*
American Electric Power
Loyd A. Hudson, Integrated Disability Manager
Workers’
Vendor
Reserving
Safety
Mgt.
Benefit
Coordination
Staff Mgt.
Vocational
Payment
Compensation
Return
To
Litigation
On
Site
Rehab
Coordination
Work
Program
Mgt.
Excess
Prescription
Services
Field
Nurse
Programs
Surveillance
Company
Bill
Re-pricing
Mgt.
Case
Mgt.
Insurance
/
CasePolitics
Mgt.
Bonding
1.90%
1.70%
1.50%
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
*
AEP
1.30%
National
Average
1.10%
0.90%
0.70%
0.50%
*
* Workers’ Compensation
* Federal
* State
* Sick Leave Benefits
* Short Term Disability
* Long Term Disability Benefits
* ADAAA
* Social Security Disability
* Accidental Death and
Dismemberment
* Company Life Insurance
* HIPPA
* Medicare SCHIP reporting
* Cobra Benefits
* State Leave Programs
* FMLA
* Union Agreements
* Company Drug and Alcohol Testing
* Medical Insurance
* Safety Program
* Return To Work Program
* Vocational Rehabilitation Program
* Fitness For Duty (On Boarding)
* Employee Assistance Program (EAP)
* Medicare Set Asides
* Designated Vocational Rehab
Specialist
* Predictive Model - RTW Program
* Return to work Progression Plans
* Integrating ADAAA into the RTW
Process
*
*
Occupational
Non-Occupational
 Culture shift to promote RTW at all levels
 Pro-active progression plans to Increase Restricted Duty
 Tracking of employees ability to work restricted
 Incorporating ADA into the RTW process
 Bringing employees back to work from LTD
*
*
* Injured employees off work longer than six months have only a fifty
AEP
Occupation =65days
Non-Occupational = 33days
percent chance of ever returning to their job; if time lost exceeds
one year, their chances decrease to less than ten percent.
* Compensable injuries can take up to four times longer for recovery;
they may cost five times more than non-compensable injuries.
* Early return to work enables the employee to continue a productive
life.
* Early return to work reduces costs of replacing the employee,
overtime costs, retraining costs, loss of production and related
costs, and improves workplace morale.
* Early return to work reduces Temporary Total Disability payments.
Employees are on the job, earning wages.
* Early return to work reduces medical costs. The injured employee
heals more rapidly, shortening the time medical treatment is
needed.
* Early return to work reduces award costs. The potential for an
employee to become totally and permanently disabled is greatly
decreased.
* Early return to work reduces legal costs. Employees are less likely to
feel their rights have been violated causing them to engage a lawyer.
* Early return to work cost reductions will have a direct impact on
Workers’ Compensation premium rates
*The American Occupational Medical Association, http://www.uwsa.edu/oslp/wc/polpro/rtw.htm
*
EEI 2010 Safety Survey Sorted By Severity
Top Quartile
80% Restricted Duty
1.9 Days Per Case
Second Quartile
62% Restricted Duty
7.2 Days Per Case
Third Quartile
58% Restricted Duty
9.4 Days Per Case
Fourth Quartile
49% Restricted Duty
13.95 Days Per Case
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
1
5
9
13 17 21 25 29 33 37 41 45 49 53 57 61 65 69
 For every 2.57% more Restricted Duty Cases, save 1 lost work day
 Moving from 30% restricted duty to 80% restricted duty would save an
average of 20 days per case
Physical Recovery of Employees
16
14
12
10
Progression Plan
8
Full Duty RTW
6
4
2
0
*
week week week week week week week week week
1
2
3
4
5
6
6
8
9
Physical Recovery of Employees
16
14
12
10
Progression Plan
8
Full Duty RTW
6
4
2
0
*
week week week week week week week week week
1
2
3
4
5
6
6
8
9
* Employee
* Physician
* FCE / IME
*
*
Light = 85.5
Medium = 98
Heavy = 110.5
3.5 weeks more
productivity and 3.5
weeks less of sick pay
*
This is a work progression plan approved by AEP supervision, Mr. Employee’s treating physician and the
employee to ensure a successful and safe return to work. This plan is designed to progress Mr.
Employee through 7 weeks of increased duties to reach his full duty job requirements. The evaluation of
the process will be a joint agreement between the supervisor and employee, with the approval of the
employee’s doctor, and the employee’s ability to complete the hours and tasks worked, per the
agreement. If, at any time, the employee has a concern with the plan, he must immediately report the
concern to his immediate supervisor. Jennifer Bash, Claims Specialist, will monitor the progress of the
plan and be available to address any concerns that develop throughout the program. Mr. Employee will
work in his assigned job, increasing amounts lifted and duties as outlined below:
Week 12-13
(10-31-2011 Through 11-11-2011)
Week 14-15
(11-14-2011 Through 11-25-2011)
Week 16-17
(11-28-2011 Through 12-09-2011)
Week 18
(12-12-2011 Through 12-16-2011)
Work Progression Plan Approval Signatures
Claims Specialist: __________________________
Physician:
__________________________
Employee:
__________________________
Supervisor:
___________________________
Date:
Date
Date
Date
______
______
______
______
Work 8 hours a day, complete necessary safety and training, then able lift
and carry up to 25 pounds continuously, 50 pounds occasionally.
*
Job Task #1: Perform duties in accordance with the company safety rules,
regulations and practices and report unsafe conditions and practices.
*
Job Task #2: Loading and unloading of materials, not in excess of 25 lbs.
*
Job Task #3: Ride with line crew as groundman worker.
*
Job Task #4: Re-familiarization of climbing – not to exceed 6-8 feet using
Bucksqueeze fall restraint safety belt.
*
**Employee will not be on call-out until climbing recertification has been
completed. He may perform overtime if he is on a job and needs to stay
until the job is completed.
*
Trial period working and performing all functions of a Line
Mechanic – A.
* Following the end of week 18, a fit for duty exam will be
scheduled. Upon receipt of successful results of this
exam, Mr. Employee will then recertify for climbing and
pole top rescue. He can then resume working his normal
schedule, including callouts.
*
* Documents Trends
* Benchmark Against Other
* Provides data
* Documenting Value
*
*
Expenses as a Percentage of
Claim Costs
% Of HR Costs
% Of Other Costs
2011a
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
On average since 2006 for every dollar cut from the AEP
Recovery Center $2 were paid in increased vendor services.
*AEP Management
Expenses are 7.4%
Outsourced
Functions
HR
Function
22
*
Sick Pay Benefits as a Percentage of Payroll
2.40%
2.35%
2.30%
2.25%
2.20%
2.15%
2.10%
2.05%
2.00%
1.95%
1.90%
1.85%
Expenses as a Percentage of Benefits Paid Out
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2002-2005 Benefits Increased, Expenses Decrease

2005-2006 Benefits Decreased, Expenses Increases

2006-2008 Benefits Increased, Expenses Decrease

2010-2011 Benefits Decreased, Expenses Increases

Over All ROI for staff is = 14:1