COM 0717.009 2004-2006 - Laserfiche WebLink

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Ms. Virginia Isbell, Chair and Members of the Committee on Finance March 24, 2006 Page 2 Total of All Five Workers' Compensation Accounts (General Fund, Highways, Wastewater, Solid Waste, Golf Course) FY 02 $3,312,164 FY 03 $3,687,829 FY 04 $3,427,020 FY 05 $3,249,742 FY 06 *YTD $1,993,614 (*07/Ol/05 - 02/28/06) 7% reduction between FY 03 FY 04 ($260,809 reduction) 5% reduction between FY 04 and FY 05 ($177,278 reduction) Costs increased between FY 02 and FY 03 because there was a conscious effort made to settle old, outstanding claims. Thereafter, reductions were seen as indicated above. These reductions occurred in spite of rising medical costs. We believe that the reduction in costs can be attributed to a combined effort of our department and line departments to implement safety and health training programs, form active safety committees, and perform aggressive workers' compensation claims management. That being said, however, costs remain high because of the number of claims that continue to be filed. Our efforts have not yet achieved full impact. There is still a lot of training to do, committees to form, and prevention programs to be developed. Also, the costs of investigations, litigation, and medical expenses continue to rise. 4. Does the Department still have a backlog of claims? If by "backlog of claims" you mean a number of claims that are not attended to on a routine basis, no, we do not have a backlog. Either our adjusters or the State (DHRD) adjusters handle all claims. Claims are acted on by an adjuster as needed, dependent on the issues related to each specific claim. We went from in excess of 800 open claims in 2001 to 489 open claims on 03/06/06. 5. Does the "Back to Work" program work? Yes, the County's Return to Work Program does work. The program was implemented on June 1, 2004. Thus far, eight employees have been placed Hawaii County u an F,yua[ Opportunity Proviler an6 Employer