OWCP OWCP Interagency Interagency

MeetingMeeting

Shelby Hallmark, DirectorShelby Hallmark, Director

Office of Workers’ Compensation ProgramsOffice of Workers’ Compensation Programs

November 28, 2007November 28, 2007

“ “SHARED” ProgressSHARED” Progress

FECA is like football:FECA is like football:

-- It’s a contact sport, and it’s all about -- It’s a contact sport, and it’s all about teamwork.teamwork.

SHARE has focused agencies’ attention on SHARE has focused agencies’ attention on safety and FECA mgt.safety and FECA mgt.

OWCP continues to pursue its many OWCP continues to pursue its many

initiatives to help achieve better results initiatives to help achieve better results

– – Doug will focus on those later.Doug will focus on those later.

““SHARE” SHARE” IS WORKING IS WORKING

The President’s “Safety, Health and The President’s “Safety, Health and Return to Employment” Initiative is Return to Employment” Initiative is meeting all goalsmeeting all goals

SHARE I (2004-2006) slow to start, ended SHARE I (2004-2006) slow to start, ended with a bangwith a bang

SHARE II (extended through FY 2009): SHARE II (extended through FY 2009): already firing on all cylindersalready firing on all cylinders

SHARESHARE Goals Goals

To reduce Total Case Rates by at least 3% per year

To reduce Lost Time Case Rates by at least 3% per year

To improve the timely filing of injury and illness notices by at least 5% per year

To reduce the rates of lost production days due to injuries and illnesses by at least 1% per year

Total Case Rates -- Goal #1Total Case Rates -- Goal #1 Federal Government (less USPS)Federal Government (less USPS)

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33.5

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Total Case Rate -- Goal #1Total Case Rate -- Goal #1Major Agency—FY07 Goal vs. Major Agency—FY07 Goal vs.

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Lost Time Case Rates -- Goal Lost Time Case Rates -- Goal #2 #2

Federal Government (less USPS)Federal Government (less USPS)

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Lost Time Case Rate – Goal #2Lost Time Case Rate – Goal #2Major Agency—FY07 Goal vs. Major Agency—FY07 Goal vs.

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Timeliness -- Goal #3Timeliness -- Goal #3 Federal Government (less USPS)Federal Government (less USPS)

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Lost Production Days -- Goal Lost Production Days -- Goal #4#4

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FY05 FY06

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Lost Production DaysLost Production Days

OWCP ContributionsOWCP Contributions

OWCP measures its own Return to Work OWCP measures its own Return to Work efforts via “QCM Lost Production Days”efforts via “QCM Lost Production Days”

Limited to cases moving into the Limited to cases moving into the Quality Quality Case Management processCase Management process – normally – normally those with disability beyond COPthose with disability beyond COP

For FY 2007 we pushed down LPD for For FY 2007 we pushed down LPD for these serious cases to 148 days – these serious cases to 148 days – down down 25% in 10 years25% in 10 years

140

150

160

170

180

190

200

Year Scored

Average Days

QCM Lost Production DaysWithin first year of FECA Wage-Loss compensation

OWCP Contributions, OWCP Contributions, cont’dcont’d

Periodic Roll Management continues to Periodic Roll Management continues to provide results: provide results:

$17 Million first year savings in FY 2007$17 Million first year savings in FY 2007 Over $2 billion in savings since inception in 1993Over $2 billion in savings since inception in 1993

Medical cost containment goal met again Medical cost containment goal met again – fee schedule and bill pay edits net – fee schedule and bill pay edits net millions in cost avoidance millions in cost avoidance

-15%

-10%

-5%

0%

5%

10%

15%

Poly. (Milliman USA) Poly. (FECA)

Changes in FECA Medical Costs per Case v. Overall US Health Costs

Trend lines: October 1997 – September 2007

Long-term Disability Long-term Disability RollRoll

46,000

46,500

47,000

47,500

48,000

48,500

49,000

49,500

50,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

(2Q

)

Fiscal Year

End-of-Period Snapshot

Total FECA Benefit CostsFY 2000 - 2007

$-

$500

$1,000

$1,500

$2,000

$2,500

2000 2001 2002 2003 2004 2005 2006 2007

Compensation BenefitsMedical Benefits

(net outlays in millions)

FY 2008 and BeyondFY 2008 and Beyond

OWCP/DFEC continue to innovate – Doug OWCP/DFEC continue to innovate – Doug Fitzgerald will discussFitzgerald will discuss

SHARE Web page update this week:SHARE Web page update this week: FY 2007 LPD results; FY 2007 LPD results; FY 2008-09 performance targets for all 4 of the FY 2008-09 performance targets for all 4 of the

goals; and goals; and All power point presentations from this meeting All power point presentations from this meeting

Still pursuing FECA reform legislationStill pursuing FECA reform legislation

FECAFECA REFORMREFORM Goals Goals

Enhance IncentivesEnhance Incentives Address Equity ConcernsAddress Equity Concerns Fix Antiquated ProvisionsFix Antiquated Provisions

Revised package to OMB for Revised package to OMB for clearance next week clearance next week

Reaching the Reaching the goal:goal:

A safe and healthy workforce, A safe and healthy workforce, protected by the best protected by the best

workers’ compensation workers’ compensation system on Earthsystem on Earth