Reduce Your Workers’ Comp Costs – Six Keys (updated)
Update – Six Keys To Saving on Workers’ Comp Costs.
The mainstay of all my presentations is the (used to be three) “
Five Six Keys to Saving on Workers’ Comp Costs.” This is a time-tested list that will reduce Workers’ Comp costs for any employer in any jurisdiction. These come from over 20 years of analyzing claim costs, and a study that I performed with over 7,000 Workers’ Compensation files.
- Timely Filing of the First Report of Injury – within 24 hours- this is easy to fix. Your company’s operation manuals should have a section on handling and reporting injuries. Your operations manual training should contain a section on reporting injuries.
- Physician’s Network – where does the employee treat? Your company operations manual should have a section on where to send the injured employee if injured or seriously injured.
- Return to Work Program – prevents large cases. All companies should have a return to work program. The physician network should have a copy of all job descriptions known as a job bank.
- Employee Treatment by Employer, Doctor, Adjuster – reduces malingering and fraud. Trust by the employee makes the first three keys more easily attainable.
- Making Workers’ Comp a Priority – do you just write a check to the TPA or carrier? Taking WC off the back burner usually results in savings.
- Understanding The Premium Audit Process- how your final bill has been calculated. The Premium Audit is the final bill from the carrier. Many articles in this blog have been written on premium audits.
I found that in a study of the 7,000 Workers’ Compensation files if an employer does not do just one of # #s 1 – 4, the claim cost will increase by 400%. And yes, if none of the first three are done properly the employer will pay 1,200% more than a similar employer that is attending to all of the first three of the five.
I will cover all of them individually over the next five weeks. I will be releasing a manual in the next month that goes even deeper into detail.
Tomorrow – How is Your Workers’ Compensation Premium Calculated?
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