Workers’ Compensation Overview and Updates

1 Workers Compensation Overview and Updates DOL s Office of workers Compensation Programs Division of Longshore & Harbor Workers Compensation Douglas Fitzgerald, Director Division of Longshore and Harbor Workers Compensation 202-343-5844 1 2 Overview of Division of Longshore and Harbor Workers Compensation Program 3 In-take of Reports of Injury (LS 202) from E\C. Creation of Cases. Conduct Informal Dispute Resolution Conferences. Evaluate and issue decisions on Special fund 8 (f) and 18 (b) applications, stipulations , attorney fees, and 8(i) settlement applications. Monitor Medical and Compensation Payments Assess penalties for non-timely filing of notices of injury and final Compensation payments.

2 Manage Vocational Rehabilitation Services and Return to Work. Engage in stakeholder outreach to improve first report of injury and first payment performance. Claims Management 4 Insurance Authorization, Compliance Oversight and Special Fund Management Authorize carriers to write insurance coverage under the LHWCA and its extensions. Authorize employers to become self-insured under the LHWCA and its extensions. Monitor Compensation and medical expenditures through annual LS513 and LS274 reporting. Annually conduct risk assessment and require E\Cs to securitize risk through bonds, LOC, cash and other securities. Monitor\Manage\Report Special Fund activity. Make payment and collect penalties under the Special Fund.

3 Annually assess needs of the Special Fund. Issues and collects annual industry assessments on each E\C based on 8(f) utilization and SF needs. Conducts E/C audits to ensure proper reporting of claims expenditures. Collects assessments on identified under-reported claims expenditures. Outline Claims Trends & Program Performance Operational Efficiencies through IT Modernization Areas of Focus in the Near Term 5 Carrier/Self-Insured Payments by Company Year 6 7 Claims Trends New Claims Reported FY 2010 FY 2017 12,742 13,242 12,367 11,858 15,176 13,760 13,547 14,162 01,0002,0003,0004,0005,0006,0007,0008,00 09,00010,00011,00012,00013,00014,00015,0 0016,00017,00018,00019,00020,00020102011 201220132014201520162017 Longshore Injuries Reported 8 Claims Trends New Claims Reported FY 2010 FY 2017 14,844 11,604 12,168 11,610 7,892 5,864 6,089 6,622 01,0002,0003,0004,0005,0006,0007,0008,00 09,00010,00011,00012,00013,00014,00015.

4 00020102011201220132014201520162017 DBA Injuries Reported 9 Claims Trends New Claims Reported FY 2010 FY 2017 All Acts 4,085 4,097 3,650 3,787 3,512 3,504 3,650 3,888 4,369 4,357 4,075 4,146 4,541 6,299 2,200 4,961 5,075 15,141 11,367 12,255 14,844 11,604 12,168 11,610 7,892 5,864 6,089 6,622 15,809 15,472 14,460 13,998 13,890 12,733 12,742 13,242 12,367 11,858 15,176 13,760 13,547 14,162 22,646 24,980 23,537 33,395 29,170 28,952 31,628 29,169 29,287 28,189 27,349 23,963 24,276 27,122 - 5,000 10,000 15,000 20,000 25,000 30,000 35,0002004200520062007200820092010201120 1220132014201520162017 Longshore InjuriesReportedDBA Injuries ReportedNAFIA Injuries ReportedOCSLA Injuries Reported10 Claims Trends New Claims Reported FY 2017 Claim Types 1,310 1,724 23,968 131 Occupational - HearingOccupational - All OtherTraumaticTraumatic Fatal11 759 440 445 141 227 194 78 23 93 110 112 144 94 74 115 134 0204060801001201401600100200300400500600 700800 MedicalTreatmentTemporaryDisabilityPerma nentDisabilityInjury AOE /COEA verageWeekly WageAttorney FeesLastResponsibleEmployerJurisdiction( Coverage)

5 Number of DisputesAverage DaysClaims Trends Focus on Improving Quality and Timeliness of Reports of Injury and Initial Payments of Compensation 12 First Reports of Injury Percentage of First Reports of Injuries filed within 30 days of date of knowledge First Payments Percentage of First Payments of Compensation made within 30 days of date disability began FY 2017 ActTargetResultLongshore89%94%DBA88%94%A ctTargetResultLongshore86%88%DBA67%71%Ef ficiencies through IT Modernization 13 Create ALL new claims in paperless format using OWCP s Imaging System (OIS) Centralized Mail Room Activities and Case-Create Functions (FY 2014) Piloted Electronically Transfer of Medical Records (FY 2014) Deployed the Secure Electronic Access Portal (SEAP ortal) (FY 2015) New Regulations Finalized (801-802) for waiving rights to certified mail in lieu of electronic service (FY 2015) Piloted Electronic Transferring LS-202, Report of Injury, for case create (FY 2016) Efficiencies through IT Modernization 14 Until FY 2014, 100% of Incoming Correspondence Arrived Via the USPS.

6 In FY 2015 34% of Incoming Correspondence Was Received Electronically. Efficiencies through IT Modernization 15 In FY 2016 58% of Incoming Correspondence Was Received Electronically. Efficiencies through IT Modernization 16 In FY 2017 70% of Incoming Correspondence Was Received Electronically. Efficiencies through IT Modernization 17 DLHWC is Now Receiving Nearly 40% of All New Claims Electronically May 2016 Signal December 2016 - CCSI May 2017 - ALMA Area of Focus in the Near Term? 18 Deploy new case management system in 2019. New\consolidated forms to achieve efficiencies in document submission and customer service Ex. Combine 206 and 208 into one notice of payment form to report initial, interim or final payments, 8(f) applications, etc Institute process for monitoring opioid prescription usage for claims paid by the Special Fund Create digital fax capability for LS202 submission Institute the concept of the Intervention to support more effective dispute resolution outcomes.

7 Expand program integrity efforts and reporting compliance audits to protect the Special Fund Position the program to meet the challenges of proposed major infrastructure investment and shipbuilding expansion