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Subject: VR Costs and Related Information


Author:
Greg LeRoy
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Date Posted: 20:53:53 01/02/02 Wed

Hi All - I'm on the ad hoc committe that Craig mentioned in his message. I have lots of information related to this whole issue of VR costs, etc. from multiple jurisdictions. I'll provide some of the URLs at the end for anyone interested. The more people willing to gather information on what happens in other states (in addition to gathering VT stats), the more effective our testimony before the Gov's Task Force could be expected to be. Here goes:

Alaska - VR is called Reemployment Benefits. There is no VR fee schedule and there are no caps on VR service costs. They do gather detailed VR performance data by provider that becomes public information. There are eligibility evaluations similar to our E/A's. There is a 60 day max. period for completing the evaluation. Those reports can ben suspended due to medical issues or insufficient information. The most frequent reason for extension requests is delayed M.D. response. The maximum costs for a (VR) plan is $13,300 (not including provider fees). They do allow "compromise and release" (settlements) which is apparently attractive to higher wage earners who might now achieve wage recovery through the allowed VR services.
For tracking purposes, VR fees are kept in 3 categories: eligibility evaluations, plan development fees, and plan monitoring costs. Claimants do get a "compensation wage" during their VR process = to 70% of their weekly wage. VR service providers in AK must be CRC or CDMS.

CA - There is an overall cap of $16,000 for VR services, with a maximum plan length of 18 months. Rehab provider (called counseling fees) fees are capped at a total of $4500, which is part of the $16,000. Of that $4500, a max of $3000 is allowed for voc eval, eval of voc feasibility, initial interview, testing, counseling, and plan development. A max of $3500 (within the $4500 service cap) applies to plan monitoring, job seeking skills, , job placement and counseling.
California has a re-hiring incentive for employers. 1) If an employer offers modified work that lasts at least 12 months, their liability for VR benefits ends. 2) If they offer alternative work (at at least 85% of previous wage), again for 12 months, their VR liability ends.
Claimants can receive maintenance payments during VR plans for up to 52 weeks.

MN - As of 10/1/01, the max hourly rate for VR providers is $78.94, with job devel/placement maxed at $60.72. There is an annual VR fee adjustment of 2% max. Average VR plan costs in Minnesota for 1999 were $4120 while the median cost was $2620.

WA - A former mandatory VR state, Washington has a very complex system of tracking and billing. The state hired a well-known consulting firm to study their system and they implemented many of their recommendations. There is a performance-based vocational referral process, based upon data from a vocational performance report with indices of cost and outcome. Referrals are made to individual providers vs. VR firms. The professional VR service rate is $73, and $36.50 for travel/wait. They have fee caps on various categories of "vocational counseling" services.
Early intervention - $1500
Assessment - $2500
Work Evaluation - $1100
Plan Development - $5000
Plan Implementation - $4725

MI - Michigan is a state that has made VR a benefit to injured employees since 1965. Their Task Force held 6 meetings over a 7 month period in 2000. It recommended that providers have a Masters degree in VRC and be a CRC - CDMS would be allowable with a plan to achieve CRC status within a time limit. I found no information about fees, but they do cap VR services at 52 weeks (subject to review for extension). The state holds hearing on VR non-cooperation. An increase in their DOL VR staff was recommended to carry out the full scope of their VR program. I recommend that you read their task force report, noting in particular their comments at the bottom of page 11 and top of page 12, and then page 15 (the latter re: med mgt. The URL is www.cis.state.mi.us/wkrcomp/pub.htm

OH - Ohio has a very interesting model called Managed Competition in Rehabilitation. An article on it appeared in the NCCI Digest, 1993, Vol. 8, Issue 2. Rehab providers are screened to become part of a network. Continued participation is based upon overall performance using the criteria of timeliness, cost, and outcome.Guidlines were developed in conjunction with the Ohio chapter of NARPPS (now IARP). There's a matrix of criteria for VR providers, resulting in a 4-level rating system. I don't know if they have any type of fee schedule or caps.

As to VR effectiveness, I have a great article that I can share at the upcoming VVRA meeting. It's a literature review of studies regarding the effectiveness of VR. I know one of the authors who sent it to me. It was published in Vol. 18, Number 4 (1994) of the Journal of Rehab. Admin. Nearly all studies have found that VR is effective.

In additional to the Michigan site I provided above, try these:
www.lni.wa.gov/hsa/vocational.htm
www.lni.wa.gov/hsa/pb-html/2001-03.htm
http://www.doli.state.mn.us/dlisvrcost.htm
http://www.dir.ca.gov/CHSWC/rehab/rehabcover.html
http://www.wcrinet.org (Workers Comp. Research Inst.)

Greg

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[> Subject: Re: VR Costs and Related Information


Author:
Iris Banks
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Date Posted: 06:50:17 01/04/02 Fri

I found this information is really interesting and helpful. Can someone post information about NH? Thanks.

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