By Ruth Kiefer, Loss Control Manager, MSc, ARM

Last year was a record year in the State of Michigan for high fall injuries and fatalities related to those falls. Our policyholders were fortunate enough not to sustain any of the noted fatalities, but we did however, have some severe high fall injuries along with other worker injuries related to slip, trip, and fall hazards. In a collaborative effort to combat these types of injuries, the federal government and our state MIOSHA are making efforts to reduce the amount of injuries and fatalities related to high falls along with addressing slip, trip and fall injuries from poorly maintained production floors.

To accomplish this push in safety MIOSHA will be adopting major changes to their walking-working surfaces and fall protection general industry standards. The new ruling, will also be referred to as Subpart D, and will follow the federal OHSA’s updates to this standard.

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By Donna Motley, Vice President of Claims

I think, as an insurance company, we are automatically given a bad reputation. Most people, at one time or another over the course of years, have had an experience with their insurance carrier, either vehicle or home owners. I am no exception. I would agree with most people that when dealing with a home or auto insurance carrier, there is a huge emphasis placed on damages that equates with “money”. While it is the carrier’s responsibility to make the insured whole, the dollar and cents are watched closely. And I do realize there is a lot of fraud in auto and home owners insurance make this scrutiny necessary.

In Workers’ Compensation, our responsibility is to make the “injured worker” whole. With all the possible variables surrounding a work related injury, how do you place a dollar value on that? There is a book sometimes utilized in the Workers’ Compensation industry entitled “Official Disability Guidelines” – or the ODG. Easily accessible on the Internet, the ODG categorizes by injury and provides the average number of days away from work for that injury, the estimated Indemnity and Medical costs associated with that injury, billing procedure codes, best practices for a return to work (with or without surgery) and suggested restrictions for returning to work based on job duties of the injured worker. In a perfect world, right?

While interesting reading, we at MTMIC do not utilize the ODG. Similarly, medical (treatment) decisions are not based on the “cost” of a procedure. Yes, when a claim is established in our system we have to establish a dollar figure that should cover full treatment until the injured worker is recovered and returned to work. This “reserve” is medical based description of the injury, extent of the injury, taking in to consideration the age of the injured worker, possible co-morbidities and physical skills required to return to work. It is not the decision of the Claims Department for an employee to have a CT Scan vs. MRI – that is the decision of the treating physician. We can make suggestions and ask questions, ask for an explanation and decide to dispute the requested test, but the dispute is based on medical evidence and not dollars spent or to be spent. We do make sure testing or physical therapy is not being performed because “they can”. Before authorization is extended, there has to be a medical basis and is warranted.

I can’t tell you how many times injured workers have accused us of making a decision “just to save money”. Or that we only allow injured workers to treat with a “Workers’ Compensation” doctor. It is true that we will not allow treatment with certain doctors, our decisions are not based on money, they are based on medical outcomes. We handle a lot of claims in our office and are able to witness physicians’ results. We want the best doctor for the injury. No one benefits, physically or monetarily, if the treating physician is not skilled in their practice – not the employee, employer or insurance carrier.

Adjusters are human too! Among our Claims Department staff and family members, we have experienced broken bones, trigger finger, tendinitis and carpal tunnel syndrome. And who did we seek to treat – the same physicians that we utilize for our claimants. If we are personally satisfied with the physician’s results, why wouldn’t an injured worker be satisfied? We tend to utilize physicians that are no nonsense so maybe the injured worker just doesn’t like what the doctor has to say. We are not cold or heartless, our goal is to have the injured worker recover, while at the same time keeping an eye out for fraud!

Harvey and Irma

Harvey and Irma continue to be front page news. Headlines in the paper “Insurance Premiums could Climb beyond Disaster Areas” and “Companies Look to Recoup Billions Paid in Hurricane Harvey and Irma”. This may be a good time for an insurance executive class 101. Reinsurance is insurance bought by insurance companies. A primary purpose of reinsurance is to cover catastrophic events not anticipated in day-to-day insurance operations. At MTM, we know that bad things can happen in our shops. A serious employee injury is something we deal with on a daily basis. But what if there was a shop explosion that seriously injured 10 or 20 employees or a vehicle accident with 5 employees affected. This could dramatically change our loss ratio for the year and the surplus cushion of the company for years to come. So, like most other insurance companies, MTM buys reinsurance.

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All too often we read of crane and rigging accidents that cause death and extensive damage. Crane operators following basic safe hoisting can prevent most crane and rigging accidents. The most important step in any rigging operation is determining the weight of the load to be hoisted. This information can be obtained from shipping papers, design plans, catalogue data, manufacturer’s specifications, and other dependable sources. When such information is not available, it is necessary to calculate the load weight. There are a number of steel weight calculator available online that will help you determine the weight of your load.

Operators must also know the rated capacity of the crane. This is the maximum amount of weight a crane can safely lift. The rated capacity should be marked directly on the beam of the crane. Even though the equipment is suitable for the weight of the load, operators need to consider the following:

• Will the angle of the rigging devise take away any of the cranes capacity?
• Operator rigged the load to the center of gravity of the crane and lift line?
• Are there any sharp surfaces or corners in the rigging that could cause a rigging devise such as a sling to tear? Should padding be used to protect the sling?
• Will the load be under control along the entire path of the lift?
• Should a tag line be used to guide the load?
• Are there any obstructions along the lift path that must be cleared? Can they be moved out of the way?
• Will the suspended load be clear of all personnel?

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In the last two weeks I attended the Michigan State insurance association meeting, MTM Board meeting, the summer MTM staff picnic, and some MTM member shop visits. After these meetings I was reminded how different and special MTM is.

The insurance association meeting was attended by many fine people. In the group discussions, I was reminded that as good as these people are their master was most often the company stockholders. At the end of the day their products and services are built to reward their stockholders. At MTM with Board and Committee meetings held in our office, staff is constantly reminded that we exist solely because of our members. MTM is not a large or international insurance company, but rather a small group of shop owners who believe in combining their safety efforts to reduce the cost long term of their workers’ compensation insurance.

At the MTM Board meeting with the officers and managers in attendance, we get to hear the discussion and direction from ten Board members who are also MTM members. The personal and fiduciary focus is for what’s best for MTM members at large. Each summer we hold a MTM staff picnic. To change the pace a bit, this year’s picnic was held at the Rod Stewart outdoor concert. Given the age of most staff members, Rod Stewart is an icon. His singing of Forever Young while doing calisthenics (Rod is 72 years old) was amazing. This event also reminded me of the special MTM staff. Nearly all staff members have at least 30 years of experience. Most of that experience is with MTM. As an example, Glenda, who handles premium and endorsement underwriting service questions, has been with MTM for 36 years. Chris, our CFO, 29 years. Donna, VP of Claims, 22 years. Cindy, our Senior Claims Adjustor, 27 years, and our Claims Technician, Marci, 29 years. I could go on but you get the gist.

Last week while I was at the insurance association meeting, I arrived at the meeting hall about an hour early. With that extra time I wandered through the meeting hall and I noticed that a meeting room had an MTM member name on it. Shortly, some management members of that company arrived and I talked with them in the hall. I found out that not only were they having a management update meeting, but they were also celebrating the company’s 90th anniversary. A few days later I was visiting another member and saw in their lobby a sign that they were celebrating their 50th anniversary. MTM is full of these stories. We have history, traditions, dedicated long term staff, a focused Board and loyal members. What a winning combination. Until next time, enjoy the summer.

By Donna Motley, Vice President of Claims

As your Workers’ Compensation carrier, we provide a service. Hopefully, part of that service is to make your job a little easier. In today’s world, everyone is busy. We can help take some tasks off your shoulders. After a work related injury, we can contact the doctor’s office or medical facility and provide the insurance and/or claim information. Any authorization to treat, refer for testing or to another physician, should be provided by our department pursuant to the Workers’ Compensation Act and Michigan Health Care Services Rules. We can contact the injured worker and relay necessary information; and answer the employee’s questions as to “how does this (the compensation process) work”?

In order for us to help “you”, we need you to help “us”. The first and best way to aid in the Workers’ Compensation process is to promptly report the injury to us. The second best way, is to make sure we have complete and detailed information. While I realize sometimes the Employer’s Basic Report of Injury (Form 100) has to be completed in haste, the more information provided, the least likely we are to call or e-mail you with questions or requests for additional information. Please realize, when detailing “how” an injury occurred, what may make perfect sense to you may raise additional questions in our minds. We are not necessarily familiar with your facility, the employee’s work duties, work process, the machines on site or how they operate.

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“Members own and direct” is more than an MTM saying. It is something that we live by daily whether it be a member’s dividend program that in large equated to an average 23.4% of each member’s premium, or as I often say, my bosses as President of MTM are my 10 Board of Directors that own and operate shops like yours. All Board members have shop ownership benefits and challenges like our regular MTM members at large.

In 2016, the Board authorized a Board Finance Committee. This Committee was to give management guidance on investments and company budgets as well as membership input and oversight to the professional MTM insurance managers. This year, the Board authorized a Board Marketing/Underwriting Committee. Like the Board Finance Committee, the Board Marketing/Underwriting Committee is to give membership input and oversight to the MTM insurance managers. This new Committee held 1its first meeting June 20th and is chaired by Board member, Brad Lawton of Star Cutter Company. A second Committee member, Jerry Decker, is also an MTM Board member and President of Precision Boring Company. Two committee members at large are Bob Joly, President of Hancock Enterprises, and Mark Mullen, President of Griggs Steel Company. This Committee’s management liaison is Megan Brown, VP of Sales and Marketing. Also attending the meeting were Kurt Heuser, MTM Chairman of the Board, Chris Doebler, MTM CFO and me.

The Board of Directors and Committee members are available to you at any time and appreciate your feedback. Recently the website, www.mtmic.com/blog, has been updated with photos of the Board of Directors and Committee Members with the hopes that you find it beneficial to have a name and a face for these groups. If you have an idea for MTM, never hesitate to contact one of the Board members, Committee members, or any of the staff at MTMIC. MTM exists solely for the benefit of our 883 member owners.

Until the next time, I always appreciate your input and support. Please enjoy the summer.

By Travis Halsted, Loss Control Consultant

MTMIC is proud to announce that there are several new safety videos available to you on the MTMIC Client Portal. The videos that were recently added to an already extensive streaming video collection include; Bloodborne Pathogens, Walking and Working Surface Safety, First Aid Awareness, Lockout/Tagout Practices and Procedures, and Safety Awareness: Attention to Detail. While these videos can be vital in assisting you in providing a proactive safety culture, it is important to point out that there have been no recent rule changes pertaining to these topics, and these videos were added only as another valuable resource that MTMIC has to offer. If you need assistance logging into the Client Portal, please do not hesitate to contact Patricia Allen at (248) 715-0013 or sales@mtmic.com/blog.

By Travis Halsted, Loss Control Consultant

Whether it be a foundry, fabrication facility, snack food warehouse, welding facility or one of the many other industries that MTMIC works with, compressed gas cylinders can be found in the majority of them. Compressed gas cylinders serve a plethora of purposes, but also provide just as many hazards. From oxygen displacement and toxic effects of some gases, to physical hazards such as a ruptured cylinder and explosions, any failure of a cylinder can be catastrophic. It is paramount to understand the pressure that these cylinders are under. If a cylinder has a sudden release of any of the gases, it can become a dangerous missile-like projectile. There have been documented cases of compressed gas cylinders, under the sudden release condition, to have breached a cinder block wall. In other events, vehicles have been destroyed by explosions when the cylinder wasn’t properly secured during transport or if the valve was inadvertently opened. An essential part of working with gas cylinders is to ensure that you have a clear understanding of what gas or gases you are working with. Gases include, but are not limited to; flammable gases, oxygen and oxidizing gases, acid and alkaline gases, toxic gases, cryogenic gases and inert gases. Each of these gases have their own benefits and hazards.

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Look for your invitation in the mail soon!

The Inn at St. John’s – Plymouth, MI
October 19, 2017
11:00 am – 2:00 pm

Agenda

Shoulder Evaluation: The Industrial Athlete and a Return to Work Approach
Scott Smith, MPT
Senior Regional Director – ATI Physical Therapy

Living by Design
James E. Blessman, Jr., MD, MPH
Wayne State School of Medicine Health Officer, Assistant Professor / Department of Family Medicine & Public Health Sciences 

Company Overview: A Year in Review
John R. Karlen, CPCU, APA, ARe
President

MTMIC Dividend History: An Early Look at 2017
Chris Doebler, CPA
Chief Financial Officer

Please Join Us!

By Donna Motley, Vice President of Claims

OPIoIDs – Hydrocodone (Vicodin), Oxycodone (Oxycontin, Percocet, Norco), Tramadol (Ultram). Drugs used to control “chronic” pain. Drugs used post-surgery. Drugs used to control “any” pain. Drugs that can be highly addictive. Drugs that are talked about in the news on a regular basis in relation to an epidemic of addiction in our country. CNBC has reported that approximately 80% of global opioid supply is consumed in the United States. There is much discussion going on about how to control this situation with multiple entities stepping up to the plate to do their part.

The Michigan Workers’ Compensation Agency has made changes to the Statute and Health Care Services to address the situation and save costs in the process. And it’s working!
All medications dispensed in relation to a work related injury are to be filled in the generic form if a generic form is available.

The State of Michigan has instituted a prescription drug monitoring program called MAPS that tracks and monitors controlled substance dispensing. MAPS is utilized outside of the Workers’ Compensation arena as well. If a patient “loses” his prescription, or it is “stolen” – another order cannot be written or filled until the time has expired on the original prescription.

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It is hard to believe that three years and six months ago I left my keys on the desk and walked out of my office door for the last time. Who would have thought that after that much time I have been asked to write for the MTMIC Newsletter?

Normally I start my dialogue with a weather report from the Arizona desert but, after my recent trip to Michigan on a joint business and personal trip I will confirm that 90 degrees with 90% humidity is roughly equal to 108 degrees with 15% humidity. For the first time since 2013 my wife accompanied me to visit the kids and grandkids. It was great for her to see them but the 5th grade graduation ceremony in a packed non-air-conditioned gym was a reminder to both of us how warm it can get in Michigan.

Some of you may know that I have not completely disappeared from the roster at MTMIC. I continue as an employee of MTMIC as an underwriting consultant to the President. The company has continued to flourish in my absence and the staffing has remained at the same level, except for the addition of me in a part-time capacity.

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By Chris Demeter, Senior Loss Control Consultant

The term “robot” readily evokes a mental image to most people. Depending on your age, it could be R2D2 from the Star Wars movies, the Mars Land Rover, or you may have iRobot Roomba vacuum cleaner. In 1954, George Devol developed the first programmable Robot. It weighed two tons and was controlled by a program on a magnetic drum. Nowadays, the number and type of robots are changing rapidly.

Industrial robots are designed to move materials, as well as perform a variety of programmed tasks in manufacturing and production settings. They are often used to perform duties that are dangerous or unsuitable for human workers, such as repetitious work that causes boredom and could lead to injuries because of the inattentiveness of the worker.

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SHA is not accepting electronic submissions of injury and illness logs at this time. According to their website, they are extending the July 1, 2017 date by which certain employers are required to electronically submit the information from their completed 2016 Form 300A. Updates will be posted to the following OSHA webpage when they are available.

https://www.osha.gov/injuryreporting/index.html

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Once again MTMIC will be sending out a customer survey to gather your input on how we are doing. If you receive an email from sales@mtmic.com/blog for a Survey Monkey survery, please complete it so that we can continue to improve our service. Should you have any questions, please contact Patty Allen at (248) 725-0013.

Our Annual Meeting will be taking place on October 19th, 2017 at The Inn at St. Johns in Plymouth, Michigan.

Normally, each month, I give you a technical critique on some Workers’ Comp issue or provide an update on company financials. Often, our members ask me about an update on the Members’ Dividend Program. Since the Member’s dividends were delivered in March and we’re still early in the year to give any financial predictions of 2017, I thought I might use this time to tell you about my upcoming four-year anniversary as President of MTM.

At the annual meeting, I often start out by telling you about the amazing MTM staff. Our employees at MTM, on average, have been with the company for over 20 years. In fact, a statement I often use at the annual meeting is, in 2017, we had no new hires, 2016, no new hires, 2015, no new hires, 2014, no new hires, and I was the last new hire when Gary Wood retired in 2013. Pretty amazing to say that we have had no staff turnover in four years. And the last staff turnovers we have had have all been because of retirements. This staff stability means that you have been dealing with Glenda for over 35 years, you’ve been dealing with Chris for 25 years, you’ve been working with Donna for 25 years. And I could go on. You know the managers and staff members of MTM very well.

The same stability applies to the MTM Board. Eight of our 10 Board members have 1been with the company for 15 years or more. A few of them have over 25 years of experience with MTM. The Board has been committed to member needs and yet gives the insurance professionals latitude to do what we do best. I am appreciative at every meeting for the guidance they provide the MTM management team.

There’s no surprise that with the vision of the Board and the insurance expertise of staff that the results have been remarkable. In my four years, we’ve seen the member count increase by 24%. We’ve seen the financial stability, as measured by surplus, increase 149%. At the same time we increased the member surplus of the company, we have returned $9.5 million in owner dividends. These outstanding results are possible because of the three-legged stool: loyal membership, a good Board, and a technically-competent staff.

On the personal side, one of the reasons I have been able to focus on company issues is that family issues have been minor and rare. My wife Patty has been tolerant of me for 42 years. What most people do not know is that not only did Patty and I date through college, but she also chased me in the kindergarten playground. Of course, she was much bigger than I was and, therefore, could out run me. But I have pictures of this event and can say in a small town of Boring, Oregon, she did not select me, because of any wonderful attributes, but because in a tiny town – I was probably a high rating “pick”. The Karlen family includes my son who is very tall, very blonde, and very smart. Therefore, I have no genetic ties to him whatsoever. He is an electrical engineer/patent attorney in Seattle and London. Ten years behind Little John is my daughter, Laura. She just graduated from Western Michigan in Integrated Supply Management and will soon be off the family payroll as she starts her job with Rolls-Royce.

So, you have a little bit of an update on the company results over the last four years and a little more of a picture of my family. I have to say it has been a fun and quick-paced four years for me at MTM. I expect much like the recent past, for the next few years the pace will stay the same (or even speed up) and that the challenges will likely be similar.

I am looking forward to a couple long summer weekends and, in the meantime, will greatly enjoy visiting and touring your shops.

Thursday, October 19th

The Inn at St. Johns
Plymouth Michigan