This Week in Comp, May 29, 2015

Texas Mutual board approves $225 million policyholder dividend distribution

This is the 17th consecutive year the board has voted to distribute policyholder dividends, bringing the total to $1.8 billion. The company has paid the majority of that total – over $1 billion – since 2010.

This is the 17th consecutive year the board has voted to distribute policyholder dividends, bringing the total to $1.8 billion. The company has paid the majority of that total – over $1 billion – since 2010.

Texas Mutual will begin distributing the company-record $225 million dividend among qualifying policyholder-owners in late July…MORE

Deaths in oil, gas extraction up more than a quarter over past decade
Traffic accidents accounted for more than 479, or 40 percent, of the industry’s fatalities between 2003 and 2013, according to a CDC report. Despite the increase in fatalities, the number of deaths per thousand workers decreased by 36.3 percent…MORE

Missed NCCI’s annual issues symposium?
Here are six articles that will help  you catch up on topics such as the industry outlook, medical cost drivers and the on-demand economy…MORE

DSHS offers health-related precautions following recent storms
Mosquitos, contaminated water and power outages are just a few of the hazards associated with heavy storms. The Texas State Health Services Department offers safety tips following last week’s floods…MORE

Prevent new hire injuries with these tips
Safety tools
Between 30 and 40 percent of workplace injuries happen during the first year on the job. Follow these tips to keep new employees safe…MORE

U.S. traffic fatalities spike ahead of summer: National Safety Council study
American roadways have experienced an 8 percent increase in monthly motor-vehicle deaths over the latest six-month period compared to the same time last year, according to a new study from the National Safety Council. Falling gas prices, combined with typical increases in speeding and alcohol-related crashes during the summer, could make roads more perilous than usual. In fact, the NSC has dubbed the period between Memorial Day and Labor Day “100 deadly days”…MORE

Regulatory roundup
Texas Mutual’s weekly roundup of environmental health and safety news…MORE

Don’t forget the other part of OSHA’s mission
Congress created OSHA in 1970 with a clear mission: protect every employee’s right to a safe workplace. Enforcing standards is an essential tool for achieving that mission. But so is partnering with stakeholders to promote safe workplaces…MORE

New NCCI study examines relationship between accident report lag and claim cost
The median cost for claims reported in Weeks 1 and 2 is lower than the median cost for claims reported on the day of the accident or more than two weeks after the accident, according to a National Council on Compensation Insurance study. The study authors note that claims reported on the day of the incident typically involve serious injuries that require extensive treatment…MORE

NHTSA urges motorists to wear seat belts for safety
In 2013, 9,580 Americans who died in crashes were not wearing a seat belt, which accounts for an estimated one-half of all fatalities when the victims’ seat belt status was known. More than 10,000 law enforcement agencies nationwide will participate in the National Highway Traffic Safety Administration’s “Click It or Ticket” campaign, which runs from May 18 through May 31…MORE

Texas Mutual pays $630,460 dividend to Social Services Agencies of Texas
The workers’ compensation dividend was based largely on group members’ collective efforts to prevent workplace accidents…MORE

Stop work authority: the most powerful safety tool you can give your employees
Under federal law, your employees have the right to refuse to do any task they feel is dangerous. But your safety program should go beyond compliance, empowering employees to stop any operation they feel is unsafe, regardless of who is doing the work…MORE

Texas Mutual Board Approves $225 Million Dividend Distribution

Untitled-1Texas Mutual Insurance Company’s board of directors voted yesterday to approve a company-record $225 million dividend distribution in 2015. Qualifying policyholder owners across Texas will share the dividend, which will be distributed beginning in July.

Texas Mutual is owned by its policyholders, not stockholders, which means that the company shares its success by distributing dividends to policyholder owners who have made a commitment to preventing workplace accidents and helping injured workers get back on the job.

This is the 17th consecutive year the board has voted to distribute policyholder dividends, bringing the total to $1.8 billion. The company has paid the majority of that total – over $1 billion – since 2010.

“Texas Mutual’s policyholder owners greatly contribute to the success of the organization by keeping their workers’ compensation losses low, ” said Bob Barnes, chairman of Texas Mutual’s board. “We value that contribution and are proud to recognize it year after year with dividends that help Texas employers control their costs even further.”

Texas Mutual President and CEO Rich Gergasko said the dividend distribution reflects a deep commitment that the company and its policyholder owners have made to Texas.

“Texas Mutual partners with our policyholder owners throughout the year to help them keep their workers safe and costs low,” Gergasko said. “These dividends are a tangible representation of that year-round commitment. We appreciate the unique relationship that we have with our customers and know that this money goes back into our state’s economy to help employers build their businesses for the future.”

Gergasko noted that while Texas Mutual has awarded dividends each year since 1999, they are based on performance and therefore are not guaranteed. Additionally, dividends must comply with Texas Department of Insurance regulations.

To learn more about how ownership pays at Texas Mutual, visit texasmutual.com/ownershippays.

Don’t Forget the Other Part of OSHA’s Mission

By David Wylie, Senior Technical Writer

By David Wylie, Senior Technical Writer

Corporate mission statements can be so nonsensical. Heavy on jargon, empty adjectives and passive voice, they say a lot without really saying anything at all. If the mission was to use as many words as possible, commit to very little and convey nothing about what the organization stands for, mission accomplished.

If you’re looking for a model mission statement to jump start your start-up, take a peek at the Occupational Safety and Health Administration (OSHA). I know it’s counterintuitive that a federal agency mired in red tape and bureaucracy could offer anything in the way of clear, concise communication. But the politicians who crafted OSHA’s mission statement did a fine job. Its core messages remain as relevant today as they were when OSHA opened for business in 1970:

“With the Occupational Safety and Health Act of 1970, Congress created the Occupational Safety and Health Administration to assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance.”

No need for translation there. The editor in me would break the statement into two sentences, but that’s a minor matter. In a mere 43 words, the authors conveyed two key concepts:

  1. OSHA will protect everyone’s right to a safe workplace.
  2. OSHA will accomplish number 1 by enforcing standards and educating stakeholders.

Standards are an unfortunate but necessary tool for protecting workers’ rights. If you’ve ever tried to navigate those standards, you know they can be confusing, cumbersome and expensive to comply with. Consequently, many employers think of OSHA as a proverbial thorn in their sides. I think it’s time we change that paradigm. What better place to start than with the part of OSHA’s mission that addresses stakeholder education?

OSHA's annual fall prevention campaign is one example of its commitment to educating stakeholders about safety.

OSHA’s annual fall prevention campaign is one example of its commitment to educating stakeholders about safety.

This month, OSHA orchestrated a two-week campaign that demonstrates its genuine commitment to saving lives. I’m talking about the annual Stand Down for Safety campaign. From May 4 – 15, OSHA encouraged construction workers and their employers to pause during their busy days and discuss falls, the industry’s leading cause of death.

Last year’s Stand Down campaign drew 1 million participants. This year’s goal was 3 million.

Assistant Secretary Dr. David Michaels and his staff could have simply issued a rallying cry, and then gotten on with the business of issuing and enforcing regulations. But they did far more, creating a dedicated Stand Down website, suggesting daily themes and offering free training material that reinforced those themes.

With support from other regulatory agencies and construction companies across the country, the campaign and its collateral found their way to parts of the globe most Americans have never heard of.

In Hindon, India, a crew of 1,300 people working on a Boeing site presumably knows a little about preventing falls. The group has logged 8 million man hours without a lost-time incident. Still, workers took time to participate in the Stand Down.

And on the remote island of Diego Garcia in the Indian Ocean, supervisors led exercises on personal protective equipment, ladder safety and other fall protection topics.

OSHA's alliance with the National Safety Council is one of many partnerships it has entered with the goal of promoting workplace safety.

OSHA’s alliance with the National Safety Council is one of many partnerships it has entered with the goal of promoting workplace safety.

We won’t know whether OSHA met this year’s lofty Stand Down participation goal until all the numbers are in. If it did, the agency will have reached 4 out of every 10 construction workers. That means 40 percent of the industry’s workforce received free information that could save their lives. Not bad for a federal agency interested in little more than flexing its regulatory muscle, eh?

OSHA employs approximately 2,200 inspectors responsible for the health and safety of 130 million workers at more than 8 million worksites around the nation. I was told there would be no math when I accepted this position, so I was relieved to find that OSHA already crunched the numbers for me. That translates to about one compliance officer for every 59,000 workers.

Most employers will never have face-to-face contact with OSHA, and that’s probably just fine with them. But if an OSHA inspector does come calling one day, will you at least consider the possibility that they are there to help you keep your employees safe and on the job?

Falls don’t discriminate by industry
Falls are the leading cause of death among construction workers, but the risk is industry-wide. In fact, falls are the second-leading cause of workplace accidents. For tips on protecting your workers, click here.

This Week in Comp, May 22

Regulatory roundup
Texas Mutual’s weekly roundup of environmental health and safety news…MORE

Texas Senate confirms Brannan as commissioner of the Division of Workers’ Compensation
Ryan BrannanBrannan previously served as an advisor in the Governor’s Office Division of Budget, Planning and Policy, focusing on issues relating to the insurance industry, including property and casualty insurance, workers’ compensation, healthcare, public health and health and life insurance…MORE

Texas workers’ comp claims see slow growth: WCRI
The total average cost per claim for injured workers in Texas was among the lowest in a 17-state study conducted by the Workers’ Compensation Research Institute (WCRI). In 20015, the Texas Legislature authorized major system reforms designed to reduce medical costs. The WCRI speculates that this year’s study reflects the effects of those reforms…MORE

Revamped pharmacy program protecting health and safety of Ohio’s injured workers
Ohio injured workers were prescribed 15.7 million fewer opiate doses in 2014 than in 2010, representing a 37 percent decrease, thanks largely to the state’s first outpatient medication formulary…MORE

Washington teens twice as likely as adults to be hurt on the job
teen workerFalls were the leading cause of injuries for youth in the food and retail industries during 2014, according to a study released by the Washington State Department of Labor & Industries…MORE

DEA raids ‘pill mills’ in four Southern states
An average of 44 people die every day from opioids, including Vicodin, OxyContin and Percocet. In the last 15 months, the DEA has arrested 140 as part of “Operation Pilluted,” the largest pharmaceutical operation in DEA history. The agency hopes to arrest as many as 170 others in the ongoing battle against prescription drug abuse…MORE

West Virginia Supreme Court rules addicts can sue pharmacies, doctors
The ruling involved 29 patients who sought treatment for job-related injuries or injuries stemming from car accidents. They alleged they were prescribed controlled substances and became addicted because of criminal abuse of prescriptions…MORE

NSC estimates crashes involving cell phone use increased for third consecutive year
cell_phone_blogCell phone use is a factor in 27 percent of car crashes, according to an annual National Safety Council study. The Council estimates texting-related crashes jumped from 5 percent to 6 percent in this year’s study, while crashes involving drivers talking on cell phones remained at 21 percent…MORE

Make wellness part of the “daily grind”
Employee health and safety are inseparable. National Fitness and Sports Month is the perfect time to make wellness part of your daily grind…MORE

 

This Week in Comp, May 15

Regulatory roundup
Texas Mutual’s weekly roundup of environmental health and safety news…MORE

Falls don’t discriminate by industry
Falls in the construction industry have received a lot of attention across the country the past couple of weeks, thanks to OSHA’s annual Stand Down for Safety event. But construction workers aren’t the only people at risk. In fact, falls are the second-leading cause of workplace injuries across industries…MORE

Texas driver ‘inattentive’ in bridge crash
Truck on freeway
The driver of a tractor trailer that struck a bridge in Salado was inattentive and hauling an illegal oversized load, according to Texas Department of Public Safety investigators…MORE

How on-demand economy is changing workers’ compensation
Need to hire a contractor? There’s an app for that. Hate doing laundry? There’s an app for that, too. The demand for temporary workers has grown three times more than for traditional workers during the past five years, and apps are connecting employers and employees faster than ever. It’s known as the on-demand economy, and it has implications for the workers’ compensation industry…MORE

California insurance commissioner urges first work comp rate cut in four years
The 10 percent recommended cut is roughly double the size of cuts insurers announced they would make…MORE

Patient engagement key to improving compliance, return-to-work
rtwPatient engagement strategies include understanding the patient’s beliefs about their health, their condition’s severity, their perceived treatment benefits, and their perceived ability to engage in treatment intervention, according to a Coventry white paper…MORE

California court says staffing agencies can’t self-insure workers’ comp
The court noted that staffing agencies can dramatically change the scope of their workers’ compensation risk by adding new clients and new employees, but the self-insurance deposit would not be adjusted until the subsequent year…MORE

Tire safety: 3 critical failures to avoid

Click on the image for more information on how to reduce tire blowouts.

Click on the image for more information on how to reduce tire blowouts.

The first driverless, wheel-less, hovering cars aren’t far off. Until then, we can steer clear of motor vehicle accidents by keeping our tires in good working order…MORE

Work comp in North Carolina – lessons learned
A recently-published report on the North Carolina work comp system should be required reading for anyone looking to understand why and how costs and care will change in response to regulations, according to Joe Paduda, author of the popular Managed Care Matters blog. Paduda’s key takeaway: Reform can effectively mitigate cost drivers if it targets specific factors influencing costs…MORE

Workers’ comp industry improved in 2014, but NCCI sees trouble ahead
In 2014, the industry’s combined ratio improved for the third consecutive year, premium grew for the fourth consecutive year, and claim frequency declined about two percent. Premium volume continues to increase, but construction and manufacturing employment totals remain well below pre-recession levels, which is restraining even higher premium growth rates, according to NCCI’s annual State of the Line report…MORE

Texas Mutual Workshops Under Way

Carrie

Texas Mutual workshop coordinator Carrie Scarborough Kinnard

Workshop season is in full swing at Texas Mutual, which means we are busy preparing for sessions across the state, talking with policyholders and agents in the cities we’ll be visiting and doing a lot of traveling. We are already on track to see another very successful year of training employers and agents all throughout Texas. We knew this would be the case when our first workshops of the year in Houston brought more than 120 attendees!

As Texas Mutual’s workshop coordinator, I’ve had the chance to see our workshops go from just an idea to what they are today. Every year as we get ready to take our presentations across the state, I get excited about the difference we’ll be making. Last year alone, we trained 1,100 employers and agents, and I know that each one of those people will be able to put what they learned to use in their business. Just a few hours in a workshop can help employers keep their workers’ comp costs low and their employees safe, and that’s one of the things that makes what we do worthwhile.

The team

One of the biggest factors of our workshops’ success is the Texas Mutual presenters who share their expertise with policyholders and agents. We have team members from safety services, claims and special investigations for employers to hear from and ask questions, and agents have the chance to spend the morning with marketing/underwriting and premium audit experts. I can honestly say that these presenters are some of the finest I’ve worked with. They are always looking for ways to make our workshops efficient and entertaining. They are extremely knowledgeable in their fields and their experience and wisdom shows. Our workshops may be one of the few times our agents and policyholders get to see a ‘face’ of Texas Mutual and I can say with confidence that these presenters are representative of the professionalism, friendliness and kindness that you’ll find at Texas Mutual.

Bonus session

In 2014, we added another aspect to our workshop opportunities. We realized that driving accidents were accounting for a significant amount of workers’ compensation claims, and those numbers were rising year after year. When we launched our Safe Hand Texas campaign and started arming employers and workers with educational materials to help them stay safe on the road, offering defensive driver training was a natural next step. We now offer a defensive driving class in the afternoon following the majority of our workshops. This highly interactive defensive driving class provides drivers with practical knowledge and techniques to avoid collisions and violations. It also helps drivers choose safe, responsible driving behaviors. Just like all our workshops, it is completely free for Texas Mutual policyholders and their employees.

Why attend?

When employers and agents ask me what they’ll get out of a Texas Mutual workshop, the first thing I tell them is that they’ll learn from industry experts about what workers’ comp means for their business. I’m also told at every workshop that one of the participants’ favorite take away is always the gifts we raffle off during the workshops! But there are also a few other perks of attending a session:

  • Agents can earn 3.5 CE credits (TDI course #94957)
  • Our defensive driving class may be accepted by insurance companies for premium discount
  • Receive completely free workers’ comp training
  • Leave with materials to help remember what the workshop covered
  • Get safety materials to take back to your workplace

We’ll be in cities all across Texas this year and I hope to see you there! We’ll continue to update the Workshops, Training and Education page at texasmutual.com as registration opens up, but right now you can resister for our next two workshops, Midland on May 21 and Amarillo on June 18. Click here to register or to find out more about our workshops and other training opportunities.

Falls Don’t Discriminate by Industry

A roofing supervisor with 25 years’ experience dies after falling 30 feet through a skylight. There were no skylight screens installed, and the supervisor was not wearing fall protection.

In an unrelated case, a construction laborer falls 75 feet through a temporary wooden platform while performing bridge renovations. He was not wearing fall protection, and no fall protection system was in place.

It’s no secret that falls are a major on-the-job hazard in the construction industry. In 2013, they accounted for 35 percent of construction worker fatalities. Many of those deaths were preventable.

To raise awareness of the potentially serious consequences of falls, the Occupational Safety and Health Administration is hosting its National Safety Stand Down from May 4 – May 15. The annual event encourages construction workers to pause during their busy days and talk about the importance of wearing fall protection and following safe work practices.

If you haven’t participated in the Stand Down, Texas Mutual encourages you to visit the website and use the free resources. But remember that you don’t have to be in the construction industry to benefit from the information.

Falls are the second-leading cause of workplace injuries across industries, according to the Bureau of Labor Statistics. If you’ve climbed a ladder, used the stairs, stepped off a curb or gotten out of a vehicle today, you have been at risk of becoming a fall statistic.

Here are some general safety tips anyone can follow to keep their feet on solid ground:

  • Learn how to select, set up and use a ladder safely.
  • Practice good housekeeping. That includes cleaning spills up as soon as possible, repairing damaged stairs and leaky faucets, and keeping walkways clear.
  • When climbing stairs, use the handrails, avoid distractions and take one step at a time.
  • Wear slip-resistant shoes when working on slick floors, and walk cautiously when wearing high heels, open-toe shoes and shoes with slick soles.
  • Use slip-resistant mats near entryways, dishwashers, refrigerators and sinks.
  • Make sure you can see where you are going when carrying loads.
  • Learn and follow OSHA’s fall protection standards*:
    • Construction – six feet or more
    • General industry – four feet or more
    • Shipyards – five feet or more
    • Longshoring – eight feet or more

*In addition, OSHA requires that fall protection be provided when working over dangerous equipment and machinery, regardless of the fall distance.

Resources

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