Although travel is slowly coming back from its historic, pandemic-induced shutdown, the impact on airlines is likely to last for a long time. Organizations such as JetBlue Airways that invested in technology before the global health crisis continue to succeed in their goal of managing the workers’ compensation process efficiently and effectively.
“Our program’s success relates to our focus on internal customer service,” says Lee Garvin, JetBlue’s director of risk management and workers’ compensation. About five years ago, company leadership said, “Customer service is everything to us, so why aren’t we treating our own internally injured crewmembers the same way?”
As Garvin notes, although injured crewmembers weren’t treated poorly, they weren’t necessarily considered internal customers. So he hired Kyle Raucy, who Garvin describes as a “subject matter expert on workers’ comp with a penchant for efficiency,” to manage the program, and it has made a significant difference. Garvin believes that when “claims go away, the costs will follow.” In other words, when claims are handled as efficiently as possible, costs go down. It follows that JetBlue is well below the industry average for the number of litigated claims.
Raucy looked at tasks that were duplicated and then for administrative, low-value tasks that took up time
better spent on helping injured crewmembers get back to work. Many tasks and notifications now have been automated end-to-end for efficient and seamless performance. “I want to be sure that the injured crewmember gets the best result possible,” he says.
Drinking the ‘Blue Juice’
Culture is a critical part of the company, Raucy emphasizes. “Words matter,” he adds. “We don’t view the workforce as just employees; we view them as Crewmembers” with a capital “C.”
New crewmembers and business partners are required to attend JetBlue University, which offers in-depth training and an immersive experience into the airline and its culture. In the case of workers’ comp, the third-party administrator (TPA), insurance carrier and broker gain a unique view and appreciation of the crewmembers that they will be serving. Business partners come away with a better understanding of the company, its employees, and its requirements and expectations.
“We call it ‘drinking the Blue Juice’,” Garvin jokes.
And because documentation is everything, the company relies on the “JetBlue Playbook,” a detailed document that outlines all the IT automations, processes and procedures that have been developed, how they work together, and how they fit into the overall structure of the workers’ comp program.
The Right Care Provider
You may think you have a long commute, but it’s not likely to be as long or as complicated as it is for JetBlue’s crewmembers. Some have to get from their homes in Orlando, Fla., to their base at JFK Airport in New York, for example.
When a crewmember is injured, the claim is established where the crewmember is based. But a New York health care provider might not accept the workers’ comp reimbursement schedule from Florida. To avoid frustration and streamline the care process, the claims adjuster is required to provide a list of three to five vetted physicians with a five-star rating who accept workers’ comp in the crew-member’s location.
“This helps crewmembers feel supported,” Raucy says. “They know they’re getting the best medical care and will get the best possible outcome.”
As a result of the coronavirus, there were some delays in getting injuredcrewmembers access to health care providers, primarily in the Northeast. In those locations, crewmembers took advantage of telemedicine where it was available and necessary. “We still prefer in-person treatment,” Raucy explains, “which helps us to ensure that no one and nothing is missed.”
As the shutdowns began, Raucy’s team coordinated with the adjusters to ensure that they had documentation on all injured crewmembers who were out of work or working light duty, when they last saw a doctor, and when their next appointments were scheduled. Garvin says, “Even though there has been a decrease in incoming claims because planes haven’t been flying as much, we don’t want anyone falling through the cracks.”
Survey Says...
Crewmembers receive push notifications for real-time claim updates and conveniences, such as direct deposit of indemnity payments.
Additionally, JetBlue has established enhanced communication standards for returning phone calls, responding to emails, and increased contact points throughout the life of the claim to minimize any uncertainty and apprehension the crewmember may have around an injury.
As claims are closed, the adjuster calls the crewmember to inquire about any outstanding issues, explain that the claim is being closed and that a survey will be forthcoming. Then, the survey is automatically sent to each injured crewmember to ensure that the service-level expectations are met.
“We ask the crewmembers to fill out the survey and give us their feedback so we can help the next injured crewmember,” Garvin explains. The survey and scoring are automated, which allows the workers’ comp team to find trends. “You’ll pick up on whether the adjuster isn’t particularly friendly or there are outstanding bills,” he adds.
“It helps my moral compass on the whole process.”
JetBlue by the Numbers
- 22,000+ crew members (pre-COVID-19)
- 122 Locations, including 46 international locations (pre-COVID-19)
- Headcount increased by 6.5% since 2017; frequency of claims decreased by 1%
- Average lost time per claim has decreased by 12% since 2015
- Litigation rate dropped by 7.3% from 2016 to 2019
- Average time a claim is open decreased by 23 days since 2016
- Crewmember satisfaction survey scores have increased by 17.2% since 2015
- The survey response rate averages 34%, higher than most similar surveys
The workers’ comp team, the TPA, the insurance carrier and the broker meet monthly to review the survey results, compile specific takeaways, and develop recommendations to leverage any improvement opportunities that are identified. “We assign action items to team members, including the TPA, for follow-up,” Raucy explains. “At the next monthly meeting, we ask for confirmation that items were completed.”
The survey questions have been carefully constructed with an outside survey company, resulting in a remarkable average response rate of 36%. The survey scores are consistently shared with JetBlue’s senior leadership, including its C-suite. “Ultimately, the importance of these surveys stems from acting upon the information that they provide,” Raucy says.
Claim Audits
JetBlue relies heavily on claim audits to ensure the plan and processes are working as intended, and about 10% of open claims are selected for auditing. This is a collaboration between Jet Blue, its TPA, the insurance carrier and the broker with an eye toward continuous improvement. For example, JetBlue has learned that the more complex claims can benefit from the assignment of a more highly experienced or specialized adjuster.
The program is so successful that adjuster and claims professionals ask and compete to work on it.
Once assigned, the adjusting team tends to have little turnover, injecting additional quality and consistency into the equation.
Beyond providing claims adjusters with essential tools and training through JetBlue University, the airline also recognizes and rewards quality performance. For example, JetBlue has recognized exceptional performers with round-trip tickets to a destination of their choice.
Garvin believes that “the program works well because we have a good partnership with our TPA, insurance carrier and broker.”
The team includes Max Sals of Sedgwick, Ann Berenz and Lynn Waver of Starr Insurance Companies, and Patti Ceglio and Jason Klevens of Willis Towers Watson. From Garvin’s perspective, “We’ve found the right people and the right business partners.”
Think creatively
“If you’re willing to think creatively and listen to new ideas,” Raucy says, “you might be surprised at the positive impact on your program.”
Garvin notes that always asking “why” is what drives many changes. When the answer is “because this is the way it’s done,” Raucy and Garvin believe that it’s time to look for other ways to accomplish their goals. They also believe in good technology, working correctly, implemented well.
Garvin is also grateful for Raucy’s creative thinking. “Kyle comes up with an idea that we’ll push to our TPA and explain that this is what we’re looking for. They’ll say ‘We’ve never done that before. You’re the only one who has asked for it.’ There are two or three things the TPA has implemented as a result of JetBlue requests that they’re now rolling out through the their system for other clients. That to me says amazing things about the implementation and forward thinking that we’re doing about this.”