 250
Oakland Marriott City Center
1001 Broadway
Oakland, CA
Speaker:
Don Price, D.L. Price Investigations
Topic:
Fraud: Recognizing the Difference between Exaggeration and the Crime
August
DATE/TIME EVENT/CONTACT LOCATION SPEAKER/TOPIC
Friday, August 15
11:15 am - 11:30 am Registration
11:30 am - 1:00 pm Speaker and Lunch
SBICA Luncheon
Contact:
Cindy Delgado

408-828-2000
Eight Forty North First Restaurant
840 N. 1st Street (near Hedding St.)
San Jose, CA 95110
Speaker:
David Schmit, Esq
Topic:
Discrimination, Termination & 132a
Thursday, August 21
11:30 am
Registration
12 pm
Speaker
DVICA Luncheon
Contact:
DVICA
1-800-927-3815
Scott’s Seafood Restaurant
1333 N. California Blvd.
Walnut Creek, CA
Speaker:
Doug Kyle, D.C.Sara Rankin, Lac.
Topic:
Alternative Medicine
Thursday, August 21
WIWC
Monthly Meeting
Contact:
Mary Lundeen
916-929-9411
Luau Gardens Zinfande l& Sunrise Sacramento, CA
Speaker:
TBA
Topic:
TBA
Friday, August 22
10:30 am - 12:00 pm
Registration
12:30 pm
Must be in Your Cart
1:00 pm
Shotgun Start
6:30 pm
Dinner
SBICA 2nd Annual Golf Invitational
Los Lagos Golf Course
2995 Tuers Road
San Jose, CA 95121
Tel. (408) 361-0250
For information regarding sponsorships, donations and general tournament information, contact
Richard Ragan
(415) 515-6010
Wednesday, August 27
11:30 am
RSVP no later than Monday before the event
SFICA Luncheon
Contact:
Eric Schmit

510 893-4111 ext. 250
Oakland Marriott City Center
1001 Broadway
Oakland, CA
Speaker:
TBD
Topic:
TBD

Have an insurance related event coming up?

Email us the relevant information and we can place it in our Events Calendar. Send us a note with the relevant facts and sponsoring organization to eventform@adjustingworld.com

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Last Laugh

 

 

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Adjusting World Wishes to Congratulate all the Winners in our Wine Train Trip Giveaway.

Thanks to all
who participated!

 

Grand Prize:
John Ingram, Pacheco, CA

Godvia Chocolate:
Karen Lebeau-Montalvan, San Ramon, CA
Malcom Whyte, San Rafael, CA

Starbuck’s Gift Certificates:
Roni Baptista, Livermore, CA
Charma Green, Modesto, CA

Tri-Tip Highlighters:
Sue Davis, San Francisco, CA
Don Figuerres, Ventura, CA
Jacquie Hysmith, San Bernardino, CA
Alison Martino, Pleasant Hill, CA
Maureen Harris, San Leandro, CA
Petrea Agar, Corona, CA
Bob Mills, Sacramento, CA
Kerry Adamo, Sunnyvale, CA
Mary Stallmo, Long Beach, CA
Andrea Love, Novato, CA

 

 

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