SPECIALIST HELPS MTA REIN IN WORKERS' COMP FORMER NYC TRANSIT EXECUTIVE CUTS AGENCY'S BILL 14 PERCENT.

Byline: Troy Anderson Staff Writer

The Metropolitan Transportation Authority - plagued in recent years by the highest workers' compensation costs of any transit agency in the nation - saw its costs plunge 14 percent last year after hiring a national expert to take control.

The MTA's workers' compensation costs are expected to drop from $58 million in 2001-02 to $50 million this fiscal year, which is still double the $25 million spent in 1993.

``Our workers' compensation costs were off the page for a number of years,'' said MTA Chairman Hal Bernson. ``We were working hard to find some solutions.''

The number of claims resulting in workers taking time off has dropped from an average 176 a month in the first three quarters of 2001-02 to 134 a month in the same period this fiscal year.

Also, bus traffic accidents per 100,000 miles dropped from 3.91 in 2001-02 to 3.88 this year. Chicago's rate was 5.14 in 2001-02 and New York City's was 4.54. The San Fernando Valley continues to lead other parts of the county with the lowest accident rate of 2.57.

``I'm happy with the declines we had this year, but we have a long way to go,'' said MTA Deputy Chief Executive Officer John Catoe. ``Our goal is over five years to reduce it by 51 percent. The reason why it's 51 percent is New York City reduced its by 50 percent. We think we are better than New York City.''

Bernson said the goal is attainable if the MTA works at it.

``When you look at workers' compensation figures across the country, they have gone through the ceiling,'' Bernson said. ``But ours have been worse. It wasn't handled properly in the past and we started getting real serious about it about two years ago. We are starting to make some progress and I think we will continue to make progress.''

Without increases in benefits, which took effect Jan. 1, the MTA would have reduced its costs by 25 percent this fiscal year. It still expects to save 14 percent.

``I think they may have a good argument that all the effectiveness in the world can be applied at the local level but it can't make up for a state policy that is anti-taxpayer,'' said Jon Coupal, president of the Howard Jarvis Taxpayers Association.

``I think the one thing the MTA shows is that costs can be brought down and there is a big problem with workers' compensation.''

The MTA has about 9,000 employees, and workers' compensation costs equal about $6,500 per employee.

A recent comparison of the MTA's cost per employee showed it is double the average of transit agencies in California, five times greater than Boston, seven times greater than New York and 15 times greater than Washington, D.C.

Catoe credits the drop in costs to several factors, including hiring DuPont Safety Resources in late 2001 to create a safer work environment, presentations by the District Attorney's Office to MTA employees that it is cracking down on fraud and the hiring of New York City MTA's cost turnaround artist Michael Koss.

Under Koss' tenure, the New York City transit agency's work-related injuries dropped 50 percent from 7,500 to 3,500. Their costs also fell substantially.

``He was head of their program and we stole him,'' Catoe said. ``He has one of the best reputations in the United States for turning around agencies.''

Koss, who joined the agency in August, said the MTA has used a variety of cost containment programs, including terminating a contract with a third-party administrator to handle claims in-house at lower cost.

Also, the MTA is using a new program to lower its medical costs - one that allows workers who make claims to continue working in less physically demanding jobs - and has started a campaign to change the culture of the transit agency to emphasize safety.

In the past, MTA's special investigators spent their time in the field videotaping employees who had filed claims in an attempt to catch them performing a physical activity that would prove they were not injured.

But Koss said this was unfruitful so those employees are now using state- of-the art computer programs that analyze claims to detect ``red flag cases'' that indicate whether fraud might be occurring.

If a case is red-flagged, the MTA uses one of its nine surveillance companies to monitor the employee's activities.

``For those on long-term disability, we also want to ensure that the individual is still alive,'' Koss said.

Tom Higgins, head deputy in the District Attorney's Office Workers' Compensation Fraud Division, said although no MTA employees were charged with fraud last year, 29 cases are under investigation. A total of five had been referred to his office as of Jan. 1.