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Fall 2005
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Clemens Family Markets: Delivering Strong Results


Since 2001, PMA has handled the workers' compensation for Clemens Family Markets, which currently has about 26 locations primarily in the Philadelphia area. The grocery chain vows as part of its mission to treat not only customers, but employees and suppliers as they personally would like to be treated. And it shows.

Safety in a High- Frequency Industry

Protecting employees from workplace injuries is a top priority at Clemens. Working together with PMA's Risk Control Consultant Bob Bonomo, they have a strong risk control program. Nonetheless, claims are inevitable.

"Typical losses include back and rotator cuff injuries due to lifting, pulling, and pushing products," said Mike Sharkey, Claims Service Manager for PMA. "Clemens also sees finger and hand lacerations from their deli operations and some slips and falls that result in injuries to the back or lower extremities."


Using the Medical Cost Containment Program Pays Off

Clemens takes positive steps to lower their costs by maximizing PMA's Medical Cost Containment programs. The Markets focus on transitioning injured/ill employees back into the workplace via an excellent return-to-work (RTW) program. Additionally, since 2001, Clemens has experienced a managed care savings of $1.6 million off $2.9 million in medical charges. This is a 57 percent savings achieved through PMA's comprehensive Medical Cost Containment program, much of which can be attributed to their injured workers' consistent use of PMA's Preferred Provider Network (PPN) and PMA's competitive medical bill review program. Clemens current PPN penetration rate is 65 percent, an increase from 44 percent in its first policy year with PMA.

Timely Claims Reporting & Regular Communication Make a Difference

Timely claims reporting has also helped Clemens lower its insurance costs. "Their four-year average to report claims is 1.2 days, and 96 percent of all claims are reported within three days," said Sharkey. "In fact, the current policy is averaging a 0.7 day reporting time, and 98 percent of claims are reported within three days."

"One of the strategies that helped us achieve these results is a charge back of $5,000 to each location for every claim reported beyond three days," said Wendy Fonda, Director of Human Resources for Clemens. "This charge back is an excellent incentive for the individual locations to report claims in a timely manner. Stores with the lowest number of claims per quarter are rewarded. Our employees understand the importance of these issues."
"PMA has a solid reputation and we've always had success together. Their team is always there to work with us," said Steve Macauley, Vice President of HRH, the workers' compensation broker for Clemens.

"Together with PMA and HRH, we've implemented a solid workers' compensation program," said Fonda.

Results of Clemens/ PMA Partnership

  • Managed care savings of $1.6 million off $2.9 million in medical charges - representing a 57% savings

  • Four-year average claim reporting time is 1.2 days

  • 98% of all claims now reported within 3 days

 

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