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<br /> Ms. Virginia Isbell, Chair <br /> and Members of the Committee on Finance <br /> <br /> March 24, 2006 <br /> <br /> Page 3 <br /> in the program. Five were placed in light duty positions and were <br /> subsequently able to return to their regularjobs. Two were permanently <br /> placed in alternate positions. One was released from employment for having <br /> permanent restrictions that the County was unable to accommodate. It is <br /> well established that by returning an injured employee to some form of work <br /> immediately after an injury, recovery is speedier, and costs are reduced. The <br /> return to work program is just one component of the County's Safety and <br /> Heath Program. <br /> 6. Does the County need the Third Party Adjusters expense (5152.02/$125,000)? <br /> How much has been expended over the past three years? <br /> Yes, the County needs the Third Party Adjusters (TPA) expense in order to <br /> keep the number of claims per adjuster to a reasonable/workable number. <br /> The TPA expenditure for the past three years were as follows: <br /> FY 03 $44,062,59 <br /> FY 04 $75,014.09 <br /> FY OS $14,922.51 <br /> FY 2005 - 06 *YTD $38,965.54 <br /> (*07/Ol /05 - 02/28/06) <br /> The TPA expense ($125,000) is budgeted to cover the cost of those claims <br /> now being handled by the TPA, as well as an unanticipated need to refer <br /> additional claims (to the TPA). <br /> 7. Why did the General Fund Unemployment Compensation expense increase <br /> by $156,000 to $276,000 (5911.91)? <br /> Inasmuch as Unemployment Compensation is not part of our department's <br /> operating budget, we have referred the question to the Department of <br /> Finance for proper response. <br /> 8. Is the County still above the national average for workload per adjuster? <br /> Because workers' compensation laws differ vastly from state to state, we do <br /> not believe that there is a "national average." As an example, some states <br /> have caps on benefits that allow adjusters to manage a larger number of <br /> claims. Because of the structure of the Hawaii Workers' Compensation <br /> system, our claims remain open for many years. In a management study <br /> Hmvai`i County is an Equa[ Opportunity Provider and Employer <br /> <br />