We are pleased to introduce Laura Vedrin as the Division Director for Underwriting and Marketing for the Texas Association of School Boards (TASB) in Austin, Texas. She oversees the marketing, underwriting, and administration for the property and liability, workers' compensation, and unemployment compensation programs provided to more than 1,000 TASB Risk Management Fund members. Laura works closely with reinsurers, actuaries, and attorneys, addressing coverage issues, responding to proposals, and developing new products.

Although Laura has only recently joined TASB, she has worked in the self-insured environment in operations, accounting, and underwriting since 1987 with two of the largest public entity pools in Florida. Prior to working in public entity pooling, she worked as a CPA in the public accounting environment, accounting in Denver and Chicago. She also worked as an internal auditor for a major aerospace company in their commercial products division in Denver and Orlando. Laura holds a Bachelor of Administration in Business with an emphasis in Accounting from the University of Northern Colorado.

Fund Web Corner: myTASB Conversion Update

We are well on our way to roll out the new and improved version of myTASB, the secured access portion of the Fund’s Web Site. Since last September, a team of communications and IT specialists have been collaborating to rework the risk management portion of myTASB’s design, content, and functionality to improve accessibility and user satisfaction. The end result will be an enhanced members-only area that is both comprehensive and user-friendly. The conversion will also enable us to improve the navigation of old materials, while adding new and timely resources and updates as soon as they become available.

As part of the myTASB makeover, each area of the site will have its own dedicated look and feel while maintaining a consistent organization structure throughout. See the screenshots below for a sample of the new design.

As you can see on these sample templates, the navigation will remain the same as you move from one program to another, but the information architecture in each area will be self-contained. What this means is that each user’s profile will be customized to provide access only to the resources relevant to the programs and coverage with which they are affiliated. For example, if a member is only part of our Workers’ Compensation program, the user will not need to sift through the materials associated with Unemployment Compensation or Property and Liability coverages. This will simplify the user’s experience while preventing any confusion resulting from access to irrelevant, impermissible, or excess materials.

As the content migration phase of the process comes to an end, production testing will begin in June and the new version of the site is scheduled to deploy in July. Members will be notified via e-mail before the switch is made. We are currently looking for members to help us with the testing of the new site. If you would like to participate, please contact Allison Kaminsky at 800.482.7276, ext. 2275.

Ladder Safety: The Danger of Falls and How You Can Prevent Them

Falling from one foot or five feet does not seem to be a big deal to many people but the impact is greater than you think. Falls do not just cause scrapes and bruises; people can become permanently disabled or even killed, resulting in millions of dollars lost each year to these avoidable accidents.

Falls are the leading cause of occupational traumatic deaths and account for 8 percent of trauma fatalities (National Safety Council, 2009). Falling from a distance as low as a person’s height can be fatal. One report shows falls as one of the top causes of workplace fatalities among all industries (National Institute for Occupational Health & Safety, 2000), second only to vehicle collisions. Despite this knowledge, too many people continue to work without ladders when appropriate or use them incorrectly. As a result, the TASB Risk Management Fund is confronted with dozens of claims each month generating losses running into the hundreds of thousands of dollars.

One frequent reason for falls from elevation is using something other than a ladder for climbing. Directing and training employees to use ladders is a good first step but that is not enough. Proper selection and recommendations for safe usage are just as important. Regardless of how commonplace ladders are to us, we must always take extra care when reaching for elevated items, since the results of a fall can linger long after the plunge.

When designing a safety process, the first step is to evaluate the task and find ways to eliminate the associated hazards. In this context, we should ask if there are any ways to perform the task without having the employee leave the ground. Many tools are available that can do simple jobs such as changing a light bulb or cleaning elevated areas. Relatively inexpensive devices such as light bulb changers and cleaning extenders are available and should be considered.

For those tasks that need ladders, start by selecting the correct ladder for the job. There are many types and sizes of ladders and selecting the best one will make sure the job is done right the first time. For example, a ladder with plain metal steps may become too slick to use safely outside during rain.

As with any tool, not inspecting ladders before use may lead to disastrous consequences. Check to make sure that all hardware is in working condition. There should be no visible damage to steps, support brackets, or securing mechanisms. Set up the ladder on a flat even surface to make sure it does not lean in any direction when you begin climbing. The worst time to find out the ladder is not properly set up or is in poor condition is when you are on the ladder!

Always maintain three points of contact while climbing. In other words, only move one hand or one foot up the ladder at a time. This also means that you should not carry items when climbing. Use a tool belt, a rope to pull up items, or have a helper assist in performing the elevated task. In fact, someone holding the ladder steady is always a good idea.

Make sure you use the belt buckle rule when reaching from a ladder. Your belt buckle should not go over the side edge of the ladder, or else it may tip over. Also, you should never use the top two steps of a stepladder or place a ladder in front of a door without locking or propping the door open. Otherwise, someone unaware that the doorway is blocked may try to use the door and knock the ladder over.

When on a roof, tie the ladder to something to prevent it from falling and trapping you. You should also make sure you have at least three feet of ladder extended above the height of the roof. This allows you to have something to hold on to when climbing on and off.

When setting up an extension ladder against a wall or building, make sure that you use the Ľ rule: for every four feet in ladder height, the ladder’s base should be one foot away from the wall or building. For example, the bottom of a 16-foot ladder leaned against a building should be four feet away from the building. If it is too close, climbing is more difficult and the ladder may tip backwards on you. If it is too far, the ladder may collapse inward or the bottom of the ladder may slide outward. Either situation can result in a devastating fall.

There are other options such as man lifts or cherry pickers to help with elevated tasks. Whatever you decide, safety should always be a consideration when working on any task. If you have questions or need additional information on this topic, contact your Loss Prevention Consultant for assistance at 800.482.7276.

Bibliography

National Institue for Occupational Health & Safety. (2000, September). Worker Deaths By Falls: A Summary of Surveillance Findings. Retrieved May 13, 2010, from NIOSH Safety and Health Topic: Falls from Elevation: http://www.cdc.gov/niosh/docs/2000-116/pdfs/2000-116.pdf

Vagueness in Termination and Documents

Disciplining and terminating employees can be among the most difficult tasks facing supervisors. No one enjoys calling attention to a coworker for his or her unacceptable behavior and terminating someone can be almost as traumatic for new supervisors as it is for an employee. When the time occurs to issue a warning, you can save yourself a great number of potential headaches later if you’ll take the time to document properly with clear language. And if you do need to terminate someone, tell the employee the reason for the termination.

At some point, either through being too cautious or by trying to be intentionally vague, school districts started letting people go in what was said to be “in the best interests of the district,” without giving anything more specific. This was a favorite line of attorneys, but the pendulum is swinging back the other way in terms of giving specifics for termination. This intentional vagueness can create some unnecessary confusion, and even lead to more trouble down the line. Why? Because if you don’t give employees the reason they were discharged, they don’t know what to tell the Texas Workforce Commission (TWC) when they file for unemployment. In addition, not telling them the reason leaves former employees to dwell on it, wondering what it really was. This can leave their minds to wander to the worst case scenario. Or, even worse, they could invent one so far from the truth that employers might not have ever realized the employee thought that way. Suddenly, discharging an employee for being tardy too many times, but telling them it was “in the best interest of the district,” can turn into the employee believing they were discriminated against based upon their gender, race, or national origin, which leaves the employer trying to validate its position to a hearing officer for the TWC, or, even more seriously, defending against an EEOC complaint and subsequent lawsuit.

Here’s an example. While reviewing a recent unemployment claim with a school district, they could not understand why the claimant had been granted benefits. The claimant was asked by a TWC investigator, “What was the final incident that led them to terminate you?” She replied that she didn’t know.

She just parroted the language the school district had written on her termination letter, which said, you guessed it, she was being let go “in the best interests of the district.” In fact, she even continued reading what the school wrote her.

She read the letter, which stated: “You are an at-will employee; and in accordance with policy you may be discharged for any reason or no reason, provided that it is not a legally impermissible reason. Therefore, your employment with the district is terminated.”

While that language may all be certainly correct and true, to an aggrieved claimant who has just lost a job, it can sound suspicious, vague, and perhaps even conspiratorial. Further, a claimant can certainly take such vague language and accuse (rightfully or wrongly) an employer from simply using that as a pretext to terminate for an impermissible reason. It is much harder to later try to explain what you really meant instead of saying it from the beginning. When the district responded, they didn’t help the matter much because they stated in their reply, “The claimant is an at-will employee and was terminated for misconduct.”

Now, all that is certainly true, but if you don’t tell the employee why they are being discharged, they can’t tell the TWC. It is far better to get in front of an issue than have it appear later that you are changing your story.

It is certainly easier to defend a lawsuit at a later date if there is clear and consistent documentation leading up to the termination. If you terminated someone for attendance issues, say so. And be specific about it, too. Try something like: “The claimant was discharged for five days of no-call, no show.” This goes for most any situation, whether it is absenteeism, negotiated settlements of resignation, improper educator relationships with students, rude Facebook postings, or whatever else it is. The bottom line is that a district, as an employer, can and should explain exactly why it discharged an employee.

This should apply equally to any documentation prior to termination. If you are writing up an employee for using vulgar language, you should write out what they said. For example, if the employee is being counseled for profanity, write out the offending phrase so there is no confusion later on.

While that may seem a little over the top, you are making a record of what was said. Accuracy is important in documentation, whether it’s salty language, unpleasant facts, or a simple no-call, no show situation.

Remember, the burden is on the employer to prove that you discharged an employee for misconduct. Clear language can always pay dividends later by denying an unemployment claim and even avoiding lawsuits. If you have questions regarding employees who have filed for unemployment, please contact James Ezell, Attorney for the TASB Risk Management Fund Unemployment Compensation program, at 800.482.7276, ext. 6258.

2010 Construction Costs Update

As a benefit to its property coverage members, the TASB Risk Management Fund provides property appraisal services, which utilize the Marshall Swift Boeckh (MSB) Commercial Building Valuation software to determine and update building costs. This data is updated quarterly and includes regional labor and material costs. Each year, prior to your property renewal, building values are refreshed using the most current cost data available.

According to MSB data collected for the first quarter of 2010, for the second quarter in a row all regions in the United States are showing signs that the “hard” costs of construction are largely coming down. Nationally, labor rates are increasing.

Note: This information is only intended to provide a general sense of reconstruction cost trends.

We are here to make your job easier and are happy to help you. If you’d like more information regarding building values, feel free to call Jennifer Kolbasinski at 800.482.7276, ext. 6152.

Helpful Tips to Address Bullying on Campus

Bullying is a pervasive problem in schools. According to one study in 2005, approximately 28 percent of students ages 12––18 reported being bullied during a 6-month period. (Indicators of School Crime and Safety: 2007, U.S. Department of Education).

Bullying is conduct engaged in with the purpose of intimidating or demeaning the victim. Bullying may be in the form of physical conduct or written or verbal expression, such as hazing, threats, taunting, confinement, assault, and ostracism. Bullies may even use electronic communications, a practice commonly referred to as cyber bullying.

Districts should appropriately address bullying as early as possible to prevent or otherwise lessen the negative impact such acts may have on the learning environment. Preventative measures may also help the district avoid events that may result in district liability.

Assess bullying on campus and evaluate district practices that address bullying: The district should develop a clear understanding of the nature and prevalence of bullying on district campuses. One way is to provide students an anonymous questionnaire. The district should also assess district anti-bullying policies and practices to determine if they are effective and how they may be improved.

Comply with state bullying prevention laws: Texas Education Code section 37.001 requires districts to prohibit bullying as part of the district’s student code of conduct and to ensure that employees enforce the prohibitions. Texas Education Code section 25.0341 requires a district to transfer an alleged bullying victim on request of a student’s parent. The statute requires that the board or the board’s designee verify that the student was in fact a bullying victim prior to granting the transfer. An effective way to address the statutory requirements is to adopt a bullying policy or procedure.

Adopt a bullying policy or procedure: A written bullying policy or procedure can help districts manage risk and liability. Such a policy shows that districts are taking steps to address bullying to create a safe and effective learning environment. A detailed bullying policy and associated procedures provide the district with a comprehensive method to address incidents consistently and give staff direction on how to respond appropriately if they suspect bullying has occurred.

Although Texas does not have a law explicitly requiring districts to adopt anti-bullying policies, several experts and authorities recommend that districts establish school rules and policies as a best practice to address bullying, such as:
1. U.S. Department of Health and Human Services Health Resources and Services Administration, Best Practice in Bullying Prevention & Intervention;
  2. Olweus Bullying Prevention Program
2. One effective way to structure a bullying policy would be to mirror the model described in the U.S. Department of Education Office for Civil Rights guidelines for Protecting Students from Harassment and Hate Crime. Though the guidelines target harassment, they provide a useful template, because the procedural and other concerns facing harassment complaints are similar to those found in the bullying context. Recommended TASB Policy FFI (LOCAL) includes many of the guidelines’ principles. Note that some bullying reports are considered harassment based on protected characteristics like race, sex, disability, and religion, acts addressed in the student harassment policies found at TASB Policies FFH (LEGAL) and (LOCAL).
Your district should also adopt detailed computer use policies and procedures to provide the district with an effective method to address cyber bullying that occurs through the use of district resources. For district policies and procedures to be successful, districts must communicate those policies to employees and students, for example, through the employee and student handbooks.

Implement a bullying prevention program: The district should employ a program intended to lessen bullying by implementing procedures designed to prevent the behavior. Studies show that students respond to a comprehensive program that is incorporated into their regular school day and social interactions. A suggested program is the Olweus Bullying Prevention Program, endorsed by the United States Substance Abuse and Mental Health Services Administration and the Office of Juvenile Justice Delinquency Prevention.

Train all district staff: Train everyone, including administrators, teachers, paraprofessional, and auxiliary staff, especially bus drivers, to recognize and report bullying. Train employees soon after hiring. Document your training efforts, and keep a record of what materials were used and who attended.

Monitor all places where bullying may occur: Bullies rarely bully other students near staff, as they fear being caught. Districts should post added personnel in locations where bullying is suspected or reported to have occurred to discourage future incidents.

Investigate all complaints and suspicious conduct: Districts should investigate complaints thoroughly and document the investigation efforts. Districts should treat all allegations seriously so that students will feel comfortable reporting.

Maintain confidentiality: Students often fear that if other students find out they have complained about bullying, they will be retaliated against. To encourage students to report, districts must reassure them that their reports will be confidential to the extent possible. Additionally, during the course of bullying investigations conducted by school officials, student complaints and their detailed statements become a part of the students’ education records, subject to the confidentiality requirements of Family Educational Rights and Privacy Act (FERPA).

Develop effective responses for both victims and bullies: Districts should provide necessary support and services for victims such as counseling. Districts should also outline the potential consequences for a bully’s behavior. The district should discipline all bullies consistently, based on the seriousness of the allegations and other relevant factors and in a manner calculated to end the bullying.

Coordinate bullying prevention efforts with parents: District efforts can be even more effective if parents are involved and engaged in bullying prevention practices. Districts should keep parents informed about campus conditions and how they may assist the district’s efforts on campus, as well as encourage parents to develop practices that they may put in effect at home.

Reassess district policies and procedures regularly: The methods bullies use to bully other students will evolve over time, and the district’s policies and procedures need to be updated accordingly.

Update on TASB RMF Board of Trustees April Meeting

The Fund’s Board of Trustees met on April 25, 2010, at the Hyatt Regency Hotel in Austin, TX. After approval of the minutes, the Audit and Finance Committee reported on the following items to the full Board:

The Committee also presented an action item to the full Board on criteria for the assessment of non-compliant Workers’ Compensation members in meeting their statutory reporting requirements. The Board approved this item.
The Member Services Committee reported the following items:

The Committee also presented the following action items, which were approved by the Board:

Dubravka Romano, Associate Executive Director, TASB Risk Management Services, presented the 2010-13 Fund Strategic Plan for approval by the full Board. The action item passed, along with other action items. They are as follows:

The Board also heard reports on the sponsorship and license agreement negotiations, progress on the Fund’s litigation management program, a report on agreements executed since the last board meeting, and notification of upcoming Board meetings and training opportunities.

If you have any questions about this report, contact June Kissinger, at 800.482.7276, ext. 3545.

Be Prepared: Know Your Coverage and Have a Plan

We all think we know our property and liability coverage and how it applies to our district until a catastrophic claim such as a hurricane or a devastating fire forces us to respond. It is important to realize that merely having a disaster recovery plan is not enough – you must be able to execute your plan. Use the following tips to ensure that your disaster recovery plan is a success:

We cannot always stop an emergency from occurring, but thoughtful planning and effective implementation will make a big difference on how it affects you and your recovery. If you have questions about your coverage, contact the Underwriting Department at 800.482.7276.

2010 Fund Conference Provides Cost-Effective Educational and Networking Opportunities

This year’s theme was all about getting connected with coworkers and colleagues. By that measure and many more, the conference was a success! Held at the Hyatt Regency Austin Hotel from April 25-27, the conference hosted over 500 people, representing nearly 300 Fund members. For over ten years, the Fund has offered timely and targeted educational opportunities at the annual Members’ Conference. We understand the financial burden of traveling for conferences and are proud to provide the right solution for your tight budgets.

Sunday evening weather provided the perfect backdrop for a come-and-go Early-Bird dinner at Zax Restaurant within walking distance from the Hyatt. Members mixed and mingled while relaxing outdoors and enjoying spring time in Austin.

Everyone was up bright and early Monday morning to hear the keynote address provided by Jim “The Rookie” Morris. With roots firmly established in Texas as a teacher at Reagan County High School, Jim regaled everyone with family tales about his grandfather and baseball. Jim was a “homerun” with members; his inspiring message taught us that we can do whatever we set our minds to and, more importantly, to never stop reaching for the stars.

There were 24 educational breakout sessions to choose from this year, including several two- hour courses on School Safety and A Day in the Life of Risk Management. Monday at lunch, ten deserving winners were presented with the 2010 Fund Innovation Award for their ingenuity and successes within their individual risk management efforts. Monday evening, another networking opportunity arose when members met in the Hyatt Marker 10 Bar and Patio area for a two-hour reception. The weather cooperated in a big way… once again!

Tuesday morning, members got an early start on their final rounds of breakout sessions and then participated in the second year of Risk Management Roundtables.

A series of 19 tables served as a forum for discussion on pertinent topics such as Issues Facing Community Colleges, Property Loss Advice, Online WC Claim Reporting, and much more.

To conclude the conference, Fund Chair, Kevin Carbo and Dubravka Romano, Associate Executive Director of TASB Risk Management Services, conducted the Annual Coverage Credit Drawings for $1,000, $3,000 and $5,000. All members who stayed until the end and submitted a conference evaluation form were eligible to win. Once the winners were announced, everyone was bid adieu with hope for a safe drive home.

We know many Fund members come to conference every year, and we thank you for your continued support. If you have not attended any Fund training, there are plenty of opportunities. The Fund Fall Seminars will take place in September and October and new webinars will be announced later this summer as well. Keep an eye on your e-mail for details.

Next year’s conference will be held again at the Hyatt Regency Austin Hotel from April 17-19, 2011. We hope to see many familiar and new faces, so save the date and mark your calendars today!

Applying your Members’ Coverage Credit

Wow! What an awesome Fund Members’ Conference we had this year! Not only did we have a spectacular motivational speaker, Jim “The Rookie” Morris, but for the seventh year in a row, the Fund will proudly award renewal Coverage Credit to each Fund member who sent a representative to the Conference. This credit is awarded by the Fund board because of the high value the Fund places on risk management training.

Members in attendance at the conference will receive up to $300 in coverage credit per line of coverage that can be applied to 2010-11 renewals if their contributions are paid by the due date.

Members can receive up to 50 percent of their contribution (to a maximum of $300) for each line of coverage for which coverage is renewed. Remember, credits may be received throughout the year depending on the line of coverage and renewal date. For example, if your Workers’ Compensation coverage renews September 1 and your contributions are received by the due date on the invoice, the coverage credit check will be sent October 1. A note on the check stub will identify the appropriate line of coverage.

Please also keep in mind that the coverage credit may only be applied toward a Fund contribution or Fund administrative fees and not to stop-loss or vendor fees.

If you have any questions, feel free to contact Sabrina Bullard at 800.482.7276, ext. 3343.

Continuing a Tradition of Innovation: 2010 Innovation Awards

For seven years now, the TASB Risk Management Fund has recognized the individual successes of our members’ risk management efforts with the annual Innovation Award. Presented yearly at the Fund’s Members’ Conference, these awards are meant to spotlight members for their initiatives, products, and programs that successfully demonstrate cost-effectiveness, originality, transferability, and the ability to address needs at the overall member level. This year, ten deserving members were selected and awarded a commemorative plaque and $1,000 to apply toward their continuing risk management efforts. Continue reading to see how your fellow members earned such an esteemed honor:

Congratulations to all of our winners! Recipients of the Innovation Award set an excellent example of timely, creative, and effective approaches to risk management that we hope other Fund members will emulate.

If you are interested in applying for next year’s Innovation Award, continue to check our Web Site for details. The 2011 application will be available on line late this summer. You may also contact Stacy Hobbs at 800.482.7276, ext. 7233 for more information.

200 Loss Prevention Grants Awarded

Sometimes safety just does not get the billing it deserves. There are many priorities competing for our members’ attention these days and not every need or desire can be met. The Loss Prevention Grant Program is designed to help you in those situations where a safety initiative is important enough to implement but the funding is not available.

Since 1998, the Fund has given over $4.5 million back to our membership through this program. More than 500 members over the years have utilized Loss Prevention Grants to reduce a variety of risks including fires, break-ins, back injuries, and falls. Because slips, trips, and falls represent the single greatest challenge to our Workers’ Compensation members, we focused on those applications this year.

Some of our members consistently participate in this program and have received grants for several years in a row. In 2008, we began to recognize their achievements with a special award and have since continued this tradition. This year we are proud to announce 37 members have been awarded grant funds for at least five consecutive years.

(Pictured Above: Kerrville ISD is awarded a Loss Prevention Grant for the seventh consecutive year.)

Of special notice are five members who met or exceeded ten years of continued success in our grant program:

This grant cycle was the smoothest yet. Members began submitting their ideas the day the application went live in January and kept it up until the closing date in March. The evaluation period lasted through April and recipients were notified in early May to set up grant delivery meetings.

If you have questions about the Loss Prevention Grant Program, please contact Edwin Thompson, Director of Loss Prevention Services, at 800.482.7276, ext. 6227. If you have questions regarding technical aspects of the grant, please contact Charles Hueter at 800.482.7276, ext. 6305.

TASB Risk Management Fund
Your Comprehensive Risk Management Solution

June is a month that signifies not only the end of school and the impending heat of another Texas summer, but also a time when school districts and educational entities begin making risk management decisions for the upcoming school year. Because a number of risk management contracts coincide with the beginning of the school calendar, this is when many entities will evaluate their providers of risk management coverage and services.

Your risk management program is made up of a number of components, including coverage, claims administration, loss prevention, financial stability, and price. While price is an important factor, especially in light of the current budget challenges you face, it is only one element you should consider. In actuality, what truly distinguishes one risk management program from another is the way it combines these components in a manner that provides the most comprehensive risk management solution at the lowest cost of risk.

That is exactly what the TASB Risk Management Fund offers its members. The following are just a few reasons why the Fund is unquestionably your comprehensive risk management solution:

As mentioned earlier, the most successful risk management program is the one that best combines all essential elements to provide a total solution for you. For more information on any of the TASB Risk Management Fund’s programs, call your Risk Management Marketing Consultant at 800.482.7276, ext. 6249.

True Savings: Workers’ Compensation Medical Bill Review

It is no secret that in these economic times the bottom line often becomes first and foremost for many decision makers of Texas public schools and other public educational entities. Finding ways to save a bit more here and shave a little more there is now the rule rather than the exception. When looking at employee coverage, the question of “How much will this save us?” can be the determining factor in choosing one plan versus another. But do you know how much you are really saving? When a Workers’ Compensation insurance carrier promises savings of 75 percent, the thought conjures memories of a late night commercial where someone dressed in a sports coat with two fists full of cash is guaranteeing to affect your bottom line. But what does this really mean? This article is the first in a series that will focus on the difference between “savings” and “true savings” in the world of workers’ compensation (WC).

The Texas Department of Insurance, Division of Workers’ Compensation (DWC) publishes a Texas Medical Fee Schedule that is effective in January of each year. This fee schedule, based in large part on federal rates established by the Centers for Medicare and Medicaid Services (CMS), defines the maximum allowable reimbursement (MAR) that a medical provider in Texas can be paid for services rendered. The MAR applies to just about every medical service that can be provided, from something as complicated as a hospital admission to something as simple as gauze. No matter what the provider charges, the MAR is defined by the DWC.

Many carriers define savings as the difference between the billed amount and the amount paid. But what you may not know is that they then turn around and bill for their services based on how much they saved you. For example, if a provider bills $100 for an office visit and the MAR is defined by DWC as $50, the savings would be 50 percent. However, if the carrier then charges a percentage of savings as their fee for processing the bill, the percentage of true savings is greatly reduced. Conservatively, carriers that do this charge an average of 25 percent of savings. In our example that would equate to $12.50, meaning rather than a savings of 50 percent, the true savings are only 37.5 percent.

Keep in mind, there is nothing that precludes a provider from billing whatever they want for a service. Therefore, the end result could ultimately cost much more than ever expected. Many carriers also consider a duplicate bill submitted by the provider and reduced to zero by the carrier to be a 100 percent savings!

The TASB Risk Management Fund, however, charges a nominal flat fee for handling WC medical bills regardless of the amount saved. We believe true savings should be based on aggressive cost containment measures reviewed by a well trained staff that examine every aspect of the medical bill, not just reducing the billed amount to MAR. We understand many of the challenges facing Texas public schools today – defining true medical bill review savings should not have to be one of them. If you have questions concerning medical bill review, contact us at 800.482.7276.

Introducing Laura Vedrin, Division Director of Underwriting and Marketing