One of the most common questions during a member’s renewal process is “What is my experience modification? And how is it calculated?” Often this leads to another question that goes something like, “I had no losses last year but my experience mod went up, why?”

Let’s cover the big picture and the first question. The goal of the experience modification is to reward Michigan employers with lower than expected losses for their classification codes and payroll. The opposite is also true. Michigan employers with higher than expected losses in their rate classification receive a “debit” experience modification, which is a mod above 1.00. We have some members with experience modifications in the 60s, such as one today was .62. That employer at the very beginning of the rating process receives a 38% discount off of the standard rate. We also have a couple employers with experience modifications above 2.00. For these employers, their starting point in the rating process is twice the standard rate.

A critical part of controlling your workers’ compensation premium is controlling your losses. By the way, MTMIC is eager to help you with your loss control needs.

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By: Ruth Kiefer, MSc, ARM, Loss Control Manager

Well, it’s that time of year again when MiOSHA released their top violations for general industry at the Michigan Safety Conference. This is also where we, as loss control consultants, focus our attention when we conduct our site safety surveys at your facilities. This year they broke down the top violations into both Heath Violations and Safety Violations, we will start with the Health Violations, which you may be less familiar with. If you are unsure if you have a health violation, you may ask your loss control consultant for more guidance on any of these violations noted below.

Listed below are the 2014 most recent general industry health violations cited by MiOSHA:

1. Part 602 – Asbestos Standards for Construction – 622 Citations Issued

• Not having an exposure assessment before starting renovation projects at your facility. Any building built before 1971 must have an asbestoses survey completed.
• Not having proper engineering controls and work practices when renovating.

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By Chris Demeter, Senior Loss Control Consultan

Due to the changes to the Recordkeeping Standard, the OSHA “Job Safety and Health It’s The Law” poster was updated to reflect those changes. According to OSHA, previous versions of the poster is currently acceptable. The changes to the Recordkeeping Standard was addressed in the December 2014 MTMIC newsletter. Previous newsletters can be obtained through the MTMIC website: http://www. mtmic.com/blog/

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Martha B. Yoder, Director
Michigan Occupational Safety & Health Administration (MIOSHA)

MTMIC is pleased to announce that Martha B. Yoder will be speaking at our upcoming Annual Meeting in October. Martha will be discussing how to Be Proactive in Creating Safe and Healthful Workplaces.

On March 1, 2012, Martha B. Yoder was appointed Director of the Michigan Occupational Safety and Health Administration (MIOSHA). In that role, she oversees the MIOSHA program, which is responsible for enforcing workplace safety and health standards and providing consultation, education and training, and outreach services. She is also responsible for overseeing the Wage and Hour Program, which protects the earned wages and fringe benefits of Michigan workers.

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Last month I wrote you about the fun of delivering 2.5 million dollars’ worth of member dividend checks. We had 544 member checks. The average check amount was $4,596.00 which equates to 19.6% of the individuals paid premiums. Probably another interesting statistic, for 106 members their dividend was greater than 50% of their annual workers compensation premium. As a reminder the dividend had two parts, part one was a loyalty dividend for all members with policies by 12/31/12 that were still insured on February 19, 2015. The second part of the dividend was based on the loss ratio of your individual account. The Board thought, all members should be rewarded and those will great loss histories should get a bonus.

Many wonderful stories came out of our “surprise” deliveries. I had many myself. Special fun with Julie Grimm at Star Cutter Company, Celeste and Dennis Johnson at Thread-Craft, Inc., the management team at Symmetry Medical, and Maritza Gaskin at AB Heller. Regarding the loyalty piece, I should mention that both Star Cutter and AB Heller have been with MTMIC and the Trust before since 1976. Yes 39 years.

Just as important as old “news” is new “news”. Please mark your calendar on October 15th for the MTMIC annual members meeting. It is a quick moving 2 hour luncheon at Inn at St. John’s in Plymouth. At this meeting, not only do we have two speakers, we will also complete the first review for the next dividend. It will be interesting.

Please plan to attend.

By Donna Motley, Vice President of Claims

I recently attended a conference where one of the speakers was John Flood, D.O. from Michigan Orthopedic Center in Lansing, Michigan. Dr. Flood is a physician we have utilized for Independent Medical Evaluations in the past. Dr. Flood presented some interesting facts concerning low back pain.

One fact is that 80% of the population will experience low back pain during their lifetime. Of that 80%, 15% will experience the pain for 2 weeks or more. Interestingly enough, experiencing low back pain “decreases” after age 65. The annual incidence of back pain has been unchanged over the past 30 years.

The good news is that 85% of this population will improve at 6 weeks; 90% improve at 12 weeks; 10% will have ongoing pain. However, the recurrence rate at one year is 25-80%. Permanent work disability affects about 5% of those treating for low back pain.

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Denise Williams, PhD, MS, SPHR, SHRM-CP

We are excited to announce that one of our speakers at the MTMIC Annual Meeting will be Denise Williams, PhD., MS.SP
HR, SHRM-CP. Denise will be speaking on The Distracted Worker: A Hidden Risk to Employee Health and Productivity. Denise is a Performance Consultant serving the staff of the University of Michigan Hospitals and Health Centers (HHC.) In this role, Denise collaborates with leadership and employees to create, support, promote, and optimize a culture of inclusion, equity, and diversity that welcomes and supports the health of staff and patients. Her liaison work supports recruitment, employment, education, training, and retention of superior staff to position the University of Michigan Health System as a national exemplar in the areas of health equity and inclusion.

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Are you going back to the Inn at St John’s in Plymouth? We are.

The 2015 annual members meeting is October 15th.

More information to follow…

What does giving MTMIC members $2,500,000 look like?

At the February 19, 2015 MTMIC Board meeting, after assessing the financial strength of the company, the Board approved a dividend of $2,500,000 payable to members in March. The dividend was made up of two parts: Part 1 – $1,000,000 goes to all members with policies prior to 12/31/12 who are active members as of February 19, 2015. Part 2 – $1,500,000 goes to the members with the same dates as Part 1, but who also have great loss histories for the years 2010 – 2012. With these Board parameters, the staff of MTMIC went to work on the project. On March 10th staff produced 548 member checks. When looking at the check amounts, staff decided delivering these checks would be a great way to say congratulations to members and also thank them for their loyalty. So the account assignments were made and 5 MTMIC staff members job for the next two weeks became check deliverers similar to “Publisher Clearing House” check delivery types. From the pictures you could see we were well received.

Many fun comments came out of the visits. A couple members asked if the check was real. While I was making surprise check deliveries, I also checked in with staff to see how their visits were going. Our Loss Control Representative, Chris Demeter, wrote me “It’s all good. I think after they hear the amount and see the check, my hair could be on fire and they wouldn’t notice.” On one of my deliveries, the female owner said, “I know who you are.” I replied, “Really, we have never met.” She went on to say, I am “cuter” in person than the picture in the Newsletter. She won the award for kindness. It is the Board’s desire that this dividend is not a one-time event. Staff will remain focused on claims adjudication and Loss Control input. You are the most important part of managing MTMIC Claims. For an early heads up, the first review of the 2016 dividend will occur at the MTMIC Annual Members luncheon which is Thursday, October 15th, at the Inn at St. John’s in Plymouth. We hope you will attend and get the first preview for what is in store for March of 2016.

Finally, thanks for a terrific 2014 year. Staff will stay focused to do a repeat in 2015.

By Travis Halsted, Loss Control Consultant

Accident investigation and analysis is a means used to prevent accidents. As such, the investigation or analysis must produce information leading to corrective actions to prevent or reduce the number of accidents in the workplace. In 2014 the state of Michigan had 37 workplace fatalities. The investigations from these events are essential as they provide the possible root cause of the accident as well as assist in developing long term remedies. Injuries result in loss of productivity and efficiency, increased workloads on supervisors and co-workers, possible damaged equipment costs, economic hardship to the injured workers’ family, and a cost of the time spent on the accident investigation, return to work programs, and workers’ compensation claims management. By conducting accident investigations a company could possibly implement a remedy that could prevent future occurrences.

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By Donna Motley, Vice President of Claims

We are all aware of how and where potential “serious” injuries can occur in the workplace and hopefully actions are taken to avoid those situations. Things like weight limits on lifting, guarding on machinery, wearing safety glasses and other personal protection equipment. But what about those seemingly innocent actions and movements, that are almost second nature to a person? The following are actual claims handled by our office.

An employee stopped to get the mail and slipped on black ice and snow resulting in an ankle fracture in three places and a shattered heel. Surgery was performed with plates and screws; and the employee remains disabled from work.

An employee jumped off the bed of a truck resulting in a heel and foot fracture. The employee has been referred to a specialist to see if surgery is necessary. The foot fracture was not noticed on the initial diagnostic testing. The employee remains disabled from work.

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GREAT NEWS TO ANNOUNCE!

A benefit of being part of a small mutual/owner directed insurance company is that the profits that are generated are owned by its members. This is in contrast to commercial carriers where profits are owned by the stockholders. After writing about this topic for the last three months, the MTMIC Board at their February 19th meeting reviewed the 2014 results and determined that a policyholder/member dividend is in order. The Board of Directors, the management team and staff are proud to announce a $2,500,000 dividend. $1,000,000 is to be shared by all members with a policy inforce on February 19, 2015 that had coverage 12/31/12 and prior. An additional $1,500,000 dividend is being shared by members that meet this criteria plus have a loss ratio of below 40%.

We thank you for these great results. This dividend is the result of aggressive claims management, hands on loss control practices and most importantly our policyholder member’s commitment to reducing loss costs.

Dividend checks are being delivered by MTMIC staff, your brokers and the post office beginning as early as March 10th. The MTMIC Board also made it clear that they want to distribute dividends in the future as long as company results warrant it. Congratulations on the MTMIC 2014 results.

SAVE THE DATE!

Mark your calendar now to join us for lunch at the MTMIC Annual Meeting to be held on October 15, 2015 at the beautiful Inn at St. John’s in Plymouth.

Watch for more information to follow.

By Chris Demeter, Senior Loss Control Consultant

Are you prepared for an emergency when it happens in your workplace? If your workplace has more than 10-employees, it is recommended you develop a written emergency action plan. At a minimum, your emergency action plan should include the following:

• A preferred method for reporting fires and other emergencies;
• An evacuation policy and procedure;
• Emergency escape procedures and route assignments such as floor plans, workplace maps and safe or refuge areas;
• Names, titles, departments and telephone numbers of people within and outside your company to contact for additional information or an explanation of their duties and responsibilities under the emergency plan.
• Procedures for employees who remain to perform or shut down critical plant operations, operate fire extinguishers, or perform other essential services that cannot be shut down for every emergency alarm before evacuating.

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Great news to start 2015. As mentioned in previous newsletters, the MTMIC Board approved a dividend resolution late last year directing management to prepare required documentation for a 2015 members/owners dividend if the 2014 financials supported such. As Chris Doebler, MTMIC CFO, and our actuary wrap up the claims numbers for December 31, 2014, I am pleased to say that is the case. MTMIC management has the resolution and supporting detail for the Board to review and vote on at the February 19th Board Meeting. It is anticipated that the Board will approve a plan that includes members’ payments to go out in March. I also expect consistent with the Board’s prior instructions that the dividend will be member loss ratio based. That is the accounts with good loss ratios will be included in the distribution. Their instruction “let’s make sure that the members who contributed to the good results get the benefit of it”. The dividend will also likely have a years of service credit. The longer the account has been a member the larger the dividend.

I hope the above gives you a clue of what is coming. I do not know the final chosen parameters or exact amounts. The Board will determine those at their meeting. I can tell you that giving back profits to member companies is what a small mutual company is about. We operate to provide our members/owners with the best service we can at premiums that are financially sound and excess profits earned belong to members/owners.

By Donna Motley, Vice President of Claims

Studies have indicated that the longer a person is off work due to a work related injury, the less likely they are to return to productive employment. Once (physical) restrictions are imposed by the treating physician, an employer has the decision to make whether or not they will let the injured worker return to work with those limitations. For the office worker that is given the restriction of “sit down work only” or the machine operator that is restricted to “no lifting over 50 pounds” and his regular job does not require any lifting or only lifting up to 10 pounds, the decision to return the employee to work is not that difficult. As indicated, a return to work policy is beneficial for the employee as they remain productive members of society, and the employer, as it does not impede work flow and will aid in limiting their Workers’ Compensation exposure. Bringing an employee back to work with restrictions also sends a message to all employees that being injured at work will not result in a paid vacation!

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By Travis Halsted, Loss Control Consultant

As the desire to minimize business costs grow, the availability to have employees designated to maintain housekeeping and cleanliness has diminished. Sadly, slip, trip, and fall hazards have provided a staggering number of 25,000 incidents daily. Since 2009, MTMIC has spent approximately $11.5 million on injuries resulting from a slip, trip, fall, and/or debris on the walking surface. General housekeeping and cleanliness plays a vital role in reducing the possibility of these types of injuries.

Injuries that can be attributed to slips, trips and falls can include lacerations, contusions, punctures, fractures, and strains. Strains from slips, trips, and falls accounted for $4.1 million of the $11.5 million spent on these types of injuries.

Some important aspects to remember when analyzing your workplace for any slip, trip and fall hazards is to:

• Keep electrical cords and air hoses out of traffic areas.
• Remove clutter (boxes, excessive raw material, trash, chemical containers) from traffic areas.
• Immediately clean up any spills
• Place a wet floor sign when area is cleaned using a mop.
• Make sure that traffic areas are properly lit as a person will trip over what they can’t see.
• Regularly inspect traffic areas for damages and hazards (chipped floor coverings, cracked and/or missing concrete, and uneven levels of walking surfaces.)
• Complete an audit of spill response and spill response measures.
• Complete walk-throughs of the work area focusing on general cleanliness.
• Mark any changes in walking surface elevations by either using a highly visible paint or tape that shows a hazard.

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By Chris Doebler, CPA, Chief Financial Officer

Did you know that you can make your monthly premium payments without ever having to write or mail a check? Over 1/3 of our policyholders remit over 1/3 of our monthly premiums via AutoPay, and you can too! Your payments will be spread over 12 months instead of 10 and will automatically be debited from your checking account on or about the 10th of each month. All you need to do is return the Authorization for AutoPay form that is included with your annual renewal package and we’ll take it from there. You can even sign up mid-year by directing us to take your remaining scheduled payments via AutoPay.

If you have any questions about AutoPay or wish to sign up and need an Authorization form email Chris Doebler at chris.doebler@MTMIC.com or call (248) 488-1172 ext 1012.

We hope you had a wonderful holiday. The holidays at MTMIC are always hectic. Over half of all our members’ renewal December and January. Because of this, there are many customer questions to answer, policy documents to send, new state regulatory posters and notices to send to all members. As we start our 39th year of service, this peak in MTMIC work is an annual tradition.

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By Glenda Moyle, Premium Accounting Manager

Wow, can you believe another year has gone by. And what that means is that it is final audit time for our January renewals which is coming up shortly. When we issued your policy, we based your premium on the estimated payrolls by class codes which you provided. Now the final audit will give us actual payrolls, by class codes, to see if you owe us more premium or we owe you a refund of premium. About half of our policyholders will be going through the annual audit process in the next few weeks/months and will be contacted by The Aprise Group by the end of January to schedule your audit.

When you received your renewal documents you should have received a one page flyer titled Guidelines for your Premium Audit. It also included the list of inclusions and exclusions that is used in the Remuneration as the Basis of Premium. Use these items for reference for your audit.

For over 30 years I have been helping you with this process and I continue to be ready should you have any questions.