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Compliance with Maine Workers’ Compensation Board Requirements

Compliance with Maine Workers’ Compensation Board Requirements. 2006-2010 Maine Workers’ Compensation Board Office of Monitoring, Audit and Enforcement. How is Compliance Measured? Monitoring. the timely filing of: Lost Time First Report of Injury (FROI)

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Compliance with Maine Workers’ Compensation Board Requirements

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  1. Compliance with Maine Workers’ Compensation Board Requirements 2006-2010 Maine Workers’ Compensation Board Office of Monitoring, Audit and Enforcement

  2. How is Compliance Measured?Monitoring • the timely filing of: • Lost Time First Report of Injury (FROI) • Initial Memorandum of Payment (MOP) • Initial Indemnity Notice of Controversy (NOC) • Wage Statement (WCB-2) • Schedule of Dependents and Filing Status Statement (WCB-2A) • the timely payment of: • Initial Indemnity Payment The Monitoring Division measures

  3. How is Compliance Measured?Auditing • Form Filing • Timeliness of Benefit Payments • Accuracy of Indemnity Payments The Audit Division determines compliance with statutory and regulatory requirements in the following areas:

  4. Maine Claim Scenarios Scenario 1 – No Day Lost and Medicals Accepted • FROI not required to be filed

  5. Scenario 2 – No Day Lost and Medicals Denied File NOC within 30 days of receipt of a medical bill (See Rule 5.7) File FROI (See Rule 8.13) Maine Claim Scenarios

  6. Scenario 3 – Day Lost, Return To Work within 7 days, Medicals Accepted File FROI within 7 days of employer’s notice or knowledge of a lost day (See Section 303, Rule 3.1) File updated FROI within 7 days of RTW (See Rule 8.16) Maine Claim Scenarios

  7. Scenario 4 – Day Lost, Return To Work within 7 days, Medicals Denied File FROI within 7 days of employer’s notice or knowledge of a lost day File updated FROI within 7 days of RTW File NOC within 30 days of receipt of a medical bill Maine Claim Scenarios

  8. Scenario 5 – Days Lost Greater than 7, Incapacity Accepted File FROI within 7 days of employer’s notice or knowledge of a lost day File MOP within 14 days of employer’s notice or knowledge of incapacity orwithin 6 calendar days after 1st day of compensability (Box 28 of MOP) File WCB-2 and WCB-2A within 30 days of 1st day of compensability (Box 28 of MOP) File amended MOP to establish AWW and WCR Maine Claim Scenarios

  9. Scenario 5 – Days Lost Greater than 7, Incapacity Accepted (cont.) File WCB-4, WCB-4A, or WCB-8 (as applicable) when indemnity is discontinued, reduced or otherwise modified File (Interim) SOC within 195 days of injury date, and then annually within 15 days of the anniversary date of the injury while payments (of any type) are ongoing File (Final) SOC when no further payments are anticipated Maine Claim Scenarios

  10. Scenario 6 – Days Lost Greater than 7; Incapacity Denied File FROI within 7 days of employer’s notice or knowledge of a lost day File NOC within 14 days of employer’s notice or knowledge of incapacity If NOC was filed late, you must issue a mandatory payment and file a mandatory MOP (See Rule 1.1) File WCB-2 and WCB-2A within 30 days of employer’s notice or knowledge of incapacity Maine Claim Scenarios

  11. Scenario 6 – Days Lost Greater than 7 days, Incapacity Denied (cont.) File amended mandatory MOP to establish AWW and WBR, and to revise the “Amount Paid” (Box 20C), if applicable File (Interim) SOC within 195 days of injury date, and then annually within 15 days of the anniversary date of the injury while payments (of any type) are ongoing File (Final) SOC when no further payments are anticipated Maine Claim Scenarios

  12. How is Compliance Measured?Monitoring • Insurance entity compliance information is measured in: • 4 Quarterly Compliance Reports • 1 Annual Compliance Report • Individual entity and insurance community compliance data is analyzed for trends and patterns

  13. How is Compliance Measured?Auditing • Insurance entities are audited on a random schedule • 3 year cycle

  14. What are the Compliance Measurements? FROI - (LT claims only) must be filed: • Within 7 days of Employer’s Notice or Knowledge of a lost day (Box 43B on FROI) TA or TE date MINUS Box 43B = less than 8 days

  15. within 14 days of Employer’s Notice or Knowledge of Incapacity (Box 23B on MOP) or; within 6 calendar days of the first day of compensability (Box 28 on MOP) Received date Minus Box 23B = Less than 15 days OR Received date Minus Box 28 = Less than 7 days What are the Compliance Measurements? Initial Indemnity Payment must be made:

  16. What are the Compliance Measurements? • Initial MOP Filing • Received within 17 days of Employer’s Notice or Knowledge of Incapacity • MOPs must be sent within 14 days of Employer’s Notice or Knowledge of Incapacity • Initial Indemnity NOC Filing • Received within 14 days of Employer’s Notice or Knowledge of Incapacity (A NOC is not received until you get a TA or a TE)

  17. What are the Compliance Measurements? • Wage Information (WCB-2 and WCB-2A): • Received within 30 days of claim becoming compensable (Day 8) OR • Received within 30 days of Employer’s Notice or Knowledge of Incapacity on disputed claims

  18. Compliance Benchmarks MWCB Issued Performance Benchmarks • Filing of FROI New Benchmark-85% Old Benchmark–None • Initial Indemnity Payment New Benchmark-87%. Old Benchmark–80% • Filing of Initial MOP New Benchmark-85%. Old Benchmark-75% • Filing of Initial Indemnity NOC New Benchmark-90%. Old Benchmark-None Effective 1/1/08

  19. Maine ComplianceLost Time First Report of Injury Filing Compliance Benchmark Insurance industry in Maine has performed above 80% for the last four years. The MWCB benchmark is 85%.

  20. In 2009 Monitoring began to measure compliance from the date the FROI transmission included lost time, not when the original transmission was received. Compliance has increased steadily since then. Maine Compliance Lost Time First Report of Injury Filing Compliance

  21. Maine ComplianceInitial Indemnity Payment Compliance 87% BENCHMARK The insurance industry in Maine has been at or above benchmark in payment compliance for the last four years.

  22. Maine ComplianceInitial MOP Filing Compliance 85% BENCHMARK The insurance industry in Maine has been above benchmark for the last four years. (The benchmark prior to 2008 was 75%.)

  23. Maine ComplianceInitial Indemnity NOC Filing Compliance The insurance industry in Maine met the benchmark established in 2008. No benchmark existed for this form filing prior to this year.

  24. Why is Compliance Important? • Poor compliance can trigger Corrective Action Plans (CAP) and/or audits • CAPs are agreements and action plans between MWCB and the Insurer/Adjuster to improve poor compliance and improve claims handling • Failure to engage in a CAP or abide by one can result in a prompt audit

  25. Why is Compliance Important? • Compliance data is published for: • Internal Customers (Claims Management, Executive Management, etc.) • External Customers (Regulators, Competitors, Claimants, etc.)

  26. Why is Compliance Important? • Penalties can result • From $1 to infinity and beyond! • Excessive late filings/payments may be interpreted as a questionable claims-handling technique • Under §359, an insurer, self-insurer, TPA or adjuster can have their license revoked by the Bureau of Insurance

  27. Maine ComplianceReview Questions??

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