Workers’ comp is not just a cost of doing business as business owners might think but rather an expense within some control. There are two simple reasons workers’ compensation costs are high.
First, there are too many claims lasting too long. Second, the employer is not taking charge of the process.
Following is a list of some of the workers’ comp mistakes companies make and how being proactive might help reduce costs:
- Hiring unqualified employees – You must ensure employees are qualified to safely perform the job they are hired to do before hiring them. This is the first measure of being proactive and trying to reduce your claims.
- Inconsistent length of disability – You must reduce the time out of work so it is equal to the duration of the actual medical disability.
- Employees out of work for long stretches – You should have 90% or more of the lost day claims back to work within 4 days. Employees will stay out of work because there are no post injury processes to get them back to work faster.
- Dedicate more resources – There are guidelines in place to determine standard conditions for duration of injuries. These guidelines should be used to determine if an injury is estimated to be longer than those guidelines.
- Understanding the End Game – Management, adjusters and employees:
Management: Management should be aware they can direct medical care in states where it is permitted.
Adjusters: Adjusters may not understand medical reports correctly. In some instances, they do not know when medical information is missing and have been known to settle large claims based without understanding medical terminology.
Employees: Employees may think an insurance company is paying the claim and are unaware of large deductible. However, some employees just try take advantage of any loopholes. There is often a huge disconnect between employers and workers which needs to be closed and companies should shoulder that responsibility to prevent large claims.
- Communication. Make sure you stay in constant communication with your injured employee. Attorneys, friends, and other injured employees will be reaching out to them as well. Communication is paramount and you can keep open lines of communication with phone calls, emails and in person meetings.
- Monitor medical care – No one is making sure a reasonable treatment plan is in place. Coordinating and monitoring medical care is much more important than reducing medical costs.
When employees return to work quickly, medical costs go down also. Sometimes that means paying more now for reducing long-term cost.
When employees return to work quickly, medical costs go down also. Sometimes that means paying more now for reducing long-term cost.
