Support of the Association

Since all three CCAP pools and the two captive insurance companies contract with the Association for administrative services, this allows CCAP to employ staff with insurance expertise, which obviously provide services to the insurance pools, but also can assist other counties with insurance and risk management information. By participation in CCAP insurance programs counties allow CCAP to add to its knowledge and service base that aids all counties.

Personal Claims Service

Pools typically provide personalized claims services, either by hiring in-house claims adjusters just for the pools, or by contracting with third party administrators.

CCAP's pools are very proud of their claims services.  PCoRP, PComp, PELICAN and COMCARE PRO claims are handled "in-house", and the UC Trust has used TALX (previously called Sheakley) since 1981.  We provide personalized service, and our staff members are well known to and readily available to county staff, and even attend CCAP conferences. A good example of this personal service is the way CCAP pools make sure counties are afforded the protection of the Pennsylvania Political Subdivision Tort Claims Act to make sure counties do not pay claims for which they are not legally responsible.

Commercial insurance companies have large claims staffs, and it is unusual for their claims adjusters to be assigned exclusively to an account, meaning that counties could find they are assigned different claims adjusters for some or all of their claims.

Member Designed

Governmental risk pools are usually created because a core group of members want or need some particular coverage or services.  After this initial design the members will often seek other services from the pool.  This is true of CCAP pools.  After 12 counties started PCoRP and others joined, the members found it difficult to obtain workers' compensation insurance, and sought help from PCoRP, which resulted in the creation of PComp.

CCAP's pools annually ask their members for input, usually with an evaluation form sent to all members and their local insurance producers. When was the last time a commercial insurance company sent you or your county an evaluation form and asked for your opinion and suggestions?

Can you pick up the phone and call the CEO of a commercial insurance company and provide feedback or ask questions?  You can do this with your risk pool.

Participation of Local Insurance Professionals

Pools do not always sell their products through local insurance producers (formerly called agents or brokers).  It's a decision made based on the product, the marketplace, the needs of the pool membership, and usually includes some political considerations.

The CCAP UC Trust, for example, sells its services direct to counties, mainly because unemployment compensation insurance is not typically sold by Pennsylvania insurance producers.

PCoRP, PComp and PELICAN do require their members to select a local insurance professional in order to obtain coverage. This means that counties in these programs have the added protection of a local independent professional advising them about the operation, coverage and services of the risk pool. Conversely, producers provide the pool with an unbiased source of information and data about the county.

Broader Coverages

Because pool members are often more attuned to the value of insurance and the need for good risk management, they also tend to seek better coverage instead of cheapest cost.  It's not that cost is not important, but pool members usually consider all that is included with the cost.  Because of the unique structure of some pools (PCoRP is a good example) and based on long term relationships with reinsurers, pools can obtain higher limits and broader coverage at reasonable rates.  And, as noted previously, pools know the special exposures of their members and will seek to find coverage for those special exposures.

Membership Has Its Privileges....

Pool members receive broad coverages, personal service, have input into pool operations and services, and usually get a package which brings them much more than is available from a traditional insurance company.  Over time pool members can expect stable rates, new services, and even performance bonuses or dividends.

Being a member of a governmental risk pool does take a commitment.  Members have to cooperate with loss control initiatives of the pool, provide information to the pool, and participate in pool activities.  Most pools require an initial time commitment when joining (PCoRP, PComp and PELICAN require a three year commitment).  Most pools also require an advance notice when a member wants to leave the pool (PCoRP and PComp require 120 days notice, and both require members to leave on the pool's renewal date).  This ensures stability of membership and allows the pool to plan ahead for changes at renewal.  PCoRP and PComp have been fortunate in that few members have ever left each pool, and several of these members rejoined within a few short years after leaving.  The only member to leave PELICAN did so because the nursing home was sold and was no longer non-profit.

But there are tougher things about being a pool member.  Because pools are usually designed to provide stable costs they may sometimes not be as competitive with the commercial market in pure cost.  During times when pools are less expensive or relatively the same cost as the commercial market, this is not a problem for most members.  But when the market is soft and commercial companies are trying to "buy business" with low rates, it can be hard to stick with the pool and all that added value.  The temptation to save some basic bucks over a short term is hard to refuse when the alternative is a chance at stable costs, added services and money back over the long term.  The tough question is "Do you stay with the pool only when times are tough and then leave when some commercial rates dip below the pools?"

Pools often have restrictions about returning to the pool after leaving, and will usually require another initial commitment be made.  Members who leave pools usually do not have the right to any moneys accrued during their tenure in the pool, and will usually be responsible if any assessments are necessary for years during which they were a pool member.

In Conclusion

I admit a bias towards governmental risk pools and a healthy cynicism about the services provided by, and the things that motivate the decision making of commercial companies.

That being said, the most important thing for members of governmental risk pools and their producers is to be knowledgeable about the pool to which they belong.  Read the bylaws, attend the annual membership meetings, check out the annual financial audit, and give the pool your input.  Be an active member, and the pool will reward you by providing the services and assistance you need.

                         John Sallade

By Julia Jackson, Employee Benefits Programs Manager

CONSIDER BEST Flex

BEST Flex, Benefit Solutions That Are Flexible, is an assortment of employee benefit programs designed to help Pennsylvania counties offer the best and most cost effective benefits to their employees. 

BEST Flex has been able to negotiate group discounts for each of its employee benefit programs based on the overall group purchasing power of CCAP member counties.  The BEST Flex programs include: Health Insurance, Dental Insurance, Vision Insurance, Long Term Care Insurance, Life Insurance, Accidental Death & Dismemberment, Short Term Disability, Long Term Disability, and Section 125 Flexible Spending Accounts.

Counties do not have to join all of the BEST Flex programs to take advantage of the BEST Flex services.  Instead, counties may choose to participate in the benefits of one or more of the programs.

For more information on BEST Flex, contact Julia Jackson at 800-895-9039 or email to jjackson@pacounties.org.

By John Sallade, Managing Director, CCAP Insurance Programs

According to a report released in May by the Aon Corporation, average national liability costs to the long-term care sector have stabilized for the first time in nine years

Average liability costs are $1,460 per bed, according to the report. That compares with a high of $2,030 in 1998.  In comparison, county affiliated homes participating in the PELICAN program average a per bed cost for liability insurance of $470!

The average cost of a claim was $138,000 in 2007, versus $261,000 10 years ago. The numbers were even lower in 13 states that had passed tort reform laws: $1,270 per bed and $104,000 per claim.

This year's report finds the actual number of claims evening out, as well. It has steadied in the last year to around 10.6 claims per 1,000 occupied beds. In 1997, Aon reported 6.7 claims per 1,000 occupied beds. That number nearly doubled by 2005.

States that do not have tort reform laws on the books saw their average per-bed liability costs double over the last 10 years, from $630 to $1,260. The report was conducted in cooperation with the American Health Care Association.

For more information, visit either www.ahcancal.org or www.aon.com.

NOTE: Information for this article came from McKnight's Long-Term Care News & Assisted Living.

By Greg Cunningham, ARM, GSP, Loss Control Specialist

Time

Not only should you limit the amount of time you're in the sun but the time of day that you're outside as well. Limiting your time outside and not working under the sun between the hours of 10-2 (some say 10-4), will go a long way to ensuring you're not overdoing it. Limiting the amount of time you're outside is easy but if you have to be outside during the suns peak hours be sure to wear a hat, lightly colored clothes, apply sun block and take frequent breaks.

Power equipment

To help get the job done we sometimes need a little extra help. However, string trimmers and lawn mowers don't differentiate between a blade of grass and your leg so precaution is needed when using this and other equipment. Before operating the equipment you should read the owner's manual and follow these tips:

• Make sure no one is around you when operating powered equipment. I don't know what it is about yard work that attracts onlookers but strangely enough it does, especially young children.
• Wear proper clothing, ear and eye protection and rugged, slip-resistant footwear.
• Should you need to unclog the discharge chute of a device, turn it off and use a stick or something other than your hand to remove the debris.
• Never leave power equipment running unattended.
• Never refill a gas tank when the equipment is still running or hot.
• Store gasoline in proper, clearly marked containers.
• Use a shoulder strap when using string-trimmers to reduce fatigue.

As the saying goes, 'if you wait until you're thirsty, you're already dehydrated'. Although hydration needs differ from person to person and activity level, some general guidelines do exist:

• Drink at least 8, 8-ounce glasses of water every day and more if you're active.
• When exercising or working outside and sweating it's important to replace what you lose. Do not wait until you're thirsty to start hydrating.
• Drinks containing alcohol and caffeine can dehydrate the body and should be avoided in warm weather.
• Lightly flavored sports drinks containing sodium and electrolytes can also help keep you hydrated and replace nutrients lost in sweat.

• Apply sun block with an SPF of at least 15 on any exposed skin.
• Wear light-colored clothing and a wide brimmed hat; even a baseball hat can protect your face from the suns harmful rays.
• Although you may be proud of your body, for your skin's sake, keep your shirt on. Tanned skin looks good but it's also damaged skin and all too often we don't know the extent of that damage until it's too late. Doing this to your skin year after year is asking for trouble.

To further assist workers and employers, OSHA has published a free pocket-sized card, "Protecting Yourself against Harmful Sunlight", which provides detailed information on the hazards of UV radiation, symptoms of exposure, methods of protection and sources of additional information. The pocket card is available in PDF format through OSHA's website at: www.osha-slc.gov/Publications/osha3166.pdf. Further information on detecting, preventing and treating skin cancer is also available from the websites of the American Cancer Society (www.cancer.org) and the Centers for Disease Control and Prevention (www.cdc.gov/ChooseYourCover).

All work and no play is no way to spend your summer. Worse still is spending any amount of your summer in the emergency room. Hopefully these tips will keep you healthy and having fun at the following locations:

Beach/Pool

• Learn how to swim and never swim alone.
• Check surf conditions and lifeguard locations before entering the ocean-we always 'set up camp' near a lifeguard chair, ask about rip currents and enter/exit the surf where he/she can see us.
• Beware of rip currents (narrow bands of water moving quickly out to sea), should you find yourself unable to get back to shore don't fight the current, swim parallel to the shoreline until you feel the current is weaker and then swim to shore.
• Never dive into shallow water.
• Always shower/rinse-off before and after swimming in a pool.  

• Always adhere to posted rules and restrictions.
• Make sure the ride is appropriate for the rider; always obey height, weight and health requirements.
• Securely latch all restraints and use the grab bar.
• Take frequent breaks if you're riding the popular, newer 'high G-force' rides and stop riding before you get tired.
• Watch the ride with your child before it's their turn and never put a child on a ride they're afraid of.
• Teach children what to do if separated from you in the park.
• Remember, kids are quick, clever and very imaginative. Watch them carefully whether you're in the backyard or at your favorite amusement park.

Every year millions of us take to the roads and trails to enjoy being on our bikes in the great outdoors. Roller blades, 'Heelys' and skateboards are also abundant on our streets and sidewalks when the weather breaks. Please follow these tips to remain safe while having fun:

• Always wear the proper safety equipment; helmets, elbow pads and wrist guards go a long way into making sure a good time doesn't turn into emergency room time. And spring for a good helmet, one that meets Snell B-95 or N-94 standards. I find it fascinating that parents will pay $100 for kid's shoes but opt for a $10 helmet. Please refer to the link at the bottom of this article for more information on helmets and using them correctly.
• If you run or ride on roads remember this simple rule; run against traffic and ride with traffic.
• Never ride or skate where it's not permitted or unlawful.
• Always inspect your gear and equipment before heading out, especially if it's the first ride of the season.
• Ride/skate within your ability and never try the stuff you see on television. Chances are better that you'll end up on 'Americas Funniest Home Videos' than on the 'X-Games'.
• If riding off road make sure someone knows your schedule and when you plan to return. Also remember to leave the trails and surrounding woods as you found them. Take out what you take in and leave only your tracks!
• Take spare change or a cell phone with you in case of emergencies.
• Visit this web site for more bike safety information www.ibike.org/education/helmet.htm

CCAP Insurance Programs
2789 Old Post Road, Harrisburg, PA 17110
Phone 800-895-9039 - FAX 717-526-1020
Claims Fax 888-692-2368
Click here to go the Insurance Section of the CCAP Website.

email:jsallade@pacounties.org

Insurance Matters is published monthly by CCAP Insurance Programs for the use of members of CCAP's UC Trust, PCoRP, PComp, PIMCC, COMCARE, COMCARE PRO, BEST Flex, PELICAN and other insurance programs, and insurance producers of these members.

Advice contained in this publication is not legal advice and members are encouraged to seek the opinion of their solicitor.

The information provided in this publication is not intended to take the place of professional advice. Readers are encouraged to consult with competent legal, financial, or other appropriate professionals. Statements of facts and opinions expressed in this publication, by authors other than Association staff and officers, are the sole responsibility of the authors and do not necessarily represent an opinion or philosophy of the officers, members and staff of the County Commissioners Association of Pennsylvania (CCAP). No endorsement of advertised products or services is implied by CCAP unless those products or services are expressly endorsed, or are owned or managed by the Association programs, or our affiliates. This publication may not be reproduced, modified, distributed, or displayed in part or in whole, by any means, without advance written permission of CCAP. Please direct your requests to John Sallade, Managing Director, CCAP Insurance Programs, jsallade@pacounties.org.

Note: As part of its copyright agreement the CCAP grants the author the right to place the final version of his/her manuscript on the author's homepage, subject to CCAP's standards, or in a public digital repository, provided there is a link to the CCAP website. mailto:jsallade@pacounties.org" size="2">jsallade@pacounties.org.

Note: As part of its copyright agreement the CCAP grants the author the right to place the final version of his/her manuscript on the author's homepage, subject to CCAP's standards, or in a public digital repository, provided there is a link to the CCAP website.