Agent News

Core States

The following core states have a pending rate change. New rates are not yet available in eLink; however, some renewing policies may be viewable in the renewal index. Please refrain from releasing quotes and renewals for these states until rates are updated.

Virginia

Effective April 1, Accident Fund is adopting NCCI’s revised loss costs in Virginia, resulting in an industry average increase of 4.1% to the voluntary loss cost level. New rates became available in our eLink system on Feb. 10.

Accommodation States

Please be sure to discuss pricing options for all new business and renewals with me.

Arkansas

• BancorpSouth Insurance Services Inc., Little Rock
• Brown-Hiller-Clark & Associates, Fort Smith

Georgia

• Starr-Mathews Agency Inc., Calhoun
• Yates Insurance Agency Inc., Atlanta

Illinois

• Southpoint Insurance Agency Inc., Mokena
• Stewart Keator Kessberger & Lederer, Burr Ridge

Indiana

• Gregory & Appel Insurance Agency, Indianapolis
• Schultheis Insurance Agency Inc., Evansville

Iowa

• LaMair-Mulock-Condon Co., West Des Moines
• TrueNorth Companies LC, Cedar Rapids

Kansas

• Cretcher Heartland LLC, Overland Park
• Goodman Gravley Insurance Source, Olathe

Maryland

• Consolidated Insurance Center Inc., Owings Mills
• PSA Insurance Inc., Hunt Valley

Michigan

• Arthur J. Gallagher Risk Management Services Inc., St. Clair Shores
• The Campbell Group, Grand Rapids
• Hylant Group, Grand Rapids
• Van Wyk Risk & Financial Management, Grand Rapids
• Willis of Michigan Inc., Farmington Hills

Minnesota

• RJF, a Marsh & McLennan Agency LLC Company, Minneapolis
• The Christensen Group Inc., Minnetonka

Mississippi

• Arthur J. Gallagher RMS Inc., Ridgeland
• Southgroup Insurance and Financial Services LLC, Ridgeland

Missouri

• Charles L. Crane Agency Co., St. Louis
• Missouri General Insurance Agency, St. Louis

Nebraska

• The Harry A. Koch Co., Omaha
• UNICO Group Inc., Lincoln

North Carolina

• Pelnik Insurance & Financial Services Inc., Cary
• Senn Dunn Insurance, Greensboro

South Carolina

• Peoples First Insurance, Rock Hill
• Wells Fargo Insurance Services USA Inc., Charleston

Tennessee

• Cate – Russell Insurance Inc., Maryville
• Chappell, Smith & Associates Inc., Franklin

Texas

• MHBT Inc., Dallas
• Scarbrough Medlin & Associates Inc., Plano

Virginia

• Mid-Atlantic Insurance Services Inc., Richmond
• Sheehan Insurance Group Inc., Haymarket

Wisconsin

• Johnson Insurance Services Inc., Racine
• R & R Insurance Services Inc., Waukesha

Legislative Update is a brief synopsis of relevant legislative activity currently taking place in Accident Fund core and accommodation states. For more details or further documentation on any of these legislative activities, contact your business development consultant.

Federal

Senate Committee Schedules Hearing on TRIPRA

The Senate Committee on Banking, Housing, and Urban Affairs has scheduled a hearing on the reauthorization of the Terrorism Risk Insurance Program Reauthorization Act, better known as TRIPRA. The hearing, titled “Reauthorizing TRIA: The State of the Terrorism Risk Insurance Market, Part II,” is set to take place on Tuesday, Feb. 25. The hearing represents a good sign that TRIPRA reauthorization remains a priority in Congress. Support for the continuation of TRIPRA by members of Congress remains bipartisan. In coordination with BCBSM Federal Affairs, we continue to educate our congressional allies of the importance of reauthorization to our industry.

State

Florida

DWC Schedules Hearing on Hospital Fee Schedule

The Florida Division of Workers’ Compensation (DWC) will hold a rules-development hearing March 4 to accept comments on plans to overhaul the state’s hospital fee schedule. The latest proposal from the DWC uses 18 months of billing data averaged across the state. The division would then apply modifiers for each of Florida’s 67 counties using the CMS wage index for Core-Based Statistical Areas for urban and rural areas. The changes would be used to update the 2006 edition of the “Florida Workers’ Compensation Reimbursement Manual” and also would increase the current inpatient surgical and non-surgical per diem amounts by 16.5% and raise the current stop-loss threshold for inpatient services by 16.5%.

Illinois

Illinois Chamber Work Comp Proposals Stall

A workers compensation reform bill (SB 2624) that would limit claims by workers hurt while commuting to or from work has stalled in the Senate Labor Committee. The bill is supported by Republicans, the Illinois Chamber of Commerce, and other business groups. However, Republican sponsors have not lined up any Democratic support for the bill. Without Democratic support, it will be difficult for the bill to gain momentum in the legislature.

The reform bill, along with several others that are components of the bill, is outlined below:

• SB 2625 – Overturns Interstate Scaffolding court ruling and allows employer to discontinue temporary benefits when employee is discharged for “misconduct.”
• SB 2622 – Establishes primary cause standard for determining whether the workplace contributed to or caused the injury; defines scope of “traveling employee” to employment-related travel.
• SB 2626 – Provides clear methodology in determining an injured worker’s average weekly wage.
• SB 2623 – Restores that a shoulder injury award calculation is based upon being part of the arm; allows employer credit for awards previously paid for body as a whole injuries.
• SB 2624 – Includes all provisions in previous four bills.

Accident Fund Holdings is a participating member of the Illinois Chamber Employment Law Council. Government Affairs has communicated to Chamber leadership our willingness to take an active role in support of their reform effort. 2014 is an election year with all members of the House of Representatives, Senate and executive office up for re-election. Moving forward, we will remain engaged with our partners at the Chamber and take any necessary steps to initiate legislative traction of the reforms.

Kansas

Assigned Risk Pool Legislation Introduced

Aon Risk Services is conducting a national strategy to promote its own state-based approach to workers compensation residual market administration and solicit state regulators to conduct a bid process for these services. Aon is targeting all NCCI pool-administered states, most recently initiating legislation in Kansas.

Neither the Kansas residual market plan administrator competitive bid process nor the governing board has produced favorable results for Aon throughout previous bid submissions. Legislation has been introduced in Kansas aimed to overhaul the administration of the assigned risk pool. Though introduced by Kansas State Representative Marvin Kleeb, HB 2615 was initiated by Aon.

Accident Fund Holdings opposes all efforts by Aon to administer workers compensation residual markets and supports the established NCCI market plans and reinsurance pooling mechanisms. We have executed a letter campaign expressing opposition to Aon’s administration of residual markets and support of NCCI’s proven effectiveness to Kansas state regulators. We continue to coordinate opposition efforts with NCCI and the national trade associations AIA and PCI.

Michigan

Evidence-Based Medicine Treatment Guidelines Proposed

Earlier this month, Michigan Director of Workers Compensation, Kevin Elsenheimer, released an evidence-based medicine (EBM) guideline proposal, utilizing ODG as the single source. Elsenheimer intends to submit these proposed rules to the Office of Regulatory Reinvention (ORR) by the end of February. Although the ORR regulatory process is lengthy, including public and legislative hearings, Elsenheimer intends to enact EBM by the end of 2014 with implementation in 2015. Accident Fund Holdings has met with Elsenheimer and although we applaud the EBM effort, we do have concerns with the proposal in its current form. This EBM proposal is in its infancy and will receive serious debate. We will remain engaged at all levels throughout the governmental process.

Missouri

Senate Passes Bill to Create Online Database for Work Comp

The Missouri Senate recently passed a bill that would create a workers compensation claim database for use by employers when hiring job candidates. The Missouri Legislature passed a similar database bill last year, but the governor vetoed the bill citing privacy concerns for job candidates.

SB 526 would require the Missouri Division of Workers Compensation to develop and maintain the database. Claim records would only be retrievable by employers during a pre-hiring period in which job candidates provide written consent for a company to search for claim records under their name. Records in the database would cite the date of any workers compensation claims by a potential employee and whether the claim remains open. If passed, the database would be implemented by July 1, 2015.

The bill is now being considered by the House. The fact that there was only one Democrat who voted yes in the Senate indicates there is a possibility of another veto this year. However, any issues with the bill could get worked out in the House. Also, there is the chance that this bill could become a vehicle for other workers compensation proposals toward the end of session. The legislature has until May 30, 2014 to approve the bill.

Wisconsin

Agreed Bill Continues to Receive Debate

A joint public hearing of the Assembly and Senate Labor committees met this month to hear testimony on the Workers’ Compensation Advisory Council’s “Agreed Bill” (AB 711/SB 550). The bill received a generally favorable reception from state lawmakers. The Wisconsin Coalition on Workers’ Compensation brought forward several of its members to testify in support of the bill. As anticipated, medical providers testified in strong opposition to the fee schedule provision. The bills are now eligible for committee votes, and then potential full Senate or Assembly action. This legislation is expected to continue receiving serious debate with the opposition being led by the medical society.

Information in this report was sourced from WorkCompCentral, Insurance Journal, NAMIC, BCBSM, OFA and NCCI.

Disclaimer of Liability

This document is provided for informational purposes only and does not constitute legal advice. This information is subject to change. Every effort is made to provide accurate and complete information in Accident Fund Holding’s Legislative Update. However, Accident Fund Holdings makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of the contents of the Update and expressly disclaims liability for errors and omissions in the contents of this newsletter.

While many carriers struggled to achieve profitability in 2013, Accident Fund had one of its strongest years in history. We had a second-straight year of profitability with an accident year combined ratio of 91.4%. The strategies we have pursued in recent years have helped us continue writing across a broad class of business, retain desirable accounts and achieve claims management cost savings.

We achieved this success through the support of our agency partners who have confidence in our approach toward workers’ compensation. This success is an important reason why we recognize agents who have performed at a high level in 2013 and acknowledge how much we appreciate their commitment to Accident Fund. We congratulate our 2013 honorees, who are also being recognized at our current Annual Agent Meetings. A complete list of honored agents can be viewed below.

Agency of the Year

President’s Club Qualifiers

Because of their commitment to writing profitable business with Accident Fund and their history as an excellent partner, Accident Fund is pleased to announce Specialized/Mid-Atlantic Insurance Services of Richmond, Va., as the 2013 Agency of the Year.

“In just a few short years, Specialized/Mid-Atlantic Insurances Services has become our top-producing agency in the Atlantic region, in large part because of their willingness to quote business often with us and their belief in our approach to work comp,” said Business Development Regional Director Greg Howard. “The agency has helped us grow significantly in this region and is top-notch in every respect. They are a true partner and friend to Accident Fund.”

On a performance basis, Specialized/Mid-Atlantic Insurance Services’ numbers with Accident Fund are impressive:

• 27.5% accident year loss ratio for 2013 and a 26.8% loss ratio for the last five years
• More than $4.0 million in written premium in 2013, an increase of nearly $2 million from 2012
• $2.4 million in new business last year
• More than 1,440 submissions for 2013
• 78% policy retention

“We truly value our relationship with Specialized/Mid-Atlantic Insurance Services,” said Mike Britt, president of Accident Fund. “Since 2010, they have grown written premium with us by more than 700% and their new business has grown by nearly 150% from 2012 to 2013. We appreciate their willingness to consistently promote and sell the value of our Claims and WorkSafe services to their customers. They are most worthy of being named our 2013 Agency of the Year.”

In response to the honor, Neal Gorman, president of Specialized Insurance Services, said, “Receiving recognition as Accident Fund’s Agency of the Year is an honor and validates our hard work and our belief that Accident Fund is a true partner. Accident Fund provides great value to our agency and our clients with technology and risk management resources. But the relationships we have with the people at Accident Fund are the primary reason we have been so successful.”

We thank Specialized/Mid-Atlantic Insurance Services for their dedication to excellence and success in 2013.

In qualifying for Accident Fund’s President’s Club, the following agents contributed to our overall success in 2013 by helping us grow and retain profitable business. Through their dedication to our products and their commitment to promoting our value to customers, they achieved impressive results for Accident Fund. We appreciate their ongoing support, continued feedback and valued insight into the individual needs of their clients.

President’s Club qualifications include written premium exceeding $1.5 million, a cumulative loss ratio of 50% or less, and premium retention of 80% or higher. We are proud to honor these President’s Club agencies:

• Berends Hendricks Stuit Agency Inc. — Grandville, Mich.
• Brownrigg Companies Ltd. — Troy, Mich.
• Cambridge Underwriters Ltd. — Livonia, Mich.
• Capps Insurance Agency — Mount Pleasant, Texas
• Cate – Russell Insurance Inc. — Maryville, Tenn.
• The Christensen Group Inc. — Minnetonka, Minn.
• CIA Financial Group Inc. — Shelby Township, Mich.
• Consolidated Insurance Center Inc. — Owings Mills, Md.
• Correll Insurance Group — Spartanburg, S.C.
• Dewey Insurance Agency Inc. — Kalkaska, Mich.
• Diebold Agency Co., Tawas Bay Agency Inc. — West Branch, Mich.
• Goodman Venegas Insurance Agency Inc. — Troy, Mich.
• Gregory & Appel Insurance Agency — Indianapolis, Ind.
• Harold W. Wells & Son Inc. — Wilmington, N.C.
• Hibbs-Hallmark & Company — Tyler, Texas
• Holmes, Murphy & Associates Inc. — West Des Moines, Iowa
• The Huttenlocher Group — Waterford, Mich.
• InPro Insurance Group — Troy, Mich.
• Insurance Marketing Group of Wisconsin Inc. (Image) — Fort Atkinson, Wis.
• ISU Stewart Brimner Peters & Co. — Fort Wayne, Ind.
• The Larkin Group — Traverse City, Mich.
• Peoples First Insurance — Rock Hill, S.C.
• Southpoint Insurance Agency Inc. — Mokena, Ill.
• Specialized/Mid-Atlantic Insurance Services Inc. — Richmond, Va.
• TriSure Corporation — Raleigh, N.C.

Recent bouts of severe winter weather forced us to reschedule Annual Agent Meetings in Georgia, Indiana, North Carolina, South Carolina and Virginia. While we regret any inconvenience this may have caused, our first priority is ensuring the safety of our attendees.

We hope that those of you who registered for previous meetings will be able to attend on the rescheduled dates. For those who had not registered or were unable to attend previously, we hope that these new dates may fit your schedule better. Below is a list of the rescheduled meetings as of Feb. 21. All meeting locations will remain the same; times are changed where noted.

• Georgia: Monday, March 24
• Indiana: 11:30 a.m. to 1:30 p.m. Thursday, March 20; council meeting from 1:30 to 3:30 p.m.
• North Carolina: 11:30 a.m. to 1:30 p.m. Monday, March 17; council meeting from 1:30 to 3:30 p.m.
• South Carolina: Tuesday, March 25
• Virginia: Tuesday, March 18

You can still register for these and other agent meetings by signing into our Agent website and clicking on Agent Meeting Registration under Quick Links on the Agent homepage to access online registration.

Claims cost management is a top priority at Accident Fund. Medical Management Practices & Strategy (MMPS) Manager Cathy Whitford and members of her team have been assisting with this effort by creating a comprehensive database for the purpose of tracking medical vendor utilization and spend. More than 100 medical vendors representing a variety of specialties from physical therapy to diagnostic imaging are currently utilized by the various brands throughout the Enterprise. Without the vendor-tracking database, it would be virtually impossible for Corporate Claims to get a clear picture of where money is going and how vendors are performing.

Here are a few ways that this database and the team’s efforts have helped us so far:

• Tracking of Non-Contracted Vendors: With new “leakage” reports available in the database, the organization has been able to identify services that could have been completed by a contracted vendor at a discounted rate, but were instead paid to a non-contracted vendor at full price. We can now methodically transition this spend to contracted vendors. The team anticipates increased long-term savings with this initiative as well as improved quality and reliability of these products and services.
• Improved Vendor Oversight: By performing random invoice and service audits, the team is able to identify billing errors or discrepancies and possible violations of our service level agreements and can work with our contracted vendors to fix these issues.
• Vendor Database: By loading contracts with rates into one database, the team has made it extremely easy for anyone to review a billed amount against a contracted amount to validate the agreed-upon pricing.

Whitford’s team is excited about the technology they have developed and the opportunities this database will provide to the organization and the team. So far, the system has enabled the Enterprise to recover nearly $1 million.

“I am very proud of MMPS for developing a solution to helps us monitor and track our medical vendor spend across the Enterprise. This is an outstanding example of a technological innovation that will deliver measurable savings to the organization within a matter of months,” said Jeffery Austin White, MMPS Director.

Patrick Walsh, vice president and chief claims officer for Accident Fund Holdings, concurred: “This is the type of innovation that has great impact for our Enterprise as we continually strive for ways to do business more efficiently and cost-effectively across all of our brands.”

No fooling – April 1 renewals are just around the corner.  With Real-Time and Download, Accident Fund can help you save time and money when you write business with us.

The Rewards of Real-Time

• Real-Time provides a link between your system and Accident Fund’s policy system, giving access to our policy information without exiting your agency management system or logging in to our website.
• The inquiry features provide the ability to view, print and save declaration pages, direct bill information and loss runs.
• The rating feature connects the information from your customer’s application into our quoting system, which reduces the chance for error.

Download Delivers Up-to-Date Data

• Download sends policy information, which automatically updates your agency management system.
• It guarantees your system is up-to-date and improves data integrity.
• Transactions that produce a paper declaration page will download, including:
  • New business
  • Renewals
  • Final cancellations
  • Endorsements
  • Reinstatements

Visit the Knowledge Center – Ease of Doing Business page on our Agent website to learn more. Or contact our Agency Automation team by email at[email protected] or by phone at 866-206-5851.