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In FY07, the Workers' Compensation Program <br /> <br />recovered a total of $75,546 in EAIP funds. As is $~,ooo <br />demonstrated in the graph on the right, $319,882 has <br />been recovered over the past five years. <br />MEDICAL BILL AUDIT $so,ooo <br />Oregon law requires that insurers and self-insured <br />employers audit a minimum of 10% of all medical <br />bills. The audit is done in order to assure that payment $30,000 <br />for medical services does not exceed the maximum <br />fees allowed (the amount exceeding the maximum fee <br />allowed is written off by the medical provider). <br />However, in an effort to maximize savings, the City's $o <br />Workers' Compensation Program audits 100% of the <br />medical bills. In FY07, the Workers' Compensation <br />Program received $945,328 in medical billings but the <br />amount paid after auditing was $711,973; a difference of <br />$233,356 which was a 25% savings. Over the last five <br />fiscal years the City has saved $502,702 as <br />demonstrated in the graph on the right. $z5o,oo0 <br />Workers' Compensation Experience $zoo,ooo <br />Modification Factor <br />The Workers' Compensation Division for the State of $150,000 <br />Oregon calculates a premium adjustment factor, called <br />an experience modification factor, for all Oregon <br />employers. This factor is calculated based on the $~oo,ooo <br />employer's payroll and loss data for three prior years. <br />The formula compares actual reported claims $50,000 <br />experience for each employer with average loss data for <br />all employers in the same occupational classification $o <br />code. The graph below shows a five year history of the <br />City's experience modification factor. <br />City of Eugene <br />Workers' Compensation Experience Modifier <br />1 <br />0.83 0.83 <br />0.8 ~, <br />0.7 0.72 I <br />i -~ . - <br />U.6 ~~ - <br />o.a <br />~~ <br />°.z ~ - <br />o ~ ~ ~ ~ ~ <br />FY04 FY05 FY06 FY07 FY08 <br />City of Eugene <br />Employer at Injury Program (EAIP) Recoveries <br />C/tyofEugene- Workers'CompensaUon <br />Medical Bill Audit Savings <br />FY03 FY04 (Y05 FY06 FY07 <br />A modifier of 1.0 indicates that the <br />employer's claims experience is average. A <br />modifier below 1.0 indicates better than <br />average experience.. The City's modifier has <br />been below 1.0 since the inception of the <br />self-insured program in 1978., reflecting <br />better than average claims experience <br />compared to other public sector employers. <br />13 <br />FY03 FY04 FY05 FY06 FY07 <br />