April 30, QUARTERLY REPORT January, February, March, 2008

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1 April 0, 008 QUARTERLY REPORT January, February, March, 008 The following, as required by Act 79 of 999, is a report of activity by the Arkansas Workers' Compensation Commission's and the Medical Cost Containment Division. HEALTH AND SAFETY DIVISION Ark. Code Ann , as amended by Act 796 of 99, established the Workers Compensation Commission s to launch educational programs; collect injury data; identify hazardous employers; monitor their progress with follow-up inspections; and monitor accident prevention programs of insurance carriers. MEDICAL COST CONTAINMENT DIVISION The Medical Cost Containment Division (MCCD) was established pursuant to Ark. Code Ann (987) and is responsible for the implementation, revision, and compliance of Commission Rules 0,, and 4. Rule 0 consists of an inpatient and outpatient medical fee schedule. Rule is our managed care rule, and Rule 4 refers to the Impairment Rating Guide.

2 Quarterly Report April 0, 008 MEDICAL COST CONTAINMENT DIVISION In the last quarter the following activities occurred regarding these rules: Rule 0 Rule 0 was revised effective May 5, 000. The AWCC adopted the Medicare RBRVS Medical Fee Schedule with Arkansas specific reimbursement multipliers. The new Medical Fee Schedule is available electronically from the AWCC Home Page. Since the Medical Fee Schedule is available electronically, we are no longer printing a medical fee schedule. Administrative Review Rule 0 contains an Administrative Review Process. This process allows providers or carriers to request assistance from the Medical Cost Containment Division regarding disputes. Each administrative review requested consists of an investigation, desk audit by department staff, and the issuance of an order, which determines the disputed issue. During this quarter there were review requests processed, review requests granted, and orders issued. The ongoing issues in dispute consist of nonpayment, untimely payment, penalty request, and reimbursement disputes. Balance Billing Rule 0 also contains a prohibition against balance billing by providers. The balance billing process involves: receipt of an allegation of balance billing by a claimant, carrier, employer, self-insured, etc.; notice being sent to all involved parties; an investigation; an audit; and a determination order being issued. During this quarter, the MCCD received zero balance billing allegations. Investigations Investigations: There were 9 investigations conducted this quarter.

3 Quarterly Report April 0, 008 Rule We have certified Managed Care Organizations. Medical Reports Medical Reports: As a result of a meeting held between the Chief Legal Advisor, the Medical Cost Containment Administrator, and the Chief Administrative Law Judge, the MCCD is obtaining medical records from the provider for carriers or employers that have been unable to do so. In the past the legal advisors would write to the provider requesting medical records. If the provider did not respond, then the Chief Administrative Law Judge would issue a subpoena in order to obtain the records. We thought perhaps there was another approach, especially since the MCCD staff has numerous medical contacts. We have thus far been able to call the provider and obtain the records without any problems. This quarter we received three () cases involving disputes about obtaining the medical records. Change of Physicians Change of Physician: To expedite Change of Physician (COP) requests and to comply with recent legislative changes, new procedures and policies have been implemented. COP requests are sent to the Clerk of the Commission, who then forwards them to the MCCD for processing. If an AWCC file has been established, the MCCD calls the carrier/self-insured employer to determine if a Managed Care contract exists. This call is followed with a letter which is faxed and mailed to all parties. When a response is received and a contract exists, the contract is reviewed to determine if it complies with Rule and if appropriate internal policies were followed. MCCD will review the claimant s medical records and determine an appropriate provider. An appropriate provider will be chosen on a case-by-case basis. If the request is to the claimant s treating physician, MCCD must determine if the provider meets the statutory requirements for the regular treating physician. Once an appropriate provider is chosen, MCCD will determine that the provider is a member of either the carrier/employer s MCO, if a contract exists, or a certified MCO if no contract exists. MCCD will contact the provider and set up an appointment for the claimant. MCCD will issue an order stating this is the claimant s one-time-only change of physician. This order will contain the provider s name and appointment date. All parties will be copied. If either party objects to the MCCD order, it can appeal to an Administrative Law Judge (ALJ). This quarter the MCCD received 80 COP requests. MCCD issued orders, and 5 requests were either returned to open general files, withdrawn, controverted, resolved, or returned to the Clerk of the Commission s office for other action.

4 Quarterly Report April 0, 008 Audits Requests are received from the ALJ Division as well as outside entities (i.e., caseworkers, attorneys, etc.) for medical bill audits. This quarter the MCCD received and processed audits. Rule 4 Rule 4: There have been no changes at this time in Rule 4. Legislation was written to extend the legislative mandate regarding an impairment rating guide. Speaking Engagements Speaking Engagements: During this quarter no engagements/activities were attended.

5 rd Quarter, FY 008 Workplace Fatalities Reported to AWCC Benton Washington Franklin Crawford Sebastian Polk Sevier Scott Howard Little River Miller Carroll Madison Logan Johnson Yell Montgomery Pike Hempstead Boone Newton Pope Garland Clark Nevada Perry Hot Spring Ouachita Marion Searcy Baxter Van Buren Conway Saline Dallas Stone Faulkner Pulaski Grant Calhoun Fulton Izard Cleburne Cleveland Sharp Independence White Lonoke Jefferson Bradley Lincoln Drew Prairie Randolph Lawrence Jackson Woodruff Monroe Arkansas Desha Clay Greene Craighead Poinsett Cross St. Francis Lee Phillips Crittenden Mississippi Lafayette Columbia Union Ashley Chicot During the rd Quarter, FY 008, fatalities were reported to the Arkansas Workers Compensation Commission. Workplace Fatalities by Quarter FY 00 FY 004 FY 005 FY 006 FY 007 FY 008 st Q nd Q rd Q 4th Q ARC Workplace Fatalities, FY Totals FY

6 rd Quarter, FY 008 Workplace Fatalities Reported to AWCC Rep. to AWCC Employer County of Employer Length of Service (yrs.) Type of Work Type of Injury /4/08 La Quinta Benton 0.5 Hospitality Workplace violence /9/08 Christison Land Surveying, Inc. Benton. Service Struck by //08 Mendiola Bradley not given Forestry MVA /6/08 Trans Tech Consulting, Inc. Faulkner.0 Service Drowning /4/08 Knight, Inc. Mississippi.0 Oil & Gas Explosion /7/08 Maverick Tube Mississippi 0. Manufacturing Struck by /9/08 Mississippi Limestone Phillips 5. Construction Engulfment /7/08 Arkansas State Police Pulaski 7. Gov.; State MVA /5/08 Davis Transfer, Inc. Pulaski.7 Warehousing /6/08 Arthur's, LLC Pulaski not given Hospitality Fall //08 River Trailer, Inc. Van Buren 5. Manufacturing /4/08 Southwestern Energy Co. Washington Weatherrelated Weatherrelated Died day of hire Oil & Gas MVA

7 rd Quarter, FY 008 Employers Placed in the Rule Program Benton Carroll Boone Washington Madison Newton 7 Franklin Johnson Crawford Pope Sebastian Logan 6 Yell Scott Polk Montgomery Howard Pike Sevier 6 Marion Searcy Van Buren Conway Perry Saline Garland Little River Hempstead Nevada Ouachita Calhoun Miller Lafayette Columbia Union Baxter Fulton Clay Randolph Izard Sharp Greene Lawrence Stone Independence Craighead Faulkner Pulaski Cleburne White Jackson Woodruff Prairie Lee Lonoke Monroe Hot Spring Grant Jefferson Arkansas 4 Clark Dallas Cleveland Lincoln Bradley Desha Drew Ashley Chicot Poinsett 6 Cross Crittenden St. Francis Phillips Mississippi During the rd Quarter, FY 008, 94 places of employment were placed in the Rule Program. Employers are identified for the Rule Program if they have a higher-than expected number of compensable claims for their industry group. Employers placed in this program are encouraged to work with their workers compensation insurance carrier, in-house staff, or other professional safety sources to develop management tools which will help them run safer workplaces and minimize workers compensation costs through the use of such tools as return-to-work programs, drug-free workplace programs, claims management, etc.

8 rd Quarter, FY 008 Rule : Accident Prevention Services Program Arkansas Workers Compensation Insurance Companies The Accident Prevention Services (APS) group conducts audits of all insurance companies writing workers compensation insurance policies in Arkansas. During the nd Quarter, FY 008, the APS group inspected the following companies: Company Account Premiums No. of Policyholders Gray Insurance- Gray Casualty & Surety $555,65.00 Technology Insurance $,084, Fireman's Fund Insurance - American Automobile Insurance, American Insurance Company, Associated Indemnity Corp., National Surety Corporation, Fireman's Fund of Wisconsin $6,9.00 State Farm Insurance $,5, Capitol City Insurance $,5, THE Insurance Co. $5, Southern Insurance $8,6.00 Amerisure Companies - Amerisure Mutual Insurance Co., $,89, State Auto Insurance - State Auto Property and Casualty Insurance Co., State Auto Mutual Insurance $,76, Praetorian Insurance - Redland Iinsurance Co., Harbor Specialty Insurance Company $5,

9 Arkansas Workers Compensation Commission rd Quarter, FY 008 Employers Completing the Rule Program Benton Washington Franklin Crawford Sebastian Scott Polk Howard Sevier Little River Hempstead Miller Carroll Boone Marion Madison Newton Searcy Logan Yell Montgomery Pike Johnson Van Buren Pope Columbia Lafayette Union Baxter Fulton Clay Randolph Izard Sharp Greene Lawrence Stone Independence Craighead Cleburne Poinsett Jackson Conway Cross White Crittenden Faulkner Woodruff St. Francis Perry Prairie Pulaski Lee Lonoke Saline 4 Monroe Garland Phillips Hot Spring Grant Jefferson Arkansas Clark Dallas Cleveland Lincoln Nevada Ouachita Calhoun Desha Drew Bradley Ashley Chicot Mississippi During the rd Quarter, FY 008, 46 employers successfully completed the Rule Program.

10 rd Quarter, FY 008 Presentations and Speaking Engagements Benton Carroll Boone Baxter Fulton Randolph Clay Washington Madison Newton Marion Searcy Stone Izard Sharp Lawrence Independence Greene Craighead Mississippi Franklin Crawford Johnson Pope Van Buren Cleburne Jackson Poinsett Sebastian Logan Conway White Faulkner Woodruff Yell Scott Perry Pulaski Lonoke Prairie Saline Polk Montgomery Garland Monroe Howard Hot Spring Grant Jefferson Arkansas Pike Sevier Clark Dallas Cleveland Lincoln Desha Little River Hempstead Nevada Ouachita Calhoun Drew Miller Bradley Cross Crittenden St. Francis Lee Phillips Lafayette Columbia Union Ashley Chicot The AWCC Health and Safety staff receive frequent requests to speak on a variety of topics related to loss control, drug-free workplace programs, and related topics. If your constituents would like to host a program by the Health and Safety staff on these or other subjects, please contact Patricia Burge at or pburge@awcc.state.ar.us.

11 Benton 4 Washington 4 Franklin Crawford Sebastian 6 Polk Sevier Scott Howard Little River Miller Arkansas Workers Compensation Commission rd Quarter, FY 008 Carroll Madison Logan Johnson Yell Montgomery Pike Hempstead Lafayette Voluntary Drug Free Workplace Program New Approvals and Renewals Boone Newton Pope Garland Clark Nevada Columbia 6 Perry Hot Spring Ouachita Marion Searcy Baxter Van Buren Conway Saline 6 Dallas Stone Faulkner Pulaski Grant Grant Calhoun Union 6 During the rd Quarter, FY 008, the following Arkansas companies received approval of their Voluntary Drug Free Workplace Programs: Fulton Izard Cleburne 5 Cleveland Sharp Independence White Lonoke Jefferson Bradley Lincoln Drew Ashley Prairie Randolph Lawrence Woodruff Monroe Arkansas Jackson Desha Chicot Clay Greene Craighead Poinsett Cross St. Francis Lee Phillips 7 Crittenden Mississippi Out of State

12 rd Quarter, FY 008 Voluntary Drug Free Workplace Program New Approvals and Renewals COMPANY CITY COUNTY R.M. Courson, Inc. Hamburg ASHLEY Petro-Mark, Inc. W.O. #9 Mountain Home BAXTER Nabors Sanitation Mountain Home BAXTER Petro-Mark, Inc. W.O. # Pea Ridge BENTON Petro-Mark, Inc. W.O. #8 Bentonville BENTON Petro-Mark, Inc. W.O. # Centerton BENTON Central Group Rogers BENTON Red Rock Oil Field Hauling, LLC Rogers BENTON Petro-Mark, Inc. W.O. #5 Rogers BENTON Petro-Mark, Inc. W.O. #6 Bentonville BENTON Insul-Bead Corp. Gravette BENTON Zero Mountain, Inc. Lowell BENTON Diamond International Lowell BENTON Clinard Construction Mgmt Bentonville BENTON Dennis Electric, Inc. Rogers BENTON Pel-Freez Arkansas, LLC Rogers BENTON ACE Glass Company Lowell BENTON Petro-Mark, Inc. W.O. # Gas Harrison BOONE Petro-Mark, Inc. W.O. #4 Harrison BOONE Petro-Mark, Inc. W.O. #7 Lead Hill BOONE Petro-Mark, Inc. W.O. #8 Harrison BOONE Petro-Mark, Inc. W.O. #5 Harrison BOONE Petro-Mark, Inc. W.O. #5 Subway Harrison BOONE Petro-Mark, Inc. W.O. #5 Depot Harrison BOONE Petro-Mark, Inc. W.O. #6 Harrison BOONE Petro-Mark, Inc. W.O. #5 Bergman BOONE Petro-Mark, Inc. W.O. #6 Harrison BOONE Petro-Mark, Inc. W.O. #77 Subway Lead Hill BOONE Petro-Mark, Inc. W.O. #9 Berryville CARROLL S.W.T., Inc. Green Forest CARROLL J.W. Black Lum ber Co. Corning CLAY Sound-Craft Systems, Inc. Morrilton CONWAY Crow Paving, Inc./Jay-Pac,Inc. Morrilton CONWAY Consolidated Youth Services Jonesboro CRAIGHEAD Tate General Contractors, Inc. Jonesboro CRAIGHEAD J. T. White Lum ber Co., LLC Jonesboro CRAIGHEAD RGB Mechanical Contractors, Inc. Jonesboro CRAIGHEAD Innovative Interiors, Inc. Jonesboro CRAIGHEAD SignSystems, Inc. Jonesboro CRAIGHEAD City Water & Light Jonesboro CRAIGHEAD Dillmeier Enterprises, Inc. Van Buren CRAWFORD Mahar Manufacturing Van Buren CRAWFORD Roeder Construction Co., Inc. Marion CRITTENDEN Dayco Construction Damascus FAULKNER Fortier Inc. Conway FAULKNER NBMC, Inc. Greenbrier FAULKNER Hugg and Hall Equipment Conway FAULKNER Diamond State Bus Company Conway FAULKNER Lock-Wood Electric, Inc Conway FAULKNER Chrisman Ready-Mix, Inc. Ozark FRANKLIN Petro-Mark, Inc. W.O #5 Salem FULTON

13 rd Quarter, FY 008 Voluntary Drug Free Workplace Program New Approvals and Renewals COMPANY CITY COUNTY Petro-Mark, Inc. W.O. #55 Subway Salem FULTON Alliance Rubber Co. Hot Springs GARLAND GTS Construction Inc. Hot Springs GARLAND Quapaw House, Inc. Hot Springs GARLAND Allen Engineering Corp. Paragould GREENE Diamond International Pine Bluff JEFFERSON Underground Utilities Contractors, Inc. Cabot LONOKE Petro-Mark, Inc. W.O. # Subway Yellville MARION Hugg and Hall Equipment Texarkana MILLER Tim Jordan Co. Inc. Camden OUACHITA Hugg and Hall Equipment Camden OUACHITA D&D Forestry, Inc. Camden OUACHITA Producers Tractor Helena PHILLIPS F.M. DIX Co. Inc. Mena POLK Brodix, Inc. Mena POLK P.O.M. Inc. Russellville POPE Zero Mountain, Inc. Russellville POPE Kirby Specialties Corp. Russellville POPE Diamond International Russellville POPE Van Horn Construction Russellville POPE Van Horn Construction Russellville POPE Handling Systems & Conveyor Mabelvale PULASKI Hugg and Hall Equipment Little Rock PULASKI Democrat Printing & Litho Little Rock PULASKI Improved Construction Methods, Inc. Jacksonville PULASKI Chiefseahawk Transport LLC Little Rock PULASKI Bailey Properties, LLC Little Rock PULASKI Coulson Oil Group North Little Rock PULASKI Custom Aircraft Cabinets North Little Rock PULASKI Heslep Concrete Co. Little Rock PULASKI PPS Inc. EasyCash Little Rock PULASKI Diamond International North Little Rock PULASKI Parkway Automotive Little Rock PULASKI Beard-Breeding Painting Mabelvale PULASKI PPS Inc., DBA Braswell & Son Little Rock PULASKI ACE Glass Company Little Rock PULASKI Rodebush Construction, Inc. Fort Smith SEBASTIAN Carman, Inc. Fort Smith SEBASTIAN Hugg and Hall Equipment Fort Smith SEBASTIAN Bradley Machine Fort Smith SEBASTIAN Zero Mountain, Inc. Fort Smith SEBASTIAN Blaylock Heating & Air Conditioning Ft. Smith SEBASTIAN Tri-Lakes Services, Inc. Gillham SEVIER Petro-Mark, Inc. W.O. # Hardy SHARP Petro-Mark, Inc. W.O. 66 Subway Hardy SHARP Hugg and Hall Equipment El Dorado UNION El Dorado Foundry Machine and Supply Co., Inc. El Dorado UNION

14 rd Quarter, FY 008 Voluntary Drug Free Workplace Program New Approvals and Renewals COMPANY CITY COUNTY Mangum Contracting, Inc. El Dorado UNION Petro-Mark, Inc. W.O. # Fayetteville WASHINGTON Petro-Mark, Inc. W.O. #4 Fayetteville WASHINGTON Petro-Mark, Inc.W.O. #7 Elect. Springdale WASHINGTON Petro-Mark, Inc. W.O. #4 Fayetteville WASHINGTON Hugg and Hall Equipment Fayetteville WASHINGTON Hugg and Hall Equipment Springdale WASHINGTON The Potty House Inc. Fayetteville WASHINGTON Zero Mountain, Inc. Johnson WASHINGTON Budgetext Corporation Fayetteville WASHINGTON Heartland Honda Springdale WASHINGTON Basic Block Group LLC Springdale WASHINGTON Johnson Mechanical Contractors, Inc. Fayetteville WASHINGTON Arkansas Occupational Medicine Services Springdale WASHINGTON Advanced Records Storage, Inc. Springdale WASHINGTON D&H Electrical Cont. Inc. Searcy WHITE Petro-Mark, Inc. W.O. #0 Branson OUT OF STATE Petro-Mark, Inc. W.O. # Branson OUT OF STATE Southeastern Property Management Birmingham OUT OF STATE