By Travis Halsted, MS, CSP, ARM, COSS
Loss Control Consultant

As the weather is warming up, I am finding more and more of my visits with policyholders that result in us spending some time outside to check the perimeter of the building, parking lots, truck bays and other areas that often can go without routine inspections due to weather conditions. During one particular inspection I noticed a large area of dead poison ivy climbing the facility wall, and an impressive dormant bee nest in the tree next to their outside eating area. I asked them if they include the “outside” area in their facility hazard identification process. I was met with a response that got me thinking. That response was that they will add that aspect as soon as they start doing that inside the building first. My contact at this company felt that they weren’t qualified to identify hazards, and that by not knowing all of the standards and rules, it prevented them from being the person to do that. Sadly, as I started to ask some of my contacts at other policyholders if they felt that they were qualified to do hazard identification they said no, and that’s why they rely so heavily on their Loss Control Consultant. I want to assure all of you that you are qualified, and with some training on what to look for, you can become an expert at hazard identification as well.

By Donna Motley,
Vice President of Claims

I recently reviewed a new claim that crossed my desk for a “foot contusion” – a 14 pound part fell on the top of the employee’s foot. Fortunately, no bones were broken, but there was an abrasion with minimal blood, bruising and swelling. A trip to the local occupational clinic consisted of the examination, an x-ray and prescribing of the following: Bacitracin Ointment (an anti-biotic), Cephalexin (an oral anti-biotic), Naproxen (an antiinflammatory), Tylenol Extra Strength, an Ace Bandage, home dressing supplies, hot/cold pack, and a post-op shoe; also with a referral to physical therapy. Work restrictions were imposed with a return clinic visit in two days.

After two days, the return visit showed improvement, but the employee was to remain on the above prescribed protocol with a return visit in one week. At the one week return visit, cellulitis was diagnosed (a bacterial infection); Sulfamethoxazole (an anti-biotic) was prescribed; work restrictions remained in place.

By Ruth Kiefer, MSc, ARM
Vice President of Cost Control

As this article hits your inbox, we will be in that magical time when flowers bloom and evenings are getting longer. It is also the time to remind you to have your Heat Stress Program developed and ready to implement for the sometime sweltering days of summer.

There are 12 key elements of a Heat Illness Prevention program that. MIOSHA requires. 1) Having a plan – this includes monitoring, acclimating, and having work/rest schedules. 2) You should designate someone to oversee the Heat Safety Program. 3) Training for employees is key to the program and workers need to know the risks, symptoms, and response procedures, as well as prevention methods regarding heat stress.

Preparing MTM Member Dividends

January and February are an important time for MTM staff. It’s when we put together all the documentation that leads up to the printing of member dividend checks in March. Let me give you a rundown of what happens. On New Year’s weekend, Chris Doebler our 28-year veteran CFO puts together all of the claims detail and payroll information for 2023. This immense amount of detail is sent to an outside actuary to do loss valuations required by the Michigan Insurance Department. This review takes close to three weeks by the outside actuarial firm. 

 On January 29th Chris Doebler, Megan Brown, our VP of Sales/Marketing, and myself head to Nashville to meet with our actuarial advisors to discuss the results. We review the 110-page document to evaluate the proper reserves that are necessary to make sure that all the money necessary to pay those claims is put away. It is a challenging balancing act with the legislative and judicial changes, inflationary impact, and the loss trends of our members. 

By Chris Demeter, Senior Loss Control Consultant

Lockout/tagout is not a topic to take lightly when it comes to the safety of your employees. Improperly following procedures or having no procedure at all is a serious MIOSHA offense, and fines are applied accordingly. Lockout/tagout is a critical safety component in safeguarding workers around the equipment they operate, service and maintain. For yet another year, MIOSHA’s Lockout/Tagout Standard made the list of the top 10 most frequently cited Standards. The most-cited sections within this standard focus on procedure development and use, inspections, employee training, and notification of the application and removal of lockout or tagout devices.

Closing 2023 and Opening 2024

I hope your Christmas and New Year’s celebrations were relaxing, joyous, and shared with family. Mine was and, as a bonus, it appears I made it through the family get-together without picking up a cold from the grandkids. In my limited grandparent experience, I have been unsuccessful at staying healthy after visits with grandkids. It also appears that grandkids, until the age of six, have a constant runny nose and some sort of cold. After thorough research, I find that no one has solved this dilemma. 

By Donna Motley, Vice President of Claims

Let’s face it, we’ve been lucky so far! Living in Michigan and having temperatures in the 50’s in December? That wasn’t very common when I was growing up! I know I’m sounding old, but I can remember a Thanksgiving where there was three feet of snow on the ground! But, most likely, the snow is on its way. Or maybe even worse – ICE! Now is the time to prevent possible future injuries. “Ice and snow” are synonymous with “slip and fall”. Before the elements arrive, it would be a good idea to check the condition of your parking lot and fix the cracks and pot holes. Have the bag of salt or deicer on hand and ready to be spread. Inspect for accumulations of water, ice and snow. Make sure your outdoor cameras are operating properly. Inspect the mats inside the entrance and exit doors – are the corners curling (another trip hazard), are the mats thread bare, has the back-side lost their grip (i.e. do they slide)?

By Ruth Kiefer, MSc, ARM
Vice President of Loss Control

During my facility visits this year I was surprised by the amount of MTMIC policyholders that had not submitted their 300A electronically for the 2022 year. This oversight on average cost each policyholder anywhere between $600-$1,400 in a MIOSHA penalty fine.

New Process/Cost Efficiencies at MTM

Since claims and loss control expenses take nearly 70% of every premium dollar, most of what you hear from MTM is about how to reduce accidents and when an injury does occur, how we manage each claim dollar in the most effective way possible. With that said, MTM conducts an audit each year when each workers’ compensation policy expires. To complete these audits, we have used an outside audit service and many of you will recognize Aprise as the firm that visited your shop or conducted your internal email/phone audit. They have done an excellent job, however COVID changed the audit process significantly by greatly increasing the number of audits that were done by email/phone with the number of field audits considerably lower. When the audits are processed internally by email/phone, it appeared that that process could be handled at a reduced cost by MTM staff. We conducted a research project and determined that somewhere between $80,000 to $120,000 of savings could be realized by moving this to an in-house function. On August 1st, we implemented a gradual conversion to an internal MTM process. Many of you know Glenda Moyle, Premium Accounting Manager who has been producing audit invoices and processing the collection of MTM audits for more than 40 years. In the past, she would send the audit paperwork to Aprise to conduct a field audit or an email/phone audit. Glenda’s function is unchanged. What we have changed is that the audit assignments will be done internally, and the internal email/phone audits will be conducted by MTM staff. We will still use Aprise when a field audit is the appropriate audit method. 

 On August 1st, we implemented the program and got the conversion underway with the goal of being fully converted by 12/1. With good procedures in place, forms and management support, this conversion has gone very well and with the large number of members in January you’re likely to see correspondence from the MTM Internal Audit Associate, Faris Saleem. 

 In the meantime, one of the important parts of this project is to make sure that you know that we take the stewardship of MTM premium seriously. We are always looking for ways to reduce our costs, which increases the dividend value for our members. With the MTM Board of Directors made up of 11 shop managers, that remains a primary focus from the Board to the President and to the employees of MTM.

Until next time, have a wonderful fall.

By Travis Halsted, ARM, COSS
Loss Control Specialist

As the leaves start to change colors, the temperatures dip at night, and the trick or treaters are developing their gameplan to get the most candy possible, we can’t help but notice that one particular item isn’t changing in our workplaces. That particular item is the need for employees. Temp agencies aren’t producing the number of employees that they were before, applications from potential hires have slowed to a trickle, all while production is starting to increase in several industries. Because of this, companies have turned to their office staff to enter the manufacturing floor, and fill some of the vacant positions. This can prove to be an immediate solution, but without addressing proper training this could also prove to create more challenges.

By Donna Motley, Vice President of Claims

Summer is over, the kids are back in school. For the most part, vacations are over. Everyone should be settling down into their usual routine. Should that equate to fewer work related injuries? Probably not – because – the HOLIDAYS are upon us. Whether we partake or not, decorating for Halloween is becoming almost, if not, as big as decorating for Christmas! I’m sure you have seen the lawn decorations that stand as high or higher than your house. Following Halloween is Thanksgiving – not very much by way of decorating, but good food and football come into play, as well as raking leaves. Then Christmas or Hanukkah – which usually comes with a serving of snow shoveling. We are probably using a different set of muscles than what we used during the summer months which can lead to work injuries.

Daylight Savings Time is still in effect. We will be going to work in the dark and coming home from work in the dark. Daylight Savings along with the change in weather has an impact on our sleep patterns. Dark, cloudy days, colder weather and lack of sleep can lead to depression. Which, in turn, can lead to work injuries.

As an employer, you might be hiring seasonal help or maybe you are currently short staffed following the after effects of the UAW strike. Hiring new employees, bringing people back to work following a lay-off, or having to require your employees to make up for absent workforce, adds additional strain. Maybe you are only couch surfing on the weekend – again, you will have to use different muscles than previously utilized in the summer.

All of the above can contribute to, or cause, work related injuries. Does the change in seasons also have an impact on your business – are you busier or slower? Look for possible trends in work related injuries. Not to be forgotten, Michigan hunting season begins in September and continues through December! Pay particular attention to those Monday and/or Friday injuries!

Legislation that Can’t be Ignored

For the last ten years I have avoided jumping into the legislative process. Like most of our shop leaders, I view my job is to work hard and get the best results possible in the environment that surrounds us. When legislation would change matters, my job would be to adjust and figure out how to succeed and represent our members with the best results possible. I think that’s probably what most of our shop managers do. However, things change and all of a sudden it appears that we have no choice but to be more involved.

As I look at the legislative changes for our shops in just the last eight months, there have been dramatic shifts in policy that effects our businesses. As many of you are aware, we have been active partners with the Michigan Manufacturers Association. They have a strong legislative arm. MTM is also a member of the Insurance Alliance of Michigan (IAM). That is a group of insurance companies that also has a legislative presence. For the most part MTM and myself individually have attended but not been active in those legislative efforts. With the introduction of House Bill 4390, it is obvious to me that we must be more involved and encourage our members to be involved also.

By Ruth Kiefer, Vice President of Loss Control

MIOSHA is back out in the field with a seemly whole new crew of enforcement officers and they are knocking on lots of policyholder doors. After a few years off due to Covid, it is now necessary that you put safety back into the forefront of your businesses. It is very important that you take this time to dust off your safety programs and review your programs and when the last time your employee’s were trained. You need to ensure that your safety training is up-todate or determine if you are missing some programs due to new equipment installed or change of staffing.

You can find all the necessary safety programs on our portal. These safety programs are fill-in-the-blank templates that help you satisfy the written program requirements for MIOSHA. Also on the portal is everything you need for your safety training requirements as well, with well over 700 videos you’ll definitely find what your looking for. If you need to narrow the scope of your training needs, reach out to your MTM loss control person so they can direct you to the right video or written program.

By Donna Motley, Vice President of Claims

Michigan Workers’ Compensation Administrative Rules dictate that once a claim form concerning an employee work related injury is submitted to the Workers’ Compensation carrier, the Workers’ Compensation carrier has 30 days to make a determination “of some kind”. A definite or final determination of benefits does not have to be made when a claim is first filed with the carrier; BUT the claim has to be addressed. If the initial investigation results in the carrier being able to make a determination that the claim is valid, benefits commence. Benefits would include authorization for medical testing and/or treatment, payment of related bills submitted and payment of wage loss benefits if/when applicable.

If the carrier is unable to make a valid determination within 30 days, it usually means additional investigation is necessary, medical records need to be obtained, written statements requested, a medical evaluation scheduled, etc. The 30 day clock is ticking, so the carrier has to file a form with the State of Michigan entitled Notice of Dispute. The Dispute includes the reason why it is being filed – under the above circumstances the reason would be “Further Investigation Required”, “Additional Information Required from Employee” or “Other”.

By Melanie English, Underwriter / LPT Program Manager

The MTM Underwriting and Marketing Departments regularly receive inquiries about Workers’ Compensation coverage for our Member’s out-of-state employees. Often it is because a Member has hired a salesperson, clerical staff or installers who work in other states or an acquired out-of-state facility. Due to an increase in these inquiries, we thought it was a good time to update you on the out-of-state coverage requirements.

First Six Months of 2023

June 30 – a good time to review our results and see if we are on target or if we need to make adjustments to reach the company goals. An important part of that review is a study of claims losses. Insurance claims are the primary driver of financial results. No other expense category comes close to the percentage impact of claims loss payouts.

Our June 30 review looked at the first six months of 2022 and compared it with the current six months of 2023. We will want to review the differences and see if there are any trends that can be identified. In looking at the aggregate loss payments for 2023, we found those were higher than both 2022 and 2021. We pulled 2021 into the review to see if any trend lines could be identified. Interestingly, we found the claims frequency has remained virtually unchanged for 2023 compared to 2022. The frequency difference was 1%.

By Chris Demeter, Senior Loss Control Consultant

MIOSHA requires companies to train on any hazards their workers may encounter. Knowing, understanding, and interpreting MIOSHA rules and regulations can sometimes be confusing. This is why our Loss Control team is here to assist you through the process. Help is only a phone call or an email away and will be answered by one of our Loss Control Consultants. This support is an integral part of MTMIC’s service because we know that safety and health questions are inevitable.

f you are not the person that handles the safety walkthroughs with your Loss Control Consultant, let me introduce you to our Loss Control Team.

By Donna Motley, Vice President of Claims

Summer in Michigan! It seems like we have been waiting a long time this year for the arrival of summer. Not that we had a harsh winter or even a long winter – it just seems that our weather has been so up and down. I think when you live in a State that has snow, ice, cold temperatures and power outages, you work hard and like to play hard too ! At the first sight of 60 degree temperatures, people native to Michigan break out the shorts and flip-flops. We’ve been waiting and we are anxious!

First of all, we have to clean up from the winter or maybe even the left-over fall season. Now we can ride our bicycles or motorcycles. We can plant and maintain our flower or vegetable garden(s). We can hand-wash the car, wash windows, cut grass, trim bushes. We can now golf, play baseball, swim in a pool or lake, play horseshoes, cornhole, Jarts, you name it. Let’s not forget about boating, jet or water ski’s, tennis, maybe even Pickleball? Camping and campfires (setting up and tearing down). Traveling to other states or countries, hiking, and all around site seeing.

On the Road Again

Every time I think about a busy time at MTM, I remember many of my recent visits to our MTM shops. Our members are undergoing massive changes all the time. There are shortages of raw materials. There are shortages of personnel. The changing product line and the markets in which they serve all create a tech environment where every minute of the day is filled with important decisions. That always helps me keep a perspective for the busy times that MTM has. February is one of those extraordinarily busy times.

In actuality it starts the last couple days of January when Chris Doebler, MTM CFO, and Megan Brown, VP of Sales and Marketing and I meet with our actuarial team to discuss year-end results and loss reserves. It is a lively discussion/debate where we take many unknowns of future medical costs, future court decisions, and try to apply that to the over 500 open claims that we are presently working on. Once an agreement is reached for that, then we start plugging those into the expense categories and revenue of 2022 for a final financial statement. All of that needs to be completed in just a few days. On February 9th we presented our findings to the MTM Board Finance Committee and MTM Board Marketing Committee. These committees are made up of MTM members.