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Newsbriefs

WASH. ISSUES EMERGENCY RULE ON HEAT ILLNESS

Washington's Department of Labor and Industries has issued an emergency rule, requiring employers to take precautions to prevent heat-related illness for anyone working outdoors in hot weather.

This is the second summer in a row that L&I adopted the emergency rule.

Employers must:


  • Establish and implement written procedures to prevent heat-related illness.

  • Provide and make accessible drinking water so that on days when employees are exposed to the hazards of heat-related illness, each employee can drink at least one quart of water per hour.

  • Have procedures to respond to employees who are experiencing or showing signs of heat-related illness.

  • Provide effective prevention training to employees and supervisors.

Working outdoors in hot weather can put employees at risk for heat-related illness such as heat exhaustion or heat stroke, L&I said. Those are serious health conditions that can cause disability and death.

Discussions on the need for an outdoor-heat rule in Washington began in 2005 after an agriculture worker died from heat stroke, and L&I recognized that existing regulations did not adequately protect employees working outdoors in hot weather. Then in July 2006, a construction laborer died after laying pipe in a trench during 100-degree weather.

A permanent rule will be adopted in early 2008, L&I said. The Department will develop a small-business economic impact statement and will hold public hearings around the state so that all who are interested have an opportunity to participate.

For more information on workshops and training materials for preventing heat-related illness, visit www.LNI.wa.gov/safety/topics/AtoZ/heatstress

MONTANA SEES 92% INCREASE IN CAPTIVE LICENSES

The number of captive licenses in Montana increased 92 percent in 2006, according to the Montana Captive Insurance Association Inc., which summarized figures published by the Montana Department of Insurance. According to MCIA, there were 23 licensed active captives and risk retention groups in 2006, up from 12 licensed companies in 2005.

"Coverages written by the new captives include medical stop loss, errors and omissions liability, workers' compensation, general liability, professional liability, and property for U.S. and worldwide exposures," MCIA said.

RISING MEDICAL COSTS, SLOW INVESTMENT RETURNS CHALLENGE WORKERS' COMP

Skyrocketing medical costs are threatening to supersede gains in the workers' compensation line's latest calendar year statistics, according to an insider at NCCI Holdings Inc.

"Rising medical costs are an overriding theme -- they continue to increase at a rate above inflation," said Barry Lipton, a senior actuary and practice leader with NCCI.

Medical costs account for more than half of all losses for NCCI states in 2006, Lipton said. "That's the bad news."

NCCI reported that in recent years, workers' compensation medical claims severities have been increasing at a faster rate than would be expected based on medical inflation alone. There has been a shift to relatively more severe injuries, the report stated.

According to a January report titled "Measuring the Factors Driving Medical Severity: Price, Utilization, Mix" the key drivers -- accounting for approximately a 35 percent increase in medical severities -- include a markedly higher number of treatments within each diagnosis and a different mix of treatments across service categories. For example, there might be a shift from diagnostic radiology to complex diagnostic testing or from complex surgery to physical therapy.

Lipton also cited investment pitfalls as a concern for insurers.

"Returns are lower. Stock market gains are not what they used to be," he said. "No one is making 20 percent on their investments any more. This may cause reserve deficiencies for future payments on claims received."

While medical costs and investments remain concerns, the claims picture continues to improve.

"The good news is that frequency of claims is going down in all states," Lipton pointed out. "Frequency has declined in all but two of the past 16 years. We think it's due to safer workplaces -- not so much about safety programs."