The ALARIS Group, Inc.

1
The ALARIS Group, Inc. Current Economic
Impact on Minnesota Statutory Vocational
RehabilitationApril 14, 2009Robert Otos
Mike Kahnke
2
How is Minnesota Impacted by the Current Economic
Recession

• Minnesotas current unemployment rate is 8.1 up
  from 5.0 just one year ago

3

• Business sectors hardest hit
• Construction down 19.5
• Professional and Business services down 8.5
• Manufacturing down 7.7
• Business gaining
• Education and Health Services up 3.6
• Government jobs up 200 jobs (mainly to local
  government)

4
Vocational Rehabilitation Benefits for Injured
Workers

• The Current Economic Status has not changed the
  rules which govern rehab benefits for injured
  workers
• Referral to QRC at 13 weeks of temporary total
  disability, or if temporary disability is
  expected to exceed 13 weeks. (Tracked through
  Disability Status Report).
• The Injured worker must be found to be a
  Qualified Employee
• Qualified employee" means an employee who,
  because of the effects of a work-related injury
  or disease, whether or not combined with the
  effects of a prior injury or disability
• is permanently precluded or is likely to be
  permanently precluded from engaging in the
  employee's usual and customary occupation or from
  engaging in the job the employee held at the time
  of injury
• cannot reasonably be expected to return to
  suitable gainful employment with the
  date-of-injury employer and
• can reasonably be expected to return to suitable
  gainful employment through the provision of
  rehabilitation services, considering the treating
  physician's opinion of the employee's work
  ability.
• But He was LAID OFF!!!
• Erickson v. City of St. Paul

5
So, what has changed in this environment?

• The Return to Work Spectrum
• Job Placement
• What constitutes a good job search
• Documentation
• Resume Mistakes
• Looking for work in todays world
• What should a claims adjuster expect?
• Want Fries with that?
• Consideration must be given to former employment,
  current labor market, work history,
  qualifications, age, education and interest.
• Skills Enhancement
• Vocational Testing
• RETRAINING!! What are the rules?

6
Retraining

• MN Rule 5220.0750, Subp. 1 The purpose of
  retraining is to return the employee to suitable
  employment through a formal course of study.
  Retraining is to be given equal consideration
  with other rehabilitation services, and proposed
  for approval if other considered services are not
  likely to lead to suitable gainful employment.
• Insurer must notify employees of their right to
  request retraining prior to 80 weeks of combined
  temporary disability.
• Employee requests for retraining consideration
  must be made
• prior to 104 weeks of combined temporary
  disability (TTD TPD) for injuries occurring
  between October 1, 1995 and October 1, 2000.
• prior to 156 weeks of combined temporary
  disability (TTD TPD) for injuries occurring on
  or after October 1, 2000.
• Prior to 208 weeks of combined temporary
  disability (TTD TPD) for injuries occurring on
  or after October 1, 2008.
• Hallum vs. Potlatch.
• Retraining is limited to 156 weeks (based on
  school calendar).
• Poole factors.
• Independent Vocational Evaulations

7
What Can the Employer or Insurer do?

• Implement a RTW/Modified Duty Program
• Keeps employee from being focused on claim
• Studies routinely show the longer a person is out
  of work, the less likely the person is of ever
  returning to employment
• Employer still receives some benefit from
  employee working even in a light-duty position
• Keeping people at work is always cheaper than the
  alternative!
• Direct vs. Indirect cost of absenteeism
• Temporary disability benefits will be greatly
  reduced, if not eliminated altogether
• Employer is not required to pay same wage for
  light duty as full duty
• Caution
• Temporary disability benefits are paid out at a
  lower rate, usually 2/3 of the claimants average
  weekly wage, but they are nontaxable. Some
  employers have voluntarily paid the additional
  1/3, meaning that employees earn MORE by staying
  at home than at work, thus creating a financial
  disincentive to return to work
• By limiting temporary disability benefits,
  perception of permanent disability claim may be
  diminished
• May eliminate need for vocational rehabilitation
  benefits

8

• Best outcomes come from early intervention.
• Coordinate appropriate medical services and
  referral from the onset of the injury.
• Promote early RTW.
• Build a rapport early on with the employee.
• Does not always have to be SVR services, look at
  case management involvement, even if task based.
  
• Communication is Key to success
• Talk to the QRC/Placement Vendor
• Dont ignore those forms!
• Remember, you have a say in the plan as well.

9

• Costs of Rehabilitation
• Statutory Rehabilitation effective 10/1/08
• QRC Professional time 91/hour
• QRC Travel 68.25/hour
• QRC Wait time 45.50/hour
• QRC-Intern Professional time 81/hour
• (10.00 lt QRC rate)
• Reduction of professional time rate by
  10.00/hour when either
• Duration of rehabilitation exceeds 39 weeks.
• Cost of rehabilitation exceed 3500.

10

• QRCs limited to 2 hours of billable time in any
  30 day calendar period when placement activities.
• Additional may be requested by QRC and can be
  authorized by adjuster. Good issue to discuss
  upon initiation of placement.
• Insurer has the right to select placement vendor.
• Placement Services effective 10/1/08
• Placement time 69.08
• Travel 51.81
• Wait time 34.54
• Rates are adjusted on 10/1 each year pursuant to
  MS 176.645.

11
Thank you www.alarisgroup.com