RD315 - Report of the Department of Human Resource Management Workers’ Compensation Program Settlements in Fiscal Year 2016 and Experience-based Premium Recommendations
The Workers’ Compensation Program settled six Workers’ Compensation claims during Fiscal 2016, avoiding $369,405.87 in expected future costs. Exhibit A provides a list of all settlements. Savings are calculated as follows:
Total Case Reserves (Future Exposure): $504,224.62
Total Settlement Amounts: $134,818.75
Cost Avoidance due to Settlements: $369,405.87
All settlements have been approved by the Virginia Workers’ Compensation Commission as being in the best interest of the claimant or the dependents as required by Rule 1.7 of the Rules of the Commission.
Prior to the approval of all settlements, the Workers’ Compensation Program staff must:
• obtain the most current medical information
• obtain a current rehabilitation report indicating the employee’s inability to return to any type of gainful employment
• determine if the employee has taken disability or service retirement through the Virginia Retirement System
• determine if the employee is receiving social security disability benefits
• confirm that the employee does not have health insurance through Department of Human Resource Management
• conduct an analysis of the benefit to the Commonwealth of Virginia when comparing the amount of settlement to the estimated future exposure that would be created for the Virginia Retirement System
• obtain approval from the Director of Workers’ Compensation
After it has been determined that it is in both the claimant’s and the Commonwealth of Virginia’s best interest to settle the claim, it is submitted to the Office of the Attorney General for approval. If the Office of the Attorney General concurs with the recommendation, the proposed compromise settlement is submitted to the Virginia Workers’ Compensation Commission for their approval.