Page 1 Copyright © 2010 Raytheon Company. All rights reserved. Self-Insured Workers’ Compensation Program Frank Ruel.
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Page 1Copyright © 2010 Raytheon Company. All rights reserved.
Self-Insured Workers’ Compensation Program
Frank Ruel
Page 2
Agenda
Raytheon Company Overview Integrated Disability Program Workers’ Compensation Program Self Administration Benefits Return to Work Conclusion
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›› A global leader in technology and innovation
WHO WE ARE
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
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›› Ensuring the success of our customers
To be the most admired defense and aerospace systems supplier through world-class people and technology.
OUR VISION
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Raytheon Business HeadquartersRaytheon Business Headquarters
Global HeadquartersWaltham, MA
›› 75,000 employees; 2009 net sales: $25 billion
Integrated Defense Systems
Tewksbury, MA
Technical ServicesReston ,VA
Intelligence and Information SystemsGarland, TX
Network Centric SystemsMcKinney, TX
Missile SystemsTucson, AZ
Space and Airborne SystemsEl Segundo, CA
BD and RaytheonInternational Operations
Rosslyn, VA
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Organization Chart
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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-AdministrationPros
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
• Superior level of service• Lower cost
Cons Bonding requirements Personnel issues Overhead costs
• Head count• IT costs• Office Space
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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
42
26
0
5
10
15
20
25
30
35
40
45
2009 Avg Duration
Insured
SelfInsured
Based on a 5-day work week
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Average Lost Time Claim Cost – Insured vs. Self Insured
$31,287.29
$18,459.03
$0.00
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
$35,000.00
3 YR AVG $ LT Claims
Insured
SelfInsured
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
$781.69
$205.14
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
3 YR AVG $ Expense
Insured
SelfInsured
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
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
Physician
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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)
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
The worksite Return to Work Planning Forum
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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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