08DOA-S2294 Current Workers Compensation Program.docx

08DOA-S2294 RFQ Nevada Workers Compensation Brokers

SUMMARY OF THE CURRENT

WORKERS’ COMPENSATION PROGRAM

The Risk Management Division, pursuant to NRS 331.184 is responsible to obtain and manage the workers’ compensation insurance program for the executive branch of the State Government. This includes all agencies that are under the Central Payroll System including the Nevada Department of Transportation (NDOT), Legislative Counsel Bureau (LCB) and Public Employees Retirement System (PERS). It does not currently include the following:

· Nevada System of Higher Education-NSHE (formerly University and Community College System of Nevada-UCCSN)

· Independent Boards and Commissions

However, pursuant to NRS 331.184 (10) any political subdivision can request to be included in the State’s program.

The State has an active Safety and Early Return to Work Program; a very proactive claims management program and an independent contract for an aggressive claims audit program, in which subsequent injury fund recoveries are routinely pursued as well as employer representation services.

Attachment I includes a summary of the State Administrative Manual provisions in relation to safety and workers’ compensation. This manual represents approved State policy in regard to these programs.

The following Departments employ a full time Loss Control and Safety and Health representatives:

· Department of Motor Vehicles

· Department of Public Safety

· Nevada Department of Corrections

· Nevada Department of Transportation

Other Departments and Divisions each have a safety coordinator and a workers’ compensation liaison/personnel representative assigned to work with the Risk Management Division.

There is currently not an agency-specific cost allocation plan in place. Each agency pays a composite rate per $100 of payroll determined by dividing the total anticipated program expenses into the total anticipated capped payroll. Budget projections must be made three years in advance due to the biennial Legislative process.

The Risk Management Division has established approximately 25 separate policies for the purposes of enhancing communications and accountability. Due to the multiple agencies and locations involved, timely communications is a challenge.

There is a goal to consolidate the policies under one main policy, if additional resources or software programs can be obtained to assist the Division in communications via either the broker or the insurer. It is desired that agencies forward all claims to the Risk Management office for processing. It is for this reason that the Division requires that insurer claims representatives be housed within the same office as the Risk Management Division.

Current Insurance Plan Since January 1, 2001, the State has had large deductible programs with AIG. The retention level was at $750,000 in 2001, $1,000,000 in 2002, $2,000,000 in 2003, $2,500,000 in 2004, 2005, 2006 and 2007, $1,500,000 in 2008, 2009, 2010 and 2011, and $2,000,000 in 2012, 2013, 2014, 2015, 2016 and 2017. The Third Party Administrator for this program is Cannon Cochran Management Services, Inc. (CCMSI) and the Managed Care Organization is Specialty Health MCO for all Northern Nevada Claims and Sierra Nevada Administrators (SNVA) for all Southern Nevada Claims and the Nevada Department of Transportation statewide.