1. 0 CATHY REINEKE Member | 19109– 36th Ave. W., Suite 204, Lynnwood, WA 98036 p: 425-876-5558 e: riskready@comcast.net WSTIP Demonstration Project Envisioned as the result of member requests for help with their Workers’ compensation claims. 6 Month Project. WSTIP provides this consulting as a value added service to its members. Members said: Costs were rising Claims were not being closed Transit agencies were unclear as to what they could and could not do to manage claims to closure

2. 1 CATHY REINEKE Member | 19109– 36th Ave. W., Suite 204, Lynnwood, WA 98036 p: 425-876-5558 e: riskready@comcast.net Limitations we faced: Department of Labor and Industries is the only “game in town.” Washington is a monopolistic state. The Department has frequent turnover, many new adjusters, and little investment in training. Caseloads are very heavy (often in excess of 400 claims per adjuster. Squeaky wheels get the grease). Transit agency personnel understood little about managing claims and working with the Department of Labor and Industries adjusters to resolve these time loss claims. Challenges with light duty, return to work opportunities, contracted benefits.

3. 2 CATHY REINEKE Member | 19109– 36th Ave. W., Suite 204, Lynnwood, WA 98036 p: 425-876-5558 e: riskready@comcast.net Project parameters: Six month pilot project Begin with three transit agencies Work on specific skills development in the following areas (These two areas can yield the greatest return on investment): Concentrate on initial investigation of claims at their inception. Manage the medical portion of time loss claims. Assign specific personnel to be trained using a Claims Manual developed by Risk Ready, LLC Use a Plan of Action Form to manage the claim to closure

4. 3 CATHY REINEKE Member | 19109– 36th Ave. W., Suite 204, Lynnwood, WA 98036 p: 425-876-5558 e: riskready@comcast.net Plan Of Action Provides a quick summary of pertinent information Provides four specific areas of case management that are crucial to getting a claims closed. Managing the medical portion of the claim (physicians, IME’s, psych issues, chiropractic and physical therapy). Managing the return to work portion of a claim (light duty and vocational rehabilitation issues). Knowing when someone has reached Maximum Medical Improvement (MMI). Understanding when a claim can be closed. By tracking these issues, you can stay on top of a claim and bring it to closure.

5. 4 External Factors That Influence Your Rates  Three options in the State of Washington for Worker’s Compensation: Regular State Fund Retrospective Program Self-Insurance  Exposures to total claims cost varies. Regular state fund maximum charged to an account is $217,000. Retro program maximum is 500,000 per claim. Self-insurance, maximum with stop loss.  The average rates in WA state went up 7.6% for 2010. Public entities increased their base rate by 10.2% on the base rate.  L&I expects a 17-18% rate increase next year alone. Costs are increasing due to: Medical costs. Aging work force. No competition/monopolistic state (only one of 4 in the nation) CATHY REINEKE Member | 19109– 36th Ave. W., Suite 204, Lynnwood, WA 98036 p: 425-876-5558 e: riskready@comcast.net

6. 5 In Summary, We Have Emphasized…… Know your people Conduct Initial and follow-up investigations Have a light duty return-to-work program that returns all injured workers to at least 90 days of restricted duty Manage claims to closure using a Plan of Action Medical case management Return to work/vocational issues Getting injured workers to maximum medical improvement Getting claims closed in an appropriate manner (They stay closed) CATHY REINEKE Member | 19109– 36th Ave. W., Suite 204, Lynnwood, WA 98036 p: 425-876-5558 e: riskready@comcast.net

7.  Preliminary Results/Varying Levels Of Support One transit agency has closed 8 of 16 claims. The longer claims are open, the more cost is incurred (raises their development factor greatly increasing their retrospective experience and rates). Support included review of all open time loss claims, developed plans of action, and weekly meetings to move claims to closure. One transit agency has protested a substantial claim where questions exist regarding causation. If they prevail, the estimated cost savings to their state fund account could be in excess of $30,000. One transit agency has used the service for specific questions on specific claims. Cost of claims support: $10,000 Anticipated return on investment: ___:1 CATHY REINEKE Member | 19109– 36th Ave. W., Suite 204, Lynnwood, WA 98036 p: 425-876-5558 e: riskready@comcast.net

8. 7 Questions? You can tell whether a man is clever by his answers. You can tell whether a man is wise by his questions. ~ Naguib Mahfouzanswerswise