Stay at Work Program A Financial Incentive for Washington Employers King County Fire Chiefs Association May 15, 2013

What is “Stay at Work?” A legislatively mandated (EHB 2123) program providing financial incentives for State Fund Employers providing light duty or transitional work to employees recovering from on-the-job injuries. WAC A-020 through A-050

2 The Golden Rule You don’t get injured workers well to put them back to work, you put them back to work to get them well. Richard Pimentel Milt Wright & Associates

3 Long-term claims drive claim cost in Washington  9% of claims account for 85% of costs  The average cost of a medical only claim is $1,300 (73% of claims).  The average cost of a short-term * time-loss claim is $11,000 (70% of time-loss claims)  The average cost of all time-loss claims is $74,000.  The average cost of a time-loss claim that goes to pension is $760,000 (6% of time-loss claims) Data based on accident year ending 9/30/2011 *less than 90 days of time-loss

4 Most injured workers either return to work quickly or stay in the system a long-time. This L&I study followed injured workers from accident years through two years in Employment Security Department data on employment. State-fund, compensable claims in 2 yrs

5 L&I Programs supporting early return to work  Washington Stay at Work program  Specialized Early Return to Work staff in regions  Claim manager training on setting expectations for return to work  Medical provider training on their role in return to work  Retro groups focus on supporting early return to work and light duty programs

6 What are the benefits of Return-to-Work?  Reduce recovery time  Reduce concern of potential job loss  Retain regular salary  Retain regular benefits / sick leave  Reduce secondary complications (depression)  Improve overall morale  Family/Social lifestyle maintained  Avoid “Disability Syndrome” Employee  Retain trained & experienced worker/workforce  Avoid replacement/training costs  Maintain productivity  Improve overall work ethic  Foster better communication/relationships with employee  Reduce potential for fraud/abuse  Potential to reduce premium Employer

7 Health effects of “worklessness”: 2-3 times the risk of poor health 2-3 times the risk of mental illness Significant increased risk of depression Significant increase in overall mortality rate Long term “worklessness” carries more risk to health than many “killer diseases” and more risk than most dangerous jobs. (e.g. construction, working on an oil rig) Source: Journal of Insurance Medicine

8 More reasons to utilize light duty: Injured workers who are off longer than 6 months have only a 50% chance of ever returning to their job.* Compensable claims on average cost 37x more than non- compensable claims. ** Nationally, compensable claims on average cost 44x more than non-compensable claims. *** Source: *Defense Civilian Personnel Advisory Service **WA State Department of Labor & Industries. ***National Council for Compensation Insurance

9 What reimbursements are available for employers? Wages Training Tools/Equipment Clothing

10 Wage Reimbursement  Pays –50% of base wage –Excluding tips, commissions, bonuses, board, housing, fuel, health care, dental care, vision care, per diem, reimbursement for work-related expenses or any other payments.  For –Up to 66 days actually worked (not necessarily consecutive) – Up to $10,000 (whichever comes first.) –24-month period per claim  And –Employer has 1 year to apply from first day of light duty or transitional work –Reimbursements are per claim

11 KOS & Stay at Work  The employer can apply for reimbursement ONLY for the hours the employee is ACTUALLY working light duty.  You will need to keep track of the hours the worker is working light duty.

12 Early Return to Work Assistance We utilize our staff located at our regional L&I offices statewide to assist with return to work. These staff include nurses, occupational/physical therapists and vocational specialists. There is no cost to the claim for this assistance.

13 Training Reimbursement  For training necessary for the light duty or transitional work Tuition Books Fees Other necessary materials  $1,000 per claim

14 Clothing Reimbursement  Clothing $400 per claim Becomes property of the worker

15 Tools/Equipment Reimbursement  Tools/Equipment $2,500 per claim  Tools and equipment become the property of the employer

16 Important Reminders You may offer the worker more than one transitional job within the 66 days if approved by medical provider. Worker may continue the job beyond the 66 days, but the subsidy can’t continue. Claim must be allowed. Labor & Industries will reimburse eligible return to work costs incurred as of May 15, 2012.* * 1 yr to request reimbursement

17 Important Reminders As always, make sure that the worker and the supervisor are aware of the work restrictions and do not exceed them. Continue any health care benefits the worker had unless these benefits are inconsistent with the employers current benefit program for their workers. Job offer must be consistent with terms of collective bargaining agreement currently in force.

18 The Stay at Work Webpage

19 Total Reimbursements to date*: Wages : $ 12,703, Training : $ 9, Clothing : $ 1, Tools/Equipment: $ 80, Grand Total: $ 12,793, *as of 05/14/13

20 January 2012 – April 2013 Data Report

21 Where to find more information about the Stay at Work Program? Our website at: the Stay at Work Unit at: Call the Stay at Work Unit at: or

22 Thank you for your interest!  Call or  Michell Cartwright, BA, WCA 3 – Employer Outreach (360)  Bill Smith, MS, MBA, CRC - Program Manager  Christopher Ver Eecke, M.Ed, CRC, CCM, CDMS Vocational Outreach

Questions?