Response to WSIB s Preliminary Proposed Rate Framework Reform Consultation

Transcription

1 Public Services Health and Safety Association Response to WSIB s Preliminary Proposed Rate Framework Reform Consultation October 2015

2 PSHSA s Response to WSIB Preliminary Proposed Rate Framework Reformation Consultations The Preliminary Proposed Rate Framework developed by the Workers Safety and Insurance Board (WSIB) represents a shift which extends beyond technical mechanisms to set premium rates it is a move towards a prevention-influenced system. Executive Summary Public Services Health and Safety Association (PSHSA) collaborates with Ontario s Public and Broader Public Sector communities to provide consulting, training, resources and scalable solutions to reduce workplace risks and prevent occupational injuries and illnesses. PSHSA is committed to serving its market of 10,000 firms and 1.67 million workers in health and community care, education and culture, municipal and provincial government, public safety and emergency services and First Nations communities. We deliver sustainable and impactful health and safety solutions based on evidence and informed by leading practices to affect positive change. PSHSA has paid close attention to the WSIB Rate Framework Reformation and related consultation process. Under the Proposed Rate Framework, the prevention of occupational injuries and illness will play a significant role in the calculation of insurance premiums paid by Schedule 1 Firms across all sectors, including the Ontario s Public and Broader Public Sectors (OPS/BPS). As such, our organization seeks to understand the implications as related to the Prevention System, and similarly want to ensure the firms we serve are prepared for the eventual transition to the final Rate Framework from a prevention perspective. WSIB s consultation materials were extensive and informative. Within these documents, over 20 questions were posed around the Proposed Preliminary Rate Framework, the Unfunded Liability, and A Path Forward. Herein, PSHSA provides general feedback on the proposal WSIB has put forth. These focus mainly on the transition and future state, including: Impact of changes on the Prevention System Role of Prevention System partners in future consultations and the transition; Additional support for employers our clients to understand and prepare for change; Our approach participating in the consultation process has been focused on disseminating information. We worked with WSIB to offer technical sessions our Advisory Council, as well as present to stakeholders at our Annual General Meeting on the progress of the consultations. We further disseminated information to our market through s to partners and newsletters to our distribution audience. Contained in this report are the questions and comments that we heard raised by some of our stakeholders through the sessions, or gathered via survey. We trust that all firms, associations and other interested parties will provide feedback, and highlight some of the main themes shared with us, many of which have already been captured by the WSIB. PSHSA looks forward to continuing our partnership with WSIB, and appreciate the opportunity to participate in this and future consultation processes. WSIB Proposed Rate Framework Reformations PSHSA s Response 2 of 9

3 Observations and Response The resounding message that came through the Preliminary Proposed Rate Framework consultations was that there will be a strengthened linkage between occupational health and safety performance and premiums for all Schedule 1 employers. For PSHSA, this represents a tremendous shift as injury and illness prevention will be brought to the forefront. Thus, it is critical for PSHSA to understand the proposed framework as well as implication this has on the Prevention System as we enable a healthier and safer tomorrow for Ontario s Public Sector Community. PSHSA is particularly interested in the relationship between the implementation of the proposed rate framework and the Prevention System. We understand that the Proposed Rate Framework is preliminary in nature, and thus it is difficult for WSIB to suggest linkages between services of Health and Safety Associations and the proposed structure. Should the Ministry of Labour and Chief Prevention Officer seek to examine this relationship, with participation of the WSIB, the following sections review some of the areas where implications on the current system may arise for such discussions. Employer Classification - North American Industry Classification System NAICS is a fairly understood system of business classification which, in part, is used to capture and report on economic statistics. Through adoption of this system, there would be some benefits from the perspective of correlating information from an occupational injury and illness perspective with readily available market information through Statistics Canada. In terms of the impact on our market structure, we made some observations based on the information materials provided by the WSIB, specifically the Rate Group Analysis. Our organization currently provides occupational health and safety solutions and services to firms in Schedule 1 Rate Groups including: 590: Ambulance Services 810: School Boards 817: Educational Facilities 845: Local Government Services 851: Homes for Nursing Care 852: Homes for Residential Care 853: Hospitals 857: Nursing Services 858: Group Homes 861: Treatment Clinics and Specialized Services 875: Professional Offices and Agencies Our market includes Ontario s Public and Broader Public Sector in health and community care, education and culture, municipal and provincial government, public safety and emergency services and First Nations communities. On a NAICS basis, our perspective is that this would include firms in codes: 61: Educational Services (in WSIB Classification T) 62: Health care and social assistance (in WSIB Classification Q) 91: Public Administration (in WSIB Classification C) The preliminary analysis shared by WSIB in August 2015 showed that there would be some shifts for organizations, where they would move into classifications with firms other than those in their current rate group (See Table 1). For example, firms in the current Rate Group 817: Educational Facilities, will join three classification groups: T-Education (67%), R-Leisure and Hospitality (18%), and L-Information & Culture (15%). There are similar splits in Rate Group 845: Local Government Services which will join: C Public Administration (96%) and N Professional, Scientific and Technical (4%), as well as Rate Group 875: Professional Offices and Agencies which will join: Q Health and Social Services (85%), S Other Services (13%) and N WSIB Proposed Rate Framework Reformations PSHSA s Response 3 of 9

4 Professional, Scientific and Technical (1%). Furthermore, Rate Group 590: Ambulance Services is moving from the municipal sector to Q-Health & Social Services completely. We recognize that these reports were developed for illustrative purposes based on if the Rate Framework had been implemented in 2014, and are interested to understand shifts and implications as the Framework is finalized. Furthermore, and perhaps more critically from an injury and illness prevention perspective, it is imperative that there is sufficient categorization in the information gathered which supports analysis and reflects the diversity of risks and contexts to create and implement mitigation strategies and deliver solutions. Or within the classification systems, the subsequent levels should be supportive of eliciting crucial insights to support such efforts. The Risk Disparity Analysis to NAICS released in the summer by WSIB shows an expanded Classification Group, which extend the original Q Health and Social Services into: Q1: Nursing & Residential Care Facilities Q2: Ambulatory Health Care & Social Assistance Our organization will be interested in continuing to learn more about the finalized classification structure, as well as its impact on our clients and the Prevention System. Risk Adjusted and Class Level Premium Rate Setting There are many considerations related to setting the premium rate under the Proposed Rate Framework. Without delving into each of those, there are two areas that we want to understand as we move forward, including the impact on new premium rates and implications for the Prevention System, and ensuring that our stakeholders understand the changes. From the Rate Group Analysis WSIB provided in August as part of the update on the consultation process, it is clear that most organizations will experience some degree of change in their premium level (See Table 2). As consultations come to a conclusion and input is reviewed and considered, we will likewise shift our attention to the transition, and continue to ensure that our clients have solutions needed to improve their occupational health and safety. There is significant opportunity for alignment in messaging on the changes WSIB from a technical, premium-related perspective, and PSHSA from a prevention perspective. Our stakeholders have already been asking for information on the Proposed Rate Framework. Though the Rate Framework consultations focused on the principles of the proposed changes, many of the questions we heard were around where firms may find themselves in terms of their class and along the risk band. In fact, a number of stakeholders had indicated that it was difficult to respond to some questions without understanding the implications. The Rate Group Analysis and Risk Disparity Analysis tables provided needed comprehensive support to begin the process of understanding the potential, real impact of implementing the Proposed Rate Framework. PSHSA is interested in the additional support to address some of the overarching questions, and are interested to know what additional supports will be developed as part of the transition consultations and eventual model implementation. Comprehensive Information Relatedly, as part of our role in understanding risks of our market, and providing targeted support for priority areas and for impactful issues, it will be important to assess the effect on WSIB Proposed Rate Framework Reformations PSHSA s Response 4 of 9

5 information captured and available to the Prevention System Partners for analysis. It is important to have access to statistical data, as well as sufficient information to enable evaluation in terms of outcomes and effectiveness. From a structural perspective, it is our understanding that the reforms focus on Schedule 1 employers, and those who elect to be Schedule 1 employers. This is particularly important regarding grouping of information. PSHSA takes the view that all employers in the OPS and BPS fall under our mandate. Thus, we are particularly concerned about how we can continue to receive the essential and critical information, as well as receiving such in ways that can be easily analysed, and appropriate to guide our systemic approaches to large-scale issues, or working with clients to improve their internal responsibility systems and understanding hazards which may impact them. Conclusion: A Path Forward Transition Plan To summarize from the points above, the following should be considered when developing the transition plan: Impact of the changes in classification on: o The Prevention market structure, funding and mandate, as to be discussed between WSIB, the Ministry of Labour and Chief Prevention Officer as the Framework is finalized;; o Organizational relationships and support; o Injury and illness information. Shared messaging around the case for prevention and preparation; and Additional tools HSAs can use to when working with clients, and self-assessment tools which firms can use to assess the impact as the Rate Framework is finalized. We look forward to continued engagement as WSIB moves forward. WSIB Proposed Rate Framework Reformations PSHSA s Response 5 of 9

6 Consultation Approach: Building Awareness From the time that Public Services Health and Safety Association (PSHSA) learned of the WSIB s Preliminary Proposed Rate Framework Reformation consultations, we have connected with our stakeholders to encourage them to read that materials and participate in the consultations, as they so choose. To support their engagement, we worked with WSIB to bring their Executive Director, Strategic Revenue Policy Jean-Serge (JS) Bidal, to share information directly with our stakeholders: Technical Session to PSHSA s Healthcare and Community Services Advisory Council (May 13, 2015) Technical Session to PSHSA s Municipal Advisory Council (July 8, 2015) Rate Framework Reform Update at PSHSA s Annual General Meeting (September 10, 2015) Independently, we shared an overview with our Education Advisory Councils along with information on accessing WSIB s consultation documents and engaging through their consultation process. At the onset of the consultations, we similarly distributed information broadly to our Advisory Councils, and our Affiliate Partners, who represent a number of organizations. Additionally, information on the Rate Framework Reform was included in our Health & Safety enewsletter which has a distribution of 16,000 across Ontario s Public and Broader Public Sector communities. What We Also Heard: Stakeholder Questions and Comments It is anticipated that our stakeholders, if so inclined, will submit feedback to WSIB through the formal consultation channels. In conversation with our sectoral partners, there are still areas where greater clarity is sought, and where careful consideration is required when implementing the model and during the transitional phase. Below are some of the questions and concerns shared with us or during technical sessions by stakeholders, and are provided herein to ensure that the WSIB receives any and all feedback that may be important to finalizing the framework. Much of this aligns with themes shared by WSIB in both the July and September updates. Risk, Claims and Costs During technical sessions WSIB held with PSHSA Advisory Council groups and other stakeholders, the idea of risk had been brought up. Stakeholders asked about the frequency which is not considered as part of the model for assessing the class target premium, or moving firms within a risk band. Specifically, the inquiry was whether number of claims and claims costs will represent risk in instances where the claims had no associated cost resulting from a practice, by some, of declining reimbursement in certain instances and keeping the wage whole. This would have implications under the new model which calculates premiums using factors such as insurable earnings, number of claims and claims costs. It was suggested that the existence of such instances, and their relationship to the future model, should be reviewed and considered. Relatedly, other stakeholders raised the idea of using claims filed versus claims paid as a means to address such a concern. WSIB had sought additional feedback on these topics, and we anticipate such will be received. WSIB Proposed Rate Framework Reformations PSHSA s Response 6 of 9

7 Claims Categorization It has been suggested by some stakeholders that claims be categorized by injury time, beyond no lost time, for additional analysis and understanding. Multi-rating Various stakeholders discussed this point, as under the new model multi-rating will be eliminated and firms classified based on their predominant business activity. Currently, there are various large firms in Ontario s Public and Broader Public Sectors who have upwards of 4 or 5 rate groups currently assigned, such as many large hospitals. Second Injury and Enhancement Fund (SIEF) Through the consultations, WSIB had asked about whether the SIEF policy today is still relevant. It was shared with us that there were concerns around removing such a fund particularly where injuries had been reported and underlying injuries had been present. Revenue Neutrality In the consultation documentation, it was clearly stated that the new model will be revenue neutral. There have still be questions around how the new model will impact the Unfunded Liability (UFL). Access to Information The following question had been asked which WSIB has indicated they will follow-up on as an answer was unavailable at the time of the technical session. The question was: How will the shift to premium setting based on claims information, linking data directly to the premium, impact the right to access the data and information? This was raised as there will be a direct correlation between increase in premiums if increases in injury occurrences and costs. As PSHSA works with employers to prevent workplace injuries and illnesses, we are likewise interested in assurances that such information will be available as without it would be difficult to assess and address needs. WSIB had indicated there will be lots of complexity about how information is collected, sharing agreements for compliance, and related. PSHSA anticipates continued use of information in order to fulfil our prevention mandate, and looks forward to further discussion with WSIB and other parties on this. WSIB Proposed Rate Framework Reformations PSHSA s Response 7 of 9

8 Appendix Table 1: Rate Group Analysis Summary by PSHSA Rate Groups Current Rate Group # RG Employers Proposed Classification Structure NAICS Equivalent # Employers 2013 Insurable Earnings ($B) % of Insurable Earnings % of Employers RG 810 School Boards 129 T-Education $ % 100.0% RG 817 Educational Facilities 894 RG 845 Local Government Services 612 T-Education $ % 66.7% R-Leisure & Hospitality $ % 18.2% L-Information & Culture $ % 15.1% C-Public Administration $ % 96% N-Professional, Scientific & Technical $0.08 4% 4% RG 853 Hospitals 208 P-Hospitals $ % 100% RG 851 Homes for Nursing Care 321 Q-Health & Social Services $ % 100% RG 852 Homes for Residential Care 221 Q-Health & Social Services $ % 100% RG 857 Nursing Services 1,149 Q-Health & Social Services ,149 $ % 100% RG 858 Group Homes 253 Q-Health & Social Services $ % 100% RG 861 Treatment Clinics and Specialized Services 1,598 Q-Health & Social Services ,598 $ % 100% RG 590 Ambulance Services 17 Q-Health & Social Services $ % 100% Q-Health & Social Services ,721 $ % 85% RG 875 Professional Offices and S-Other Services $ % 13% 2,015 Agencies N-Professional, Scientific & Technical $0.14 7% 1% Source: Adopted from WSIB Rate Group Analysis WSIB Proposed Rate Framework Reformations PSHSA s Response 8 of 9

9 Table 2: Rate Group Analysis Examples of Class Target Premium Rates and Firms Above, Below and At Class Averages for PSHSA Rate Groups 2014 Premium Rate ($) Proposed Classification Structure Class Target Premium Rate Comparison to Class Average Current Rate Group # RG Employers # Employers Class Average % Below % At Average % Above RG 810 School Boards 129 $ 0.81 T-Education 129 $ 0.43 $ % 0.00% % T-Education 596 $ 0.43 $ % 1.50% 7.20% $ 0.36 RG 817 Educational Facilities 894 R-Leisure & Hospitality 163 $ 1.90 $ % 0.00% L-Information & Culture 135 $ 0.61 $ % 0.74% 0.74% RG 845 Local Government C-Public Administration 589 $ 3.86 $ % 0.00% 0.00% 612 $ 2.24 Services N-Professional, Scientific & Technical 23 RG 853 Hospitals 208 $ 1.10 P-Hospitals 208 $ 1.13 $ % 5.29% 42.79% RG 851 Homes for Nursing Care 321 $ 3.29 Q-Health & Social Services 321 $ 2.28 $ % 0.00% 98.75% RG 852 Homes for Residential Care 221 $ 3.30 Q-Health & Social Services 221 $ 2.28 $ % 0.00% % RG 857 Nursing Services 1,149 $ 3.31 Q-Health & Social Services 1,149 $ 2.28 $ % 0.00% 99.56% RG 858 Group Homes 253 $ 3.14 Q-Health & Social Services 253 $ 2.28 $ % 0.00% 84.19% RG 861 Treatment Clinics and Specialized Services 1,598 $ 1.10 Q-Health & Social Services 1,598 $ 2.28 $ % 0.00% 0.38% RG 590 Ambulance Services 17 $ 6.64 Q-Health & Social Services 17 $ 2.28 $ % 0.00% % Q-Health & Social Services 1,721 $ 2.28 $ % 0.00% 0.06% RG 875 Professional Offices and $ ,015 S-Other Services 266 $ 2.43 $ % 0.00% 0.75% Agencies N-Professional, Scientific & Technical 28 Source: Adopted from WSIB Rate Group Analysis, as if Proposed Rate Framework implemented as at Premium rates from WSIB website from 2014 to align with other information. We understand firms currently may have multiple rate groups. WSIB Proposed Rate Framework Reformations PSHSA s Response 9 of 9