KINGS COUNTY SELF-INSURED SCHOOLS Regular Meeting of the JPA October 20, :30 p.m.

Transcription

1 KINGS COUNTY SELF-INSURED SCHOOLS Regular Meeting of the JPA 1:30 p.m. Kings County Office of Education Large Conference Room 1144 West Lacey Boulevard Hanford, CA MINUTES I. CALL TO ORDER The meeting was called to order by Tim Bowers at 1:32p.m. ATTENDANCE BOARD MEMBERS: Kings County Office of Education Corcoran Unified School District Hanford Elementary School District Lakeside Union Elementary School District Lemoore Elementary School District Pioneer Union Elementary School District Executive Director JPA Secretary GUESTS: Hanford Elementary School District Kings County Office of Education JT2 JT2 ABSENT: Central Union Elementary School District Island Unified School District Kit Carson Unified School District Tim Bowers Rich Merlo David Endo Shelley Leal Marlo De Santos Paul van Loon Cyndi Parra Kimberly Calabretta Jeri Higdon Steve Corl Angie Sorrentino Carmen Angeles Tom Addington Charlotte Hines Kelly Mynderup Introduction of Carmen Angeles, Program Manager, JT2 II. CONSENT ITEMS 2.1 & 2.2 Motion was made by David Endo, seconded by Shelley Leal and unanimously carried to approve the Agenda and the June 23, 2016 Minutes. Ayes: Noes: Absent: Abstain: T. Bowers, R. Merlo, D. Endo, S. Leal, M. De Santos & P. van Loon T. Addington, C. Hines, K. Mynderup

2 Page 2 III. COMMENTS FROM THE PUBLIC There were no comments from the public. IV. REPORTS, DISCUSSION & ACTION Financial Activity Report 2015/ /16 Final Budget - Cyndi reviewed the 2015/16 final Budget. Report reflected actual expenses for the 2015/16 fiscal year. Budget anticipated the 2015/16 year to end at $1,184,481. However, actual year-end totaled $1,256,041. A few categories were higher than budget anticipated; Salaries, In-House and JT2 claims. Salaries higher due to double salary for Executive Director position August-December Claims Expense ended higher than budgeted at $1,565,708 actual compared to budget amount of $1,520,000. Both JT2 claims and In-House claims totals increased, resulting in more treatment, coupled with continued rise in medical costs to injured worker. In-House claims increased by 55 more claims over the prior fiscal year, for a total of 199 claims, while JT2 claims increased by seven claims over the last year. Cyndi discussed with the Board an option of a second industrial clinic in Hanford. This would offer an option for injured worker treatment as well as expand services with a goal of closing claims as soon as medically safe. The Board was in agreement with adding a second industrial clinic facility in Hanford. Cyndi will move forward with adding Total Care to the medical panel. Cyndi also discussed the need to reduce overall claims within the JPA. Cyndi will be meeting with all Districts to discuss training plans globally as well with indivdual needs. 2016/17 Budget to Date While the year-to-date total reflects a negative balance of $355,317, year-end should balance closer to anticipated amount of $1,290,632. Annual DIR fees paid are based on actual payroll of previous year; invoice is expected in December JT2 fees are paid annually which allows for a 2% reduction each year. As Income increases throughout the year, budget will be more in-line with projections. As of 8/31/16, the cash in county treasury total was $8,559,755. This amount continues to increase due to the formula-based policy the JPA Board previously approved. The target amount is $9.5 million. It will ultimately self-adjust once the target has been met. Any future reductions will be automatically reflected in the formula. Executive Director Reports 4.2 Frequency & Severity Comparison Report reflects 1 claim handled by JT2, with a total incurred of $18,922 as of 9/30/16. We are only one quarter into the budget year. 2016/17 fiscal year will be the third year KCSIS is operating as a partially self-administered. Annual Claims Comparison Report reflects no expenses for JT2 for this current calendar year through 8/30/16. Aggregate Claims Comparison Report reflects 2 claims as of 8/30/16.

3 Page 3 Payments by Category Total paid to date for the 2016/17 fiscal year is $286,853, which represents July at $150,943 and August at $135,910. JPA 2015/16 Year-End Claim Totals 4.3 Claim data sheets detailing both In-House and JT2 claims were distributed to each District, along with a summary of all claims. Cyndi reviewed the combined totals for in-house and JT2. The claim total for the 2015/16 year equaled 234 claims; 199 handled in-house and 35 handled by JT2, compared to 172 claims; 144 handled in-house and 28 handled by JT2 in the 2014/15 year. Top three occupations injured were Teachers with 78 claims; Aides second with 35 claims and Custodial staff at 33 claims. Again, slip/trip/fall incidents lead the Nature/Cause with 76 claims, struck by (person) was second with 37 claims and lifting was third at 24 claims. Most injured body part was the knee at 39 injuries, back/lumbar second at 30 injuries and hand/wrist with 21 injuries. Cyndi shared the need to get all District and school sites involved in the effort to reduce injuries. Cyndi will be setting up meetings with each District to discuss individual existing training plans. In addition, training will be made available for all Districts to participate once training topics are identified. Executive Director Annual Evaluation 4.4 Tim distributed the KCOE Management Evaluation Form currently used to evaluate certified employees. After discussion it was decided by the Board to form a subcommittee with Board members. The KCOE Evaluation Form would be utilized. The subcommittee volunteers are composed of: Tim Bowers (KCOE), Rich Merlo (Corcoran), Marlo De Santos (Lemoore Elementary) and Shelley Leal (Lakeside). The Board agreed that all Districts input would be requested for the evaluation. That input will then be reviewed by the subcommittee and presented by Tim Bowers. The evaluation schedule will mirror the same as the KCOE Evaluation Schedule. Tim stated no change to the verbiage in the Executive Director agreement was needed (Item 4). JPA Liability Insurance Information 2016/ JPA Liability has renewed with Foremost Insurance Company at a premium of $575 for a one year term beginning 10/20/16. No change in coverage from previous year, includes below limits in addition to Property/Office/Dishonesty Coverage: Liability & Medical per occurrence $2,000,000 Personal Injury per person or organization $2,000,000 Products all occurrences $4,000,000 General Aggregate all occurrences $4,000,000

4 Page /16 premium was $ /15 premium was $ /14 premium was $ /13 premium was $ /12 premium was $ /11 premium was $ /10 premium was $566 Medical Cost Containment Savings Bill Review, PPO 4.6 Carmen/JT2 presented and reviewed the following: Year-end savings for the 2015/16 year included 2,871 invoices reviewed with a net savings of $1,177, or 60.55%. July 1, 2016 to August 31, 2016, JT2 reviewed 436 invoices with a net savings of $271, or 62.21%. Workers Compensation News/ Information/ Announcements /01/16 - WCAB Fresno Settlement Approvals 07/25/16 - Training Corcoran (Grounds/Maintenance) 08/01/16 - Presentation Manager s Meeting 08/05/16 - WCAB Fresno Settlement Approvals 08/25/16 WCAB Fresno Settlement Approvals 09/01/16 - Claim Settlement Meeting 09/08/16 - Quarterly File Review Lemoore High School, Corcoran, Hanford Elementary, Kings County Office of Education, Hanford High School, Lemoore Elementary, Central 09/15/16 - Claim Settlement Meeting 09/22/16 - Claimant Deposition 09/28/16 - Filed Annual Public Entity Reports (Due no later than 10/01 annually) 10/ Annual P.A.R.M.A. Regional Conference 10/12/16 - Annual P.I.W.C. Conference

5 Page 5 10/26/16 - File Review Reef-Sunset 11/07/16 - Claimant Deposition 11/21-22/16 - Annual JPA Audit (Vavrinek, Trine, Day & Co) 12/08/16 - Quarterly File Review Lemoore High School, Corcoran, Hanford Elementary, Kings County Office of Education, Hanford High School, Lemoore Elementary, Central 01/05/17 - Review/Prepare Annual Cal-OSHA Postings (Due no later than 02/01 annually) WorkCompCentral Federal Trial Judge Gets Proposed Settlement of Gender Discrimination Suit. WorkCompCentral Workers Compensation Insurance Rating Bureau: Total Incurred Losses Down 3.6% in WorkCompCentral Workers Compensation Insurance Rating Bureau Submits 2017 Regulatory Filing. WorkCompCentral Division of Workers Compensation Updates Durable Medical Equipment, Prosthetics, Orthotics and Supplies Section of Fee Schedule. It shall not exceed 120% of the fees Medicare set in the latest quarterly update. WorkCompCentral California Coalition of Workers Compensation Conference: Medical Executives Consider Impact of Workers Compensation Drug Formulary. WorkCompCentral Division of Workers Compensation Awaiting Rand Report of Formulary, Plans Public Hearing. WorkCompCentral California Department of Industrial Relations Director, Christine Baker: Implementing Drug Formulary Will Decrease Utilization Review. WorkCompCentral Concerns Raised About Treatment Delays Under New Formulary. WorkCompCentral Appropriations Committee Schedules Hearing on a Comp Bills, including pregnancy, menopause, osteoporosis and carpal tunnel syndrome. The bill would also require that the impairment rating for breast cancer be the same as the rating for prostate cancer. WorkCompCentral Department of Industrial Relations Working on Legislative Fixes for Utilization Review and Liens.

6 Page 6 WorkCompCentral Workers Compensation Insurance Rating Bureau: Lower Utilization Drives Down Medical Payments per Claim. The average $3,625 in medical payments per claim in California last year represents a 9% decrease compared to the amount per claim in Senate Bill 863 required the Division of Worker s Compensation to adopt a medical fee schedule based on Medicare s Resource Based Relative Value Scale schedule. The RBRVS fee schedule essentially increased payments to physicians while reducing reimbursement for specialists. The WCIRB report breaks down payments by provider type. The average amount paid to general providers increased in 2014 when the new RBRVS fee schedule took effect, and again in General providers were paid an average of $121 per transaction in 2015, a 20% increase over the average $101 per transaction paid in WorkCompCentral Workers Compensation Insurance Rating Bureau Preparing to Issue X-Mods Calculated With New Formula. The insurance commissioner in 2015 approved a new experience rating plan in which the threshold separating primary and excess losses varies based on an employers expected losses. Under the new rating plan, primary losses will be included entirely in the calculation, while excess losses will be discounted entirely. WorkCompCentral More Changes to X-Mod Formula Possible in WorkCompCentral Cal/OSHA Probing Whether Farmworker s Death Related to Heat Wave. WorkCompCentral More Data Requirements on the Way for Public Self- Insureds. WorkCompCentral Board Launches Online System to Appeal Cal-OSHA Citations. WorkCompCentral Workers Compensation Insurance Rating Bureau Amends Pure Premium Rate Filing to 4.3% Decrease. WorkCompCentral Insurance Commissioner Hears Pitch for 4.3% Rate Reduction. Approve Reimbursement of Benefit Expenditures June, July and August Cyndi reviewed the reimbursement of benefit expenditures for June 2016 at $111,484.87, July 2016 at $150, and August 2016 at $135, Motion was made by Shelley Leal, seconded by Paul van Loon and unanimously carried to ratify the reimbursement as presented.

7 Page 7 Ayes: Noes: Absent: Abstain: T. Bowers, R. Merlo, D. Endo, S. Leal, M. De Santos & P. van Loon T. Addington, C. Hines, K. Mynderup Closed Session 4.9 The meeting moved into closed session at 2:13 p.m. Hanford Elementary 1) Stipulated Award at 12%, $8, with future medical. 2) Stipulated Award at 6%, $5,220 with future medical. 3) Stipulated Award at 0%, with future medical. Hanford High School KCOE 4) Stipulated Award at 15%, $10, with future medical. 5) Stipulated Award at 11%, $9, with future medical. 6) Stipulated Award at 16%, $16,095 with future medical. Lemoore Elementary Reef-Sunset 7) Stipulated Award at 2%, $1,740 with future medical. 8) Stipulated Award at 11%, $9, with future medical. Claim Denials Hanford High School 1) Stress claim. Kit Carson 2) Injury to right shoulder. Open Session 4.10 The meeting reconvened to open session at 2:25 p.m. Motion was made by Paul van Loon, seconded by Rich Merlo and unanimously carried to approve ratification of the settlement of claims as presented. Ayes: Noes: Absent: Abstain: T. Bowers, R. Merlo, D. Endo, S. Leal, M. De Santos & P. van Loon T. Addington, C. Hines, K. Mynderup

8 Page 8 V. COMMENTS FROM THE BOARD There were no comments from the Board. VI. SCHEDULE NEXT MEETING The next meeting will be held on January 19, 2017, at KCOE, Large Conference Room. VII. ADJOURNMENT Meeting adjourned at 2:26 p.m. Cynthia Parra, EXECUTIVE DIRECTOR/SECRETARY