Transcript Presentation Title to allow for 3 lines

Self-Insured Workers’ Compensation Program
Frank Ruel
Copyright © 2010 Raytheon Company. All rights reserved.
Page 1
Agenda
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Raytheon Company Overview
Integrated Disability Program
Workers’ Compensation Program
Self Administration Benefits
Return to Work
Conclusion
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WHO WE ARE
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A technology and innovation leader specializing in defense, homeland
security and other government markets throughout the world
2009 net sales: $25 billion
75,000 employees worldwide
Headquarters: Waltham, Massachusetts
›› A global leader in technology and innovation
Page 3
OUR VISION
To be the most admired defense and aerospace systems
supplier through world-class people and technology.
›› Ensuring the success of our customers
Page 4
Raytheon Business Headquarters
Integrated
Defense Systems
Tewksbury, MA
BD and Raytheon
International Operations
Rosslyn, VA
Space and Airborne
Systems
El Segundo, CA
Network Centric
Systems
McKinney, TX
Missile Systems
Tucson, AZ
Global
Headquarters
Waltham, MA
Technical Services
Reston ,VA
Intelligence and
Information Systems
Garland, TX
›› 75,000 employees; 2009 net sales: $25 billion
Page 5
Organization Chart
Raytheon CEO
General Counsel
SVP HR
VP - Corp Services
VP - Benefits, Comp,
PD, GHR
Risk Management
EHS
Integrated Disability
Programs
Page 6
Integrated Disability Program at Raytheon
 Workers’ Compensation
• Self-Insured and self-administered in MA and RI
• Claims administered by Liberty Mutual nationwide (except
MA/RI) as well as for U.S. employees working overseas
 Short/Long-Term Disability
• Self-Insured throughout the U.S. for STD and LTD
• Employees can purchase optional coverage for higher benefit
rates and long-term disability
• Claims are handled by MetLife.
 Unemployment Compensation (Claims)
• Claims administered by TALX
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Raytheon Disability Program Absence Management Goals
 Return to work initiatives
• Early and medically safe
• Whether Occ. or Non-Occ.
• Plan RTW- Lead discussions
 Corp resource to consult and train re:
Absence Management / productivity
• HR, management, and front-line leaders
• Safety and medical staff
 Develop innovative RTW programs
 Engage medical community and
Raytheon Physicians
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Raytheon Workers’ Compensation Program (MA & RI)
 Self-Insured
• Raytheon funded for workers’ compensation coverage
• Excess coverage through Liberty Mutual over retention level
 Self-Administered
• “In-house” Claims processing – investigation,
forms, claims decisions
• Bill Payment
• Utilization Review (UR)
• Loss Prevention
• Litigation Management – Outside Counsel
 Other Resources
• On-site Clinics staffed with nurses and M.D.’s
• Medical Consultants
• Vocational Rehabilitation Specialists
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Advantages vs. Disadvantages of Self-Administration
Pros
 Integration with the Business
• Access to Raytheon facilities
and Supervisors (in-person)
• Working relationships with
management & safety
• Employer databases
 Claim Analyst handles
Conciliations
 Manage medical-only claims
 Integration of RMIS, Risktrac,
MetLife Database, Medgate
 Relationships with Doctors
 TPA comparison
Cons
 Bonding requirements
 Personnel issues
 Overhead costs
• Head count
• IT costs
• Office Space
• Superior level of service
• Lower cost
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Raytheon Workers’ Compensation Program History
 Self-Insured as of 1/1/1992
 Self-Administered as of 1993
 Currently cover about 15,000 employees (MA & RI)
• Union workforce ~ 2,300
• Early 1990’s Union workforce ~10,000
 Decreased claim volume due to:
• Reduction of touch-labor
workforce in MA
• Proactive EHS initiatives
• WC reform
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Paid Lost Work Days – Insured vs. Self Insured
45
40
35
30
25
20
15
10
5
0
42
26
Insured
Self
Insured
2009 Avg Duration
Based on a 5-day work week
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Average Lost Time Claim Cost – Insured vs. Self Insured
$35,000.00
$30,000.00
$31,287.29
$25,000.00
$20,000.00
$15,000.00
Insured
$18,459.03
$10,000.00
Self
Insured
$5,000.00
$0.00
3 YR AVG $ LT Claims
1/01/07-12/31/2009 Val 4/1/2010. Loss limit of 250k
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Average Expense Cost – Insured vs. Self Insured
$800.00
$700.00
$781.69
$600.00
$500.00
Insured
$400.00
Self
Insured
$300.00
$200.00
$205.14
$100.00
$0.00
3 YR AVG $ Expense
1/01/07-12/31/2009 Val 4/1/2010
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Jurisdictional Difficulties
 No control of medical
(choice of physician)
 High SAWW, high
compensation rates
 MA Fee schedule negotiated medical rates
 Fairly liberal ALJ’s
 Difficult to get relief from
SIF
 Legal issues
• Fee incentive for employee
attorneys to file
• RTW can be lengthy legal
process
 No cap on TTD
 Specific benefits
• Whole body disfigurement
• Very subjective system
 Forms, forms, forms!
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Coordination of Benefits
 Share data with Raytheon's Health Insurance
Carriers (self-funded)
 Coordination of benefits with MetLife for
STD/LTD
 Integrated Health Management (Mission:Health)
 Share WC data with unemployment for contract
employees
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Getting Absent Employees Back to Work
 Temporary Job Accommodations
• Seek detailed restrictions
• Job rotation or alternative assignments
• Assistive devices and work station
modifications
Physician
 Raytheon Works with MD’s
• RTW promptly in a medically
appropriate and safe manner
• Physician tours of our facilities
• Pre arranged fee arrangements for top
notch Dr’s who get it.
Employee
Raytheon
Page 17
The Employer Statement of Job Demands
 Outlines the physical
requirements of the job
 Completed by the
employee’s supervisor
 Describes potential
accommodations
 It is NOT a job description
 Can be forwarded to treating
physicians
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The Lost Time Intervention Team (LTIT)
The worksite Return to Work Planning Forum
 Medical (RN/MD), HR, Voc
Rehab Experts and Claims
 Reduced Hours and other
accommodations are often
used to ease return
 Clear communications to the
absent employee is an
absolute necessity
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Conclusions
 Better service
 Lower claims cost (especially
expense)
 Better RTW outcomes through
integration with the business
and personal relationships
 Innovative forum to develop
and create tools for RTW
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