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Insurance Matters September 2008
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September 2008 |
Vol 12, Issue 9 | |
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Owned by Members Governed by Members Service to Members
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SPECIALTY LINES |
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Over the last couple of years I have been trying to write down a "history" of the various CCAP insurance programs. It has been 26 years since we started the UC Trust and 20 years since PCoRP began operations. Putting the "whys and wherefores" down on paper has been fun, and it has served to remind me of the core reasons CCAP developed the insurance pools.
One major impetus was to provide counties with the services they could no longer obtain from the commercial insurance companies. Of course the main service for some was the availability of the insurance itself!
The first service we provided in addition to insurance coverage was Loss Control Services. Initially we contracted with our reinsurance broker to provide these services, but once the number of members in our programs grew, it became harder to provide quality service through a third party.
So in 1994 we brought Loss Control services in-house. We now have four Loss Control staff who regularly visit members and assist with safety issues. In 2007, our staff made 235 visits to members, primarily related to PCoRP (property and liability insurance), PComp (workers' compensation insurance) and PELICAN (nursing home liability insurance). Visits often are requested by members, especially to assist Safety Committees or to provide some specialized training or review of building plans.
The Loss Control staff also oversees the Loss Control Incentive Programs for PCoRP and PComp, which earn members credits (savings) on their premiums in recognition of certain loss prevention and claims management activities. Other Loss Control programs include a Fraud Hotline, online safety courses, a lending library of safety videos, a newsletter for PELICAN subscribers and, of course, providing individual assistance and resources to members based on specific requests for help.
We are also proud of the experience of our Loss Control Staff. All four hold Pennsylvania Bureau of Workers' Compensation Accident and Illness Prevention Service Provider designations. In addition:
Gary Nicholson has 13 years of loss control experience and holds the CHSP and ASC designations and is a Pennsylvania State Fire Academy Fire & Safety Instructor Emeritus.
Bob Lauzonis has 21 years of loss control experience and is taking the training to become a certified NSC Defensive Driving instructor.
Greg Cunningham has 5 years of loss control experience and holds the ARM and GSP designations.
Bruce Mitchell has more than 35 years experience and holds the CSP designation. He is also a certified NSC Defensive Driving instructor. In fact, Bruce has held the CSP designation for 30 years, earning the Board of Certified Safety Professionals 'Gold' status. Currently, only 11,000 individuals worldwide hold the CSP designation and far fewer still have held it for this long!
Here are the designation explanations:
· NSC - National Safety Council
· CSP - Certified Safety Professional
· ARM - Associate in Risk Management
· ASC - Advanced Safety Certificate (NSC)
· CHSP - Certified Healthcare Safety Professional
· GSP - Graduate Safety Practitioner
Make sure you call us when you need help with something,
John Sallade
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NEW PComp BOARD MEMBER |
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The PComp Board of Directors has appointed Mercer County Commissioner Brian Beader to the PComp Board. Brian fills a vacancy created by the retirement of Bill Boyle, who was Mercer County's Director of Administrative Services. Brian will serve as one of the CCAP appointed members of the Board, with his term expiring at the end of 2009, at which time he will be eligible for reappointment. |
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ALLEGHENY COUNTY JOINS COMCARE |
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By Christie Ward, Captive Programs Manager
The County Managed Care Resource, COMCARE, welcomes Allegheny County to their membership. COMCARE assists counties participating in HealthChoices, Pennsylvania's Medicaid managed care program. Service offerings include training opportunities, technical consulting, a Web Site providing a wealth of online resources, and COMCARE PRO which provides stop-loss reinsurance for inpatient psychiatric services, inpatient drug and alcohol detoxification, inpatient drug and alcohol rehabilitation, and residential treatment.
Allegheny County is the 64th member of COMCARE.
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PROGNOSTICATIONS FOR 2009 COSTS |
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By John Sallade, Managing Director, CCAP Insurance Programs
It is budget time again! Here is my annual advice about what to expect regarding insurance costs. Keep these things in mind as you prepare your 2009 budget.
The insurance industry is still in the "soft" market phase, meaning insurers are generally trying to bring in cash and care less about underwriting and examining risks. Prices are lower than normal, but have started to flatten out a bit as the economy has weakened. With the volatile stock market there is less certainty about interest earnings, and I think that will bring prices back up again.
In general the insurance industry is still not wild about large public entities - meaning counties and very large cities. There are a few commercial insurers who are interested in the business, and not many new ones since last year.
Governmental risk pools, groups of public entities buying insurance together and sharing varying levels of risk and self insurance, continue to grow in number as a reaction to this lack of options. Many pools have more competition from other pools than from commercial carriers.
Workers' Compensation
Workers' compensation costs are still driven by two major things - medical cost inflation and claims. As you will see later in this article, medical costs are projected to rise about 12% and if the PComp claims experience is typical for counties, the number of claims and the cost of claims is not going down. So plan for work comp insurance costs increases around the 12% mark - more if your claims experience is bad. The PComp Board meets September 26 to set rates for 2009.
Property and Liability Insurance
Property insurance pricing is going down for areas like Pennsylvania which have not seen issues with catastrophic weather events. I expect this to lessen in 2009 as prices are pretty low. If we end up with some bad hurricane losses in the US, costs for everyone could start going up. I'd suggest budgeting the same costs as last year, or about a 5% increase. More if you have added new buildings.
Liability insurance rates are pretty steady and I do not see them dropping for 2009. County prison and personnel related lawsuits continue to be a major concern for insurers. I'd suggest budgeting a 10% increase for your liability insurance.
PCoRP members buy both these coverages from the pool, and renew coverage June 1, 2009. At this point guessing on costs for June 1 is difficult. My advice would be to use about an 8% increase from 2008 for PCoRP or a little less (this includes the Reserve Fund Charge, which I think will remain the same or go down a little in 2009). PCoRP has had another good financial year but claims remain on the high side.
As with work comp, if you added exposures (new buildings, more staff, new operations) keep that in mind as your costs will probably go up.
Unemployment Compensation
UC claims have remained pretty flat. I expect 2009 UC rates to stay about the same as 2008. The UC Trustees meet on October 24 and we will let members know about the rates as soon as possible after the meeting.
Nursing Home Liability Insurance
General liability and professional liability (malpractice) coverage is the tightest market of all for counties, with very few options and limited coverage available.
PELICAN continues to experience favorable claims experience. The PELICAN SAC (board of directors) will meet in early February to set rates for the March 1, 2009 renewal. PELICAN has been setting rates to keep pace with medical costs inflation, and a maximum increase of 5% is probably a good guess. There is a chance rates will remain the same if claims remain low.
Stop Loss for Behavioral Health
This is a very specialized coverage for counties contracted to provide HealthChoices. It is coverage provided by COMCARE PRO and a few other carriers, and some counties are buying it through their MCO. PRO Members should contact Christie Ward for more information on their projected costs.
Health Insurance
Health benefit costs are expected to grow 12% in 2009, according to most of the articles I have seen. Of course your own benefits structure, workforce age and usage will have the largest impact on your rates.
Please Note: The information in this article is advisory and general in nature. The size, exposures, past claims experience and the risk management program in place in your county can impact your individual costs greatly. Consult with your local insurance producers to better determine budget figures for next year.
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OFFICE SAFETY |
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By Bob Lauzonis, Loss Control Specialist
When we think about job hazards, we usually picture a factory setting, or maybe a construction job site. Surprisingly, few people think of their desk at the office in the county building as a high-risk area. But dangers abound in the office environment!
Even if you don't work in an office, you probably find yourself in one for various reasons. So it's worth being aware of the hazard potential in an office setting.
Falls are the most common office accidents, accounting for the greatest number of disabling injuries. In fact, a person who works in an office is twice as likely to suffer a fall as someone who doesn't.
Leading Types of Disabling Accidents in Offices
Office workers sustain about 75,000 fractures, strains and contusions annually. The top four types of disabling office accidents are:
- Falls and slips
- Strains and over - exertion
- Struck - by or striking against objects, and
- Caught - in or between objects
Identifying Hazards
Because you're used to identifying hazards in your work area, it should be easy for you to identify hazards in an office. Here are some hazards to look for:
- Slippery or uneven floor surfaces or torn carpet or linoleum
- Poorly balanced stacks of cartons or other materials
- Open files or desk drawers
- Top - heavy file cabinets
- Cords, boxes and other materials in aisles and/or walkways
- Overloaded electrical outlets
- Cords with frayed insulation
- Open containers of combustible trash
- Open containers of chemicals, and
- Stairs with poor lighting or missing handrails
Office Safety Procedures
Office hazards can result not just from the conditions we've been discussing but from unsafe acts. Remember to always follow office, department, and county safety procedures. Unsafe acts that can cause accidents in the office include:
- Standing on furniture or boxes rather than a ladder or stepstool to reach high places
- Carrying loads you can't see over
- Carrying loads that are too heavy, large and/or awkward for people to move/lift safely
- Smoking in unauthorized areas
- Failing to fully put out cigarettes and matches in ashtrays
- Running in aisles, halls or on stairways
- Throwing objects or other horseplay acts
Other Office Hazards
We have only discussed a small sample of the hazards that can be found in an office setting. Other common hazards include:
- Office physical layout and housekeeping
- Exits and egress
- Fire hazards
- Handling and storage
- Office furniture
- Electrical equipment
- Office machinery and/or tools
- Computer workstations (i.e. desk, monitor, chair, keyboard, etc.)
- Ventilation
- Noise and
- Stress
For more information contact CCAP Loss Control Department at (800) 895-9039; or email us at:
Bruce Mitchell, Loss Control Services Manger; bmitchel@pacounties.org
Gary Nicholson, Senior Loss Control Specialist; gnicholson@pacounties.org
Greg Cunningham, Loss Control Specialist gcunningham@pacounties.org
Bob Lauzonis, Loss Control Specialist; blauzonis@pacounties.org |
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COLUMBIA COUNTY NAMED "BIGGEST LOSER" |
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By Lauren Kenes, Insurance Programs Administrative Assistant
SIX PA COUNTIES LOSE TOTAL OF 3547.7 POUNDS
IN CCAP BIGGEST LOSER CONTEST
Starting the week of May 19th, six counties participated in the first "Biggest Loser" competition, sponsored by CCAP's BEST Flex program. The competition was based around the popular reality TV show of the same name, and its purpose was similar -- to encourage participants to become physically active and to compete as teams to lose the most weight.
Throughout the process, county participants learned more about fitness, nutrition, and were taught ways to improve their overall health in a fun way. Using weekly weigh-ins and a website that offered information and resources on how to lose weight, participants worked together as a team to reach an overall total of weight loss.
After much hard work, counties in this year's contest were able to lose a grand total of 3,547.7 lbs! The program lasted ten weeks, after which the results were tallied and the traveling trophy, one aspect of the winnings, was readied to be sent to our winner. Without further ado, this year's winner, losing a total of 233 lbs., was COLUMBIA COUNTY! Congratulations to the winners for all their hard work and dedication.
As a follow-up, the website is still available for participants - as well as non-participants - to explore ways to continue on their weight loss path on their own, as well as ways to maintain the weight they are at. You can find the website by going to www.ccapbiggestloser.com.
An important aspect of this initiative included a simple concept: healthy employees are productive employees. By getting involved, participating counties were making an effort to build up their staff, as well as their own resources. This is a win-win situation.
If you would like your entity to be involved in this healthy team-building exercise, look for more information in the late fall. For more information on The Biggest Loser contest, contact Julia Jackson at (800) 895-9039 or email to jjackson@pacounties.org. Here's to your health!
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TRAINING OPPORTUNITIES...REGISTER NOW! |
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By Linda Rosito, Insurance Training Director
A wide variety of topics will be covered this fall including essential skills of supervision, dealing with incivility in the workplace, dealing with change, and reasonable suspicion drug and alcohol testing, as well as many other topics.
This fall there are several new things to keep in mind. There will be 22 workshop opportunities throughout September, October and November. We have added Erie as a new location to our UC Trust Sponsored series. Even though we have been doing online registration for awhile now, our online registration process is a little different this season. If you have any problems with the registration process, please contact Jenn Carey at (800) 895-9039.
UPCOMING WORKSHOPS
· Thursday, Sept. 4 - Defensive Driving, Best Western/Country Cupboard, Lewisburg
· Tuesday, Sept. 9 - Excellent Supervisor Seminar, Regional Learning Alliance, Cranberry Twp.
· Wednesday, Sept. 17 - Defensive Driving, Scranton Hilton
· Thursday, Sept. 18 - Excellent Supervisor Seminar, Scranton Hilton
· Wednesday, Sept. 24 - Excellent Supervisor Seminar, Penn Stater, State College
· Thursday, Sept. 25 - KEYS: Thriving and Surviving in the Sea of Change - CCAP North Office, Harrisburg
· Tuesday , Sept. 30 - Facilities Workshop, Penn Stater, State College
· Tuesday , Sept. 30 - Effectively Dealing with Incivility in the Workplace, Penn Stater, State College
· Wednesday, Oct. 1 - Effectively Dealing with Incivility in the Workplace, Hilton Garden Inn, Erie
· Thursday, Oct. 2 - Defensive Driving, Penn Stater, State College
· Tuesday, Oct. 7 - KEYS: Thriving and Surviving in the Sea of Change, CCAP North Office, Harrisburg
Visit Glimpse Online to view the details and to register. Please keep in mind that workshops can fill quickly so be sure to register early to reserve your seat!
We look forward to seeing you this fall. If you have any questions, please feel free to contact a member of the Insurance Training Staff.
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ACADEMY HOSTS THREE DAY WORKSHOP SERIES |
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By Mandi Glantz, Director of Member and Vendor Relations
CCAP and the Academy for Excellence in County Government are hosting a three-day workshop series with programs on Financial Management, Personnel and Labor Relations, and Innovative Approaches to County Government with Technology. On Wednesday, October 8, join us for the "Financial Management" session with William Dennis, County Administrator for Berks County. Bill will discuss the importance of budget planning in decision making including forecasting, capital planning, outcome management, and more. The course will run from 8:30 a.m. until 3:30 p.m. with lunch included.
The "Personnel and Labor Relations" session on October 9 will highlight the basics of bargaining, issues surrounding hiring and firing and will include a legal roundup. Presenters include Attorneys Vicki Beatty and Richard Miller of Campbell Durrant Beatty Palombo & Miller, P.C. The course will run from 8:30 a.m. to 3:30 p.m. with lunch included.
On October 10, a "Innovative Approaches to County Government with Technology" session will be presented by CCAP technology staff along with several county IT Directors and Anne Newman, Solicitor, of Pepper Hamilton LLP. The workshop will run from 8:30 a.m. to 3:30 p.m. with lunch included, and will cover topics such as VoIP, technology policies, distance education, county Web sites, video conferencing and Live Meeting.
All workshops will be held at the Ramada Inn and Conference Center in State College.
If you are an Academy or Academy Advanced Certification participant, attendance at one or all sessions is free of charge. Academy Program participants will earn required course credit for the program for all three courses. The Financial Management and Personnel and Labor Relations courses will also fulfill required credit for Advanced Certification Program participants. The workshops are open to all county commissioners, chief clerks, administrators, solicitors and their counterparts in home rule counties. Associate members and other CCAP vendors are also invited to attend these workshops. Registered Academy and Academy Advanced Certification participants may attend at no cost. The cost for Non-Academy Participants (CCAP Members) varies. A special ten percent discount applies for county members who attend all three days of the workshops. Other fees may apply to Academy graduates, Associate members and other vendors. The workshop fee INCLUDES breaks, lunch and session materials on all three days.
Seating is limited - for registration information, please visit www.pacounties.org the CCAP website at www.pacounties.org and click on "Education and Conferences" and then on "Academy for Excellence" in the menu bar to locate upcoming events and/or contact Mandi Glantz, Director of Member & Vendor Relations, by phone (717) 526-1010, or email mglantz@pacounties.org.
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QUOTE OF THE MONTH
"Write a wise saying and
your name will live forever."
- Anonymous
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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. | |
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