Transcript Document

Susan Azar
Workers’ Compensation Manager
Vision: Design, Build & Sell the World’s Best Vehicles
Vision: Design, Build & Sell the World’s Best Vehicles
General Motors Facts
Global scale
• GM does business in more than 140 countries
• Over 73% of GM sales are outside of the U.S.
• GM's largest markets, in sales are: China, US, Brazil, UK, Germany
Employment
• GM employs 209,000 people globally
• U.S. employment is 79,000: 26,000 salaried / 53,000 hourly
Facilities
• Globally - 71 assembly facilities / 87 manufacturing facilities
• U.S. - 11 assembly facilities / 30 manufacturing facilities
Hourly Employee Demographics
Average Age
49
Average Years of
Service
22
Skilled Trade
23%
Non-Skilled
77%
Retirement Eligible
39%
Self Insured vs Insured States
Insured (30) – High Deductible
Self-Insured (20)
CALIFORNIA
DELAWARE
ILLINOIS
INDIANA
KANSAS
KENTUCKY
LOUISIANA
MARYLAND
MASSACHUSETTS
MICHIGAN
*Formerly Self-Insured
MISSISSIPPI
MISSOURI
NEW YORK
NORTH CAROLINA
OHIO
PENNSYLVANIA
TENNESSEE
TEXAS
WEST VIRGINIA
WISCONSIN
ALABAMA*
ALASKA
ARIZONA
ARKANSAS
COLORADO
CONNECTICUT*
FLORIDA*
GEORGIA*
HAWAII
IDAHO
IOWA
MAINE
MINNESOTA
MONTANA
NEBRASKA
NEVADA
NEW HAMPSHIRE
NEW JERSEY*
NEW MEXICO
NORTH DAKOTA
OKLAHOMA*
OREGON
RHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTA
UTAH
VERMONT
VIRGINIA*
WASHINGTON
WYOMING
Evolution of Program
Administration
Decentralized Claims Administration
• Self Administered Claims
• Plants were independent
• Paper Claim Records
Regional Claims Administration – early 1990’s
• Self Administered Claims
• Claims were handled at Regional Centers
• Electronic Record Keeping System
Centralized Claims Administration – 1996 - Current
• Claims Administration by TPA
• GM Employees Provide Oversight
• Industry Standards
• JURIS – Sedgwick’s Claim System
Organizational Structure
Workers’ Compensation
• Report to Global Human Resources – Employee Benefits
• Work closely with Corporate Risk Management (Treasury) responsible for
placement of Insurance & Collateral
WC Program Responsibility
Responsible for Self-Insurance Administration
 Relationships with State Agencies
 Annual Renewals, Reporting Requirements, Assessments
 Sedgwick Data Analyst provides assistance
Responsible for oversight of TPA for Claims Administration
 Third Party Administrator - Sedgwick CMS (since 1996)
 WC, Sickness & Accident, Extended Disability, FMLA (Pilot)
 Sedgwick Staff of ~120 people
 Utilization Review
 Bill Review
 Provider Networks
 Various Vendor Management Relationships
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Vocational Rehabilitation (Voc Rehab)
Independent Medical Exams (IME)
Special Investigations (Surveillance)
Medicare Set-Asides (MSA)
Structured Settlements
Insurance & Collateral
• Broker – Aon (Casualty)
• Chartis – Insurer (Excess & High Deductible)
• Surety – Traveler’s
Other GM Departments
Health Services
• Report to Global Human Resources
• Most Facilities have Medical Departments
Health & Safety
• Report to Labor Relations/Manufacturing
Legal / Litigation
• Outsourced Defense Attorney Model
Comparison of Headcount to Claim Cost
GM WORKERS' COMPENSATION
HISTORICAL MEDICAL & INDEMNITY EXPENSES
500,000
INDEMNITY
MEDICAL
HEADCOUNT
450,000
MEDICAL & INDENMITY EXPENSE
400,000
350,000
250,000
200,000
150,000
100,000
50,000
0
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
YEAR OF EXPENSE
HEADCOUNT
300,000
Frequency of Lost Time Injuries
By Body Part
BACK
15.0%
OTHER
22.4%
SHOULDER
14.9%
FOOT
3.5%
ANKLE
4.4%
FINGER
4.9%
KNEE
11.7%
MULTIPLE BODY
PARTS 5.4%
ABDOMEN/GROIN
5.6%
HAND
6.0%
WRIST
6.1%
Expense of Lost Time Injuries
By Body Part
OTHER
16.6%
SHOULDER
17.3%
FINGER
3.4%
FOOT
3.9%
BACK
16.4%
ABDOMEN/GROIN
4.5%
MULTIPLE BODY
PARTS
4.7%
ANKLE
5.7%
HAND
6.2%
KNEE
11.9%
WRIST
9.4%
Internal Challenges
Internal
• Reducing Lifetime Claims & Impact to Liability on Balance Sheet –
82%
• NJR (No Job Available) / Return to Work Obstacles
 Plant Closings
 Union/Labor Culture
 Work in Teams
• Recent Increase in Loss Frequency
 Overtime
 Relocated Employees
• Litigation
 MI – related to Benefit Coordination
 TN – related to change from Old to New GM
External Challenges
External
• Economic Climate
 Employee Relocations
 Consumer Demand
• Price of Gasoline
• Employee Friendly State Laws
Opportunities
• Leveraging Relationship with Plant Medical+
• Succession Planning for Staff
General Motors Financial Facts
6/1/2009
General Motors Corporation Files for Bankruptcy
7/10/2009
General Motors LLC Emerges from Bankruptcy
4/21/2010
Government Loan Paid-off ahead of schedule - with interest
11/3/2010
Initial Public Offering raises $23 B
11/18/2010
US Treasury Department reduced ownership from 61% to 33%
12/31/2010
2010 Net Income attributable to common stockholders of $4.7 B
5/5/2011
Q1 2011 Net Income of $3.2 B
Motor Trend Car and Truck of the Year Winners
Chevrolet Volt & Chevrolet Silverado HD