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Tracy, California – April 8, 2015

NETWORKS BY DESIGN DELIVERS SOLUTION FOR EXCESSIVE OPIATE USE TO CALIFORNIA WORKERS’ COMPENSATION & GROUP HEALTH CARE CLIENTS

Workers’ Compensation and Group Health Care industry studies continue to identify that when physicians dispense or prescribe inappropriate or excessive pain medication, there can be a negative outcome. Specifically the result can be higher costs, potential patient addiction and longer disability and recovery durations.

The most recent of these studies was published by the prestigious workers’ compensation “Think Tank” the Workers’ Compensation Research Institute (WCRI). The study focused on the relationship between pharmacy costs and disability durations when medications were dispensed directly from physicians’ offices rather than through pharmacies.

Furthermore Workers’ Compensation and Group Health employers and payors are as concerned about inappropriate or excessive medication being prescribed by the treating physician through a pharmacy.

Thomas McCauley, principal at Networks By Design and a previous member of the WCRI’s Board of Directors commented, “When WCRI talks the industry should listen.” Furthermore McCauley added, “This study is especially important in that it also demonstrated recent attempts to curtail this practice in California through legislation and rules and regulations were not successful.”

Mr. McCauley continued, “As so often happens with rules and regulations, abusers simply find ways around the regulations. This does not happen with Networks By Design’s contracted providers. Our provider partners follow “Best Practices” terms and conditions in Networks By Design’s provider agreements.”

Of equal importance, Networks By Design’s contracted providers do not feel that their provider agreements contain “Best Practices” requirements that are burdensome to members. In fact, Kimberly Riddle, Networks By Design principal and oversees network development said, “The best providers follow the best practices, and view signing the Networks By Design’s provider agreement as no more than showing what sets them apart from other physicians.”

About Networks By Design

Networks By Design is the leading California client-customized MPN/EPO network company that provides the network management expertise and current treatment data designed to deliver maximized outcomes and cost containment to both Group Health and Workers' Compensation medical networks. Networks By Design provides specifically client- tailored networks designed to meet the needs of each individual employer client.

Networks By Design is a California Corporation. It is an independently-owned EPO network domiciled in California. The corporate office is located in the Central Valley of California at 231 W. Tenth St Tracy, CA 95376. Visit us at www.netbyd.com.


For Immediate Release: April 1, 2014

Republic Indemnity Selects Networks By Design for New California MPN

Following a strategic plan to more effectively combat ever increasing workers’ compensation medical expense, including drugs and the current California lien crisis, Republic Indemnity Company of America has contracted with Networks By Design, a California Corporation for its unique client-customized California Medical Provider Network or MPN.

Networks By Design’s custom MPN offers the additional benefit of easier access to physicians delivering appropriate treatment for injured workers. Networks By Design’s MPN members are readily willing and able to accept new workers’ compensation patients with specific expertise in industrial medicine.

“We have become painfully aware that it could take the state and its various agencies a lengthy period of time to address increasing medical costs, the current lien debacle, opioid crisis and the other drug expense issues that negatively impact the entire system,” said Dave Mitchell, Senior VP of Claims at Republic. Mr. Mitchell added, “Networks By Design’s unique provider contract provisions substantially contain the explosion of these expenses.”

Kimberly Riddle, Network Development Principal at Networks By Design acknowledges the sophisticated approach used by Republic Indemnity and said. “This insurer is clearly on the cutting edge, realizing the benefits of a customized focused network, accurate demographic data and that major costs that can be quickly contained with effective workers’ compensation focused provider agreements.”

Mitchell added, “Recent DWC hearings underscored the frustration of many injured workers in finding an appropriate treating physician within a California MPN. Networks By Design addresses the problem with a distinct workers’ compensation network, and the directory is kept current.”

Frank Lewis, Marketing and Sales Principal at Networks By Design commented, “Networks by Design is a new California custom MPN, created in response to the requests of payors and providers alike that desire to work with an organization that understands the state, maintains data and provides excellent supporting service.

About Republic Indemnity

Republic Indemnity Company of America was founded in 1945 and is a subsidiary of American Financial Group, Inc. and a member of Great American Insurance Group. American Financial Group is a publicly traded company on the NYSE/NASDAQ under the symbol AFG.

Republic has been rated "A-" (Excellent) or better by A.M. Best for over 30 years. Headquartered in Encino, California, the company specializes in workers' compensation insurance throughout the western United States. California offices are located in Encino, San Francisco, and San Diego. Other state operations are in Portland, Oregon; Phoenix, Arizona; Denver, Colorado; and Las Vegas, Nevada. Our many years of diversified workers' compensation specialization makes Republic Indemnity the ultimate choice for employee injury coverage needs.

About Networks By Design

Networks By Design is the leading California client-customized MPN/EPO network company that provides the network management expertise and current treatment data designed to deliver maximized outcomes and cost containment to both Group Health and Workers' Compensation medical networks. Networks By Design provides specifically client- tailored networks designed to meet the needs of each individual employer client.

Networks By Design is a California Corporation. It is an independently-owned EPO network domiciled in California. The corporate office is located in the Central Valley of California at 231 W. Tenth St Tracy, CA 95376. Visit us at www.netbyd.com.

Industry Updates

WCIRB WIRE - Governing Committee Votes for Mid-Year Filing - April 1, 2015

Citing lower medical loss development, as well as indemnity and medical severities that continue to emerge below expectations, the insurer and public members of the WCIRB Governing Committee voted today to authorize the WCIRB to submit a mid-year pure premium rate filing to the California Department of Insurance (CDI). The filing will propose a July 1, 2015 advisory pure premium rate of $2.46 per $100 of payroll which is 5% lower than the corresponding industry average filed pure premium rate of $2.74.

The Governing Committee’s decision was based on the WCIRB Actuarial Committee analysis of insurer loss and loss adjustment experience as of December 31, 2014, which was reviewed at public meetings of the Actuarial Committee held on March 18,2015 and March 30, 2015.


MPN Bulletin

As Networks By Design has been anticipating and advising our customers for some time, the Office of Administrative Law approved the proposed Medical Provider Network (MPN) rules and regulations on August 27, 2014

Welcome to the Brave New World of the MPN!

Networks By Design has been prepared for this new and demanding environment. We are looking forward to working with our customers to take full advantage of the opportunities the new MPN world has to offer.

To contact Networks By Design regarding our custom MPN Network capabilities or other related questions please call (209) 229-8537 or use the Contact Us form.


California Healthcare Industry Facts