OWCP Interagency Meeting

Shelby Hallmark, Director Office of Workers’ Compensation Programs

November 28, 2007

“SHARED” Progress

FECA is like football:
-- It’s a contact sport, and it’s all about teamwork.

SHARE has focused agencies’ attention on safety and FECA mgt. OWCP continues to pursue its many initiatives to help achieve better results
– Doug will focus on those later.

“SHARE” IS WORKING

The President’s “Safety, Health and Return to Employment” Initiative is meeting all goals SHARE I (2004-2006) slow to start, ended with a bang SHARE II (extended through FY 2009): already firing on all cylinders

SHARE Goals

To reduce Total Case Rates by at least 3% per year To reduce Lost Time Case Rates by at least 3% per year To improve the timely filing of injury and illness notices by at least 5% per year To reduce the rates of lost production days due to injuries and illnesses by at least 1%

Total Case Rates -- Goal #1
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
e) 04 05 06 (B as el in FY FY FY FY 07

Federal Government (less USPS)

Rate Per 100 Employees

Goal Actual

FY 03

Rate Per 100 Employees 10 12 14 0 2 4 6 8

Agriculture Air Force Army Defense DHS Interior Justice Labor Navy State Treasury VA Goal Actual

Total Case Rate -- Goal #1
Major Agency—FY07 Goal vs. Actual

Lost Time Case Rates -- Goal #2
Federal Government (less USPS)
2.5 2 1.5 1 0.5 0
e) 04 05 06 (B as el in FY FY FY FY 07

Rate Per 100 Employees

Goal Actual

FY 03

Rate Per 100 Employees 0 1 2 3 4 5 6

Agriculture Air Force Army Defense DHS Interior Justice Labor Navy State Treasury VA Goal Actual

Lost Time Case Rate – Goal #2 Major Agency—FY07 Goal vs. Actual

Federal Government (less USPS)
80 70 60 50 40 30 20 10 0
e) 04 05 06 (B as el in FY FY FY FY 07

Timeliness -- Goal #3

Percent Timely

Goal Actual

FY

03

100% 90% 80% 70% Percent Timely 60% 50% 40% 30% 20% 10%

Timeliness -- Goal #3 Major Agency – FY07 Goal vs. Actual

Goal Actual

Agriculture

Air Force

0%

Treasury

Defense

Army

Interior

Justice

Labor

Navy

State

DHS

VA

Lost Production Days -- Goal #4
Federal Government (less USPS)
70 60 50 40 30 20 10 0
e) 04 05 06 (B as el in FY FY FY FY 07

Rate per 100 Employees

Goal Actual

FY 03

Lost Production Days -- Goal #4 Major Agency – FY07 Goal vs. 210 Actual
Rate per 100 Employees

185 160 135 110 85 60 35 10

Goal Actual

DHS

Army

Navy

Defense

Justice

Agriculture

Air Force

Interior

Labor

State

Treasury

VA

Lost Production Days
160 Rate per 100 Employees 140 120 100 80 60 40 20 0 USPS (non-SHARE) All Other Gov't 56.0 61.9 56.1 147.6 147.2 134.4 142.5 135.2
FY03 FY05 FY07 FY04 FY06

52.2

46.3

OWCP Contributions

OWCP measures its own Return to Work efforts via “QCM Lost Production Days” Limited to cases moving into the Quality Case Management process – normally those with disability beyond COP For FY 2007 we pushed down LPD for these serious cases to 148 days – down 25% in 10 years

QCM Lost Production Days
Within first year of FECA Wage-Loss compensation

200 190 180 170 160 150 140
19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07
Average Days

Year Scored

OWCP Contributions, cont’d

Periodic Roll Management continues to provide results:
$17 Million first year savings in FY 2007  Over $2 billion in savings since inception in 1993

Medical cost containment goal met again – fee schedule and bill pay edits net millions in cost avoidance

Changes in FECA Medical Costs per Case v. Overall US Health Costs
Trend lines: October 1997 – September 2007

15% 10% 5% 0% -5% -10%

97

'O ct -

Poly. (Milliman USA)
-15%

Poly. (FECA)

'S ep

t07

Long-term Disability Roll
End-of-Period Snapshot
50,000 49,500 49,000 48,500 48,000 47,500 47,000 46,500 46,000 1998 1999 2000 2001 2006 1996 1997 2002 2003 2004 2005 2007 (2Q)

Fiscal Year

Total FECA Benefit Costs
FY 2000 - 2007
(net outlays in millions)

$2,500 $2,000 $1,500 $1,000 $500 $2000 2001 2002 2003 2004 2005 2006 2007

Compensation Benefits Medical Benefits

FY 2008 and Beyond

OWCP/DFEC continue to innovate – Doug Fitzgerald will discuss SHARE Web page update this week:
 

FY 2007 LPD results; FY 2008-09 performance targets for all 4 of the goals; and All power point presentations from this meeting

Still pursuing FECA reform legislation

FECA REFORM Goals
 Enhance  Address  Fix

Incentives

Equity Concerns

Antiquated Provisions

Revised package to OMB for clearance next week

Reaching the goal:
A safe and healthy workforce, protected by the best workers’ compensation system on Earth