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.
They are:
- 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?
Also Read: The Six Secrets to Saving on Workers Comp Premiums
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