06-10-1996 Council Agenda - Laserfiche WebLink

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LEAGUE MN CITIES TEL :612- 281 -1298 May 31 96 8.33 No.005 P.02 Longue 4 j M nnesota C;uos LMC Gins promoting onrol%nco • • LMC]T Risk Management Information 145 University Avenue West, St. Paul, MN 55103 2044 Phone: (612) 281 -1200 • (800) 925 1122 Fax: (612) 281 -1299 • TD1) (612) 281 1290 WORKERS COMPENSATION MANAGED CARE - Ws Worth Considering SHOULD YOUR CITY CONSIDER MANAGED CARE? YES! Can a city afford not to at (east look at managed care? It will immediately reduce your city's LMC1T workers compensation premium by way of a ten percent premium credit. If managed care is added during the coverage year, the credit is prorated. The ten percent credit is given at each annual renewal and comes off the city's bottom line workers compensation premium. In the past we've communicated with cities in several different ways about workers compensation managed care. As of January 1, 1996, 143 cities had entered into managed care agreements. A number of other cities are considering managed -care. Currently, there are ten state - certified managed care organizations which offer managed care plans. A city may work with the managed care provider of its choice. We stress that managed care is not mandatory and is simply an option for cities to consider. ASIDE FROM TITE TEN PERCENT PREMIUM CREDIT, WHY IS MANAGED CARE A GOOD IDEA? Because it can reduce workers compensation medical costs and help injured workers get back to work sooner. The following outlines the ways managed care can save money and help workers. Exneriteted Health Provider Network Managed care channels injured workers into a system of experienced workers compensation health care providers. The managed care organization is better able to assure necessary and appropriate plans of treatment by working with health care providers who are experienced in treating workers' compensation injuries. They can also keep network health care providers up to date on changes and trends applicable to workers compensation treatment. Medicai Utilization Manaeement Through use of a trained care manager, every injured employee's claim is managed to encourage the appropriate use of medical services and facilities. This will improve quality of care and maintain cost effectiveness on a case -by -case basis. The objectives of managed care and medical utilization management are four -fold: To provide the knowledge and tools required to appropriately manage the employees medical care at the point the employee first comes into the workers compensation system AN EQUAL OPPORTUNITY /AFFIRMATIVE ACTION EMPLOYER Page 41