On February 3rd, 2015, Mobile Health’s Brian McCormack, along with Egan Attorneys’ Susan Egan hosted a webinar to discuss the benefits companies can get from complying with New York State’s Code Rule 60. Representatives from over 50 New York City companies attended the webinar.
A brief description of Code 60 is below, as well as a synopsis of the Q&A session.
Code 60 Overview
Code 60 provides financial incentives for establishing programs that benefit employees and employers alike
New York State’s Code Rule 60, the Workplace Safety Loss Prevention Incentive Program (WSLPIP), provides a financial incentive for companies in New York State that maintain a drug-free workplace and a safer workplace.
Code 60 is a worker’s compensation reform act passed in 2007 with the purpose of reducing workers’ compensation premiums as a result of following certain employee health and workplace safety procedures, including any or all of the following programs: a safety program, a return-to-work program, and a drug and alcohol prevention program.
A full description of the Code 60 law can be viewed via PDF here.
What are the financial benefits of Code 60?
The first year a New York based employer participates in Code 60 requirements, the company receives a 4% workers’ compensation credit for enacting a safety incentive program, a 4% credit for establishing a return-to-work program, and a 2% credit for putting in place a drug and alcohol prevention program.
The potential savings on workers’ compensation premiums are crystal clear. The first year, a company that installs all three workplace safety and loss prevention programs can save 10% on workers’ compensation premiums.
What are the requirements for Code 60 compliance?
To be eligible for workers’ compensation premium credits, an employer must:
- Pay a yearly minimum of $5,000 in workers’ compensation premiums
- Have an experience modified rating of under 1.30
- Be in current compliance with Code 59 if previously forced to participate in Code 59
- Institute one or more of the specified workplace safety and loss prevention programs
Synopsis of the main Code 60 Webinar FAQ’s:
Q: We already do pre-employment drug testing – does that qualify as a drug-free workplace?
A: Generally, pre-employment drug testing is a great start, but has to be backed up by a concrete drug policy that includes random testing and employee assistance programs. Pre-employment drug testing would qualify if you also have a drug policy that meets Department of Labor requirements. Feel free to contact Mobile Health and we’ll offer a free consult to see if your current policy is good enough to be certified.
Q: What is the cost of implementing a drug-free workplace?
A: From our research, we know it’s a cost effective program, but it’s difficult to pinpoint a general cost because the price changes based on company size, industry, number of locations, and how far along existing workplace safety policies are.
At the very minimum, if you already have policies in place that meet guidelines and need to be certified, it could cost as little as $2,000-$3,000 through Mobile Health.
Q: If you were mandated to put Code 59 into place and you successfully implemented changes, are you eligible for Code 60?
A: If you’re no longer mandated under Code 59, you are eligible and can apply for Code 60 at your next policy renewal. A convenient thing if you were under Code 59 is that the safety policy you were required to adopt under Code 59 qualifies you for the safety program under Code 60 – which is a 4% discount the first year.
Q: Is this program only offered through New York State Insurance Fund?
A: No. This program is available to any New York state employer insured by any carrier that insures workers’ compensation.
Q: Do you have to have a workers’ compensation policy in place to take advantage of Code 60?
A: Yes. You must pay at least $5,000 yearly in workers’ compensation premiums and have a mod under 1.30.
Q: How can this program apply to a new Home Healthcare Agency?
A: Drug testing is already required by the Department of Health for Home Healthcare Agencies, so they already qualify for a 2% discount. Safety and return to work programs, if certified, will offer the same benefit to Home Healthcare Agencies as any other industry. Home Healthcare Agencies generally have very high workers’ compensation premiums and the discounts offered under Code 60 can help defray costs significantly.
Q: Once programs are in place and discounts are achieved, how many years do these discounts stay in place? Also, do discounts increase or decrease after 4 years?
A: As long as you keep recertifying, these discounts stay in place indefinitely. The first year offers the greatest discount, but from year 2 onwards the percentage discounts do not change.
You’ll also find that after doing the programs for a number of years, your costs may decrease in addition to discounts you receive, as your experience mod goes down and employees have fewer injuries, fewer sick days, higher productivity, and make fewer workers’ compensation claims.
Q: Can an insurance company or broker decline the discount for any reason if the insured is certified as compliant?
A: No. The only way the insurer can decline the discount is if the existing discount they offer is greater than the state-mandated discount.
Q: Do you have to apply for all 3 programs?
A: No. You may mix and match and apply for one, two, or three programs. The three programs again, are a safety program, a return-to-work program, and a drug and alcohol prevention program.
Q: If you already have a policy in place and you have a specific broker, do you need to change brokers or carriers?
A: There’s no need to change your broker or carrier. If you get the program certified, the state send the certification, you pass that on to your insurance agent or carrier, and they must apply the discount.
Q: What services does Mobile health offer for applying for Code 60 certification?
A: Mobile health conducts an initial consult, reviews your policies, puts together a team of certification experts, and changes your policies and provides training in order to meet Code 60 workplace loss prevention certification.
Q: If we have more questions, how can we contact you directly?
A: Brian McCormack can be reached at 646-625-3016.