APPRO-2023-27 : An Appropriation from Free Cash, account number 01-324001, in the amount of One Hundred Thousand Dollars ($100,000) to the various accounts in the Workers Compensation budget (#912) as set forth herein, to meet current obligations related to Workers Compensation and for any unexpected Workers Compensation costs that may be incurred through the end of the fiscal year.

Transcript (~9 min @ 51:42)

Speakers identified by voice; unnamed voices are numbered within this recording. Auto-caption text — verify against the video.

▶ 51:42 Leila Migliorelli: next up is appropriation 2023 dash 27 and appropriation from free cash account number 0 1 3 2 4 0 0 1 in the amount of $100,000 to the various accounts in the worker's compensation budget. Number 912, a set forth herein to meet current obligations related to worker workers' compensation and for any unexpected worker workers' compensation costs that may be incurred through the end of the fiscal year. Um, tonight we have, um, Paul Lata, director of HR to speak on this order. Thank you. Good

▶ 52:16 Speaker 8: Evening everyone. Uh, so I'm here today to request, um, transfer funds from free cash to different worker's comp accounts in the amount of $100,000. And the reason for this transfer is to cover, uh, any, uh, pending expenses as well as worker's comp benefits for our recipients through the end of the fiscal year in any unexpected workers comp calls that may occur from now until the end of the fiscal year. And I can just share a little bit more that this year we've had, we always level funds for workers comp. Our workers comp budget and this year has been more active. Um, this amount, our budget depends not just on the number of claims that we get, but also the type of claims we get. So if we get claims that are more complex, uh, that may require surgeries, then of course the cost goes up and employees are out of work for longer. So that's the reason for my being here today.

▶ 53:18 Speaker 5: Any questions? Thank You. Thank you first, that's President Greg. Thank

▶ 53:21 Jen Grigoraitis: You, Madam Chair. Thank you Ms. Lata for being here tonight. Um, and thank you for the memo that's really clear about where you're looking to have the funds go. I just wanted to, um, ask a few quick clarifying questions. The first is that it looks like there's, um, about $80,000 give or take in known expenses, the benefits cost, and then the 17,000 in upcoming medical invoices. So that leaves 23,000 of unexpected costs budgeted mm-hmm. For a period of seven weeks. If this passes the council next Monday, um, do you have a, what, how did you come to that calculation of wanting to have 23,000 for seven weeks?

▶ 53:59 Speaker 8: So, um, we know that we actually have a, um, pending surgery, which we are not sure when, if it's going to happen before the end of the fiscal year or after the end of the fiscal year. So, uh, that's why we have this, uh, funds there.

▶ 54:13 Jen Grigoraitis: And connected to that, not, not to force you into a budget Yeah. Preview conversation, but, um, if it sounds like what you're saying is that we've seen an increase in cost this year, are we gonna see an increase in the budget for workers' comp next year based on what you've seen?

▶ 54:28 Speaker 8: No, we will not. So, um, really it's hard to budget for workers' comp. So every year we level fund, uh, based on more or less the previous year. So far we have been pretty much right on, you know, where we should be. Uh, this year has been an unfortunate year. We've had few more expensive, more complex claims, but that would not affect our next year. Um, like I will give an example. For example, last year we had more claims reported, but less claims that required that incurred medical expenses and workers' comp benefits.

▶ 55:08 Speaker 1: Okay. So the plan is,

▶ 55:09 Speaker 8: So it would not affect our next, um, fiscal year 24 budget. Okay.

▶ 55:13 Jen Grigoraitis: So the preference is to do what we're doing now, where if we see a cost overrun to come from Yes.

▶ 55:17 Speaker 8: It's hard to know. Yeah.

▶ 55:19 Speaker 1: Okay. All right. Thank you. Those are my questions. Thank you.

▶ 55:21 Speaker 8: Yeah.

▶ 55:21 Speaker 5: Council Jamine. Thank you. Hi. What,

▶ 55:26 Maya Jamaleddine: um, so can you explain for the sake of the public also, um, how does the insurance work in terms of covering those, uh, claims?

▶ 55:37 Speaker 8: Sure. So, um, we fund our workers' comp budget. As I said, every year we level funded and we have, um, a third party administrator and we pay administrative fee for our third party administrator. And what their job is to kind of manage the cases and claims, they provide utilization review, they may assign, um, medical case management mm-hmm. For the more complex cases. So they're the ones who, uh, do the firsthand, they review the bills, make sure that everything is correct, they negotiate with providers. Um, so whenever an employee gets hurt and they incur any medical bills, it goes, it goes through them through the worker's comp, um, third party administrator. They, uh, work on the bills and then they let us know what we have to pay and then we pay it. Okay. So it's not covered by insurance. It's covered. It's something that we budget for it. So no matter what insurance do we have, it's not gonna cover those cases. We just budget for worker's comp. We don't have a separate. Yeah. And, um, what,

▶ 56:48 Maya Jamaleddine: do you have a total of the number of claims that we have for this year?

▶ 56:56 Speaker 8: I can give you a number, um, but I need to preface that the number I'm gonna give you represents any claim. So it could be somebody walk was walking down the hall tripped, and they were fine. We do, we have a process. We encourage employees to file a claim. Mm-hmm. Regardless, and this is, um, a really good habit that we've made it a point to train our employees at the school and city and of course, managers to report these claims. So the number, for example, the number of reported claims, um, last year was 71 of reported cases were 71 this year. Uh, the number so far are around 50. But again, not all of them incur medical costs. Okay. Thank you. Mm-hmm.

▶ 57:51 Speaker 5: Council articles.

▶ 57:53 Jack Eccles: Thank you Madam Chair. Are we reasonably certain, um, I think you've kind of answered this. I just want to confirm that it's not like an inflation related issue that we're seeing, you know, a greater expense for fewer claims and that, that we do have some complex ones that we can call out and say, we don't see this again next year we'll be good.

▶ 58:15 Speaker 8: So we have our third party administrator, they negotiate with providers and, um, you know, they, sometimes they have, um, rates that they have to offer is what the workers comp can pay. Uh, but there are times when an employee, we can't control where employees can go for services. So if employee has selected a provider that's not accepting our rates, then we have to pay. So I'm sure that this may have something to do with it, the inflation. Yeah. But we, yeah, we do have controls in place as much as we are able to.

▶ 58:53 Speaker 5: Any other questions? Council Aldine,

▶ 58:59 Maya Jamaleddine: Thank you. Um, I just thought about two other questions for you. First, if we are gonna think of, um, of having a secondary insurance that could cover those, um, would it offset that price or do you think that would be more expensive? I, I don't know why. Um, I have to look at it right now. We pay only for the cost that we incur. Mm-hmm. Um, So I, if we are going to a hundred thousand, it's worth, I think it's worth, um, looking into this and offer it to the, um,

▶ 59:39 Maya Jamaleddine: to our employees. Um, my second question is, it's actually just from my personal experience, uh, working with insurances, um, and HR we can always control where, um, um, our workers go. When there is a workers' comp related issue, we can direct them into which provider to go. So I wonder if this is something you can also look into it.

▶ 1:00:05 Speaker 8: Um, I can look into it again. Thank You.

▶ 1:00:11 Speaker 4: Other counselors, councilor Stewart. I'm shall make a motion to recommend second

▶ 1:00:17 Speaker 5: Motion to recommend made by Counselor Stewart, seconded by counselor Les. Um, anyone on discussion? Seeing none, Mr. Clerk,

▶ 1:00:28 Speaker 2: Vice Chair Jamian?

▶ 1:00:29 Speaker 8: Yes.

▶ 1:00:31 Speaker 2: Counselor son? Yes. Counselor Eccles? Yes. Counselor Gepe? Yes. Counselor Stewart? Yes. Counselor Chetty. Yes. Cremsky? Yes. Council Williams? Yes. President Greg Gok. Yes. And Chair Elli? Yes. That's 10. Yes. Unanimous. All right.

▶ 1:00:49 Leila Migliorelli: This passes and will be heard our next, uh, full counsel meeting. Thank

▶ 1:00:52 Speaker 8: You.