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.

Nebraska

Effective Feb. 1, Accident Fund is adopting NCCI’s loss costs in Nebraska with an overall loss cost level decrease of 4.8%. Rates will vary by class code. New rates became available in our eLink system on Jan. 6.

Tennessee

Effective March 1, Accident Fund will adopt NCCI’s loss costs in Tennessee with an overall loss cost level decrease of 6.95%. The actual impact will vary by class. New rates became available in our system on Jan. 6.

Accommodation States

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

Arkansas

• BancorpSouth Insurance Services Inc., Little Rock
• Meadors, Adams & Lee Inc., Little Rock

Georgia

• Blanchard & Calhoun Insurance Agency Inc., Augusta
• J. Smith Lanier & Co., Carrollton

Illinois

• Lundstrom Insurance, Elgin
• Ralph Weiner & Associates LLC, Wheeling

Indiana

• ISU Stewart Brimner Peters & Co., Fort Wayne
• Salem Insurance Agency Inc., Goshen

Iowa

• Arthur J. Gallagher Risk Management Services Inc., Des Moines
• INSPRO Inc., West Des Moines

Kansas

• Conrade Insurance Group Inc., Newton
• Cornerstone Kansas City LLC, Overland Park

Maryland

• B.J. Mattheiss Insurance Inc., Baltimore
• CBIZ Insurance Services Inc., Columbia

Michigan

• Buiten & Associates, LCC Division T & S, Grand Rapids
• Hub International Midwest, Holland
• Mourer Foster Inc., Lansing
• Willis of Michigan Inc., Grand Rapids

Minnesota

• Apollo Insurance Agency LLC, St. Cloud
• RJF, a Marsh & McLennan Agency LLC Company, Minneapolis

Mississippi

• Ross & Yerger Insurance Inc., Jackson

Missouri

• Barker Phillips Jackson Inc., Springfield
• Missouri General Insurance Agency, St. Louis

Nebraska

• INSPRO Inc., Lincoln

North Carolina

• Ascension Insurance Agency Inc., Greensboro
• TriSure Corporation, Raleigh

South Carolina

• Citizens Trust Company, Greenwood
• Peoples First Insurance, Rock Hill

Tennessee

• Insight Risk Management LLC, Cordova
• Price & Ramey Inc., Kingsport

Texas

• Greenway Insurance & Risk Management Agency Inc., Houston
• MHBT Inc., Dallas

Virginia

• MidAtlantic Insurance Services Inc., Richmond
• Welch, Graham & Ogden Insurance Inc., Manassas

Wisconsin

• Insurance Marketing Group of Wisconsin Inc. (Image), Fort Atkinson
• Spectrum Insurance Group LLC, Eau Claire

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

TRIPRA Reauthorization Remains Top Priority in 2014

The reauthorization of TRIPRA remains the top priority for Accident Fund Holdings in 2014. Discussion on Congressional proposals that could ultimately extend the current TRIPRA law is likely to begin in the first quarter of 2014.

The primary amendments to the current program receiving attention at this point are:

• A short-term two-year extension.
• Moving the event trigger level from $100 million to $1 billion.
• Moving the individual company retention from 20% to 25%.

Accident Fund Holdings has taken these potential amendment topics under review, to further support our overall legislative effort in Washington.

There is a growing sense of strong bipartisan support by members of Congress for the continuation of TRIPRA. There are indications that supporters of reauthorization are making inroads with skeptics as to the need to extend the federal backstop for losses resulting from acts of terrorism. In coordination with other industry trades and TRIPRA supporters, Accident Fund Holdings will continue to educate our Congressional allies about the importance of reauthorization to our industry.

State

California

Legislation Aiming to Eliminate Portions of 2012 Reform Has Failed for Now

A controversial bill introduced last year that would have wiped out many of the cost-saving provisions contained in the work comp reform bill enacted in 2012 is dead for now. However, it is anticipated that some language from the bill will resurface in legislation later this year.

SB 626 was scheduled for a hearing in the Senate Labor and Industrial Relations Committee earlier this month. However, the author of the bill removed it from the committee agenda because he feared the bill didn’t have enough votes to win committee approval. The hearing was the last one prior to the deadline for policy committees to pass bills that were carried over from 2013.

The bill would have returned power to workers’ compensation judges so they could override decisions of independent medical reviewers, reinstated various psych disorder claims, and altered rules pertaining to primary treating physicians and utilization review. The bill was strongly opposed by the work comp community.

The last day new bills can be introduced is Feb. 21 and the regular session is scheduled to adjourn on Aug. 31. This is an election year in California with all of the House of Representatives, half the Senate, and the governor up for re-election in November.

Illinois

Republicans To Pursue Work Comp Reforms in 2014

In 2014, Illinois Republican lawmakers plan to continue their push to enact new laws to protect businesses from a series of appellate rulings that have expanded workers’ rights to make claims for compensation.

Recently, the Illinois Supreme Court voted to overturn an appeals court ruling that appeared to allow injuries associated with commuting to be compensable. Several other recent appeals court decisions had been gradually expanding workers’ rights to file claims while driving to or from work and the appeals court could continue to construe the law in a negative manner for workers’ compensation insurers.

The top priority for Republicans and their supporters at the Illinois Chamber of Commerce this session is narrowing the definition of “causation” covering workplace accidents. It will be difficult for any positive industry legislation to gain momentum unless there is significant Democratic support. Also, 2014 is an election year with all members of the House of Representatives, Senate, and executive office up for re-election.

Maryland

Insurers Aim to Limit Physician-Dispensing in 2014

Maryland insurers and employers will once again attempt to impose limits on physician dispensing of drugs to injured workers during the 2014 legislative session. Two bills already introduced target physician costs.

SB 215 would exempt employers and their insurers from having to pay for doctor-dispensed medication 30 days after the initial visit. SB 217 would exempt carriers and employers from paying for drugs on schedules II and III of the U.S. Drug Enforcement Administration’s controlled substances list unless the prescribing or dispensing doctor signs a pain-management contract with workers. The contracts would require workers to undergo periodic drug screenings and require doctors to place patients into a drug management plan in some cases.

The bills comprise the third attempt by payers in the Maryland workers’ compensation system to control physician dispensing of repackaged drugs which the Workers’ Compensation Research Institute reported can cost as much as 667% more than the amounts charged by pharmacies. Accident Fund Holdings’ Government Affairs is working internally with our Medical Management Practices and Strategy Director to become more engaged in Maryland and nationally on the legislative effort to limit physician dispensing of drugs.

Texas

Insurance Department Seeks Conversion to NCCI State

The Texas Department of Insurance (TDI) has asked the state’s insurance commissioner to adopt the National Council on Compensation Insurance Basic Manual with Texas exceptions in a move that would make NCCI the primary rate maker for the state’s workers’ compensation system.

At the end of December, TDI filed a petition that would apply the NCCI Basic Manual to all policies with effective dates on or after June 1, 2014. TDI has scheduled a hearing on the proposed rule to implement the transition on Jan. 24, 2014. The changes would shift the responsibility for some rulemaking from TDI to NCCI and create a new process for resolving disputes between carriers and employers about rules and classifications. The Experience Rating Plan in the Texas Basic Manual would continue in effect until TDI adopts the NCCI Experience Rating Plan with Texas exceptions.

NCCI communicated that carriers doing business in Texas would retain the right to choose between loss costs filed by NCCI and classification relativities established by TDI. The transition, which must be approved by the insurance commissioner, would expand NCCI’s role from serving as statistical agent for Texas to creating forms and helping administer the system.

Accident Fund Holdings sent letters to the insurance commissioner supporting the adoption of the petition. Our message of support focused on benefits provided to all industry constituents by NCCI’s economies of scale, dedicated staff and rich experience in the core service of workers’ compensation infrastructure.

Wisconsin

Advisory Council Update

In December, after months of negotiations, the Workers’ Compensation Advisory Council (WCAC) agreed upon a proposal to reduce the state’s rising workers’ compensation medical costs. The proposal is headlined by calls for a medical fee schedule that would lower medical reimbursements.

Under the unanimously approved council agreement, the Department of Workforce Development is directed to establish a fee schedule by June 30, 2015. The fee schedule shall be set at the average group health rate for a procedure plus 10%. Rates may increase at medical CPI and will be reviewed every two years by the council. The proposal contains a number of other changes to reduce medical costs, including:

• Limiting reimbursement of physician-dispensed drugs to the average wholesale price set by the drug’s original manufacturer.
• Reducing the statute of limitation for traumatic injuries from 12 to 9 years.
• Capping reimbursement for electronic medical records at $26 per disc.

The proposal will receive a bill number and most likely proceed to the state House and Senate Labor committees in early February. The issue will receive serious legislative debate, and many feel the Wisconsin medical community lobby will do all they can to eliminate the proposed fee schedule. The Wisconsin Legislature’s general session is scheduled to end on April 3, 2014.

Information in this report was sourced from WorkCompCentral, Business Insurance and NAMIC

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.

Accident Fund’s Annual Agent Meetings begin Tuesday, Jan. 28, and we are eager for you to attend so we can share with you our new approach to growing our business together. Our meeting will include:

• Successes from 2013, a year of increased profitability for our company and our agents
• Strategies for 2014, including what segments have strong growth potential and how we can build on the momentum we’ve achieved in the last two years
• Recognition of top agency performers
• Unveiling of the 2014 Incentive Trip Program destination

We’re also excited to be adding our first agent meetings in Texas. These will take place March 27 in Houston and March 28 in Dallas.

Register for your regional meeting today by logging onto our Agent website and clicking on the Agent Meeting Registration link under the Quick Links section. When registering, make sure to click on the calendar icon next to your meeting information so the meeting details can be added to your personal calendar easily. We look forward to seeing you soon.

As you plan and schedule training for 2014, make sure to consider the variety of opportunities that Accident Fund offers for quality continuing education.AccidentFundTraining.com provides convenient access to an assortment of classes, seminars and training programs available to agents and customers, including:

• Our Certified Authority on Workers’ Compensation (CAWC) program, created in partnership with Olivet College. CAWC courses are scheduled as follows:
  • March 11-13: Tennessee
  • March 25-27: Iowa
  • April 22-24: Lansing, Mich. (AFHQ)
  • June 17-19: North and South Carolina
  • Aug. 5-7: Indiana
  • Aug. 12-14: Lansing, Mich. (AFHQ)
  • Oct. 7-9: Kansas
• Live classes and recorded webinars covering topics, such as return to work, social media, narcotics management programs, and USL&H exposures. Upcoming classes taking place at the Lansing headquarters include:
  • 3-hour Ethics and 3-hour Claims Management and Return-to-Work programs (Feb. 6). Lunch will be provided. You can register for the classes here.

Our training experts can also create customized sessions for your team that address key topics, such as:

• Continuing education
• Persuasion techniques
• Negotiation skills
• Sales training
• Understanding body language

Learn more about what we can provide to your agency at AccidentFundTraining.comand let our experts help build your work comp knowledge today! For specific questions about our offerings, email Senior Agency Relations Specialist Chris Beasley.

In light of the recent winter weather events that have impacted many regions of the country, Accident Fund’s S.A.F.E: Slip and Fall Elimination campaign can help bring increased awareness of winter weather-related slip-and-fall injuries and the steps that can be taken to reduce their likelihood.

Throughout the winter season, you and your customers can access our WorkSafe Solutions e-blasts, as well as our newly updated website to gain valuable information on weather-related safety.  Topics that will be addressed during the campaign include:

• The importance of strong housekeeping practices
• Snow and ice removal programs
• Salting and surface treatments
• The importance of wearing proper footwear
• The importance of slip-and-fall prevention all year long

From table tents to posters to fliers, we’re confident these materials will help your customers stay S.A.F.E. this winter, no matter what the forecast has in store.

Be sure to visit our campaign online for more information. If you have any questions, please contact me or your WorkSafe Consultant.

Accident Fund’s WorkSafe Toolbox™ is one of the many ways we provide value and assistance to our policyholders as they work to keep their employees safe. One of the more popular aspects of the toolbox is its wide array of no-cost safety training modules. The training is accessible 24/7 for employees and provides Spanish-language options and administrative features, including completion certificates and presentations.

The number and popularity of these courses have grown significantly in their six years with more than 91 safety, 13 human resources and 2 custom courses now available and nearly 200,000 courses completed.

With companies searching for ways to stretch their spending on training, our policyholders clearly appreciate and are utilizing these free modules as a way to improve the safety knowledge of their workforce.

Here are the top 10 most popular courses for Accident Fund policyholders in 2013:

1. Bloodborne Pathogens – General
2. Back Safety
3. Hazard Communication
4. Hazard Communication and GHS – What Employees Need to Know
5. Safety Orientation – New Employee
6. Good Housekeeping
7. Slips Trips and Falls
8. Fire Extinguishers
9. Workplace Safety for Employees
10. Ergonomics – Industrial

To view a sample of our online training and see what other topics are covered, clickhere. To see what additional WorkSafe resources are available to our policyholders, including our WorkSafe Solutions e-blast, our WorkSafe Toolbox™ and our extensive video library, click here or contact your WorkSafe consultant.